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HomeMy WebLinkAbout2004.0916.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR AND EXECUTIVE SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL SEPTEMBER 16,2004 Mayor Nichols called the meeting to order at 6:02 p.m. AGENDA ITEM #1 —VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. 38- 431.01(G)FOR DISCUSSION OR CONSULTATION IN ORDER TO CONSIDER ITS POSITION AND INSTRUCT ITS ATTORNEYS REGARDING THE PUBLIC BODY'S POSITION REGARDING CONTRACTS THAT ARE THE SUBJECT OF NEGOTIATIONS, IN PENDING OR CONTEMPLATED LITIGATION OR IN SETTLEMENT DISCUSSIONS CONDUCTED IN ORDER TO AVOID OR RESOLVE LITIGATION. (SPECIFICALLY, THE TOWN HALL LEASE NEGOTIATIONS AND A REFUND CLAIM BY A TAXPAYER.) Councilman Archambault MOVED to convene the Executive Session and Councilwoman Nicola SECONDED the motion, which CARRIED UNANIMOUSLY. Mayor Nichols recessed the Executive Session at 6:25 p.m. AGENDA ITEM#2-RETURN TO REGULAR SESSION Mayor Nichols reconvened the Regular Session at 6:30 p.m. ROLL CALL — Present for roll call were the following members of the Fountain Hills Town Council: Vice Mayor Archambault, Mayor Nichols, Councilman Schlum, Councilman Kavanagh, Councilman Kehe, Councilman McMahan and Councilwoman Nicola. Town Attorney Andrew McGuire, Town likw Manager Tim Pickering, Town Clerk Bev Bender, and Planning and Zoning Administrator Molly Bosley were also present. MAYOR'S REPORT Mayor Nichols read a proclamation declaring the month of October 2004 as "McDowell Mountain Month" in the Town of Fountain Hills and stated that the preservation of the McDowell Mountains and the Sonoran Desert has been established as a high priority for the Town and its citizens. He added that it was the desire of the Town of Fountain Hills to raise awareness regarding the need to preserve these valuable treasures for future generations. He noted that the Fountain Hills McDowell Mountain Preservation Commission has planned several events, including an Open House at the Community Center on October 3rd, as well as scheduled hikes and called upon all citizens to take a moment during the month to appreciate the beauty of this community treasure. CALL TO THE PUBLIC There were no citizens wishing to address the Council at this time. CONSENT AGENDA Mayor Nichols advised that a request was received to remove Agenda Items 5 and 6 from the Consent Agenda and place them on the Action Agenda. AGENDA ITEM #1 —CONSIDERATION OF APPROVING THE COUNCIL MEETING MINUTES OF AUGUST 10, 12, 19 AND 23,2004 AND SEPTEMBER 1,2004. E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 1 of 13 AGENDA ITEM # 2 — CONSIDERATION OF APPROVING AN EXTENSION OF PREMISE FOR GRAPEABLES FINE WINES FOR THE PLAZA FOUNTAINSIDE CHILI COOK OFF. AGENDA ITEM #3 — CONSIDERATION OF APPROVING AN EXTENSION OF PREMISE FOR GRAPEABLES FINE WINES FOR A WEDDING RECEPTION. AGENDA ITEM #4 — CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR THE WOMEN'S INTERNATIONAL SQUASH PLAYERS TOURNAMENT. AGENDA ITEMS#5 AND#6 WERE MOVED TO THE ACTION AGENDA. AGENDA ITEM # 7 — CONSIDERATION OF THE PRELIMINARY AND FINAL PLAT FOR "CASTIGLIA-KEARNS DUPLEX, A CONDOMINIUM," WHICH IS A TWO-UNIT RESIDENTIAL CONDOMINIUM PROJECT LOCATED AT 13005 N. MIMOSA DRIVE, CASE #S2004-17. AGENDA ITEM #8 — CONSIDERATION OF THE FINAL PLAT FOR "THE ENCLAVE," PREVIOUSLY KNOWN AS "VILLAS DEL CIELO CONDOMINIUMS," WHICH IS A 77-UNIT CONDOMINIUM PROJECT LOCATED ON LOTS 2, 3. AND 4 OF FINAL PLAT TOWN CENTER II, CASE#2002-06. AGENDA ITEM #9 — CONSIDERATION OF APPROVING THE RELEASE OF $40,000 TO FOUNTAIN HILLS COMMUNITY THEATER AS BUDGETED IN THE 2004-05 FISCAL YEAR BUDGET. AGENDA ITEM #10 — CONSIDERATION OF RESOLUTION 2004-47, CORRECTING A SCRIVENER'S ERROR IN RESOLUTION NO. 2004-42, PASSED BY THE COUNCIL ON AUGUST 19,2004. AGENDA ITEM #11 — CONSIDERATION OF RESOLUTION 2004-45, APPROVING AN AMENDMENT TO THE INTERGOVERNMENTAL AGREEMENT WITH THE ARIZONA DEPARTMENT OF PUBLIC SAFETY RELATING TO THE LEASE OF OFFICE SPACE. AGENDA ITEM #12 — CONSIDERATION OF RESOLUTION 2004-49, APPROVING THE TOWN OF FOUNTAIN HILLS' HAZARD MITIGATION PLAN. AGENDA ITEM #13 — CONSIDERATION OF APPROVING THE MASTER PLAN FOR THE MCDOWELL MOUNTAIN PRESERVE. AGENDA ITEM #14 — CONSIDERATION OF RESOLUTION 2004-41, GRANTING PRELIMINARY APPROVAL OF THE FINANCING BY THE TOWN OF FOUNTAIN HILLS, ARIZONA,MUNICIPAL PROPERTY CORPORATION OF NEGOTIATION OF THE SALE OF THE CORPORATION'S REVENUE BONDS OR OBLIGATIONS RELATING TO THE CIVIC CENTER PHASE II PROJECT. Councilman McMahan MOVED to approve the Consent Agenda as read and Vice Mayor Archambault SECONDED the motion. A roll call vote was taken with the following results: Councilman Kehe Aye Councilman Schlum Aye Councilman Kavanagh Aye Councilwoman Nicola Aye E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 2 of 13 Mayor Nichols Aye Councilman McMahan Aye Vice Mayor Archambault Aye The motion CARRIED UNANIMOUSLY(7 to 0). ACTION AGENDA Mayor Nichols advised that the Council had decided to postpone the appointment of the Public Safety Commission until the October 7, 2004,Regular Council meeting. Mayor Nichols added that Agenda Items 16, 17, 18 and 19 (Case#GPA204-01 and#Z2004-04) had been removed from the Action Agenda at the request of the applicant who had withdrawn his request to rezone lots 68 and 69. AGENDA ITEM #5 — CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR A VIP CORPORATE SPONSOR TENT FOR THE FALL FESTIVAL. Town Manager Tim Pickering advised that the Chamber of Commerce had applied for a liquor license for a VIP corporate sponsor tent to sell liquor. He said that this was something new that the Town had not done in the past and-staff recommended approval. Councilwoman Nicola requested additional information regarding this agenda item and said this would be the first time that the Town had two separate areas selling alcohol. She noted that the Council earlier approved a liquor license for the VFW for their fundraising efforts. She stated concerns regarding a possible conflict between the two organizations and questioned who the VIP corporate sponsors were and what the VIP tent entailed. Mr. Pickering said that staff would be happy to contact the Chamber and request that they make a presentation at the next meeting. He noted that in all fairness they were not notified that this item was going to be removed from the agenda until very late in the game and that was probably why they were not present. Councilwoman Nicola MOVED that Agenda Items 5 and 6 be continued to the October 7, 2004 Regular Council meeting. Councilman McMahan SECONDED THE MOTION. Councilman Kavanagh commented that there was a good chance that Mr. Ferrara would join the meeting this evening and suggested that the Council table this item for the time being. Councilwoman Nicola agreed to abide by Councilman Kavanagh's suggestion and withdrew her motion and Councilman McMahan withdrew his second to that motion. Mayor Nichols advised that Agenda Items 5 and 6 would be placed at the end of the agenda in order to provide Mr. Ferrara an opportunity to speak should he show up at the meeting. AGENDA ITEM #6 — CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR A VIP CORPORATE SPONSOR TENT FOR THE GREAT FAIR. Moved to the end of the Action Agenda along with Agenda Item#5 above. (See discussion.) AGENDA ITEM #15 — CONSIDERATION OF REAPPOINTING FOUR PLANNING AND Lor ZONING COMMISSIONERS TO EACH SERVE AN ADDITIONAL TWO-YEAR TERM. Mr. Pickering advised that three Planning and Zoning Commissioners' terms would expire on October 1, 2004, and said that the members, Dennis Brown, Jerry Caldwell, Avril Forest and Tony Woodrel, had all E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 3 of 13 agreed to serve an additional two-year term. He said that staff recommended approval of their reappointment. Councilman Kehe MOVED and Councilman Schlum SECONDED a motion to approve the reappointment of the four above listed Planning and Zoning Commissioners for an additional two-year term. Councilwoman Nicola said that she would like to publicly state a concern she discussed with the Town Manager regarding the fact that there was no consistent method of appointing members to serve as commissioners at the current time. She noted that there were 25 applicants who wished to serve on the Public Safety Commission and stated that there was significant community interest in serving on advisory commissions. She commented that in the past when openings occurred, the Town went through the process of advertising and interviewing various candidates, both new and current, and said that although she was going to support the motion she would like to ask the other members of the Council to join her in developing some sort of consistent public policy for the future to ensure that they did not eliminate other members of the public who might wish to serve. Mayor Nichols agreed with Councilwoman Nicola's point and said that the entire process of appointing commissioners needed to be looked at, as recently evidenced by the Public Safety Commission vacancies and the interest it generated. He thanked Councilwoman Nicola for her input and stated that this issue should be reviewed at a future work-study session. Councilman McMahan also agreed with the comments but noted that the people who the Council were reappointing this evening were outstanding individuals and had done a tremendous job on the Commission. There were no citizens present wishing to speak on this agenda item. �r The motion CARRIED UNANIMOUSLY(7 to 0). AGENDA ITEM #16—PUBLIC HEARING REGARDING RESOLUTION 2004-39, A REQUEST FOR A MINOR GENERAL PLAN LAND USE MAP AMENDMENT OF LOT 68 AND 69,FINAL PLAT 414,FROM INDUSTRIAL TO MULTI-FAMILY HIGH DENSITY,CASE#GPA2004-01. Removed from the Agenda at the request of the applicant who has withdrawn the case. AGENDA ITEM #17 — CONSIDERATION OF RESOLUTION 2004-39, A REQUEST FOR A MINOR GENERAL PLAN LAND USE MAP AMENDMENT OF LOT 68 AND 69, FINAL PLAT 414,FROM INDUSTRIAL TO MULTI-FAMILY/HIGH DENSITY,CASE#GPA2004-01. Removed from the Agenda at the request of the applicant who had withdrawn the case. AGENDA ITEM #18—PUBLIC HEARING REGARDING ORDINANCE 04-14, A REQUEST TO REZONE LOTS 68 AND 69, FINAL PLAT 414, FROM "IND-2 IUPD," INDUSTRIAL UNIT PLANNED DEVELOPMENT ZONING DISTRICT TO "M-3,"MULTI-FAMILY RESIDENTIAL ZONING DISTRICT,CASE#Z2004-04. Removed from the Agenda at the request of the applicant who had withdrawn the case. AGENDA ITEM #19 — CONSIDERATION OF ORDINANCE 04-14, A REQUEST TO REZONE LOTS 68 AND 69, FINAL PLAT 414, FROM "IND-2 IUPD," INDUSTRIAL UNIT PLANNED DEVELOPMENT ZONING DISTRICT TO "M-3," MULTI-FAMILY RESIDENTIAL ZONING DISTRICT,CASE#Z2004-04. E:\BBender\Documents\Current Minutes 2004\12egular and Executive Session 9-16-04.doc Page 4 of 13 Removed from the Agenda at the request of the applicant who had withdrawn the case. AGENDA ITEM #20— PUBLIC HEARING REGARDING RESOLUTION 2004-46, A REQUEST FOR A MINOR GENERAL PLAN AMENDMENT TO DELETE THE "EXISTING LAND USE MAP" AND RENAME THE "PROPOSED LAND USE MAP" AS THE "LAND USE MAP," CASE#GPA2004-01. Mayor Nichols declared the public hearing open at 6:50 p.m. Planning and Zoning Administrator Molly Bosley explained that within the current General Plan there were two Land Use maps, Exhibit 3, which was the existing Land Use map and Exhibit 4, which was labeled as the Proposed Land Use map. She said that Exhibit 3 actually not only reflected the existing land use but also the existing land use categories that existed prior to the adoption of the June 20, 2002 plan. She added that by adopting it into the plan, they had invalid information and advised that Arizona Revised Statutes required that a General Plan have a land use element that designated the proposed general distribution, location, and extent of such use of land in the future and said that this was what the General Plan should do. She noted that for all policy decisions that they looked at regarding the General Plan they look at the proposed land use map(Exhibit 4) as it was still labeled. Ms. Bosley commented that in order to avoid confusion and clarify exactly what the General Plan was, a blueprint for the future, staff was seeking approval from the Council to delete the existing Exhibit 3 Land Use map and rename Exhibit 4, the proposed Land Use map, as simply "The Land Use map." She said that this issue went before the Planning and Zoning Commission and received their unanimous support. There were no citizens present wishing to speak on this agenda item. Mayor Nichols declared the public hearing closed at 6:52 p.m. AGENDA ITEM #21 - CONSIDERATION OF RESOLUTION 2004-46, A REQUEST FOR A MINOR GENERAL PLAN AMENDMENT TO DELETE THE "EXISTING LAND USE MAP" AND RENAME THE "PROPOSED LAND USE MAP" AS THE "LAND USE MAP," CASE GPA2004-01. There were no citizens present wishing to speak on this agenda item. Councilwoman Nicola MOVED and Vice Mayor Archambault SECONDED a motion to approve staff's recommendation. The motion CARRIED UNANIMOUSLY(7 to 0). AGENDA ITEM #22 — STATUS REPORT ON ANNEXATION OF THE STATE TRUST LAND PARCEL BORDERING FOUNTAIN HILLS ON THE NORTH AND EAST WITH POSSIBLE COUNCIL ACTION. Mr. Pickering noted that staff provided quarterly updates relative to goals set for the upcoming year and said that one of those goals involved the State trust land annexation. He stated that staff would present a status overview of all of the goals in October but said that staff received a request to provide an update on this particular issue at this time. Ms. Bosley again addressed the Council and provided an update on the process the Town had been utilizing with their colleagues at the State Land Department to work through a process and plan to annex the 1300 acres of State trust land located along the Town's northern boundary. She said that the Council was presented with information from the Department in the form of a Five-Year Disposition Plan, which listed all properties to be planned and disposed of in the next five years and said that the plan currently depicted the aforementioned parcels for conceptual planning during FY 2005. She pointed out that the conceptual plan must be done prior to not only the State Land Department disposing of the property, but E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 5 of 13 also prior to the Town annexing the property. She noted that the Council had been provided subsequent information regarding Fiscal Year 2007 that showed the 1300 acres listed for disposition. Ms. Bosley stated that recent conversations with the State Land Department regarding the Town's adjacent State trust land resulted in the recommendation for a joint work session with the Council and representatives from the Department. She noted that currently there were no items scheduled for Council consideration during the November work session and said that staff had extended an invitation to representatives of the State Land Department to attend the November 9, 2004, work session to discuss this issue. Ms. Bosley reiterated that the conceptual plan was the first step that had to be done and said that once that had been developed the Town would have to incorporate the approved plan into the Town's General Plan through a General Plan Amendment. She said that only then could the Town apply to the State Land Commission for annexation and emphasized that the State Selection Board must approve the annexation. Councilman Kavanagh asked whether any other entities were involved in discussions with the State Land Department regarding annexation. Ms. Bosley responded that to the best of her knowledge there were no other Town of Fountain Hills entities involved in annexation discussions. In response to a question from Councilwoman Nicola regarding whether incorporating the approved conceptual plan into the Town's General Plan through a General Plan Amendment would require voter approval, Town Attorney Andrew McGuire responded that it would be considered a major amendment under the Town's plan and would require passage by the Council at a single meeting scheduled throughout the course of the year set for major amendments and would require a super majority vote. He added that the only issue they would have regarding that was ensuring that there was flexibility for that date. Mr. McGuire clarified that just the Council had to vote on the issue and said that the voters would have an opportunity in eight years to vote on this matter. Councilman Kehe provided background information regarding this agenda item and said that at the outset the issue of the State Trust Land, if handled incorrectly, could have a tremendous negative impact on the community. He noted that they were not talking about purchasing the land, they were talking about annexing it, and stated that the 1276 acres of incorporated land were located in Maricopa County and zoned Rural-43. He read what the zoning designation stated and emphasized that it stated "but when governmental facilities and services, public utilities and street access were available or could reasonably be made available, application to the County for change of the zoning district to any single family residential zoning district would be given favorable consideration." He said that if the Town annexed the property, when the land was developed it would be in accordance with Fountain Hills' codes and in harmony with the rest of the development in Fountain Hills. He added that if the land was not developed under Fountain Hills' rules and was not annexed, it would be developed according to County standards, which were not as strict as the Town's. He emphasized the importance of control and said that annexation would provide some measure of control. He also discussed the revenues that would be generated because of building permits, impact fees, and sales tax. Councilman Kehe noted that the Council made a decision to annex in 2003 and since then and now only one meeting had taken place between Town officials and the State Land Department. He added that in the interim the Town's Planning and Zoning Administrator monitored the process by telephone as opposed to regular meetings. He said that from the viewpoint of representatives of the State Land Department in October, he was told that they desired active participation by the Town during the first step of the annexation process, i.e., the development of the conceptual plan. He stated that as the year went by, the Town received several memos from the Department, the first of which was in early spring, and it said that the State Land Department was considering who should be the lead player in the development of the concept plan. He noted the importance of the concept plan, which was the first step in the annexation process and determined what kind of development would take place. He advised that at that point in time the Department was considering whether they, a developer, or the Town of Fountain Hills should assume E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 6 of 13 the lead position and develop a concept plan. He noted that the next memo from the Department advised that they would do the concept plan and would advise the Town of its contents. He reported that in June, the State Land Department contracted with the MB Group to develop an analysis for potential development and finally, in an August memo, they advised that the State Land Department included funds for the development of a concept plan in their next budget. Councilman Kehe said that Fountain Hills had been "eased out of the picture" and emphasized the importance of being a partner in the development of the concept plan in order to have a say in what went on as far as future development. He added that annexation should be completed prior to the auction. He commented that developers would prefer that the community not annex the land so they had a stronger hand in the development of the project. He reported that over the last three months three parcels of trust land in the northeast valley have sold for $240,000 an acre and up and added that those sales impacted any appraisal that would have to be done prior to auction. He advised that in the State Land Department's process for selling auctioned land, the appraisal was the "bottom bid." He noted that recently State Trust lands had sold for two and three times the appraisal. He stated the opinion that if the Town of Fountain Hills was a part of the concept plan, they could help in the planning to ensure that the development that did occur benefited both the developer and the Town and included significant open space. Councilman Kehe said that he recently learned of the invitation for the State Land Department to attend a work study session to discuss this issue and asked the members of the Council to support an action to the effect that the Town-Manager was directed to arrange a meeting at the State Land Department, with top officials of that Department, including Commissioner Winkleman and his highest level staff, meeting with the Mayor, the Town Attorney, the Town Manager, and several Councilmembers for the express purpose of advising them of their interest and concern in moving the annexation process forward and their interest in being a part of the concept plan. He noted that in June, officials from the Town of Cave Creek and consultants for the State Land Department worked together to produce a master plan combining preservation and some commercial elements and said that this was all he is asking for. He stated that the only way the Town would be involved in the process was if their top-level people expressed that interest to the top-level people at the State Land Department. He reiterated his request that the members of the Council support a motion directing the Town Manager to arrange a meeting at the State Land Department consisting of the top officials of both entities, the Land Department and the Town of Fountain Hills, so that the Town could become a part of the conceptual process. Councilman Kehe advised that his request listed above was actually a motion and Councilwoman Nicola SECONDED the motion for discussion purposes. Councilman Kavanagh said that he was not surprised by the fact that the State Land Department was not overly anxious to include the Town in the development of a master plan because Fountain Hills did not have a reputation as being a builder-friendly community. He commented that this perception began a number of years ago because there was a strong preservationist presence in the Town and a number of strict preservation laws were passed, some of which were so strict that they had to be rescinded and others weakened. He said that the reputation remained although he did not believe that the Town now deserved that reputation and that they were a changed community. He expressed the opinion that they had to work to convince the State Land Department that they did want to be productive partners while still protecting the land. He said that he was hesitant to bring motions forward because they better have a majority motion because if they start to send that type of official record signals to the State there would be a problem. He added that personally he would like to direct staff to pursue that course of action without sounding like they were politically beginning to manage the operation, which would result in having the State worry about the stability of any relationship the Town entered into with them. He said that he believed that his colleague's suggestion was a good idea and he would hope that other members agreed and that any premature motions be withdrawn at this time. In response to a question from the Mayor as to whether Councilwoman Nicola would like to remove her second to the motion, she stated that they should proceed with the vote. E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 7 of 13 Mayor Nichols said he agreed that it was not necessary to have a motion to do this and said staff could be directed without having a formal motion on the floor and he would vote against the motion although he was highly in favor of the thrust and intent of what Councilman Kehe wanted to do. Councilman Kavanagh MOVED to table the motion until after the November 9th meeting so that more information could be received and reviewed. Councilmen McMahan SECONDED the motion. Councilman Kehe suggested that the person who made the second withdraw his second so that discussion could take place regarding directing staff to arrange a meeting. He spoke in opposition to delaying this matter one more time. Mayor Nichols stated that there was a motion to table on the floor that had been seconded. Councilman Kavanagh asked whether at this point, if he were to withdraw his motion to table, would that allow Councilman Kehe to formally make this direction. Mr. McGuire responded in the affirmative. Councilman Kavanagh WITHDREW his motion with the provision that his colleagues will proceed in the manner they indicated and Councilman McMahan withdrew his SECOND to that motion. Mayor Nichols complimented Councilman Kehe on his logical and informative presentation. Town Clerk Bev Bender advised that Bob Deppe wished to address the Council regarding this issue. Bob Deppe, 16247 N. Boulder Drive Mr. Deppe said that he supported annexation and as far as the development of a concept plan, Fountain Hills needed to be a partner, not a player. He noted that they were dealing with both the State Land Department Commissioner and developer lobbyists, very powerful people in the Arizona State government system. He added that the trust land reform initiative did not make it on the November ballot and therefore time remained to modify the initiative before it went for approval before the State legislation and a vote of the people in two years. He said that included in the initiative was a provision to identify up front incentive land that would be set aside for free if they agreed to preserve it and ask for it. He added that Phoenix just did that and the Town of Fountain Hills should follow suit. He advised that this was not contrary to the decision the Council made last October and pointed out that money was not involved here, it was a"ask/don't ask"decision. The Mayor thanked Mr. Deppe for his comments. There were no other citizens wishing to speak on this item. AGENDA ITEM #23 — CONSIDERATION OF THE FIRST AMENDMENT TO THE DESIGN- BUILD AGREEMENT WITH HOLDER CONSTRUCTION FOR THE CIVIC CENTER PHASE II PROJECT,INCLUDING THE GUARANTEED MAXIMUM PRICE. Mr. Pickering said he would like to remind the Council that they were doing this project for three reasons: savings, service, and security. He noted that the Town rented their current buildings and spends approximately $600,000 to$650,000 each year on a"non-asset" with the lease they currently have, which remained unsigned. He added that even if the lease were signed, they would still have to be out of the building by July 2005. He reported that the savings would be significant over the long haul and staff recommended purchasing their own building versus continuing to lease. He noted that all of the different services offered by the Town would be in one place and added that the building that they were intending to build would be much more secure than the current building. He commented on the significant amount of time staff had put into this project and said that the cost was right around the budget that was originally set for this fiscal year. E:\BBendenDocuments\Current Minutes 2004U1egular and Executive Session 9-16-04.doc Page 8 of 13 Brian Perkins, the architect for the project, introduced members of his team and provided an overview of the project. He discussed the design/build process and said that from the very beginning they worked together with the contractor to come up with a price, quality, and functioning project. He said that staff and the Council were involved as well as members of the community and added that the process had been an enjoyable one. He referred to slides depicting the site plan and noted that the plan tied into the community center as well as the Avenue of the Fountains. He discussed the colors and "richness" of the different buildings along Avenue of the Fountains that affected the project and contributed to the ultimate design. He explained that the entry was really a "pass through" within the building and said there was a main plaza/court to the south of the building, which most people would enter in from the main parking lot that was shared by the community center. He added that there would also be an entry off Avenue of the Fountains. Mr. Perkins noted that the first level included the Council Chambers, the Courts, and the Sheriff/DPS area with a special access point for a sally port as well as access directly in and out for the public safety component. He added that the second floor would contain a "one stop shop"that was off the main lobby, which would be used more for Development Services/Public Works interfacing with the general public and the second floor would contain administration as well as Parks and Recreation. Mr. Perkins reviewed the elevations and said they used materials used throughout Avenue of the Fountains as a model and said that the southwest look they were trying to achieve was portrayed more in the punched openings, the deep set windows that provided a lot of shading, the deep overhangs at the porches as well as some sun shading and a trellis that was located along Avenue of the Fountains to bring the scale of the building down and provide shading along that area. He added that the different roof structures provide more of a southwest feel for a government building and said there was a desire to not make the building look expensive, but rather to provide quality and durability to serve the long-term needs of the Town. He also discussed security and how it was tied into the design of the project from the onset. He commented on areas that contained bullet resistant materials to allow people access to a protected area. He also noted conduits and access points for metal detectors, should the need arise in the future as well as a centralized mailroom. Mr. Perkins advised that the guaranteed maximum price they arrived at over a two-month process was $5,424,023. He noted that the proposal has gone through several design and review processes and added that the proposed cost meets the budget that was set. He added that they had also laid out a set of alternatives and noted that a budget was set for $210,083 for Avenue of the Fountains; there was an option to extend the parking lot at the east side of the site for $206,693; and an additional alternative, furniture, was estimated at$436,728. He reported that to date they had completed the design as approved by the Design Committee and they were now in the process of completing construction documents. He added that a little over a month from now they would enter the permit process in order to start the construction on time and finish the project by July 2005. Councilman Kehe commented on the fact that the Council recently discussed changes they wanted to make and asked whether the proposed additions addressed those changes. Mr. Perkins responded that the plan had integrated more desert landscaping similar to existing landscaping; fascia stone has been reworked; the fact that bullet resistant glass at the Sheriffs Department was not included due to budget restraints; masonry walls located adjacent to each side of the windows along the Sheriffs area; a request for canopy and columns at the Senior Center entrance and the fact that since the building was proposed for an expansion in the next ten years; spaces would be vacant and used for shell space so the canopy was not a high priority at this time; the fact that an entry plaza court had been designed with a fountain; porcelain tile that would be used and the fact that quartz countertops would be constructed. In response to a question from Vice Mayor Archambault, Mr. Pickering advised that after the seniors advised that they preferred staying at the Community Center, staff looked at what the cost would be to E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 9 of 13 redesign the area and was it going to be cost effective to take that space out. He said they realized that if they took the space out and redesigned it, the redesign and time costs made it apparent that they should just shell out the area where the seniors were going to be. He noted that this provided added flexibility in the future should expansion room be needed. Vice Mayor Archambault commented that they were basing construction on an 8-month period and asked whether there was anything that could jeopardize that and the cost, i.e. weather, etc. Mr. Perkins responded that typically in Arizona weather was not a major factor, barring acts of god, and added that in negotiations with subcontractors they always made it known up front that work weeks lasted 40 hours and if that was not accomplished,time was made up on Saturdays. Discussion ensued relative to the fact that the Smith Group was working very hard to finish up the construction documents and were moving forward with the design with the understanding that there would not be any major changes to the structure or the aesthetics that would necessitate more significant design time; the fact that the construction start date was hinged upon the Smith Group finishing the documents as soon as possible; the fact that a geo-technical report was developed and no"hard digs"were expected although the reports were not a science; the addition of colored concrete at the main entrance; the fact that the Council had requested that a fountain be located out front and the fact that nothing had been put on paper to date; the fact that the architect intended to design and price an area of entry courtyard that was fairly close to the price provided for opening up the courtyard area; the fact that the entry site walls were too expensive to be included in the budget; structural inspections; the fact that the synthetic stucco contained an integral color and patching could eventually become a maintenance issue although the chances were slight and the fact that bullet proof glass was removed from the budget due to its cost. There were no citizens wishing to speak on this item. Vice Mayor Archambault MOVED and Councilman Schlum SECONDED a motion to accept the first amendment to the Civic Center II project contract. The motion CARRIED UNANIMOUSLY(7 to 0). (At this time the Council revisited Agenda Items #5 and 6, which were continued to the end of the agenda.) AGENDA ITEM #5 — CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR A VIP CORPORATE SPONSOR TENT FOR THE FALL FESTIVAL. Mr. Frank Ferrara, Executive Director of the Chamber of Commerce, addressed the Council regarding this agenda item. He explained that the Chamber was not immune to rising costs and therefore they developed a Corporate Sponsor Program that was not unique to organizations such as theirs. He said that the program enabled the Chamber to sell sponsorships to various companies and added that they hired a marketing company to assist in this process on a commission basis. He noted that one of the packages they put together involved a VIP tent and negotiations were occurring with two sponsors now. He said that if one of the sponsors for the November show agreed to participate, the tent would be located where the old Chamber of Commerce beer garden had been located. He explained that alcohol products would be dispensed by the sponsor to his/her clients; the tent would be erected; the sponsor would have an opportunity to invite groups of people who would hopefully become clients to sample the products the sponsor planned to market in the Arizona market. Cow Mr. Ferrara emphasized that there would not be an open bar and liquor would not be sold to the public. He noted that the cities of Tempe and Phoenix had similar programs and said they were only looking at E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 10 of 13 one tent for one sponsor. He reiterated the fact that this was for income purposes and would be tastefully done and conducted in accordance with all laws and ordinances. In response to a question from Councilwoman Nicola, Mr. Ferrara said that their insurance coverage would cover this particular tent and identification passes would be used. He added that the Special Event Committee approved this request and noted that if a sponsor did not step up to the plate, the issue would be moot. Councilwoman Nicola said that she would not support the agenda item and said that the Chamber turned over the sale of alcohol as a fundraiser to the VFW and expressed concern regarding a possible conflict. Mr. Ferrara responded that one product line would be dispensed as samples to those included on a private invitation list. It would not be sold and would not conflict with the VFW's sales. Councilwoman Nicola added that the Chamber sponsored art show was becoming more and more commercialized and noted that the Town had consistently accepted the special event applications for charitable, non-profit organizations at a fee of $100. Under Section 11, this was clearly a commercial event sharing sponsorship with a charitable non-profit organization that should not be exempt from the $500 application fee. She expressed the opinion that in all fairness to the Town and staff, she could not support the proposal. Mr. Ferrara commented that the Chamber came before the Council every year to seek support as most Chambers do and said the alternative would be to close their doors. He noted that the only thing they had going for them were the two events and said they spend all of the money they received on the Town. He emphasized that they were not a commercial organization; they were a non-profit organization trying to earn money to remain afloat so it did not have to burden the Town or its citizens for "their piece of the pie". Councilman Kavanagh said that the Chamber of Commerce was very generous to give the right to sell alcoholic beverages to the VFW and added that he would hate to now penalize them and deny them the right to conduct this small fundraiser. Councilman Kavanagh MOVED and Councilman McMahan SECONDED a motion to approve the Special Event Liquor License application submitted by the Chamber of Commerce for a VIP corporate sponsor tent for the Fall Festival. The Vice Mayor said he supported the motion. In response to a question from Councilwoman Nicola, Mr. Ferrara advised that no naming rights were involved in this issue. A roll call vote was taken with the following results: Councilman McMahan Aye Councilman Kavanagh Aye Councilman Kehe Aye Councilwoman Nicola Nay Vice Mayor Archambault Aye Councilman Schlum Aye Mayor Nichols Aye The MOTION CARRIED by majority vote (6 to 1). E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 11 of 13 AGENDA ITEM #6 — CONSIDERATION OF THE SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR A VIP CORPORATE SPONSOR TENT FOR THE GREAT FAIR. Mr. Ferrara stated that they were unsure how well this event would work on the median and said if it did not work well, they would like to move the tent out of the way into the park, which they would obviously rent. He said that this would be in February and the tent would be in the park "away from" instead of"in the middle of'. He added that this was based on the fact that they would have a sponsor for the event. Councilman McMahan MOVED and Vice Mayor Archambault SECONDED a motion to approve the Special Event Liquor License application submitted by the Fountain Hills Chamber of Commerce for a VIP corporate sponsor tent for the Great Fair. There were no citizens present wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY(7 to 0). AGENDA ITEM #24 - COUNCIL ASSESSMENT AND REVIEW OF THE MEETING TO IDENTIFY PROCEDURAL STRENGTHS AND WEAKNESSES AND DISCUSS POSSIBLE IMPROVEMENTS FOR FUTURE MEETINGS. There were no items to discuss. AGENDA ITEM #25 - 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 BACK TO THE COUNCIL: None. AGENDA ITEM#26—SUMMARY OF COUNCIL REQUESTS BY TOWN MANAGER Mr. Pickering stated that he would look at the appointment process and said this item would be discussed at a work-study session probably after the first of year. He added that he would also set up the State trust land meeting. Mayor Nichols requested that the meeting be scheduled as soon as possible. AGENDA ITEM#27—ADJOURNMENT Councilwoman Nicola MOVED that the Council adjou nd Vice Mayor Archambault SECONDED the motion, which CARRIED UNANIMOUSLY (7 t ). he meeting adjourned at 8:05 p.m. TOWN AIN HIL By ally of ,Mayor ATTEST AND PREPARED BY: Bevelyn J. Be er, own Clerk E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doc Page 12 of 13 CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular and Executive Sessions held by the Town Council of Fountain Hills on the 16th day of September, 2004. I further certify that the meeting was duly called and that a quorum was present. DATED this 7th day of October, 2004. Bevelyn J. Be er, wn Clerk • E:\BBender\Documents\Current Minutes 2004\Regular and Executive Session 9-16-04.doj Page 13 of 13