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HomeMy WebLinkAbout2003.0605.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JUNE 5,2003 AGENDA ITEM #1 - PURSUANT TO A.R.S. 38-431.03.A.1, FOR DISCUSSIONS OR CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION, DISMISSAL, SALARIES, DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY EXCEPT THAT, WITH THE EXCEPTION OF SALARY DISCUSSIONS, AN OFFICER, APPOINTEE OR EMPLOYEE MAY DEMAND THAT THE DISCUSSION OR CONSIDERATION OCCUR AT A PUBLIC MEETING. THE PUBLIC BODY SHALL PROVIDE THE OFFICER, APPOINTEE OR EMPLOYEE WITH WRITTEN NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN TWENTY-FOUR HOURS FOR THE OFFICER, APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER THE DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING. (Specifically,the Town Manager's review.) Councilwoman Stevens MOVED to convene the Executive Session and Councilman Archambault SECONDED the motion,which CARRIED UNANIMOUSLY. AGENDA ITEM#2-RETURN TO REGULAR SESSION. Mayor Nichols reconvened the regular session at 6:25 p.m. SWEARING IN CEREMONY - ADMINISTRATION OF OATH OF OFFICE BY STATE LEGISLATOR,REPRESENTATIVE MICHELLE REAGAN TO MAYOR-ELECT NICHOLS. Town Clerk Bevelyn Bender introduced Mayor Elect Wally Nichols and State Representative Michelle Reagan to the members of the audience. Representative Reagan administered the Oath of Office to Mayor Nichols and congratulated him on his appointment to the office of Mayor of the Town of Fountain Hills. likarr COMMENTS FROM NEWLY-ELECTED MAYOR NICHOLS: Mayor Nichols stated that Fountain Hills was a unique place in the world and will be his and his wife's home for the rest of their lives. He said that they are blessed with the safety and security of a small town where neighbors know and look out for each other. As an example, he stated that on Monday he received a call at a home from a woman worried about her next-door neighbor who she hadn't seen for four weeks. He said the woman had been feeding his dog during that period of time and knew he wasn't in good health. She had called local hospitals and police, but since she wasn't a relative, they wouldn't give her any information, so she called the Mayor. His wife and Tim Pickering spoke and later that night,Tim found out that the man had passed away and a distant nephew was handling the arrangements. He stated that the woman was sad but relieved to find out what had happened to her neighbor and that her Town officials were able to help. He commented that as he goes forward with this position, he realizes that he would be called upon to vote on various issues and some of his votes would make people happy and others would not agree with his positions. He said he would try to represent the majority of the residents with his votes on issues. To do this, he needed to be kept informed of their desires and wishes. He advised that he would hold "Coffee with Wally" sessions at the Community Center on a monthly basis to hear what the residents had to say. Mayor Nichols stated that he was proud to represent Fountain Hills as its Mayor and serve as a member of the Council. He noted that he was one vote out of seven and realized that he does not make decisions on his own, but as part of a group of dedicated and concerned public officials who had the best interests of Fountain Hills at heart. He said he looked forward to serving the residents of Fountain Hills and prayed that he would be given the wisdom to do it in a credible and ethical manner that would make everyone proud of Fountain Hills. He thanked everyone. L. ROLL CALL-Present for roll call were the following members of the Fountain Hills Town Council: Mayor Wally Nichols, Vice Mayor Susan Ralphe, and Councilmembers: Mike Archambault, Leesa Stevens, Rick E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 1 of 25 Melendez,and Kathleen Nicola. Councilman John Kavanagh was absent. Town Attorney Andrew McGuire, Town Manager Tim Pickering, and Town Clerk Bevelyn Bender were also present. The Mayor reviewed the process the public would follow prior to speaking to an agenda item. Following the Pledge of Allegiance,Pastor Joel Bjerkestrand, Shepherd of the Hills Lutheran Church,gave the invocation. AGENDA ITEM #3 - CONSIDERATION OF APPROVING THE MEETING MINUTES OF MAY 6 AND 15,2003. AGENDA ITEM #4 - CONSIDERATION OF A LIQUOR LICENSE APPLICATION FOR SORELLI'S FROM THE VINE LOCATED AT 12005 N. SAGUARO BLVD., SUITE #101. THE APPLICATION IS FOR A#10 BEER AND WINE STORE LICENSE. AGENDA ITEM#5 - CONSIDERATION OF RESOLUTION 2003-19 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE WESTERLY PROPERTY LINE OF LOT 33, BLOCK 3,PLAT 401B (9814 N.LITTLER PLACE). AGENDA ITEM #6 - CONSIDERATION OF RESOLUTION 2003-21 ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE SOUTHERLY PROPERTY LINE OF LOT 5, BLOCK 4, PLAT 604B, (15415 E PALOMINO BLVD.) AND AT THE NORTHERLY PROPERTY LINE OF LOT 8,BLOCK 2,PLAT 605D(15410 E.MUSTANG DRIVE). AGENDA ITEM#7 - CONSIDERATION OF RESOLUTION 2003-22 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINE OF LOT 6, BLOCK 1,PLAT 506B (15012 E.WINDYHILL ROAD). AGENDA ITEM#8 - CONSIDERATION OF RESOLUTION 2003-24 ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE EASTERLY PROPERTY LINE OF LOT 17, BLOCK 3,PLAT 505C(16411 N.SKYRIDGE LANE),WITH STIPULATION. AGENDA ITEM #9 - CONSIDERATION OF RESOLUTION 2003-25 ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE WESTERLY PROPERTY LINE OF LOT 34, BLOCK 3,PLAT 401B (9822 N.LITTLER PLACE). AGENDA ITEM #10 - CONSIDERATION OF FINAL PLAT FOR "GOLDEN CONDOMINIUMS," A 2-UNIT CONDOMINIUM PROJECT LOCATED AT 16705 FAIRFAX DRIVE, AKA PLAT 1041 BLOCK 9,LOT 3, CASE NUMBER S2003-05. AGENDA ITEM #11 - REAPPOINTMENT OF TWO (2) BOARD OF ADJUSTMENT COMMISSIONERS AND THE APPOINTMENT OF ONE (1) COMMISSIONER TO FILL A VACANCY,EACH TO SERVE A TWO-YEAR PERIOD. AGENDA ITEM #12 - CONSIDERATION OF RESOLUTION 2003-29 REGARDING AN INTERGOVERNMENTAL AGREEMENT WITH THE CITY OF PHOENIX FOR A MUNICIPAL HEARING OFFICER. AGENDA ITEM #13 - CONSIDERATION OF RESOLUTION 2003-30 ENTERING INTO AN INTERGOVERNMENTAL AGREEMENT WITH PARTICIPATING PUBLIC AGENCIES IN FORMING A SEPARATE, NONPROFIT CORPORATION FOR THE PURPOSE OF JOINT E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 2 of 25 PARTICIPATION, COORDINATION AND PURSUIT OF ALL AVAILABLE LEGAL REMEDIES AGAINST NCFE(NATIONAL CENTURY FINANCIAL ENTERPRISES). Councilman Melendez MOVED to approve the consent agenda as read (Items 3 through 13) and Councilwoman Nicola SECONDED the motion. A roll call vote was taken with the final results: ,. Councilwoman Nicola Aye Mayor Nichols Aye Councilman Kavanagh Absent Councilwoman Stevens Aye Councilman Melendez Aye Vice Mayor Ralphe Aye Councilman Archambault Aye The motion CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM #14 - CONSIDERATION OF A TEMPORARY USE PERMIT TO ALLOW OUTDOOR RETAIL SALES (AKA FARMER'S MARKET) ON A PORTION OF LOT 1 AND 2 OF THE PLAZA FOUNTAINSIDE FINAL PLAT TO BE HELD EVERY TUESDAY BEGINNING THE WEEK OF JUNE 10,2003,CASE#TU2003-04. Senior Planner Dana Burkhardt advised that the request was part of an initial stipulation on an approved Temporary Use Permit that was approved by Council on January 16, 2003, for a Farmer's Market (outdoor retail sales). He noted that Staff had some concerns regarding the language contained in the Temporary Use Permit for outdoor retail sales. The original request was approved until May 31st to allow Staff the opportunity to bring forward a revised text amendment for consideration relative to this type of request that involved intermittent days of activity. Mr. Burkhardt noted that the original request expired on May 31st and this was a second request to permit this activity for a period of up to two years. He referred to slides displayed in the Council Chambers depicting the site plan and noted that the second request contained an addition to the area at the rear of Plaza Fountainside. He added that Staff had no concerns regarding this addition and said that ADA and access requirements would be met in accordance with the proposed plan. Discussion ensued relative to parking spaces and the fact that the combined parking should be sufficient due to the limited schedule of the open-air market; the fact that on-street parking would not be allowed; the fact that letters had been received from citizens in support of this activity. One letter of protest had been received from Paul Kadavy, a vendor of this market, who disagreed with the property owner's authorization of Loras Kotz as the applicant (the objection was based on the management of the private business activities and not subject to the Town's discretion of the temporary use for compatibility with the surrounding uses); and the fact that the property owner had the right to appoint or designate an individual to apply. Mr. Burkhardt stated that Staff recommended approval of this Temporary Use Permit based on the following stipulations: 1) The applicant shall provide designated pedestrian access by the use of roping, signage and barricades or similar methods,to be approved by Town staff,prior to public access. 2) All signage shall be approved by separate permit. 3) The open-air market shall be open to the public between the hours of 9 a.m. and 5 p.m. each Tuesday. All items and equipment for the open-air market must be removed from the site at the end of each business day. 4) In the event that vertical structures, such as canopies or membrane type structures are requested, administrative approval is required. All temporary structures must conform to the minimum required building setbacks of the "TCC" Zoning District. 5) Obtain all necessary approvals and permits from Maricopa County Health Department prior to operation. 6) This temporary use permit is non-transferable and shall become null and void with the issuance of a building permit for a permanent structure for the same location. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 3 of 25 7) Each vendor shall be required to obtain a business license pursuant to 8-1-10 of the Town Code (retail merchants...with a fixed place of business within the Town limits...). At time of business license application, each vendor shall submit to the Town written consent from the property owner to locate on the site. ,, 8) The applicant shall provide a list of all vendors' State of Arizona Sales Tax Identification number and lease space number to the Town Accountant or his/her designee, on a monthly basis. 9) The applicant shall notify the Town in writing if the event is not going to be held at least three days prior to the date of the event. If the Town is not informed and the event is not performed,that day will be counted against the 50 events per calendar year. In response to a question from Councilman Melendez relative to the two-year time period rather than one year, Mr. Burkhardt stated that the amendment to the Zoning Ordinance was made to allow this intermittent activity for outdoor retail sales to occur no more than fifty (50) days per use permit. He added that Temporary Use Permits, within the Zoning Ordinance, were restricted to a maximum of two years. He said that essentially within the two years, there would be a maximum of 50 days in which to conduct that type of activity. He noted that the applicant would have to reapply in order to continue and said that the Chamber of Commerce's Special Events are done through a separate permitting process. Councilman Archambault clarified that if the applicant conducted 50 activities within a one-year(rather than two-year) period of time, it would be necessary to reapply next year for another permit in order to conduct any additional activities. Mr. Burkhardt confirmed that his understanding was accurate. Councilwoman Nicola asked whether the other businesses located in the plaza were notified of the change involving the patio in the back. Mr. Burkhardt explained that the notification was the responsibility of the property owner and added that the public notice that went out was sent to all surrounding property owners located within 300 feet of the site. He emphasized that it was the responsibility of the property owner to keep his tenants informed of issues such as this. Councilwoman Stevens further clarified that the permit was good for 50 one-day events and did not expire in one year. She added that if the applicant used up the 50 days in the one year, they could not apply the next year because then they would be conducting up to a maximum of 100 events during the two-year time frame. Mr. Burkhardt explained that the applicant could reapply and in effect then would be allowed to conduct up to 100 events within the two-year period of time. Councilman Archambault requested that the applicant provide input regarding this agenda item. Loras Kotz, 12220 N.Teal (applicant) Mr. Kotz, the applicant in this case, informed the members of the Council that every member of the complex had signed a letter of support for the proposal/extension. He stated the opinion that the proposal would benefit all of the businesses in the area. Councilwoman Nicola expressed concerns relative to the fact that at least two of the businesses in the area had patio seating and enjoyed views of the fountain. Mr. Kotz commented that there would now be music to further"draw" people into the area. Councilman Melendez asked how many local vendors would participate in the farmer's market and Mr. Kotz responded that he believed approximately 15 of the vendors were local. He encouraged other vendors to participate and added that they would be given priority status. Mr. Melendez complimented Mr. Kotz on his efforts. Mayor Nichols asked if there were any citizens present who wished to speak on this matter. Paul Kadavy, 16653 E. Kingstree Boulevard E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 4 of 25 Mr. Kadavy said that he was a resident of Fountain Hills and one of the vendors this past season that participated in the farmer's and craft market. He advised that he had recently filed a protest to the application by the Fountainside L.L.C. and Loras Kotz for a permit to operate the Farmer's Market. He requested that the Council deny the permit application and advocated for the granting of a permit to operate the Farmer's Market at the Plaza Fountainside to Monique and Marty Lightner. He explained that his request was based on the fact that this was their market and the Lightners should be thanked for the market's very existence since they had the original idea, organized the market, and had run it every week during its operational season. Mr. Kadavy added that as a vendor he had an agreement with the Lightners governing his participation in the market as all of the other vendors did, and explained that one of the provisions was that they pay a weekly fee per event to participate. He said that he was surprised when Mr. Kotz collected the fee from him every week and added that this apparently emanated from his offer to help arrange this initially with the property owner and to obtain the initial permit so the Lightners could operate their market. He said that tonight the Council had before them a new application, again on behalf of Loras Kotz,for a permit to operate the market since the previous permit apparently expired on May 31 st. He stated the opinion that it made sense that the permit holder be the individual responsible for the creation of the market and the ones who actually operated it week to week. Mr. Kadavy questioned why the Town would want to issue a permit to a "middle man" when it could be issued directly to the event operators,the people the Town should want to hold responsible for whatever took place. He added that issuing the permit to Mr. Kotz in the past had created confusion and turmoil regarding who had the authority to operate the market and had raised issues of financial accountability. He said that vendors had asked Mr. Kotz for receipts for the fees collected but added that to date none had been received. He stated that they had been told that their money was used for advertising but expressed the opinion that the minimal amount of advertising that had been done to date could not account for the total amount of fees collected. He said that without the Lightners, the market, as it was, would not have existed. He stated that he believed a lot of other vendors would have allowed him to speak on their behalf but he only purported to speak for himself and stated that granting the permit directly to the Lightners was in the Town's best interest �r as well as that of the vendors and their customers. He indicated his awareness of the fact that the property owner, Plaza Fountainside,must provide written approval of any applicant to obtain a permit from the Town to utilize the property and requested that action on the permit application be denied or at least postponed. He stated the opinion that the Lightners should be given a reasonable amount of time, if they wished to have it, to discuss an arrangement with the representatives of the Plaza Fountainside whereby an application could filed by the Lightners for a permit in their name to operate their market. He added that if the Lightners wished to enter such discussions with the property owner and they proved not to be fruitful, the Lightners should be given the opportunity for a permit to operate a Farmer's Market at a different Fountain Hills location, although he expressed a preference for it to continue to operate at Plaza Fountainside. Allen Hunt, 14648 N.Fountain Hills Blvd. Mr. Hunt stated that he was also one of the vendors at the Fountain Hills Farmer's Market and also expressed concern relative to the fact that the vendors had not received receipts for the fees that had been collected. He added that they had also been told that Mr. Kotz had no insurance and said that someone must have insurance coverage in order to cover liabilities associated with potential accidents. He stated that Marty and Monique (Lightner), M&M Events, had liability insurance in place. He noted that within a five-minute period of time he counted 53 people walking by his booth and commented on the significant participation the Market had enjoyed. He spoke in support of the extension. Mr. Hunt stated that he had picked up an application for either himself or M&M Events to complete and submit and added that all of the vendors belonged to M&M Events and he recommended that they be selected as the operators of the market. He commented on the fact that Mr. Kotz was already benefiting as a result of the market and recommended that M&M Events be provided the opportunity to operate the market. Peter Putterman Mr. Putterman, a residential neighbor of the property under discussion, questioned why the Council was considering a two-year permit when they were considering construction on this site in the near future. He E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 5 of 25 said that in violation of their previous permit, the applicant had already been setting up booths in the back of the building in an area that was not under the pre-existing permit. He also asked if they decided to start construction on the property in the future, and they had permission to conduct 52 events, would they be allowed to conduct the events five times a week. He added that the proposal was a good one but said that the permit and details needed to be better defined. Martin Lightner,M&M Events,L.L.C., 26420 N. 82nd Street Mr. Lightner said that last fall, he and his wife Monique developed a concept and put together a business plan for a Farmer's Market in Fountain Hills. He said that Mr. Kotz was a former business partner and he contacted him and discussed this concept with him and was offered his assistance. He stated that Mr. Kotz had indicated that he had a perfect site for the market and the power and influence to obtain a permit to do the Farmer's Market at that time and, as the Lightners were not residents of Fountain Hills, it would be extremely difficult for them to obtain a permit. He noted that they entered into an agreement with Mr. Kotz calling for him to proceed with obtaining a permit for the market and this came to pass around February. He reported that they started the market at that time and were told that the permit was good for two years. He said they had entered into a written contract with Mr. Kotz regarding the fact that he would obtain the permit and the Lightners could use his discounted media advertising contracts for lower costing newspaper ads. He added that during the course of operating the market they found out that it was not a two-year permit and in fact it expired this last May. He informed the Council that during a conversation with Mr. Kotz last week it became abundantly clear to him that Mr. Kotz possibly did not have the intent of honoring his written contract with the Lightners in the future and said that this could be extremely detrimental to the market. Mr. Lightner explained that the contract included provisions that stated if he "holds" a farmer's market, it must be with the Lightners as managers of that market. In addition, the contract stated that Mr. Kotz could not start another market elsewhere within 30 miles of Fountain Hills. He noted that he and his wife had obtained liability insurance for the market, had entered into contracts with all of the vendors, had obtained insurance papers from the vendors or waivers of liability from them. He stated the opinion that it made sense to have the permit be placed in the Lightners' names rather than given to Mr. Kotz and reiterated that they had a written contract with him that, if honored, everything would be fine, but if not honored it might become a legal issue involving injunctions against having the market in any case. He requested that the Council table this proposal until some of the details could be worked out. Mayor Nichols thanked Mr.Lightner and the other speakers for their comments. Councilman Melendez expressed concerns regarding the issuance of a two year rather than one year permit and recommended that it be for one year only. Councilman Melendez MOVED that the Temporary Use Permit to allow outdoor retail sales to be located at 12645 N. Saguaro Boulevard, Plaza Fountainside, be changed to a one-year, rather than the two-year period of time. Councilwoman Stevens SECONDED the motion. In response to a question from Councilwoman Stevens, Mr. Burkhardt confirmed that the Council could establish any time limit not to exceed two years. Councilwoman Stevens requested additional input relative to construction on that site and asked what would happen to the market should construction begin. She asked whether the market would simply stop at the time permits were issued and construction commenced. Mr. Burkhardt referred to Stipulation No. 6, which stated "this temporary use permit was non-transferable and shall become null and void with the issuance of a building permit for a permanent structure for the same location." In response to a question from Councilman Archambault relative to liability insurance, Mr. Burkhardt Ntar responded that insurance was a private property issue and not the Town's concern. He confirmed that the market could only operate on Tuesdays. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 6 of 25 Councilwoman Nicola stated support for the motion as presented and said that the concerns she had appeared to be more of a "civil nature" and beyond the purview of the Council. She added that she hoped concerns would be worked out in an amicable manner. Vice Mayor Ralphe asked Town Attorney Andrew McGuire whether the Town had any "legal say" relative to who managed the market and who obtained the permits, etc. Mr. McGuire stated that the Town did not have a legal interest in these issues and they were not up to the Council's discretion. In response to a question from Mayor Nichols, Mr. McGuire stated that if the permit were approved under the current applicant's name, Mr. Kotz, it would remain under that name until the Council amended the Temporary Use Permit. He concurred that it could be amended later on. The motion was CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM 15 - PUBLIC HEARING TO RECEIVE COMMENTS ON A REQUEST FOR A SPECIAL USE PERMIT TO ALLOW A MAXIMUM HEIGHT OF 40 FEET AND TO ALLOW RESIDENTIAL USE IN THE TOWN CENTER COMMERCIAL ZONING DISTRICT LOCATED ON LOT 2,PLAZA FOUNTAINSIDE NORTH OF EL LAGO BOULEVARD,EAST OF SAGUARO BOULEVARD. Mayor Nichols declared the public hearing open at 7:16 p.m. Planner Denise Ruhling stated that this was an application for a Special Use Permit to allow a mixed use of residential and retail, as well as an over-height Special Use Permit at Plaza Fountainside on the lot that was previously discussed. She referred to slides displayed in the Council Chambers and noted that the request was to allow a maximum height of 40 feet instead of the allowed 30 feet and a residential component to be located on the second story of a retail building within the TCC zoning district. She added that the proposed building was a mixed use of retail and residential and the first floor of the proposed building included 13,800 square feet of retail space. She stated that the second story of the proposed building would include residential units providing approximately 16 bedrooms and added that the number of one and two bedroom units was still to be determined. Ms. Ruhling explained that the applicant requested that the 40-foot height be allowed to accommodate architectural design and additional space for the residential component. She said that no phone calls or written letters had been received relative to this proposal and Staff recommended approval of the application. Mayor Nichols asked the applicant, Tom Young, whether he wished to present comments at this time and Mr. Young declined the opportunity. The Mayor asked if there were any other citizens who wished to speak at this time. Edwin Keye, 16620 N. Agate Knoll Mr. Keye noted that this agenda item involved two separate issues, building height and residences in a commercial area. He said that when the building height limitation was passed, broad community support existed for the limitation. He stated that in order to waive the building height and zoning, a compelling reason should exist. He asked the Council to consider whether this proposal would "fit in" with the community vision and be consistent with the overall character of the community. He also questioned whether residential units over business establishments was something the Council would like to see in Fountain Hills. He also asked what the impact ratio of existing and planned multiple family housing was in relation to single-family housing. He commented on setting a precedent and asked how the Council could deny similar future requests if this application was approved. Peter Putterman, 16739 E. El Lago Mr. Putterman said that he lived one half block away from this project and when he looked out his front door toward the fountain, he looked right at this project. He said that when the original application was filed to construct this project, it was a contentious project, particularly with the inclusion of a two-story office structure, which was approved in the original plan. He noted that the applicant had determined that they E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 7 of 25 would build the retail portion first and hold off on development of the pad site and this site until a future time and that the time had now arrived. He stated that the applicant was attempting to change the plan when the plan was still half empty and to date, not very successful in terms of the revenue being generated. He added the opinion that the request was an attempt to make the project a more successful one, which he lauded, and said that he personally liked the idea of mixed use residential and commercial. He noted, however, that the idea of granting the permit to go over 35 feet would be inexcusable to the number of people who participated in the project when it was originally brought forth and he requested that the Council deny this request for the extra height. In response to a question from Councilman Archambault, Ms. Ruhling advised that the underground parking would accommodate both residential and possibly tenants of the retail but emphasized that it was being looked at as the main parking area for the residential units. Councilman Archambault asked what the height of Plaza Fountainside was at the current time and was advised that the maximum height of any portion of the building was 35 feet. In response to a question from Councilwoman Stevens relative to the proposed lofts, which represented the component of the structure that exceeded the 35 foot height limitation,Tom Young, the applicant, stated that the master suites would be located upstairs in that area. Vice Mayor Raiphe asked if it was possible to re-scale the project and build to the 30-foot height limitation. Mr. Young responded that he had worked on this project for over a year and, although they could scale it back, in order to generate enough money to pay for the underground parking, the extra footage was critical. He added that the issue also represented an architectural feature and noted that the cheapest way to build a building was a "square box,"but that was not attractive. Councilman Archambault asked whether the proposal met the standards that were in place at Plaza Fountainside at the current time. Ms. Ruhling responded that it did and noted that the TCC zoning district encouraged architectural renderings such as what was being proposed. She added that the zoning also required the building to be multi-dimensional to ensure that all sides of the building were interesting. She also commented on the fact that the General Plan, in several areas, addressed the vision of putting residential above retail and office space, especially in the downtown center. She noted that the Plaza Fountainside was part of the downtown core area and therefore the proposal was in keeping with the General Plan. She added that the maximum height of 40 feet was allowed in the TCC zoning district with a request to Council. She reported that the Planning and Zoning Commission had a very lengthy discussion regarding this and added that the building that was adjacent to this does have 35-foot peaks so the issue was five feet more on the peaks, as proposed, than what was currently there. She emphasized that the added height was not on 100% of the building and stated it would be Staffs responsibility to work with the applicant to make certain that they did not have anything there that would be obtrusive or not in keeping with what was currently in place. Ms. Ruhling confirmed that this was part of the Town Center development agreement involving the 400 residential units in the commercial district. She added that the 16 units was a maximum number and noted they are talking about"up to" 16 bedrooms and maybe 8 units. Councilwoman Stevens asked what percentage of the project was over the 35-foot height limitation(between 35 and 40 feet) and Ms. Ruhling reported that approximately 25% of the building was between 35 and 40 feet and approximately 15% was between 30 and 35 feet. Councilwoman Stevens commented that if the Council was to approve the request, she would like to place some restrictions on areas that would be above 30 feet and the areas that would be above 35 feet in order to avoid having a "flat roofed" project come back totally at 40 feet. There being no additional citizens wishing to speak on this agenda item, the Mayor declared the public hearing closed at 7:31 p.m. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 8 of 25 AGENDA ITEM #16 - CONSIDERATION OF A REQUEST FOR A SPECIAL USE PERMIT TO ALLOW A MAXIMUM HEIGHT OF 40 FEET AND TO ALLOW RESIDENTIAL USE IN THE TOWN CENTER COMMERCIAL ZONING DISTRICT LOCATED ON LOT 2, PLAZA FOUNTAINSIDE NORTH OF EL LAGO BOULEVARD,EAST OF SAGUARO BOULEVARD. kowir Councilwoman Stevens MOVED to approve the Special Use Permit, as presented, limiting the area between 30 and 35 feet to 80% and limiting the portion over 35 feet to 25%. Councilwoman Nicola SECONDED the motion. Mayor Nichols said that he had heard people state that they wanted an active and vibrant downtown and stated the opinion that the proposed project helped to accomplish this and he would vote in support of the motion. Peter Putterman Mr. Putterman stated that he would like to protest the public hearing that was just held and said that if the purpose of the public hearing was to give the public an idea of what the project was going to look like, he believed that this goal had not been met. He commented on the black and white drawings that had been reviewed and said they were "unsubstantial" and requested that in the future Staff be directed to bring better materials to the public hearings. MOTION CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM #17 - PUBLIC HEARING TO RECEIVE COMMENTS ON A REQUEST FOR A SPECIAL USE PERMIT TO ALLOW A 145-UNIT MULTIPLE FAMILY RESIDENTIAL CONDOMINIUM PROJECT IN THE "C-2" INTERMEDIATE COMMERCIAL ZONING DISTRICT, LOCATED AT FINAL PLAT 208, PORTION OF BLOCK 1, BLOCK 8, AND THE ABANDONED PORTION OF VERDE RIVER DRIVE. CASE NUMBER SU2003-02. Mayor Nichols declared the public hearing open at 7:35 p.m. Senior Planner Dana Burkhardt addressed the Council relative to this agenda item and noted that the project was an important one for the Town and was located in the first piece of the "south 40" of the vacant Town Center area. He reported that the project was 15.6-acres in size and referred to and discussed aerial photographs displayed in the Council Chambers depicting the location of the project and the site plan. He noted that one change this project contained from prior approved Special Use Permits in the Town Center Area for multiple family residential projects in commercial was the reduction in setbacks. He reported that prior approved projects met the standards of the multi-family zoning district (30 foot building minimum setback) but this project, because of its location and other reasons outlined in the Staff report, involved a reduction in the setbacks (20 foot minimum setback). He commented that because of the special circumstances that existed, the Council might want to consider allowing the change from the normal requirements. Mr. Burkhardt emphasized that the underlying zoning district was C-2 and said the project conformed to the C-2 zoning district. He added that the applicant had requested the 20-foot minimum setback to allow for additional open space within the project. Discussion ensued relative to the proposed setbacks along Stewart Vista, El Lago, and Saguaro Boulevards; the fact that the proposed density for the project was 9.3 dwelling units per acre, which was below the allowable maximum M-2 density of 10 dwelling units per acre; grade levels; the fact that the rear yard setback was located adjacent to the future Performing Arts building along the westerly property boundary; access; the fact that the development was being proposed as a gated community; the fact that the proposed preliminary plat exceeded the maximum number of dwelling units permitted by the Subdivision Ordinance on a modified hillside local road cul-de-sac (15); the fact that the applicant had proposed two cul-de-sacs with the eastern one serving 24 dwelling units and the western one serving 30 dwelling units; Staffs recommendation that a waiver be approved to allow only a one-sided sidewalk street design for the interior of the project rather than two sided as required by the Subdivision Ordinance; and the fact that the Fire E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 9 of 25 Department had determined that the number of dwelling units proposed on the cul-de-sacs was not an issue due to the relatively flat topography; the fact that all buildings were required to provide a fire sprinkler system,and that all buildings were within 150 feet of a fire hydrant. Mr. Burkhardt noted that the Town Engineer had not foreseen any issues with the expected traffic flows relative to the proposed cul-de-sacs. He commented on the Development Agreement that existed within the Town Center and noted that the approval of the last agenda item established the 87 dwelling units remaining on the 400 maximum that were originally agreed upon in the Agreement. He indicated that Town Attorney Andrew McGuire would discuss this issue. Mr. Burkhardt reported that Staff recommended approval. Mr. McGuire stated that as outlined in the Staff report, proposed Stipulation #17 addressed a requirement from the Planning and Zoning Commission that the Development Agreement be amended to accommodate what was a number of units in excess of the "entitled number" under the Development Agreement. He stated the opinion that this was unnecessary and not a very good idea particularly because the applicant would not be willing to amend the Development Agreement. He commented on the split that existed, 80 +/- units that were "entitled" and a 145-unit project. He said it was his understanding that the project would not go forward unless it consisted of 140 units or more and emphasized that the entire number of units was up to the discretion of the Council since the request was for the issuance of a Special Use Permit. He added the opinion that since the issue was entirely discretionary and the applicant was not requesting an entitled number not able to be "tinkered with," it was not necessary to amend the Development Agreement because they were "waiving" their last "entitled" 80 to provide discretion over the 140. Mr. McGuire said that what they had instead was a Memorandum Agreement by MCO and the two private property owners who also purchased property acknowledging that the Development Agreement"entitlement" to the 400 units had been expended and there were no more rights to any guaranteed units down in the Town Center area. He added that there would be complete discussions relative to Special Use Permits for any residential uses in the C-2 zone from here on out. He stated the opinion that this represented a much better mechanism to achieve what was being sought by the Planning and Zoning Commission and added that the agreement was a fairly simple one. In response to a question from Councilman Archambault, Mr. McGuire responded that the Development Agreement was still going to vest laws that were in existence at the time of the Development Agreement as the standards to be applied to the property covered by the Development Agreement. He added that this would serve as acknowledgment on the part of the property owner and subsequent buyers that there was no longer an entitlement to a certain number of units. Councilman Archambault asked whether the proposed gating between units would hinder Fire Department access to the fire hydrants. Mr. Burkhardt responded that the gated entrances would be emergency accessible and no safety hazards would exist. Councilman Archambault questioned height elevations from Saguaro Boulevard and Mr. Burkhardt explained that this portion of the project was the basis for the grading design on the part of the applicant and explained the grading and heights proposed by the applicant. Vice Mayor Ralphe discussed the issue of protection for the Town and its citizens in terms of the events that they would want to hold at that location at the Community Center, such as conferences, large and small concerts, and noted that they involved traffic and noise to some degree. She commented on the fact that Planning and Zoning had recommended that a notation be made to the Final Plat,disclosing the likelihood of "nuisances" from adjacent buildings. She said she wondered, as time went by and the buildings were sold and resold, how likely it was going to be that any of the prospective owners would see the Final Plat. She suggested that it was unlikely that they would see it and questioned whether this type of disclosure could be placed on the actual deed or made known in another manner. Mr. McGuire stated that what had typically been done in similar cases was that a notation was placed on the Final Plat, or a note on the Final Plat that had been translated into a closing document that would be signed E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 10 of 25 by the buyers, or it could be a condition of the deed as well, (a notation in the CC&R's). He said that the "bottom line" was no matter how big and bold the notification in the closing documents, it would be practically impossible to avoid potential complaints in the future. Vice Mayor Ralphe asked whether Staff had any other recommendations to provide added protection. Mr. McGuire said that his personal preference would be to have a disclosure that was on a totally separate signature page in the closing documents. He added that as the properties become re-sales rather than initial sales,that additional page would be a useful tool. Councilman Archambault referred to Stipulation#3, The Town Council approves a sidewalk on only one side of the interior drive aisle, and asked whether the sidewalk would be continuous. Mr. Burkhardt stated that normally sidewalks would be required on both sides of the street and explained that based on the density of the project, the additional sidewalk was unnecessary and discussed Staffs preference for additional parking area rather than sidewalk. Discussion ensued relative to the fact that based on the number of units, approximately 290 to 300 people would be living in that area; proposed amenities, and the fact that the zoning ordinance did not have any specific guidelines governing amenity requirements and that issue was up to the discretion of the developer. Mike Mancene, the developer of this project, stated that the amenity area was larger than Gray Hawk and was adequate for a project of this size. He reported that the price structure for the units was between $190,000 and $240,000, similar in cost to Gray Hawk. He noted that project construction would begin the end of this year and last approximately two years. Mr. Mancene referred to Stipulation #16, The Town Council and the property owners subject to the Town Center Development Agreement to allow for additional residential dwelling units in the Town Center area, and asked that this stipulation be deleted. (He noted that Mr. McGuire incorrectly referred to this as Stipulation #17 during previous comments.) He said that there had been a Memorandum of Understanding prepared between the Town Attorney and MCO Properties that clarified the discretionary aspect of the development agreement and therefore requested that#16 be removed from the record. He also clarified his intent to fire sprinkle the buildings and discussed the placement of internal fire hydrants per the public water standards. There being no additional speakers wishing to present comments at this time, the Mayor declared the public hearing closed at 8:04 p.m. AGENDA ITEM#18 - CONSIDERATION OF A SPECIAL USE PERMIT TO ALLOW A 145-UNIT MULTIPLE-FAMILY RESIDENTIAL CONDOMINIUM PROJECT IN THE "C-2" INTERMEDIATE COMMERCIAL ZONING DISTRICT, LOCATED AT FINAL PLAT 208, A PORTION OF BLOCK 1, BLOCK 8, AND THE ABANDONED PORTION OF VERDE RIVER DRIVE. CASE NUMBER SU2003-02. Councilwoman Stevens MOVED to approve the Special Use Permit, subject to Staffs stipulations, including Planning and Zoning Stipulation No. 1 and deleting Stipulation No. 16. Councilman Melendez SECONDED the motion. Vice Mayor Ralphe MOVED TO AMEND THE MOTION relative to Staffs stipulation No. 1, disclosure on the Final Plat, to reflect that in accordance with the Town Attorney's recommendation, there be a complete separate buyers' signature page relative to notification on all closing documents. Councilman Archambault SECONDED the amendment to the motion. In response to a request for input from the applicant by Councilwoman Stevens, Mr. Mancene stated that he supported the amendment as proposed. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 11 of 25 Councilwoman Stevens commented on the fact that the Council previously approved a Special Use Permit for a residential project over retail and said that the project would certainly be as noisy as this one, yet nothing was added to address that. She said that she was not opposed to the project but believed that the Council should be consistent in their actions. Lor Mr. Mancene further stated that although he did not have any problem with Vice Mayor Ralphe's amendment,the developers did not have any control over re-sales after the sales office closed the units to the first buyers. He wanted the Council to consider this point. Mayor Nichols called for the question on the amendment. AMENDMENT CARRIED UNANIMOUSLY by those present(6 to 0). Mayor Nichols then called for the question on the main motion. MOTION CARRIED UNANIMOUSLY by those present(6 to 0). Mayor Nichols declared a brief recess at 8:07 p.m. and the meeting reconvened at 8:18 p.m. AGENDA ITEM # 19 — CONSIDERATION OF A PRELIMINARY PLAT FOR THE TOWN CENTER III CONDOMINIUMS, A REPLAT OF FINAL PLAT 208, A PORTION OF BLOCK 1, BLOCK 8, AND THE ABANDONED PORTION OF VERDE RIVER DRIVE. CASE NUMBER S2003-02. Senior Planner Burkhardt stated that Staff had covered all of the preliminary plat issues during the last discussion and said if Council had any additional questions or comments, Staff would respond to them at this time. Mayor Nichols asked if the applicant wished to present additional comments at this time and was told that he did not. Town Clerk Bev Bender advised that no requests to speak had been received regarding this agenda item. Councilman Archambault MOVED to approve the preliminary plat for the Town Center III Condominiums, as presented,and Councilwoman Nicola SECONDED the motion. Councilwoman Stevens said it was nice to see a condominium project come forward where everything wasn't"all in a row,"a project with some"pizzazz,"and spoke in support of the proposal. Mayor Nichols agreed with Councilwoman Stevens' remarks and stated the opinion that the project would bring some much-needed life into the downtown area. MOTION CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM#20—CONSIDERATION OF RESOLUTION 2003-26,DECLARING THE STORM WATER MANAGEMENT PLAN A PUBLIC RECORD. (PRESENTATION BY BURGESS & NIPLE.) Mr. Pickering stated that Burgess & Niple was the engineering firm that the Town hired to complete the federally mandated Storm Water Management Plan for the Town of Fountain Hills. Mark Van Auken, representing the firm, discussed the Clean Water Act of 1972, which targeted industries and wastewater treatment plants. He explained that now that most of those areas had been improved upon, the government was targeting all of the different cities. He reported that the Phase I communities that were targeted in the 90's included Phoenix, Scottsdale, and some of the other major cities in the state and around the country. He added that they had now moved into all of the urbanized areas, pretty much metropolitan Phoenix and metro areas across the country and throughout 5 counties and 21 cities and towns in addition to 13 other regulated entities,which included Arizona State and other major land areas. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 12 of 25 Mr. Van Auken discussed the six minimum control measures, which included: public education and outreach; public involvement and participation; illicit discharge detection and elimination; construction site runoff control; post-construction storm water control and pollution prevention/good housekeeping for municipal organizations. Discussion ensued relative to materials regarding this issue that had been distributed to the members of the Council; public education processes that included the distribution of educational materials; the development of a storm water website; and the coordination of public education programs for grade schools, businesses and industries;various public involvement/participating processes; illicit discharge detection and elimination, and the importance of developing a GIS map of the storm water system; prohibiting illicit discharges to the storm water system; performing dry weather screening of outfalls and recording complaints on illegal dumping; construction site run-off control and the importance of implementing regulations/enforcement procedures, controlling erosion and sediment; controlling construction site waste and recording complaints on problem construction sites; post construction run-off control; pollution prevention and ensuring proper maintenance of infrastructure and facilities; and ensuring proposal disposal of wastes and the proper application of chemicals. Mr.Van Auken also discussed the program timeline and noted that by June 9, 2003, a Notice of Intent(NOI) and Storm Water Management Plan (SWMP) must be submitted to ADEQ (Arizona Department of Environmental Quality). He added that the Storm Water Management Program must be fully implemented by December, 2007. He commented on future requirements and stated that it would be necessary to retain records of data used to perform BMP's; evaluate current SWMP activities and discuss upcoming activities. Mr. Van Auken noted that significant penalties were in place to address non-compliance and reported that ADEQ or the U.S. Environmental Protection Agency fines go up to $25,000 per day. He also discussed the possibility of third party lawsuits being filed by environmental and other groups. Councilman Archambault asked whether projections had been prepared to reflect what the total costs would be by the year 2007 and Mr. Van Auken stated that it was still too early to gauge the long term costs but said that as figures were developed, Staff would provide those numbers. He commented on the fact that many programs were currently in place and said that many program elements were going to be incorporated into the every day duties carried out by current staff. Councilman Archambault asked whether they would be looking at raising impact fees as a result and Mr. Pickering said that the implementation of this plan did not call for any increases in that area. Mr. Pickering commended Staff(Engineering and Public Works)for their hard work in this area and for their foresight and planning. Councilman Archambault noted that the proposal called for using an Ordinance Control Officer for illicit discharge detection and asked whether another person would be hired for this purpose or if the existing Officer would carry out this duty. Mr. Pickering confirmed that the existing Officer would be charged with this responsibility. Councilman Archambault also commended Tom Ward on his hard work and excellent efforts. Vice Mayor Ralphe noted that under "definitions" there was mention of detention basins and asked for a description of the basins. Mr. Van Auken explained that these were any areas capable of holding storm water runoff. The Vice Mayor asked if the Town would be building some basins and Mr. Auken indicated that there were no plans in place to do this. Mr. Pickering commented that the Town already had some basins and noted that there was one at the middle school. Councilman Melendez asked Mr. Pickering whether a method could be developed to create an audit system whereby the Town could work with Chaparral City Water. He stressed the importance in ensuring that good water quality was in place and said that audits might be a critical component of ensuring that high level water quality was maintained. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 13 of 25 Mr. Pickering indicated that he would look into this and would discuss the matter with the Town's legal department. fir., Councilwoman Nicola MOVED to adopt Resolution No. 2003-26, declaring the Storm Water Management Plan a public record and Vice Mayor Ralphe SECONDED the motion. MOTION CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM#21 — CONSIDERATION OF ORDINANCE NO. 03-13,ADOPTING THE STORM WATER MANAGEMENT PLAN BY REFERENCE. Vice Mayor Ralphe MOVED to adopt Ordinance No. 03-13, adopting the Storm Water Management Plan by reference and Councilwoman Nicola SECONDED the motion. Vice Mayor Ralphe commented on the length and complexity of the documents and noted that the basic idea was reducing the discharge of pollutants into local waters. She added that this was one of the most important things the Town could undertake. MOTION CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM#22-CONSIDERATION OF AN EXEMPTION REQUESTED BY MR.AND MRS. LUCICH FROM SECTION 7-9-3 OF THE TOWN CODE REQUIRING FIRE SPRINKLERS IN REMODELING PLANS. Fire Chief Mark Zimmerman addressed the Council relative to this agenda item. He stated that the history of the variance began this year but the history of the ordinance began back in 1996 when it was adopted the first time. He noted that a clause was included in the ordinance so that when someone wanted to remodel or expand their home, they would have to retrofit with sprinklers after meeting a certain amount of remodel or 4161, expansion size. He reported that in the ordinance that amount was 50% of the original structure size being either remodeled or expanded. He explained that the purpose was to avoid having non-sprinkled areas next to sprinkled areas. Chief Zimmerman noted that an application for the plans was submitted on April 21' and found by Staff to be over the 50%area(approximately 61% of the structure was being remodeled or expanded). He added that figures later reflected in the building application permit increased that number to approximately 70%. He explained that the ordinance allowed applicants an opportunity to apply for a variance from the Council and this was why the issue had been placed on the agenda this evening. He discussed Staffs recommendation that the variance not be approved and emphasized the importance of ensuring that a fire safe community was in place. He pointed out that all new construction was required to contain fire sprinklers and said that numerous homes and commercial structures throughout the Town had been required to obtain the sprinklers when they remodeled or expanded and said that the same should be true in this case. He added that to the best of his knowledge a variance had never been granted in this area and stressed the importance of remaining consistent and requiring the sprinkler system to be put in place. Chief Zimmerman referred to an option included in his memorandum to the Council for Mr. Lucich to consider dated May 27,2003. He noted that the home in question was a flat roof structure, which was adding additional work to the sprinkler retrofit in the existing portion of the home. He said that previous homes in Fountain Hills with similar construction had been allowed to provide fire sprinklers in the new additional area and in connecting areas using sidewall sprinkler heads that provided increased protection with minimal damage to the existing structure. He added that in lieu of fire sprinklers in the rest of the structure, interconnected smoke detectors were required to be installed and said that this alternative was acceptable to the Fire Department as a means to provide protection and early warning to the occupants of the structure. Councilman Archambault noted that in reviewing the floor plan of the house that the sprinkled area would not touch the rest of the house. Chief Zimmerman acknowledged that was correct and had not been out to E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 14 of 25 the home to see the construction to see if it would be easy for this remodel to provide sprinklers. That he would have to see in a plan provided by a sprinkler company. Councilman Archambault questioned if there was a procedure in the Town's ordinance where homeowners went through a certain process before coming to the Council asking for relief or to prove it was a hardship case. Chief Zimmerman replied no. Under the current Town ordinance there were no other steps in the process other than providing a letter to the Clerk's office requesting to come before the Council. In response to a question from Councilman Archambault as to what constituted a hardship, Town Attorney Andrew McGuire advised that the Town Council determined hardships at the time of application. There were no other standards to be applied. Councilwoman Stevens asked Chief Zimmerman if he was recommending that the option be approved (as outlined above)and he responded that he was not recommending the option. He added that he preferred that the house be fitted with a sprinkler system. He noted that he was pro-residential sprinklers although the alternative option was a good one. Councilwoman Stevens asked whether the other property mentioned by Chief LaGreca that utilized the option did so with the recommendation of the Fire Department. She indicated her desire to receive a recommendation from the Department and asked whether more than one property utilized this option. Chief Scott LaGreca said that he had been the Town's Fire Marshall and Chief for six years and noted that there was only one case where this came up. He stated that he believed the house was located on Jacklin and he visited the home and performed a walk-through. He added that he and the owner of the house jointly worked through the situation to ensure that the best coverage was provided. He noted that in that particular house there would have been such damage to the remodel,to the roof itself,that it would have been a hardship. The homeowner would have had to take the entire roof off. He reported that they worked together with the homeowner and had achieved approximately 80% coverage of the house and the rest of the coverage was accomplished through the use of smoke detectors. In response to a question from Councilwoman Nicola, Mr. McGuire stated that he would leave the definition and determination of "remodeling" up to the building department staff but added that he did not believe reconstruction would apply to anything other than a completely destroyed or damaged structure. He added the opinion that he believed the ordinance was enforceable in its current text. Michael Lucich, 15238 E.Aspen Drive (applicant) Mr. Lucich stated that in his particular situation, finances were an aspect, but not the main component. He referred to a letter he forwarded to the Council dated May 26, 2003, which contained a diagram of his home highlighted in different colors. He said that his whole point was that the only area of the home that was going to have any construction whatsoever was the existing garage, 400 square feet out of the entire house, which was about 1700 square feet. He added that his argument was that the ordinance was requiring him to go through the rest of his house that wasn't going to be touched by construction and basically rip up all the ceilings because since it was a flat roof, there were no peaks. He added that in the great room itself, very little space existed between the ceiling and the roof. Mr. Lucich stated that the fire sprinkler riser where the water main would be was directly in front of the house and he would have to change the facade of the front of the house in order to cover that. He expressed the opinion that he or any other homeowner should not be subjected to retrofitting an entire house when they were only dealing with their existing garage. In response to a question from Councilman Archambault, Mr. Lucich stated that the existing garage had no insulation and he would be raising the floor, putting in new windows, putting in new drywall and performing some electrical work. He noted that the room would be totally gutted but added that the house, the actual living space, would not be touched. He reported that the addition was approximately 830 square feet, which placed him over the ordinance guidelines and required him to retrofit the entire house. He explained that there were ways around this situation and said that the reason he wanted to do the remodeling was to gain more room in the house, have a bigger garage and a workshop. He added that he had no plans to sell his home in the near or distant future. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 15 of 25 Councilwoman Nicola MOVED that the request for an exemption of the Town Code requiring fire sprinklers in remodeling plans be approved. MOTION DIED FOR LACK OF A SECOND. AGENDA ITEM #23 - FOUNTAIN HILLS TOURISM COUNCIL WILL PROVIDE A "TOURISM IMPACT STUDY AND DESTINATION MARKETING PROPOSAL." Town Manager Tim Pickering introduced the Chairman of the Fountain Hills Tourism Council, Vladimir Hulpach. Mr. Hulpach stated he would begin the presentation and be assisted by Mark McDermott, the former State of Arizona Tourism Director. Mr. Pickering noted that this group was a branch of the Chamber of Commerce, not under the Town of Fountain Hills, and added that they performed outstanding work and concentrated on the area of tourism, one of the main economic sectors of Fountain Hills. Mr. Hulpach advised that the Tourism Council had been in place for approximately two years and said that it had been a great privilege to serve as the Chairman of the group comprised of extreme professionals and individuals with vested interest in tourism as it related to Fountain Hills as well as the Fort McDowell Indian Community. He acknowledged the presence of the General Manager of the McDowell/Yavapai nation. Mr. McDermott briefly outlined the contents of a Tourism Impact Study and a Destination Marketing Proposal for the Town of Fountain Hills (Copy on file in the Office of the Town Clerk) and explained that the study was prepared by the Fountain Hills Tourism Council with the aim of providing the Town Council, Town Staff, and the citizens of the community with an objective assessment of the current and future importance of tourism in all of its forms to the community. He added that the study also included thoughts and recommendations on how to maximize the tourism benefits to the Town's economy while under the current state of fiscal restrictions. He stated the opinion that the proposal was extremely "solid" and just began to scratch the surface of the potential that existed. Mr. McDermott noted that tourism was Arizona's prime export industry and discussed findings that concluded that if the metro-Phoenix region was to continue to do well as an economy, it would have to maintain and/or improve its position as a tourism destination. He outlined direct financial benefits and noted that for fiscal year 2002,the Town of Fountain Hills was estimated to have collected over$90,000 in bed tax and over $270,000 in sales tax from the existing lodging and golf facilities. He also outlined indirect benefits. Mr. McDermott stated that in order to succeed with tourism, it was critical that a long-term plan be put in place that relied specifically on a performance based, dedicated funding mechanism for promotion that essentially took tourism promotion "off budget" and left it out of the debate on an annual basis. Rachel Shako, President and Chief Executive Officer of the Scottsdale Convention and Visitors Bureau, thanked the members of the Council for their past support and stated that this would be their third formal partnership or contract with the Town should they decide to move forward with the proposal. She noted that their goal was to"leverage" funds with their collected funds so that together they could accomplish what they could not do on their own. She discussed their efforts to work closely with the various Tourism Councils and how that had helped to leverage their funds as well. She commented on the fact that nothing could really be accomplished unless the private sector opted to participate with them and said that the $1 million advertising campaign that they administered became a $4 million advertising campaign because of partners such as Copperwynd and others who put their own money into this investment because they believed the return on the investment was worth it. Ms. Shako provided a brief overview of statistics and efforts to spotlight Fountain Hills and said that over the past fiscal year their advertising campaign promoted the triad of these communities and reached over 250 million viewers or readers with a positive message. She noted that if they were to buy that, it would cost approximately $4.2 million. She discussed media efforts and successes; direct sales leads; a variety of leads and marketing campaigns that had been specifically geared to promote the Town of Fountain Hills, and the dollar values represented by those efforts; reports, and research conducted. Ms. Shako said that it had been a E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 16 of 25 privilege to work with the Town of Fountain Hills, and reiterated her appreciation for past and anticipated future support. Roxanne Boryczki, a member of the Chamber of Commerce and one of the founding members and past Lir Chairperson of the Tourism Council, reiterated the history of the Tourism Council and discussed combined efforts that had been expended to further the tourism industry in Fountain Hills. She commented on the fact that the Council was generous enough to provide them with the monies needed to get started and added that the Tourism Council had outlined a marketing plan, created an identity for Fountain Hills, implemented an advertising campaign, and showed results. She noted the study that was currently before the Council was the culmination of those efforts. She added that the Tourism Council's goal was to bring the results of their work to the business community and gain further support from the restaurants, the retailers, and members of the business community in order to gain continued support for the Tourism Council. She explained that they could not do that if they had no resources with which to move forward. Ms. Boryczki stressed the importance of obtaining Council support to allow them to continue the great work that had begun. She asked the Council to support their efforts and provide them the opportunity to build an economic base for the community that would positively impact the entire community now and far into the future. Mr. Hulpach re-addressed the members of the Council and briefly discussed the contents of the Study that was currently before the members of the Council. He stated that the Tourism Council was seeking a couple of motions from the Council this evening, namely, the Tourism Council would like to be recognized as the most appropriate entity to conduct the activity of destination marketing for the Town of Fountain Hills, which was what the organization had been carrying out for the last two years. He added that they would like to eventually obtain some professional guidance from the Town Council or Staff and said that if the position of a Community Development Director was established, they believed it should be a person to whom the Tourism Council should report. He said that they would like to have the budget, outlined on Page 10 of the Study, approved by the Council this evening. He added that they would like Staff, under the direction of the Town Council, to prepare a declaration or resolution recognizing the importance of tourism on the entire community and adopting the vision of Fountain Hills becoming a first class tourist destination. He added that a positive ruling would inject new enthusiasm into the Fountain Hills business community and said that the public should perceive the approval of the proposal as the Town's high-yield investment in a desirable future. Mr. Pickering stated that the Council should be made aware of the fact that $30,000 had been budgeted for the Scottsdale Convention and Visitors Bureau in the proposed budget and added that funding in the amount of approximately$8,000 had been set aside for advertising. He added that Staff had not added any additional dollars to the tourism budget from what it had been reduced to in December of last year. Mr. Pickering referred to comments made by Mr. McDermott regarding a dedicated performance based protected funding mechanism and asked what mechanism the Tourism Council was proposing. Mr. Hulpach commented on the fact that there were other funds that the Tourism Council contemplated would assist them in reaching their overall goals, namely funds that were received annually from grant programs, such as the Arizona Office of Tourism grant and other programs. He added that there would be funds collected from the entities with a vested interest and said they would be willing to work out a scenario whereby those entities with vested interests would participate in the program on a "matching basis." He noted that they were also seeking a partnership with the Fort McDowell-Yavapai nation to enhance their presence in their marketing efforts and applying for some type of contribution to support their budgetary needs. Mr. Don Weintraub, General Manager of The Copperwynd Resort & Club, addressed the Council and noted that the current tax rate or "check out" rate in any hotel in Fountain Hills was 12.87%. He reported that this placed Fountain Hills somewhere in the top ten cities that had the highest "check out" rate and added that it equates to more than Scottsdale and closer to cities like New York,Los Angeles, and Massachusetts. He said that the current mechanism in place in many cities was the bed tax going back to the cities but added that the dollars that came back from the tax should be specifically earmarked for tourism promotion as opposed to going to a general fund and being spent on whatever the City determined to be necessary. He requested that E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 17 of 25 the Council look at everything that was discussed this evening and pursue a longer-term strategy for tourism funding. In response to a question from Councilman Melendez relative to year-to-date occupancy rates, Mr. Weintraub reported that the figure was approximately 60% in Fountain Hills compared to approximately 68%in Scottsdale. Frank Ferrara Frank Ferrari, the Executive Director of the Chamber of Commerce, stated that the Chamber strongly endorsed the proposals as well as the mechanisms to put funding in place for tourism purposes and provided justification for their support. He urged the Council to approve the Tourism Council's requests, which would positively impact the entire community. Mayor Nichols said that he strongly supported tourism and added that it was important to the Town of Fountain Hills. He added, however, that in looking at the numbers contained in the report and referring back to Mr. McDermott's performance based funding formula concept and the states referred to by him, he had stayed in a lot of hotels in those states and was aware of the fact that those states charge a pretty "hefty" tax and bed tax. He said that if you look at the proposal before them this evening, there are 169 hotel rooms presently and they were forecasting a projected 750 hotel rooms, an increase of 581 rooms. He noted that at the current time they only had in process an approved and funded 100 rooms for the Town and the other 462 rooms were still in question. The Mayor stated that if the Town did not get the additional hotel rooms, it would not get the anticipated revenues and suggested that they look at increasing the bed tax, which was currently at 3%. He added that if it was increased to 4.2%, the proposed budgets for this year and next year could come out of the bed tax funds. Councilwoman Stevens asked how this would "tie-in" with the Downtown Economic Development Director's position. Mr. Pickering responded that he did not see a significant "tie-in" with this and stated the opinion that the position would be geared more towards attracting and helping hotels locate in the area and through the building construction processes. Mr. Hulpach commented on the fact that Fountain Hills could not build a downtown and could not produce economic development because it lacked traffic and emphasized that the Tourism Council was recommending that they build tourism,build traffic,to help the downtown prosper, sustain and grow. Discussion ensued relative to the proposed tourism budget on Page 10 and the fact that the total budget was $102,128, the Tourism Council request that the Town contribute $87,164; efforts to obtain funding from the Fort McDowell-Yavapai Indian nation; the fact that the Chamber of Commerce did not have any funding budgeted for this purpose; the fact that the figure represented the same funding amount that had been approved in the past; the importance of identifying other funding sources perhaps even from the master developer, particularly entities that were benefiting from enhanced tourism; and difficulties currently experienced by both retail and restaurant establishments in Fountain Hills. Councilman Melendez commented that it was his understanding that the Tourism Council wanted the Town Council to vote on this item but stated the opinion that a vote would be premature in view of the fact that the next item on the agenda was to adopt the 2003-04 budget. He commented on the difficult decisions the Council would make regarding the budget and decisions regarding various community groups. He said that before he began to consider funding for tourism purposes, despite its importance, there were many other deserving agencies out there that deserved consideration. He recommended that they should delay action on this item until the full budget came up and stressed the importance of prioritizing budget issues. Mr. Pickering concurred with Councilman Melendez's statement relative to the fact that any funding decision would have to be made under the next agenda item. kkiimr In response to a question from Mayor Nichols relative to the recommendations from Mr. Hulpach and the members of the Tourism Council, Mr. Pickering noted that in order to act upon them, they would have to be E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 18 of 25 placed on the agenda of a future meeting. Mayor Nichols requested that they be written up and placed on an agenda for consideration at a future meeting. Roxanne Boryczki Lov Ms. Boryczki once again addressed the Council and said she wished to comment on what was being proposed by Mr. Pickering as far as the proposed budget for the Tourism Council and noted that $30,000 would go to the Scottsdale Convention & Visitors Bureau and $8,000 was being proposed for the Tourism Council. She commented that this amount was not enough, would not provide sufficient funds to market Fountain Hills or apply for matching grants from the Arizona Office of Tourism, and would barely provide enough money to continue the brochure program for an entire year. She emphasized that this was all they would be able to do and nothing new or progressive would occur. In response to a question from Councilwoman Stevens, Ms. Boryczki stated that $15,000 in matching funds was needed in order to apply for the grant. Mayor Nichols asked if there were any other comments to be made at this time and there being none, he stated that they would move on to the next agenda item. He thanked everyone for his or her input. AGENDA ITEM #24 - CONSIDERATION OF RESOLUTION 2003-27 ADOPTING THE 2003-04 BUDGET. Mr. Pickering stated that many changes had occurred since the last Council meeting on May 5th. He commented on the fact that Proposition 400 failed and a new Mayor was in place, and those changes had resulted in changes to the budget. He said that he had provided the Council with a list of several different items that had changed: items that had been "refined" and responses to questions that the members of the Council had had and corrections in the budget itself. He noted that there had not been any additions to the budget. Mr. Pickering commented that at the last Council meeting the Council had raised questions and Staff had attempted to respond to those particular requests. He said that the first one involved funding for the special interest groups and added that he had provided a recommendation to the Council relative to some alternatives that the Council could adopt. He stated that they had also looked at increasing park ball fields, a question that had been previously raised, and reported that the "short answer" to that question was that a plan was in place but it was still approximately two years out. He advised that a question had also been raised regarding utilization of park development fees and said that Staff felt that the fees should be used to purchase new parkland, which was expensive. He noted that the last area that was looked at involved the status of the Town's recreation program as to which programs had actually been cut and how many had been left. Mr. Pickering said that at the last meeting he had been hopeful that the budget would be adopted at this meeting but said that he did not recommend that adoption occur at this time for one specific reason, the law enforcement division of the budget. He said that the Town had not yet received written confirmation from the Department of Justice that the Town was in compliance with all of the grants. He requested that the Council delay action on the budget until Justice Department confirmation had been received. He asked the Council to pose any other questions they had regarding the budget during the meeting and said that staff would respond to the questions and/or perform any additional research that was required. Mr. Pickering requested that the Council provide Staff with direction on the special interest funding so that any changes the Council desired could be made prior to the next meeting. He added that input from the public would also be received during the meeting and said he hoped that the budget could be adopted at the next meeting. He reported that all of the notifications had been placed in the required publications and expressed the opinion that they would be able to remain within the $18.6 million budget. He added that this should be the goal and discussed a recommendation that they do not "dip into" reserve funds that the Town was trying to build up. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 19 of 25 Councilman Melendez requested that at some point Mr. Pickering provide the Council with a figure reflecting how much impact the failure of the passage of Proposition 400 would have on the Town of Fountain Hills with respect to Moody's and bonds. Mr. Pickering responded that he could do that if Moody's actually lowered the Town's rate but noted that at the current time they had allowed the Town to remain "as is" and no adjustment had been made. He added that if they came back in the future and lower the rating, he would provide the Council with a breakdown in terms of cost impacts on the Town. He said that the Town remained on their "watch list" and they were closely watching to see what happened with the budget. In response to a question from Councilwoman Nicola, Mr. Pickering stated that the Town no longer provided funding for parks and recreation programs such as the Halloween Carnival and St. Patrick's Day celebration. He said that they were listed as "discontinued" since the Town no longer provided the funding but added that since donations had been received for those events,the programs would continue to be offered. Vice Mayor Ralphe requested that Staff look into the possibility of bringing back the "Concerts in the Park". She said they were gone now because of lack of revenue but suggested that Staff pursue this type of event based on charging an attendance fee so that the Town might possibly break even or make money on the concerts. Mr. Pickering stated the opinion that a fee would generate only a small amount of revenue and said that he would prefer soliciting donations or a sponsorship approach. He added that Staff would pursue this issue and report their findings at a later time. Mayor Nichols asked whether any members of the Council had questions regarding Pubic Works, such as building safety,planning and streets. Councilman Melendez commented that some time ago, Chief Jerry Sheridan from the Sheriffs Office made a statement to the Council to the affect that Sheriff Arpaio's chain gangs would provide assistance to the Town of Fountain Hills to clean up the washes. He requested that Captain Penrose pursue this issue and find out whether this assistance could be provided. Captain Penrose commented that the offer was still valid and available. He said the offer would remain in place as long as the Sheriffs Department was providing law enforcement services and indicated his intention to coordinate efforts between the Department,Mr. Pickering, and/or Mr. Ward. Councilwoman Stevens asked whether the position of Economic Development Director was under Public Works and Mr. Pickering responded that the position was under Special Excise Tax or Sales Tax revenue, under the Planning Department. He said that the position would actually report to the Planning Manager. Mayor Nichols clarified that the position was a Coordinator,not a Director. Councilman Archambault commented that there had been a lot of turnover, particularly in the Building Safety Department, and asked what was being done to combat this. Mr. Pickering responded that in order to retain good people, salaries must be competitive, benefits must be appropriate and in line, and a good working environment must be in place. He said that when comparisons were made between Fountain Hills' salaries and salaries paid by other municipalities throughout the Valley,the Town's salaries were lower. Discussion ensued relative to the fact that cutbacks to the proposed salary increases and/or freezes to the salary increases would jeopardize the Town's ability to maintain valued employees; the fact that at the current time a 4.5% adjustment was being proposed that could be adjusted to the market; downtown development funds, and the fact that those dollars could be used for tourism purposes if they were used for the purpose of promoting just the downtown area; and Staffs intent to pursue the possibility of utilizing a portion of those funds for that purpose in order to cover the matching grant expense. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 20 of 25 Councilwoman Stevens commented on the Downtown Development Coordinator's position and concerns regarding limiting the scope of responsibilities of that position to just the downtown area. She stated the opinion that if someone came to Town and was seeking a place to relocate a business and it happened that there was a spot in an industrial area rather than the downtown area, she believed the Coordinator should be able to assist that person in their efforts. She said that she would like to take a portion of that money from the Downtown Development fund and a smaller percentage of funds out of the General Fund for this purpose, perhaps a 75-25 split (25% from the General Fund and 75% from the Downtown Development funds)in order for development to become town-wide. Councilwoman Stevens added that a need existed for a person to assist with development efforts and to "take people through the process." She said that at the current time the Town had a negative reputation in this area. She added that they should not hire someone just to "hold a developer's hand" and stressed the importance of hiring someone with initiative who would be held accountable for his/her actions. She requested that she be provided a copy of a job description that detailed the exact responsibilities of the position. Mr. Pickering commented that Staff had prepared such a description based on a previous request and copies had been included in the packets. He noted that this part of the Coordinator's job was relatively small and the other part of the job was attracting businesses to Fountain Hills. He added that this was a very key component of the development "game." Additional discussion ensued relative to the importance of developing a five-year strategic business plan for the Town which would assist the Coordinator in identifying the types of businesses to go after; the fact that appropriate zoning was in place and would assist in this area; the fact that the image of Fountain Hills needed to be improved upon and businesses needed to be solicited and the important role that Mr. Pickering, the Mayor, and members of the Council, working as a team, could play in this area; and the possibility of pursuing incentives to attract businesses and corporations to the Town in the future. In response to a question from Councilwoman Stevens, Mr. Pickering said that if he received Council concurrence relative to the 75%-25% split previously recommended by Councilwoman Stevens, he would go back and make that change. Discussion also ensued relative to changing the name of the position to Economic &Downtown Coordinator and the fact that salary and benefits for that position totaled$65,510. It was the consensus of the Council that Mr. Pickering make the changes and pursue this issue. Councilwoman Stevens said she would like to discuss spending development fees for parks and recreation on parks. She noted that a handout that was distributed that identified a park location south of Shea, one located along the western boundary, and one on State trust land. She stated that she would like the Parks & Recreation Commission to go back and take a look at this recommendation and determine whether they still agreed with it. She commented on the fact that the one park south of Shea involved a gated community and said she would not support a public park in a gated community. She also questioned whether the western boundary of the Town would be the preserve area and added that as far as the State trust land, she believed that should be a "negotiated" park. She added that she had concerns that monies were being saved for options that she did not view as "viable" and noted that funds must be used within six years or they were lost. She stated that she would like the Parks Commission to go back and review this in an effort to determine whether the Town was really utilizing this for the desires of the community. Mayor Nichols agreed with Councilwoman Stevens' comments and said that these funds should be used for other capital projects within the Parks and Recreation Department. Mr. Pickering pointed out that laws were in place that dictated how the fees could be used and indicated his intention to obtain an opinion from legal staff relative to the use of these monies. Councilman Melendez commented on the fact that the proposed budget contained a proposal for three small picnic ramadas to be built at a total cost of $209,000. He said that he walked around the park practically every day and had yet to see all of the ramadas full. He stated the opinion that those funds could be used to fund the seniors, the Boys & Girls Club, and the community theater. He said that this represented a challenge for the Town Manager and asked him to thoroughly research this issue and provide him with a E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 21 of 25 written opinion as to whether the funds could be used for these purposes instead of being used to construct the three additional ramadas. Mr. Pickering noted that development fees must be used for "growth" and were based on new things that the Town acquired because there were new people,rather than replacing what the Town already had. Mayor Nichols stated the opinion that growth had been experienced in all three of the areas mentioned by Councilman Melendez. Mr. Pickering stressed the importance of abiding by the laws and said he had concerns about development fees and using them for items that technically and legally they could not be used for. In response to a request for clarification from Councilwoman Stevens, Councilman Melendez said that his intention, if legally possible, would be to take the $209,000 and move it over to some of the community groups. Vice Mayor Ralphe requested that Staff conduct research and provide the Council with a couple of options involving the development fees, parks, and how they affected the park's capital improvement dollars for this year. She questioned whether they could take more dollars out of the impact fees and less from the general fund and stated the opinion that this could actually lower the budget and/or they could use the "freed up" general fund dollars for other things. Mr. Pickering indicated Staffs intention to pursue some alternatives and said that they would not have new parks if they used up the reserves. Councilwoman Stevens indicated that she would like some input from the Parks and Recreation Commission and Director relative to what they had in mind for parks. Director of Parks and Recreation Mark Mayer stated that monies were in place for parks and Staff was ready to move when opportunities to purchase parkland arose. He said that development funds would be used to further the General Plan and the expenditure for the acquisition and development of additional park spaces. He commented on the increasing cost of the land and diminishing availability. He noted that there were areas of the community that were not currently being served by park properties and added that the General Plan was designed to address this issue. He emphasized that because the land was so costly, a reasonable fund balance must be in place in order to purchase the property. Councilwoman Stevens asked where the Parks Commission would like to see a park located. She said she would like the Commission to take another look at this issue and provide recommendations and a plan relative to the establishment of parks to the members of the Council. Mr. Mayer reminded the Council that the development funds were relatively new and had only been in place a couple of years. He stressed the importance of continuing to use these funds to build up the fund balance. Councilman Archambault discussed Fountain Park and asked whether any portion of the $209,000 allocated for the three ramadas was grant money. Mr. Mayer responded that there were dollars available that Staff had secured from a federal grant under land and water conservation and said that the dollars listed in the budget did not include any grant monies that were also coming in. Discussion ensued relative to the Administration area and the fact that the "undesignated position" was the portion that was originally budgeted for Paul Nordin and the fact that the monies could now be used for the changes that were going to be made to the Economic Development Coordinator's position; a request from the Town Manager for Council input relative to "special interest funding" following citizen input; the contents of Resolution No. 2003-16 which was previously adopted by the Council, and the fact that funds were provided in accordance with that Resolution for use by seniors and other organizations; the fact that the amount of the funds was not significant, probably under $25,000; the fact that if the Emergency Management position was not filled additional dollars would be saved, and Councilman Melendez's request that this issue be revisited at the next Council meeting. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 22 of 25 Mayor Nichols stated that it was the consensus of the Council that Mr. Pickering be directed to go back and revisit portions of the budget in an attempt to determine whether provisions could be made for the community benefits that were mentioned in his letter, either through the General Fund, out of development fees,and/or other alternatives. He added that Mr. Pickering should also look at tourism to see if monies from downtown development could be freed up to meet any of those purposes. In response to a question from Councilwoman Stevens, Mr. Pickering noted that the budget contained $8,000 for the matching grant and an additional$7,000 was needed. Vice Mayor Ralphe requested that Staff put together ideas relative to the development of a policy on community benefits. She stated the opinion that it would be extremely helpful to the Council when they were rendering decisions on issues such as this. The Council heard the remarks from the following speakers: John O'Flynn,15268 Sullivan Mr. O'Flynn, President of Senior Services, advised that the agency had received $10,000 from the Women's Club and discussed the group's intention to reduce their request for funding from the Town by $10,000 for a total funding request of$40,000. Edwin Keye, 16620 N. Agate Knoll Mr. Keye requested that dedicated funds be used for the purposes intended. Mr. Pickering assured the Mayor, Council, and Mr. Keye that dedicated funds would only be used for the purposes intended. Richard Schultz, 13316 Vista Del Lago Mr. Schultz,representing the Boys &Girls Club,requested that the Council approve the Boys & Girls Club's request for funding for capital and operating costs. He commented on the positive impacts of the Club on the entire community and the benefits received. He discussed the construction of the Club's new building and fund raising activities and said that unless the Council voted to support their cause, federal funding, United Way funding, and other sources of revenue would be lost. He noted that 95% of the Boys & Girls Clubs across America received funding from their local government and urged the Council to approve this very critical funding request. Dick Schmidt, 17319 E.Teal Mr. Dick Schmidt, Chairman of the Parks and Recreation Commission, stressed the importance of scheduling a joint meeting between the members of the Commission and the Town Council. He said that one of the prime functions of the Parks & Recreation Commission was to report to the Council and recommended and discussed recreation programs and capital expenditures for park programs. He urged them to sit down with the members of the Commission before the next meeting on June 19th. Councilwoman Nicola requested that a joint meeting between the members of the Town Council and the Parks and Recreation Commission be scheduled per Mr. Schmidt's request. Mayor Nichols stated that it was the consensus of the Council that a meeting be scheduled as requested by Mr. Schmidt and recommended by Councilwoman Nicola. Mr. Pickering indicated his intention to schedule such a meeting. Phyllis Kern Ms. Kern,a member of the Tourism Council, spoke on the issue of tourism and asked the Council to consider funding the full requested amount ($83,000). She stressed the importance of tourism on the entire community and said that funding was critical and should not be denied. She asked the Council to trust the recommendations presented by the Tourism Council and support them in their funding efforts. Councilwoman Stevens commented on the fact that the Town Manager was seeking additional direction and said that tough decision were going to have to be made by the members of the Council. She said that on May 20th, the voters told them "no more money" and added that the Town had to live within its means and that involved cutting back in certain areas. She stated that she supported Mr. Pickering's idea of having the community groups ask for funding from Fort McDowell, from Proposition 202, and added that she would E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 23 of 25 like to see half of the money that they were asking for come from the reservation with the other half coming out of the Town budget. She was against cutting Rural Metro or public safety for that. Councilman Melendez announced that he had challenged Sheriff Arpaio yesterday to "step it up a notch" and assume a leadership role as a resident of Fountain Hills and work with the Town Council in meeting with the tribal leaders relative to Prop. 202. He said that this afternoon the Sheriff called and pledged his full support in helping the Town of Fountain Hills obtain a portion of the 202 funds. He stated that the Sheriff had requested that the Council schedule appointments with the Presidents of the Indian Nations and he indicated his intention to be very forceful in his efforts to assist the Town. Vice Mayor Ralphe commented that she supported looking into Prop. 200 funds in an effort to determine amounts and timetables and said that maybe enough monies would be available to cover all of the community needs. She requested that Staff pursue this important issue to the best of their ability. Councilwoman Nicola echoed Councilwoman Stevens's comments with regard to having Town Staff looking to see if there might be a little bit of help available for these community groups. She did not want to eliminate the Emergency Management Coordinator's position and said she also did not want to cut Rural Metro service. AGENDA ITEM #25 - COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS FOR FUTURE MEETINGS. Councilwoman Stevens stated the opinion that they needed to "zero in" on the speaker cards and said that the time limit for speakers to present remarks should be a maximum of three minutes unless they called ahead to make special arrangements or represent a group present at the meeting. Councilman Archambault requested that Staff review the sprinkler ordinance in an effort to develop procedures to establish "hardship cases." Mr. Pickering said that in the building codes that were going to come before the Council the process would be changed and improved procedures would be recommended. Councilwoman Stevens stated that she was somewhat dismayed when an applicant indicated that he had already found a way to circumvent a policy and asked Staff to pursue this issue and not allow this to occur. Councilman Archambault commented that for the next budget year he would like to see some long-term strategy plan for the Tourism Council, which he believed would be even more of a viable entity in the Town. He added that he would like to see some projections included in the Town's budget. Councilman Melendez congratulated the Mayor on conducing his first meeting and stated the opinion that he did an excellent job. Mayor Nichols thanked Councilman Melendez for his comment. AGENDA ITEM#26- CALL TO THE PUBLIC: Town Clerk Bevelyn Bender stated that both of the citizens who wanted to speak under this agenda item had left. Mayor Nichols stated that one of the things the Council was looking at possibly doing in the future was having the Call to the Public be the first item on the agenda or perhaps first and last. He said this issue would be further discussed. AGENDA ITEM #27 - SUMMARY OF COUNCIL REQUESTS REVIEWED BY THE TOWN MANAGER. Mr. Pickering indicated his intention to e-mail the members of the Town Council a summary of Council requests raised throughout the meeting. Councilman Archambault commented on the fact that a joint meeting between the Town Council and the Parks and Recreation Commission should be scheduled. The Mayor stated that he supported the development of a five-year financial plan and said he would like to work on that this year. E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 24 of 25 AGENDA ITEM#28-ADJOURNMENT Councilwoman Nicola MOVED that the Council adjourn and Councilman Archambault SECONDED the motion, which CARRIED UNANIMOUSLY. The meeting adjourned at 11:15 p.m. /// TOWN OF FOUNTAIN HILLS By: r ally • as, ayor ATTEST AND PREPARED BY: y 7 4i.X / • 7 Bevelyn J. Bendier,Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular and Executive Session held b the Town Council of Fountain Hills on the 5th day of June 2003. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th day of June 2003. , 7 Bevelyn J. Be er„jown Clerk L E:\BBender\Documents\Current Minutes 2003\Regular and Executive session 06-05-2003.doc Page 25 of 25