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HomeMy WebLinkAbout2003.1016.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL OCTOBER 16,2003 Mayor Nichols called the meeting to order at 5:30 p.m. AGENDA ITEM #1 — VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. 38- 431.03.A.1., (i) FOR: DISCUSSIONS OR CONSULTATIONS WITH DESIGNATED REPRESENTATIVES REGARDING NEGOTIATIONS FOR THE PURCHASE, SALE OR LEASE OF REAL PROPERTY(SPECIFICALLY, THE TOWN HALL LEASE AND PROPERTY.) Councilwoman Ralphe MOVED to convene the Executive Session and Councilman Archambault SECONDED the motion, which CARRIED UNANIMOUSLY by those present. Councilman Kavanagh joined the meeting at 5:33 p.m. AGENDA ITEM#2-RETURN TO REGULAR SESSION Mayor Nichols recessed the Executive Session 6:20 p.m. and reconvened the Regular Session at 6:30 p.m. Following the invocation by Pastor David Iverson,Assembly of God Church,roll call was taken. ROLL CALL — Present for roll call were the following members of the Fountain Hills Town Council: Councilman Archambault, Mayor Nichols, Councilwoman Stevens, Councilman Kavanagh, Councilwoman Nicola, Councilwoman Ralphe, Town Attorney Andrew McGuire, Town Manager Tim Pickering, Accounting Supervisor Julie Ghetti and Town Clerk Bev Bender were also present. Vice Mayor Melendez was absent from the meeting. MAYOR'S REPORT Mayor Nichols stated that this evening he had a Proclamation recognizing the Strong Cities and Towns and said that the citizens of Fountain Hills rely on the delivery of superior Town services to experience the high quality of life in the community. He added that Town services such as fire,police,parks,public utilities, street maintenance, the community center, the library, and emergency medical services were delivered each day to meet and exceed those expectations. He emphasized the importance of State shared revenues to ensure the delivery of those services and said that the Town of Fountain Hills joined with the League of Arizona Cities and Towns and other municipalities across the State of Arizona in declaring October 20th through the 26th, 2003 Strong Cities and Towns Week. He added that the Town would participate in the Chamber's business showcase program on October 2211d to answer questions regarding municipal services. Mayor Nichols also recognized the members of the Ad Hoc Committee on State Land,namely, (in alphabetical order), Gene Baker, Dennis Brown, Rich Dobson, Frank Ferrara, Roy Kinsey, Myrna Smith, Wayne Tall and Bob Thompson. He asked the members present to join him at the podium and expressed his sincere appreciation to the members for taking on this important task Mayor Nichols, on behalf of himself, the Council and staff, recognized the efforts of Councilwoman Nicola of John Hall & Associates, for her sponsorship of the "Fantastic Fall Festival"to be held on Friday, October 31, 2003, at Four Peaks Neighborhood Park. He also recognized the contributions of the Maricopa County Sheriff's Office, the Fountain Hills Fire Department, the Fountain Hills Parent/Teacher's organization, the First Baptist Church, Four Peaks Church and Trinity Lutheran Church who lend their time and resources to help make the event special for everyone involved. The Mayor presented Councilwoman Nicola with a plaque in appreciation for her efforts. SCHEDULED PUBLIC APPEARANCE/PRESENTATION Mayor Nichols stated that they were fortunate to have a review of this year's Comprehensive Annual Financial Report (CAFR) report by Dennis Osuch with the Town's outside audit firm. Mr. Osuch thanked members of irr,,, staff for their assistance during the audit and briefly outlined the process that was conducted. He noted that the firm also reviewed the Town's internal controls to ensure that they were structured in a manner to avoid any E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 1 of 18 misrepresentation or errors. He stated that the audit did not uncover any findings and that they did not find anything major in the internal control structure that would indicate any errors in the financial statements. He added that they found no material errors in the financial statements and everything was reported in accordance with generally accepted accounting principles. olOirov Discussion ensued relative to the fact that the Town implemented new policies for their financing and the firm's belief that this was a positive step to control how monies were invested and spent; the new reporting model for government agencies which reports financial statements in a manner similar to those of a business; the fact that as of June 30,2003, the Town had $13.7 million in cash and investments and that$13.3 million of that was invested in government backed securities or was on hand with a trustee, such as the MPC; the fact that the Town reported net assets(as of June 30th)of$21 million, of which$19 million was restricted for either debt service,capital outlay, street repairs or for investment in capital assets net of any other related debt. Mr. Osuch stated that the Town, over the past eight years, received an award for its financial statements and said that the Government Financial Officers' Association issued the awards. He stated the opinion that the Town would receive the award again this year, making it the ninth year in a row. Mayor Nichols thanked Mr. Osuch for his presentation. CALL TO THE PUBLIC Town Clerk Bev Bender advised that no requests to speak had been submitted. CONSENT AGENDA Mayor Nichols read the following consent agenda items AGENDA ITEM #1 — CONSIDERATION OF APPROVING THE MEETING MINUTES OF 9/26/03 AND 10/02/03. AGENDA ITEM #2 — CONSIDERATION OF RESOLUTION 2003-59 ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINES OF LOT 19, BLOCK 2, PLAT 506B (15014 E. MARATHON DRIVE) AS RECORDED IN BOOK 150 OF MAPS, PAGE 3,RECORDS OF MARICOPA COUNTY,ARIZONA. EA03-18(ELLEN SCHOENBECK.) AGENDA ITEM #3 — CONSIDERATION OF RESOLUTION 2003-60 ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT THE NORTHERLY PROPERTY LINES OF LOT 3, BLOCK 1,PLAT 602B (15716 E. CAVERN DRIVE)AS RECORDED IN BOOK 166 OF MAPS,PAGE 32,RECORDS OF MARICOPA COUNTY,ARIZONA. EA03-19(MARK AND LYNN PHELPS.) AGENDA ITEM #4 — CONSIDERATION OF LIQUOR LICENSE APPLICATION SUBMITTED BY TEXACO STAR MART#773, LOCATED AT 171255 E. SHEA BLVD. THE APPLICATION IS FOR A NEW CLASS 10 LICENSE. AGENDA ITEM#5—CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE SUBMITTED BY THE AMERICAN LEGION POST 58. THE REQUEST IS FOR A FUNDRAISER SCHEDULED FOR OCTOBER 18,2003. AGENDA ITEM #6— CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE SUBMITTED BY THE AMERICAN LEGION POST 58. THE REQUEST IS FOR A FUNDRAISER SCHEDULED FOR NOVEMBER 14, 15 AND 16,2003. ,,, AGENDA ITEM #7 — CONSIDERATION OF THE EXTENSION OF PREMISE SUBMITTED BY GRAPEABLES FINE WINES. THE REQUEST IS FOR A FUNDRAISER FOR THE VETERANS OF E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 2 of 18 FOREIGN WARS POST 7507 TO BENEFIT THE VETERANS MEMORIAL LOCATED AT FOUNTAIN PARK ON OCTOBER 25,2003. AGENDA ITEM #8 — CONSIDERATION OF RESOLUTION 2003-63 APPROVING AN INTERGOVERNMENTAL AGREEMENT (IGA) WITH MARICOPA COUNTY FOR SPECIAL TRANSPORTATION SERVICES. Councilwoman Nicola MOVED to approve the Consent Agenda as read and Councilwoman Stevens SECONDED the motion. A roll call vote was taken with the following results: Councilwoman Nicola Aye Mayor Nichols Aye Councilman Kavanagh Aye Councilwoman Stevens Aye Vice Mayor Melendez Absent Councilwoman Ralphe Aye Councilman Archambault Aye The motion CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM #9 — DEPARTMENT QUARTERLY REPORT PROVIDED BY THE FIRE DEPARTMENT AND LAW ENFORCEMENT. Fire Chief Mark Zimmerman addressed the Council relative to this agenda item and stated that the report covered the first quarter of 2003-04. He discussed the department's first quarter call volume comparison and noted that the figure had dropped somewhat during the first quarter, mostly in the non-emergency or service calls. He added that the emergency (911) calls remained the same for both quarters. He referred to slides which depicted a first quarter call type comparison and pointed out that in the first quarter of 2002 the department received 386 calls just to pick up snakes from residents' yards and in 2003 that number decreased to 321. Discussion ensued relative to a comparison of the first quarter response times and the fact that the average response for all calls in 2003 was 5:22 versus 5:38 in 2002; emergency response times for 2003 were 3:19 compared to 3:09 in 2002 and EMS response times for 2003 were 3:33 compared to 3:14 in 2002; the fact that the additional number of stop signs and added population resulted in a decrease in the EMS response times;the fact that the department remained under the 4:00 national average; drill hours and the fact that they were broken down into knowledge and skill hours; the fact that there were 28.6 training hours per shift, well over the 20 hour national average; fire prevention activities and the fact that there were no significant changes during the first quarter of 2003 compared to 2002; monthly blood pressure checks as well as walk-in station checks; scheduled and non-scheduled station tours, and CPR classes held on the second Saturday of every month at the Community Center. Chief Zimmerman advised that a pick-up truck was transferred from the Marshals fleet to the Fire Department's fleet and stated that one of their vehicles had extremely high mileage. He stated that this allowed them, through the auction process that was held for the other vehicles, to dispose of three older vehicles. He noted that the brush truck construction/refurbishing had begun and added that all field personnel had gone through annual OSHA training as well as annual fit test training and bi-annual tuberculosis testing. He said that annual business inspections had also started. Mayor Nichols thanked Chief Zimmerman for the update. Administrative Sergeant Barry Roska with the Maricopa County Sheriff's Office addressed the Council and provided an overview of the first quarter activities at the Sheriff's Department. E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 3 of 18 Sergeant Roska briefly outlined a report compiled using statistical data for the first quarter of 2003 fiscal year compared to the same period in 2002. He noted a number of projects that were undertaken during the quarter, which included traffic control signs being erected around Fountain Hills' Middle School; updated block watch forms, handouts and the fact that they had begun the bid process for the replacement of 117 block watch signs; secured a location to hold monthly block watch captains' meetings/training sessions; secured the use of three additional radar units; contacted approximately 100 businesses to begin operation notification; completed research and obtained approval for a pamphlet in regards to motorized bikes, scooters, skateboard; developed a database for tracking traffic citation and locations of traffic complaints/responses, and noted that civilian code enforcement officers used the Sheriff's radio network for dispatch. Additional discussion ensued relative to calls for service and the fact that there was a slight increase from 2600 to over 3000 during the same quarter compared to last year; the fact that a portion of the increase was attributed to an increase in population and the absorption of the calls that used to be sent to the Marshal's Office; the fact that there was a slight increase in the number of reports taken, both criminal and non-criminal; burglaries (both commercial and residential) and the fact that they slightly decreased from 18 in 2002 to 16 in 2003 and the most common burglaries occurred in homes under construction; a decrease from 40 thefts in 2002 to 26 in 2003 and the fact that even very minor thefts were included in this stat; the fact that vehicle burglaries remained the same and most were the result of the vehicles being unlocked; criminal damage and the fact that the highest volume included rocks being thrown at homes under construction, vehicle windows, etc.,and the fact that the slight increase may in part be attributed to responding to calls that used to be taken by the Marshals Office. Sergeant Roska attributed the significant increase in the number of traffic citations to increased manpower and additional radar units that were in place. He discussed non-injury traffic accidents and stated that they had an increase in this area and reported that a significant number of those were the result of inattention. He commented on traffic injury accidents and said that they had decreased. Sergeant Roska also outlined projects to be undertaken during the next quarter, including the first monthly block watch meeting/training session scheduled for October 22nd; the replacement of all 117 block watch signs; the distribution of an information pamphlet relative to motorized bikes/scooters in Town and the importance of education before enforcement; completing the set up of the Teen Court program; development of an information network using news letters and articles; the launching of a web page with monthly crime stats, crime trends and crime prevention information and continuing to develop an information network between town business (crime trends,fraud practices,business security). Mayor Nichols thanked Sergeant Roska for the update. Councilman Kavanagh requested that the Council be provided an analysis of the traffic injury accidents; how many were caused by carelessness as opposed to speeding or disregarding traffic devices. Sergeant Roska indicated that he would provide the information as soon as it was available. Councilmember Archambault requested that the Council receive a "heads up" on accidents that occurred so that they could respond to calls they received from the citizens. Sergeant Roska stated that they would expend effort to do so and added that the website could also be utilized. Councilwoman Nicola commented on the Block Watch signs and asked who bore the cost of them. The Sergeant advised that they were seeking to cover that cost through the Sheriff's Office budget and were attempting to ensure that there would be zero cost to the community. He added that in the future, perhaps when a Block Watch was formed,the residents of that Block watch would bear that cost. Mayor Nichols discussed the fact that a significant amount of vandalism had taken place in town and asked whether the vandalism stats included criminal damage. Sergeant Roska responded that criminal damage was the technical,legal term and vandalism stats were included with the criminal damage stats. E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 4 of 18 Ms. Bender advised that there were no citizens wishing to speak on this issue. AGENDA ITEM#10—CONSIDERATION OF RESOLUTION 2003-64 APPROVING THE TOWN OF 4169 FOUNTAIN HILLS EMERGENCY OPERATIONS PLAN. Town Manager Tim Pickering stated that staff worked very closely with the Maricopa County Emergency Management Department and put together the Intergovernmental Agreement that outlined the responsibilities of the County and the Town should an emergency occur. He noted that both the Fire and Sheriffs Departments reviewed the extensive plan. Mr. Pickering pointed out that the management of the plan was also outlined and said there was two"core groups," an executive group made up of the Mayor, the Town Manager, representatives from both fire and police and any other entities that would be involved that manage the operations and a separate group that would be out in the field and working on the emergency. Mr. Pickering informed the Council that the plan was extensively reviewed and analyzed over the last few months and said that minor revisions would be made to the plan as needed. He stated that once the Council adopted the plan,they would receive a hard copy of the final version. Councilwoman Nicola discussed the fact that she had the opportunity to attend an Emergency Management session and noted that one of the points brought up related to the distribution of emergency plans. She noted that in the past, a copy was always available at the public library for anyone to review. She said that at the presentations, a suggestion was made that the plan not be placed on public shelves and perhaps instead be placed somewhere where someone would have to check it out if they wanted to review it. She emphasized that this would provide some record of who was interested in the plan and added that in the event of terrorism,they would not want the wrong person to know the detailed emergency plan for the Town. She asked that they consider this point and secure the copies to some degree. Councilwoman Nicola added that she wanted to add to the resolution that the Council was considering and that Appendix 8 to Annex A, which stipulated who would be notified in the case of an emergency, be updated on or about July 15t or January 1st of each year. Town Attorney Andrew McGuire concurred that it would be appropriate to consider an annual or semi-annual update as suggested by Councilwoman Nicola. Councilwoman Nicola pointed out that the draft copy contained some misspelled names. Councilwoman Nicola MOVED to approve Resolution 2003-64 and Councilman Archambault SECONDED the motion. Councilman Archambault clarified that Councilwoman Nicola's motion called for a semi-annual update to take place. Councilwoman Nicola responded that that was her intent and said her motion was to approve the resolution with the addition of an update to Appendix 8 of Annex A, to update the identifying information on July and January of each year Councilman Archambault said that was also his understanding when he seconded the motion. The motion CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM #11 — PUBLIC HEARING TO RECEIVE COMMENTS ON A PROPOSED AMENDMENT TO THE FOUNTAIN HILLS RV STORAGE SPECIAL USE PERMIT TO ALLOW AN ACCESSORY SHADE STRUCTURE TO BE LOCATED AT 17317 SIOUX DRIVE, AKA LOT 2, BLOCK 4,PLAT 302: CASE#SU2003-08. Mayor Nichols declared the public hearing open at 7:15 p.m. Senior Planner Dana Burkhardt advised that in 1997 the Council approved a vehicle storage facility for this location located on Sioux Drive, just south of the Desert Vista condominium project currently under E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 5 of 18 construction. He discussed the current configuration of the site and added that the request was to amend the Special Use Permit to allow a 7,000 square foot metal shade canopy screen to cover a number of the parking spaces. He noted that issues existed relative to meeting building and fire codes and said that the applicant had designed a proposal that was more in conformance with minimum setbacks, the fire code and the uniform building code. He explained that the applicant has proposed two separate shade structures to provide shade for approximately eight RV parking spaces. He pointed out that the Planning and Zoning Commission recommended approval of this request with the stipulations as listed. In response to a question from Councilwoman Stevens, Mr. Burkhardt stated that he had not received any letters or phone calls in opposition to the proposal. There being no citizens present wishing to speak on this item, the Mayor declared the public hearing closed at 7:17 p.m. AGENDA ITEM #12 — CONSIDERATION OF A PROPOSED AMENDMENT TO THE FOUNTAIN HILLS RV STORAGE SPECIAL USE PERMIT TO ALLOW AN ACCESSORY SHADE STRUCTURE TO BE LOCATED AT 17317 SIOUX DRIVE AKA LOT 2, BLOCK 4, PLAT 302: CASE#SU2003-08. Councilman Kavanagh MOVED and Councilman Archambault SECONDED a motion to approve the proposed amendment with stipulations. Councilwoman Stevens noted that the applicant indicated that he wanted to hang screens down as shades and asked whether this was a typical request. Mr. Burkhardt responded that it was unusual and added that the fabric would most likely not meet the fire code or the uniform building code and would not be permitted. He added that if the Council wished to stipulate that no fabric be permitted to be used for additional shade material,they could do so. cry Councilwoman Ralphe commented on potential adverse effects on adjacent residential properties and the potential for noise. She asked whether that was the case with the revised plan as well. Mr. Burkhardt stated the opinion that having two separate structures would mitigate the potential noise and be less of a nuisance. He added that although some noise would be heard if work was being performed on an RV, he believed it would be minimal. In response to a question from Councilman Kavanagh, Mr. Burkhardt stated that if an approved fabric were put in place but started to degrade, the Town would have the ability to require that it be either repaired or removed. Councilman Kavanagh said that he wanted a stipulation added requiring the applicant to maintain the fabric in good repair or use of the fabric would not be permitted at all. Councilwoman Stevens MOVED to amend the motion by eliminating the use of the fabric all together. Councilwoman Nicola SECONDED the proposed amendment. The motion to amend CARRIED UNANIMOUSLY by those present(6 to 0). There being no citizens present wishing to speak on this item, the Mayor called for a vote on the main motion. The motion CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM #13 — CONSIDERATION OF THE PRELIMINARY PLAT FOR "COLONY WASH VISTA CONDOMINIUM,' A 20-UNIT MULTI-FAMILY DEVELOPMENT LOCATED AT THE NORTHWEST CORNER OF PANORAMA DRIVE AND THE COLONY DRIVE ALLEYWAY; CASE#SU2003-13. Senior Planner Dana Burkhardt stated that this item was a proposal for a 20-unit condominium project abutting fir• Colony Wash. He noted that Morningside Villas were located just to the south of the wash. He added that it was a 2.71-acre site and referred to slides that depicted the general layout of the plat. He pointed out that there E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 6 of 18 were two access points off of the alleyway and the applicant planned to provide substantial improvements to that portion of the alleyway along his property frontage. He explained that the abutting land uses to the south of the abutting property were mini-storage units and stated the opinion that this was a"less obnoxious"type of (iitoold use for abutting residential properties. Mr. Burkhardt informed the Council that the property was zoned R-4 and C-1 and added that a majority of the site was located within the R-4 zoning district. He stated that the applicant had also agreed to provide some landscaping, additional buffering, from the commercial use to the south. He noted that the site was very constraining and contained a 69 KV overhead power line, which dissected the parking area on the eastern portion of the site. He added that the proposed units would include lower level garage entries and an amenity area with a swimming pool/sun tanning deck and a restroom facility. He added that the Planning and Zoning Commission voted in favor of the project. He noted that staff believed the design to be of good quality and appropriate for the site and recommended approval of the request with stipulations. There being no citizens present wishing to speak on this item,the Mayor called for a vote on this item. Councilwoman Stevens MOVED and Councilwoman Nicola SECONDED a motion to approve the Preliminary Plat for Colony Wash Vista Condominiums with the stipulations recommended by Staff. The motion CARRIED UNANIMOUSLY by those present(6 to 0) AGENDA ITEM #14 — PUBLIC HEARING TO RECEIVE COMMENTS ON A SPECIAL USE REQUEST TO ALLOW AN ACCESSORY ARCHWAY ENTRY STRUCTURE TO BE LOCATED AT 12645 SAGUARO BLVD..AKA LOTS 1 AND 2 OF THE PLAZA FOUNTAINSIDE FINAL PLAT; CASE#SU2003-09. Mayor Nichols declared the public hearing open at 7:25 p.m. nior Planner Dana Burkhardt stated that this item was a request for a Special Use Permit to allow an accessory structure to exceed the maximum 15-foot height limitation by approximately 7 feet to accommodate a covered archway entry located at the Plaza Fountainside. He noted that there were two access points; one off of Saguaro Boulevard and another off of El Lago Boulevard and Saguaro Boulevard was the proposed location for the covered archway. He referred to a schematic displayed in the Council Chambers that depicted the entry and slides that showed the detail of the structure. He noted that the structure basically spanned the entryway as well as the sidewalks on either side of the entryway. He added that the existing structure height on this property for the developed portion of the retail center was approximately 35 feet and the applicant was requesting a 22-foot height for the archway. Mr. Burkhardt said that staff looked at a couple of other design options with the applicant and this appeared to be the most appropriate. He advised that the Planning and Zoning Commission voted in support of the project and asked the Council to approve the request. In response to a question from Councilwoman Stevens, Mr. Burkhardt stated that the applicant preferred the archway design rather than the other options that were discussed. Mayor Nichols asked if there were requests to speak on this item and Town Clerk Bev Bender said that Mark Dohrmann wanted to address them. Mr. Dohrmann, an architect with Dohnnann Architects, 11014 N. Valley Drive, stated that he was present to respond to any questions regarding this proposal. response to a comment from Councilman Kavanagh, Mr. Dohrmann assured him that the archway would %toot be painted gold. EABBender\Documents\Curaent Minutes 2L 3\t0-3443 Regular Executive Session.doc Page 7 of 18 There being no questions from the Council, the Mayor declared the public hearing closed at 7:27 p.m. AGENDA ITEM #15 — CONSIDERATION OF A SPECIAL USE REQUEST TO ALLOW AN ACCESSORY ARCHWAY ENTRY STRUCTURE TO BE LOCATED AT 12645 SAGUARO BLVD., AKA LOTS 1 & 2 OF THE PLAZA FOUNTAINSIDE FINAL PLAT; CASE#SU2003-09. Councilman Archambault MOVED and Councilwoman Stevens SECONDED a motion to approve the Special Use Permit as outlined by staff. The motion CARRIED UNANIMOUSLY by those present(6 to 0). AGENDA ITEM#16—DISCUSSION OF THE UPDATED FIVE-YEAR FINANCIAL PLAN. Mr. Pickering stated that the Council had requested that staff prepare different scenarios and Ms. Ghetti would update them on this issue although no action would be taken at this time. Accounting Supervisor Julie Ghetti referred to a copy of an updated five-year financial plan provided to the Council on Tuesday. She explained that the purpose of the analysis was to provide the Council with alternative scenarios regarding five-year capital funding as a basis for discussion during a future financial workshop. She also stated that no action was required at this time and therefore she preferred to delay detailing all the numbers and save that for the workshop. She noted that the analysis was based on several assumptions for the different scenarios, mostly on the revenue side, but added that all were based on the current levels of service provided by the Town. She explained that this meant the continuation of the budget reduction plan that was currently in place. She stated that any additions to the level of service in the future would impact the capital funding and said that a key component in preparing a workable CIP was determining the level of service desired by the community. She added that staff believed some of the variables were possible although some were more unlikely than others. Ms. Ghetti briefly outlined the different scenarios and assumptions that were made as follows: lbw Scenario 1, which staff believed was the most likely scenario, was the original five-year projection that was provided to the Council in September. She noted that some of the assumptions were that revenues were based on moderate and sustained economic recovery; projections were based on historic trends with a 10% contingency; the tax structure remaining the same; assumed the current sales tax rate of 2.6% remaining in effect; expenditures were based on the current reduced level of service with a 5% growth factor; target sales tax rebate was paid in full by Fiscal Year 2006, and that the Town purchased or constructed a Town Hall by Fiscal Year 2006. She added that on the original most likely scenario, the available capital funding at the end of five years was a negative$8 million. Ms. Ghetti stated that Scenario 2, which staff referred to as the most optimistic scenario, contained the following assumptions: revenue projections based on historical trends with an 8%contingency; including staff recommended annual revenue enhancements ($550,000); including grant/donation of $500,000 for Civic Center Phase II; inflation remaining less than 5% overall; expenditure growth remaining less than revenue growth rate; the Arizona legislature rescinding FIB 2533 (reverse revenue sharing, 75% of excess fines); expenditures were based on the current reduced level of service; development fees were based on the most likely scenario and increased activity at the Community Center. She reported that at the end of the five-year optimistic scenario,the available capital funding would be a negative $1.1 million. Ms. Ghetti outlined the final scenario (Scenario 3), which staff referred to as the pessimistic scenario and said that assumptions include the following: revenue projections based on historical trends with a confidence level of 85%; tax structure remaining the same; inflationary increases in health insurance, fuel, wages, outside contracts greater than 5%; expenditure growth outpacing revenue sharing resulting in reduced service; the Arizona legislature's reduction in revenue sharing by 30% to balance the State budget; that the Arizona legislature continued reverse revenue sharing of court revenues; a decline in building permit activity due to poor economic recovery or legislative action; deterioration of the sales tax revenue base (Target leaves due to competition from outside Town borders); the Town negotiating a new lease agreement for Town Hall with a E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 8 of 18 5% increase in rent, and non renewal of cell tower lease agreements (loss of$63,000 annually). She reported that at the end of the five-year pessimistic scenario, the available capital funding would be a negative $12 million. Ciair Ms. Ghetti summarized by stating that at the Finance Workshop they should focus on the most likely scenario and not make decisions based on the optimistic one unless subsequent events occurred that provided a better picture. She added that the analysis would be updated on an annual basis. In response to a question from Councilman Archambault,Ms. Ghetti stated that under the most likely scenario, staff allowed for a 5%inflation factor overall. Mayor Nichols thanked Ms. Ghetti and members of staff for the hard work they performed in preparing the detailed analysis and plan. He added that it was beneficial for the Council, staff, and residents so that informed decisions could be made. He commented on the fact that the plan would be constantly changing and said he hoped that the software in place would allow this to occur so that the Council continued to receive the updates. He stated that Mesa Mayor Keno Hawker provided the Town a copy of the City's 7-Year Financial Business Plan,their rationale as to what they were doing,and provided recommendations relative to software. The Mayor asked if any requests to speak had been received and Ms. Bender advised that none were submitted. John Juliano, a member of the audience, asked that he be allowed to speak. He stated that he lived in Fountain Hills and wanted to obtain a copy of the plan. He explained that he was interested in learning where the Council planned to increase and/or decrease the taxes that applied to businesses and other issues as well. He said that he was fiscally conservative and looked at ways not to spend money. He urged the Council to be business friendly and help the business owners make a living. Mayor Nichols responded that Mr. Juliano could request a copy of the plan from the Town Clerk. He added that a Work Study Session relative to these issues would also take place and encouraged his attendance. He said that staff would contact him to let him know when the meeting would take place. AGENDA ITEM #17 — DISCUSSION OF ESTABLISHING A POLICY PRIORITIZING DISTRIBUTION OF PROPOSITION 202 FUNDS WITH POSSIBLE DIRECTION TO STAFF. Mr. Pickering stated that Mr. McGuire would speak on this matter and said that he had been working on the Intergovernmental Agreements(IGAs)relative to the issue. Town Attorney Andrew McGuire advised that recently the amendment to the compact that was passed by Proposition 202 came into effect and the Town had received requests from a number of agencies and non- profit groups to act as a conduit for funding under Proposition 202. He stressed the importance of determining the Town's role in this process and added that there were two courses of action available. He explained that the first course of action would be for the Town to act as a conduit and said that under this method, the Town would merely act as the funnel through which all requests would be funded. He said the money would flow between the Indian communities and the requesting agencies and added that a simple IGA would be entered into. Mr. McGuire stated that the second course of action would be for the Town to serve as a Gatekeeper and be the one to accept applications and submit them to the Indian communities. He said that no discussions had taken place with the Indian communities as to which method they preferred. He added that the discussions that took place last week with the Salt River Indian community was with respect to the request for funding from the Scottsdale Boys and Girls Club. He stated that they did not want to assume any liability and emphasized neither did the Town. He said that the issue was what does Proposition 202 really mean and noted that it was the largest, most convoluted statute he had ever seen. He commented on the complexity of the document and stated that he had determined that there were three operative paragraphs that applied to the E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 9 of 18 Town. He noted that the governmental function was elusive and did not contain clear definition and everyone was scrambling to prepare a policy. Mr. McGuire informed the Council that if they decided to serve as a conduit, they would be required to enter 1600 into an IGA with the Indian communities, which spelled that out. He noted that the next agenda item (#18) contained an actual proposed IGA with the Salt River Pima-Maricopa Indian community for the Boys and Girls Club funding request. He pointed out that staff included an indemnity clause that stated that the Town was not involved in the application at all or in the decision making process. He noted that the Boys and Girls Club submitted an application to the Indian community and the community made the decision. He explained that because Proposition 202 provided for funding to cities, towns, counties and municipal entities, in order to be able to provide the funding everyone had interpreted that there needed to be a municipal conduit. He said that staff had placed an indemnity clause in the proposed agreement that stated that the Town did not make the decision and should be indemnified if anyone sued because the decision was wrong. He added that at the very least, the Town should be given some sort of "free pass" and said that if someone ever challenged the community's decision, the Town did not want to be stuck in the middle and spend legal fees when the only part it played was to funnel the money. Mr. McGuire reported that the response from the Tribal Council last night was that they were unwilling to indemnify the Town because no one really understood what Proposition 202 said and everyone was on a level playing field. He added that there was a$25,000 request in the next agenda item and it could cost twice that in legal fees trying to figure it out. He said that staff was at the very beginning point of obtaining Council's input and direction so that they could explain to the Indian communities the position the Town would like to be in with respect to the funds. He added that hopefully they could then work with other Valley municipalities in an effort to achieve uniformity. Councilman Kavanagh joked that only a lawyer could think of a way a Town could be sued for giving a donation. Mr. McGuire responded that the only reason lawyers came up with these suits was they had seen them. He explained that staffs concern was that at some point if all of the money was tapped and group number ten on the list didn't get their money and considered group number 4's purpose for the funding was not "governmental" enough, group number 10 might file a suit. He added the opinion that the initiative was ripe for someone to challenge in terms of either vagueness or in terms of as applied challenges each and every time a funding decision was made. He agreed that it would be a silly lawsuit but noted that they had seen many of them in the past and even if they were silly, the Town would be forced to defend itself. He said that was the position they had asked the communities not to put the Town in, to have to defend itself and pay the bill,even if it was semi-frivolous. In response to a question from Councilman Archambault, Mr. McGuire stated that he was unable to provide a legal opinion as to what portion of the communities' income would be considered in the 12% figure. He concurred that 12% was the amount of the contribution. Councilman Archambault noted that the statute stated that the funding was for governmental services that benefited the general public. He said it appeared that the Town was the gatekeeper in this statute and questioned how all of the different groups that came to the Town and asked it to be the conduit fit into that mix. Town Manager Tim Pickering responded that the question was did the Town want to control that and be the gatekeeper and decide what those entities were or should it be the Indian community telling the Town to run them through our books and us agreeing. He added that they were not alone in this struggle and the cities of Phoenix and Mesa were looking at a policy on this. He noted that Proposition 202 was a new law, difficult to interpret and they did not know how much money it involved yet but each quarter it was supposed to increase. Mayor Nichols commented on the fact that the Town did not have access to the Indian communities' books in order to verify the figures that would be provided. E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 10 of 18 Councilman Archambault stated that when the Town received the $50,000 for tourism, it became the responsibility of the Town to audit those funds and ensure that the money was spent in the proper manner. He added that they were spending their time and energy to do that and his concern was that the Town was the one they were going to come back to or hold money back from if the monies were not spent properly by the Tow respective groups. He emphasized that the Town had no control over that. Mr. Pickering responded that the control the Town had was in cutting the check. He said it would be important to ensure that the monies that were funded go toward the appropriate purpose. He discussed the tourism monies and stated that a very specific proposal was developed and the Town had control over that. Councilman Archambault commented that the Town only controlled it up to the point of cutting the check and asked what course of action would be followed if an entity used the money for a different purpose than its intended use. He questioned whether the Town's liability would end once the check was written. Mr. McGuire expressed the opinion that the Town's liability ended only to the extent that they agreed to indemnify someone else. He added that with respect to the Tourism IGA, the Town agreed to indemnify the Fort McDowell Indian community if the funds were not spent the right way. He said that if they received any challenge based on the Town's use of those funds, the Town agreed to indemnify them because it would be their control issue. He further stated that he anticipated that a funding agreement would have to be entered into,whether the Town served as a conduit or a gatekeeper. He added that if the Town served as a conduit,the agreement would be between the Indian community and the organization and if it served as the gatekeeper, it would be between the Town and the organization. He noted that the agreement would specify how the funds would be used and stated that if they were not properly spent, as outlined in the proposal, a contract would then be in place. He stated that if the funds were not used for the proposed purpose, they would be in breech of that contract. He said that it was similar to an "unfunded mandate" and it could require an entire office to manage this process depending upon how much money was received from the communities. Mr. McGuire stated that it really didn't matter geographically where the requests were coming from and informed the Council that the last request the Salt River-Pima Maricopa Indian community handled was through the City of Tucson for their library. In response to a question from Councilman Kavanagh, Mr. Pickering advised that the tribes had not taken a uniform position on the role they wanted the Town to play. Councilman Kavanagh asked what position Fort McDowell had taken and Mr. Pickering responded that Fort McDowell had given the Town a policy regarding what they would like to see funded. He said he believed there were six different priorities. Councilman Kavanagh commented that the Fort McDowell Indian community was then saying it wanted the Town to serve as a conduit. Mr. McGuire stated that this was not the case because the community was saying it wanted the Town to go to them with certain types of requests. He pointed out that the Tourism agreement was between the Town and the Indian community, not between the Tourism Council and the Indian community. He added that they wanted to be able to set the parameters and also wanted the Town to take the responsibility. Mr. McGuire stated that the Salt River community's first agreement with the City of Tucson was a complete pass-through. He said that they had indicated that they did not mind allowing the complete pass-through but as soon as the issue of who would be responsible if a bad decision was made arose, they balked and stated that they did not know any more than we do and the risk should be shared equally. Councilman Kavanagh asked whether a complete pass-through (conduit) would be when the Town collected requests from organizations in the community, passed the letters on to the Indian community and they made the decisions. Mr. McGuire explained that a complete pass-through would be when an organization submitted E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 11 of 18 an application directly to the Indian communities. He added that the Town would receive a request from that same organization to act as a conduit or funding partner through the Indian community. Councilman Kavanagh discussed the gatekeeper's role and said his understanding was that the groups would come to the Town to make their requests, the Town determined funding allocations and forwarded the recommendations on to the communities and they decided how much they were willing to fund and the money went through the Town. He asked whether as of right now if the Council made a decision would both tribes go along with it and Mr.McGuire responded that they he had no idea. Councilman Kavanagh stated the opinion that this matter should be continued until the communities' positions were known. Mayor Nichols commented that if the Town agreed to set up as a gatekeeper, they would wind up setting up a whole department with infrastructure and staff to review, research and prioritize all of the requests that would be received. He added that after all the work had been done by the Town, the communities might still turn them down and refuse funding. He said that he would rather work as a conduit as opposed to a gatekeeper. Mr. McGuire pointed out that it was not clear in the statute whether or not it was permissible for the municipal entity to retain an administrative charge so they did not have to go into the red to run a program that they did not receive any benefits from. Councilwoman Nicola referred to the statute provided by staff and noted that it said, "For government services that benefit the general public,"and then went on to say "including." She said to her that meant streets,police, fire,municipal buildings, including the library. She cautioned against reading too much into the definition and added that she personally did not want to give any direction on this matter this evening. She stated that she would like more information to be obtained from the League and other municipalities before they jumped out there and developed a policy that others would follow. She said she would like to see this issue brought back and further discussed at the Work Study Session on finances. Mr. McGuire requested that the Council provide at least "broad direction" on what their level of comfort was. He explained that the input would be helpful because as staff spoke with Phoenix, Mesa and the other cities, they needed to know that some modicum of support existed and that the Council was leaning in one direction or the other. Councilwoman Ralphe stated the opinion that she had not received sufficient information this evening upon which to make a decision but added that she was leaning towards gatekeeper for a couple of reasons. She said that the statute specifically stated that the monies be used for government services to benefit the general public and noted that very specific examples were used,including public safety,mitigation of impacts of gaming, and promotion of commerce and economic development. She expressed the opinion that the Council had a responsibility to ascertain to the best extent possible whether any or all of the applications fit into these categories. She added that as a municipality, it was their primary job to take revenue and spend it for the good of the citizens at large for very basic services such as fire,police and streets, etc. She stated the opinion that if the Town simply acted as a conduit money would flow to entities other than the Town of Fountain Hills for services that are not as essential as some the Town might want to apply for directly. In response to a question from Councilwoman Ralphe, both Mr. Pickering and Mr. McGuire advised that the Town might apply directly. She reiterated that although she was leaning in that direction, she was not comfortable making any decisions until much more information was available. Councilman Kavanagh said that he too wanted more information but added that he was leaning towards conduit. He stated that if the Town was going to begin judging and submitting its own alterations to the requests it would cause problems and hard feelings among what he considered to be the foundation of the community, the service groups. He added the opinion that it would be particularly difficult if half of the money did not materialize and the Council had to reduce the amount of the money being requested. E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 12 of 18 Councilman Archambault concurred that additional information was needed and said that he leaned more toward the gatekeeper option. He expressed the opinion that the statute attempted to give that power to the towns and cities because they believed the towns would have a better grasp as a grass roots type of operation as to what that particular entity needed. He noted that funds for the Town had not been discussed and said that the money was being made available to help mitigate the impacts of gaming. He expressed the opinion that since the Town backed right up to the Fort McDowell reservation, there would be some areas that wanted to apply for funds to help mitigate the impacts. He agreed with Mayor Nichols' comment relative to not forming an entire separate department just to manage this process and said he would like staff to perform additional research to determine whether the Town could be the gatekeeper rather than the conduit, primarily because of liability issues. Councilwoman Nicola said that when she first reviewed the materials, she viewed the Town as the gatekeeper but now she wondered why they had to take one hard stance or another instead of developing a policy for certain uses that would be more appropriate for a conduit and others that would be more appropriate for a gatekeeper. She added that the uses might depend upon the end user and the amount being requested. She too requested more information and discussion on this issue. She stated she was open to reasoning why they should go one way or another. Councilwoman Stevens indicated that she preferred a more strict approach because as she read the statute, to her it meant the 12% would go to them, not other organizations. She questioned what they would be gatekeeping and said the monies could go toward public safety, law enforcement or fire service and efforts to mitigate impacts of gaming but she was not sure how anything else fit. She pointed out that Fort McDowell's list indicated that they were willing to allocate money for categories that did not even fall within these three. She asked how and where education would fit in. She stated the opinion that the Town should not be giving out any money or acting as a conduit or gatekeeper until a better comfort level was achieved as to exactly what this meant and how the other municipalities were interpreting that particular verbiage. Mr. McGuire expressed the opinion that the interpretation of a governmental function would be different for tklarr every community and added that the Town's governmental functions did not include some things that would be very key governmental functions for another city or town. He added that there were items that could be definite governmental services that would be within the broad definition, such as recreation. He commented that it might not be on the short list but he pointed out the confusion that existed regarding that list and its meaning. He noted that it could represent just a few examples or it could be exclusive. He reiterated that no interpretation existed and he did not anticipate receiving one in the near future. The Mayor stated the Proposition 202 was one of the worst pieces of legislation the State had ever seen Councilman Archambault asked Mr. McGuire how the Fort McDowell community determined what they would fund and noted that they would have had to define what governmental services were. Mr. McGuire responded that they had discussions similar and made a list of their priorities. He agreed with Councilwoman Stevens' comment that that might not equate to what the statute intended. Mayor Nichols stated that he attended a Tribal Council meeting in the past where they discussed a request and explained that the five Tribal Council members received requests from the general public and then they discussed the merits of those requests, asked questions about the submission and then said thank you and they would get back to them during the next quarter. He said that the process was very ambiguous and uninformative. Councilwoman Stevens asked who oversaw the process and Mr. McGuire responded that it was handled at the administrative State level. He added that he was not certain whether it was within the Governor's office to monitor the compacts or whether it was a specific gaming group. He stated that as part of that there needed to be another level with someone in charge to collectively determine how this provision would be applied. tkoir E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 13 of 18 Councilwoman Stevens asked if the Town served as a conduit and distributed funds but later found out they had made a mistake, what would be the ramifications. Mr. Pickering advised that the Department of Gaming contacted the Town about Fort McDowell and requested a copy of the Town's proposal and IGA, which were provided. He stated the opinion that if all of the grant money was not distributed, the remaining funds would go to this entity and then all of the cities and towns could request grants from that money as well. He clarified that there was a department within the State government that oversaw that process but added that it was too new to know if their management was efficient and effective. Councilman Archambault asked whether the Department of Gaming only oversaw the excess funds that were not distributed. Mr. Pickering responded that from his conversation, he was led to believe that they did want to oversee, at least in a general situation, because the Town was responsible for overseeing where the monies actually went. Mayor Nichols commented on the complexity of the issue and apologized for the Council's inability at this time to provide more definitive direction. Mr. Pickering stated that he understood the situation and noted that every Valley city, including Phoenix, was experiencing the same problems. He said that the City of Phoenix's Intergovernmental Relations Director forwarded the matter on to a grant writer who is also working with Mesa and the Town to develop an initial policy and decide in which direction to proceed. He agreed that discussions with the Indian communities needed to take place and added that it was essential that that occur so everyone was working from the same page. In response to a question from Councilwoman Nicola, Mr. Pickering stated that he was unsure whether there were other municipalities that bordered two Indian communities. He added, however, that it didn't matter since bordering was not a funding requirement. He pointed out that the Avondale Fire Department requested funds from the Salt River-Pima Maricopa community. He added that requests would be received from all over the State. He said that although the bordering was not a requirement,the funds must go through a city or town. Mayor Nichols noted that a citizen wished to address the Council. Frank Ferrara stated that he wanted to clarify that the Chamber of Commerce and the Tourism Bureau was the entity that went directly to the Fort McDowell Indian Community and requested funds for the Tourism Bureau. He said that the Chamber of Commerce and the Tourism Bureau were one and the same and added that he had not had the opportunity to explain to the full Council the workings of the Bureau. He noted that the Tourism Committee had always been under the Chamber of Commerce but was allowed to be autonomous but now, because of Proposition 202, there was a need to bring them back and they agreed. He explained that the Tourism Bureau was now a department of the Chamber of Commerce and requests for funding would come from the Chamber of Commerce Board of Directors. He reiterated that the $50,000 in funding that was received from Fort McDowell and earmarked for tourism purposes, was the result of their direct request and submission of a proposal. Mr. Ferrara noted that proposed the Tourism Bureau, the Chamber's Board of Directors and the Town Manager had approved uses for the monies. He stated that the Tourism Bureau also acquired a Board of Directors, which included the Tourism Director of Fort McDowell. He noted that he worked directly for the tribe and three other companies who represented the Fort were on the Bureau as well. He expressed the opinion that controls were in place through the Bureau,through the Chamber, and through the Town that made this a workable entity. He said they would prefer that the Town applied for its funds and they applied for their funds. He clarified that he was not suggesting that they wanted to manage the funds,just request them. Mayor Nichols thanked Mr.Ferrara for his comments. AGENDA ITEM #18 — CONSIDERATION OF RESOLUTION 2003-67 APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE SALT RIVER PIMA-MARICOPA INDIAN E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 14 of 18 COMMUNITY ESTABLISHING THE CONVEYANCE PARTNER FOR FUNDS DIRECTED TO THE SCOTTSDALE BOYS AND GIRLS CLUB AS A RESULT OF PROPOSITION 202 FUNDING. Mr. McGuire addressed the Council relative to this agenda item and explained that these were the specific types of agreements that staff had hoped would be delayed until after an actual policy was in place. He commented that because of timing associated with the Indian community's need to disburse the funds by the end of this month, staff was requested to forward this to the Council for their consideration at this time. He said that this was what staff referred to as a conduit agreement and noted that it basically stated that the Town would do nothing other than pass the money through and the Indian community and the Boys and Girls Club would establish a funding agreement that would become an exhibit to this agreement and nothing more. He noted that the Town's liability would end there. Mr. McGuire advised that he received a telephone call today from the legal counsel for the Indian community. They indicated that they were not in agreement with any type of indemnification language included in the IGA. He said that they were willing to consider compromise language that referred to the sole decision being placed in the hands of the Indian community and the Boys and Girls Club, but they would not go so far as indemnity. He noted that if the Council approved the IGA tonight, it would require approval with the appropriate changes to that section. He requested that his office be allowed the flexibility to negotiate the language prior to execution next week. Councilwoman Nicola pointed out that the agreement was for the Scottsdale Boys and Girls Club and asked why the Town,rather than the City of Scottsdale, was involved in this. Mr. McGuire responded that he had no idea why the Town was requested to be the conveyance partner other than the great length that the Town's Boys and Girls Club had gone to discussing that Club. Councilman Archambault said that he noted that there was a fiscal impact of $2,330 and asked for an explanation. Mr. Pickering stated that he attempted to determine the cost of the Town Attorney's staff time based on billings from the previous agreement. He added that the rest of it was an estimate of his staff time, finance staff time, etc. He said he wanted the Council to be aware that there were administrative costs associated with this process. Councilwoman Ralphe stated the opinion that they were "jumping the gun" on this since no policy was in place and it was for a Scottsdale organization. She added that to maintain some semblance of order, they should logically be submitting requests for community groups from within the Town itself. She also commented on the fact that the indemnification clause that was sought by the Town Attorney was not included in the document and said this was a major concern as it was changing the language. She also commented on the administrative costs involved and said that although these were not reasons to turn it down, they were reasons to delay action and give it further consideration. She added that perhaps this was not the right one in any event. Mayor Nichols clarified that the Boys and Girls Club of Fountain Hills was a branch of the Scottsdale Boys and Girls Club and that both were under the control of Scottsdale. He added that the Scottsdale Boys and Girls Club had made up the deficits that had been generated as a result of running the Fountain Hills' Boys and Girls Club over the last five years. He advised that because the Town had funding experience with the Fort McDowell community, Scottsdale requested that the Town participate in this process. Councilman Kavanagh asked whether the funds would be used by the Town's Boys and Girls Club and the Mayor responded that they would be. Councilman Kavanagh posed questions relative to the administrative costs and Mr. Pickering explained that legal staff time was used to develop the proposal and additional staff time would be needed if they had to go back and revise some of the language. He said that staff time would also be utilized to administer the funds. Councilman Kavanagh questioned the extent of the Town's legal exposure and asked whether another non- „ profit group in Town could sue the Town because they served as the conduit between the communities and another non-profit group. Mr. McGuire responded that the group would not have to be anywhere near the E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 15 of 18 Town. He added that the possibility existed for a suit from people who used to serve in organizations and now had a vengeance against cities. He said that they might believe that the funding was being inappropriately spent. He commented on the fact that the Town would not be the sole defendant but might be caught up in a larger group. Councilwoman Nicola stated that at this point, based on the previous discussion relative to the statute and the funds being used for government services that benefit the general public, as well as all of the unanswered questions, she was unable to support this item. Councilman Archambault referred to a September 2nd letter from the Scottsdale Boys and Girls Club and also questioned why Scottsdale was not involved in this issue. Mayor Nichols stated that the monies would be spent in Fountain Hills and explained that Scottsdale also has a Boys and Girls Club within the Pima community. He advised that Scottsdale had indicated that the funds would be spent in the Town. Councilwoman Ralphe pointed out that the letter also stated that they were requesting that the Town of Fountain Hills become their conveyance partner for any funds directed to their organization as a result of Proposition 202 and expressed concern relative to the language "any funds." The Mayor asked if there was a motion to approve this item and no motion was made. He stated that the item failed since there was no motion to move it. He said he believed this was a shame because the intent of Proposition 202 was to obtain monies from the Indian communities to help community groups but the law was so ambiguous that people were afraid to render a decision. He added the opinion that the overall intent of Proposition 202 was hurting rather than helping the towns and communities of Arizona. (Mayor Nichols declared a brief recess at 8:30 p.m. and the meeting reconvened at 8:40 p.m.) AGENDA ITEM#19—RECONSIDERATION OF THE MOTION TO APPLY FOR AN EXTENSION OF THE CONSERVATION STATUS OF THE STATE LAND. Town Manager Tim Pickering stated that this issue was discussed in great depth at the last Council meeting. He advised that the issue of an extension for the Conservation Status of the State Land would go to the State Land Department and noted that a preservation extension maximum of three years could be granted. He noted that a motion on this lost by a 4 to 3 vote of the Council and said that anyone in the prevailing party could request that the item be reconsidered. He stated that Councilwoman Steven had requested reconsideration of this issue and that was why the matter was once again before them for consideration. He informed the Council that staff had already sent a letter to the State that stated that they would not request an extension and therefore another letter would have to be sent if their decision changed. Mr. Pickering referred to a map displayed in the Chambers, which depicted the two separate parks and the trails. In response to a question from Councilman Kavanagh, Mr. Pickering advised that the land was divided into two parcels,both of which were owned by the State Land Department. Councilwoman Stevens MOVED to reconsider this agenda item and Councilwoman Ralphe SECONDED the motion. Councilwoman Stevens said that she didn't support this item at the last Council meeting because she needed some additional time to review all of the facts and look at the finances. She stated that over the last two weeks she had the opportunity to do that and hoped that the Council passed the motion to reconsider so that she could present her point of view regarding this matter. A roll call vote was taken with the following results: Councilman Archambault Nay Vice Mayor Melendez Absent Councilwoman Stevens Aye Councilman Kavanagh Nay Councilwoman Ralphe Aye Councilwoman Nicola Aye Mayor Nichols Nay E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 16 of 18 The Mayor declared the motion FAILED for lack of a majority vote (3 to 3). AGENDA ITEM#20- COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY kiw PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS FOR FUTURE MEETINGS. There was no discussion relative to this agenda item. AGENDA ITEM#21 —COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER. ITEMS LISTED BELOW ARE RELATED ONLY TO THE PROPRIETY OF(i)PLACING SUCH ITEMS ON A FUTURE AGENDA FOR ACTION OR (ii) OR DIRECTING STAFF TO CONDUCT FURTHER RESEARCH AND REPORT BAVK TO THE COUNCIL: NONE. There was no discussion relative to this agenda item. AGENDA ITEM#22-SUMMARY OF COUNCIL REQUESTS BY TOWN MANAGER Councilman Kavanagh requested that an item be placed on a future agenda by the Town Manager relative to reducing to nothing or a nominal amount the permit fees for one-time grand opening banners and one-time ribbon cutting banners. Mr. Pickering indicated his intention to research this matter, get back to Councilman Kavanagh, and place it on a future agenda. Mr. McGuire asked if it was possible to determine whether this item had the support of two other Councilmembers so staff would know whether to place it under the consent or action items. It was the consensus of the Council that the item be placed on a future agenda. Mr. Pickering stated that staff would pursue the issue of whether the Emergency Plan should be in the library and ensure that appropriate and timely updates were performed. He advised that a majority of staff's time would be spent on the development of a policy relating to lialw Proposition 202 and said that they would work closely with Phoenix and Mesa to develop a policy. He added that staff would also work with the Boys and Girls Club and the Pima Indian community in an effort to resolve that issue. Councilman Kavanagh requested that staff expeditiously research what the City of Scottsdale was doing with respect to accepting the funds, particularly with reference to the Boys and Girls Club. He added that if it was determined that they were accepting the funds, he would like the item once again placed on an agenda. Mr. Pickering said he would contact Scottsdale. Councilwoman Nicola stated that she would like the Council to discuss background checks for licensed massage therapists and asked whether this was a topic already planned for future discussion. Mr. Pickering responded that Mr. McGuire had been researching an ordinance that contained a stricter policy for the Town. He said he had been working on this for the last three or four months and the matter would be brought before the Council. AGENDA ITEM#23—ADJOURNMENT Councilwoman Nicola MOVED that the Council adjourn Councilman Archambault SECONDED the motion, which CARRIED UNANIMOUSLY. The meeting adjourned at 8:50 p.m. E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 17 of 18 TOWN OF FOUNT HILLS i Wally N chols,May ATTEST AND PEPARED BY: 4 , 4f77 9&4 Bevelyn J. Be er,T;'n 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 by the Town Council of Fountain Hills on the 16th day of October 2003. I further certify that the meeting was duly called and that a quorum was present. DATED this 6th day of November 2003. Bevelyn J. Ben ,To n Clerk E:\BBender\Documents\Current Minutes 2003\10-16-03 Regular Executive Session.doc Page 18 of 18