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HomeMy WebLinkAbout2006.0518.TCRM.MinutesTOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL May 18, 2006 CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Nichols convened the Regular Session at 6:30 p.m. Mayor Nichols announced that Agenda Item #12, Consideration of a traffic control change for the gated rear entrance to Kern Plaza, was removed from the agenda at the request of the applicant. He added that it will be brought back later for consideration and action by the Council. He said that anyone wishing to be notified of when the item will be discussed should give his/her name/telephone number to Acting Town Clerk Jane Robinson INVOCATION — Pastor Steve Bergeson, Shepherd of the Hills Lutheran Church ROLL CALL — Present for roll call were the following members of the Fountain Hills Town Council: Councilmember Archambault, Mayor Nichols, Vice Mayor Schlum, Councilmember Kavanagh, Councilmember Kehe, Councilmember Dickey and Councilmember McMahan. Town Manager Tim Pickering, Town Attorney Andrew McGuire, Finance Director Julie Ghetti, Public Works Director Tom Ward, Parks and Recreation Director Mark Mayer and Acting Town Clerk Jane Robinson were also present. MAYOR'S REPORT (i) Recognition of community service by Councilmember John Kavanagh. Mayor Nichols stated that tonight was the last Council meeting for Councilmember John Kavanagh and so he wanted to take a moment and acknowledge him for his outstanding service to the community. During his tenure of four years, Councilmember Kavanagh helped to guide the community into a new era: • Our Town developed its Strategic Plan, which charts the Town's course until the year 2010. • This beautiful Town Hall was planned and constructed. • Financial stability was restored. • Public safety services improved. • The Town's parks were expanded and improved and funding was approved for the Town's Rotary Centennial Splash Park and the Skate Park. • The Town's special events were successful, including an expanded St. Patrick's Day celebration, the 35`h Anniversary of the Fountain, and the return of the Concerts in the Park series. • The Senior Services were incorporated into the Town's organization and the Community Center. • The Town improved its partnerships and intergovernmental relations with neighboring communities. • The annexation of the State Trust Land moved forward. Mayor Nichols stated that as a professor, he was sure that Doctor Kavanagh was always telling his students to do their research, read their materials, think about the subject, ask intelligent questions and develop an opinion that was well thought out. He noted that Councilmember Kavanagh practiced what he preached — conducted research, read volumes of materials related to various issues, and then thought not only about the details of the issue but EABBender\Documents\Current Minutes 2006\.5-18-06 MINUTES.doc Page 1 of 13 also its impact on the community. He added that he expressed his opinions in a colorful and articulate manner and therefore, as a surprise, staff had put together a video that captured some of the words of wisdom heard over the years. He said that some were very witty, some very poignant, and all of them very special. Councilmember Kavanagh's video was aired at this time. Mayor Nichols wished Councilmember Kavanagh good luck in his run for the State Legislature. He also acknowledged his wife, Linda, in the audience and thanked her for supporting her husband as a Councilmember. He presented him with the Town pin and invited him to present some remarks. Councilmember Kavanagh thanked everyone for allowing him the opportunity to serve the Town of Fountain Hills. He said that he has always considered public service to be both a duty and a service. He also expressed appreciation to his wife Linda for her ongoing support. He stated that this was not "goodbye" — it was just "see you guys later". (ii) Presentation on the Lori Piestewa National Native American Games. Public Works Director Mark Mayer provided the Council with a brief overview of this event that would be held in Fountain Hills. He noted that the Lori Piestewa National Native American Games have been successfully run for a number of years in Flagstaff and staff was approached several weeks ago regarding holding the event in Town. He expressed appreciation to all of the partners who worked together on this matter (Unified School District #98 and the Fort McDowell Indian Reservation, which will host the games). Mr. Gary Nees, Vice President of Sports Operations for the Grand Canyon State Games, was introduced to the Council and a video on the games was aired. Mr. Nees reported that the games will be held July 20`' through the 23`d and is a five -sport competition (softball, basketball, track, volleyball and softball). He reported that over 1,550 athletes participated last year from 50 cities; 26 tribes; 10 states and Canada and they expect it will grow this year as it has every past year. He commented that although they looked at other cities/towns to host the games, Fountain Hills was an obvious choice and discussed the beauty of the Town. He said that most athletes arrive Tuesday or Wednesday the week before competition and remain until the Monday after, so for many it is a weeklong event. Typically three to four people accompany each athlete so they may be talking about 4,000 to 5,000 people who will have a tremendous positive financial impact on the entire community during that time of year. He commended the staff of the Parks and Recreation Department and said they were instrumental in the selection of the Town as the 2006 site for the games. Mayor Nichols thanked Mr. Nees for his comments and said that Fountain Hills was proud to be part of the games and hoped the event was an overwhelming success for everyone (iii) Recognition of outgoing Board of Adjustment member Ross Bryant. Mayor Nichols requested that Mr. Ross Bryant join him at the podium and recognized him for his service on the Board of Adjustment for the last two years, serving as Vice Chairman this past year. He thanked Mr. Bryant for his outstanding service to the community and presented him with a commemorative plaque on behalf of the Council and the citizens of the Town. (iv) Proclaiming Friday, May 26, 2006 and Saturday, May 27, 2006 "Poppy Days." Mayor Nichols stated that the Red Poppy has been designated as a symbol of sacrifice of lives in all wars and the Veterans of Foreign Wars pledged to remind America annually of this debt through the distribution of the Red Poppy. The Mayor said that it was his honor to proclaim Friday, May 25, 2006 and Saturday, May 27, 2006 Poppy Days in the Town of Fountain Hills and called upon all citizens to pay tribute to those who made the ultimate sacrifice in the name of freedom by wearing the memorial poppy on those days. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 2 of 13 CALL TO THE PUBLIC RANDY BECKLUND, 16308 E. Emerald, representing the USA Pickleball Association, addressed the Council and highlighted a presentation geared towards "bringing Pickleball to Fountain Hills." He highlighted the contents of a proposal submitted to the Council (copy on file in the Office of the Town Clerk). He explained the game and said that the Parks and Recreation Department has made a facility available to them for this use at the abandoned basketball court at Fountain Hills High School, known as "the cage". He urged the Council to review and consider the proposal that was submitted at a cost of approximately $20,000. He stated that the Town would get a "lot of bang for the buck" and added that he was willing to donate $1,000 to the cause. In response to a comment from the Mayor, Mr. Becklund advised that he did send a proposal over to Parks and Recreation for consideration but was advised that this was not in the 2-year plan for the Town. He reported that he has obtained signatures from 142 people who are ready, willing and able to play. Mayor Nichols explained that the organization needed to go through Parks and Recreation for this request and Mr. Becklund commented that the organization required Town funding. JULIA BECKLUND, 16308 E. Emerald, echoed the above listed comments and noted that there was a need for this type of sport in the 18 to 27 year old age range. PATTY FINCH, 13423 Vista del Lago, also spoke in support of this issue and said that her family put a pickleball court in their backyard that was extremely popular with the youths. She stated that it is an easy game to play and succeed at and provided a feeling of accomplishment. Mayor Nichols thanked the speakers for their comments and said that the idea was probably a good one but the procedure of going through the Parks and Recreation Department must be followed. He said that if they supported the program, the matter would be brought before the Council for their consideration. CONSENT AGENDA: AGENDA ITEM #1 — CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM APRIL 28 AND MAY 4, 2006. LOCATED AT 17210 E. PALISADES BOULEVARD, FOUNTAIN HILLS, AZ. AGENDA ITEM #3 — CONSIDERATION OF APPROVING THE TEMPORARY EXTENSION OF PREMISE LIQUOR LICENSE FOR GRAPEABLES FINE WINE (JAMES MYCZEK) LOCATED AT 12645 N. SAGUARO BOULEVARD, FOUNTAIN HILLS, AZ, SCHEDULED FOR SATURDAY, MAY 20, 2006 FROM 7 P.M. TO 11 P.M. AGENDA ITEM #4 — CONSIDERATION OF APPROVING THE FINAL PLAT FOR A TWO -UNIT CONDOMINIUM PLAT ENTITLED "FINAL PLAT, LAMONT TWIN HOMES," LOCATED AT 12023 LAMONT DRIVE, AKA PLAT 201, BLOCK 1. LOT 7. CASE #S2006-08. AGENDA ITEM #5 — CONSIDERATION OF APPROVING THE FINAL PLAT FOR A THREE -UNIT COMMERCIAL CONDOMINIUM PLAT ENTITLED "FINAL PLAT, EAST LAKE CONDOMINIUMS," LOCATED AT 16842 PARKVIEW AVENUE, AKA PLAT 208, BLOCK 5, LOT 4. CASE #S2006-10. EABBender\Documents\Current Minutes 2006\5-18-06 MNUTES.doc Page 3 of 13 AGENDA ITEM #6 — CONSIDERATION OF APPROVING THE PURCHASE AGREEMENT WITH FIVE STAR FORD FOR A FORD ESCAPE HYBRID 4X4 VEHICLE IN THE AMOUNT OF $29,275.38. AGENDA ITEM #7 — CONSIDERATION OF RESOLUTION 2006-28, REVISING THE COUNCIL RULES OF PROCEDURE REGARDING THE REQUIRED NUMBER OF MEETINGS HELD EACH MONTH. AGENDA ITEM #8 — CONSIDERATION OF ALLOWING THE WITHDRAWAL OF A TEMPORARY USE PERMIT APPLICATION TO OPERATE THE RED ROCK BED AND BREAKFAST, AT 15719 E. SYCAMORE DRIVE AKA PLAT 603C, BLOCK 4, LOT 1. CASE #TU2005-07. THE APPLICANT HAS REQUESTED THAT THEIR APPLICATION BE PERMITTED TO BE WITHDRAWN. AGENDA ITEM #9 — CONSIDERATION OF APPROVING A SUB CONSULTING CONSTRUCTION - SERVICES CONTRACT WITH THE WLB GROUP, INC. FOR FIELD SURVEILLANCE, ELECTRICAL ENGINEERING SERVICES STRUCTURAL ENGINEERING SERVICES, DRAFTING SERVICES, AND STRUCTURAL INSPECTION IN THE AMOUNT OF $45,000. Councilmember McMahan MOVED and Councilmember Archambault SECONDED a motion to approve the Consent Agenda as read. A roll call vote was taken with the following results: Councilmember Archambault Aye Mayor Nichols Aye Vice Mayor Schlum Aye Councilmember Kavanagh Aye Councilmember Kehe Aye Councilmember Dickey Aye Councilmember McMahan Aye The motion CARRIED UNANIMOUSLY (7-0). ACTION AGENDA: AGENDA ITEM #10 — CONSIDERATION OF RESOLUTION 2006-31, DECLARING AS PUBLIC RECORD THAT DOCUMENT FILED WITH THE TOWN CLERK ENTITLED THE "2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS:' Finance Director Julie. Ghetti addressed the Council relative to this agenda item and said that when the Town enacted a sales tax in 1995 the tax code adopted was the Model City Tax Code, commonly referred to as the MCTC. She stated that that is the code all of the cities and towns that have adopted a sales tax use it and it provides uniformity across the State for businesses that pay taxes to more than one city or town. Changes to the tax code are recommended by the business community during the annual meeting of the Municipal Tax Code Commission, which was a forum made up of city/town elected officials and the Unified Audit Committee. The proposed changes are then made by the League of Arizona Cities and Towns and forwarded to all of the cities/towns for corresponding adoption with the same starting date. The 2006 changes proposed reflect recent changes to State Statute as well as an agreement with the State housing associations concerning Federal low- income housing programs. She noted that all of the amendments are designed to reflect recent changes to ensure that compliance with the tax code is easier for businesses. The changes affect low-income housing rentals and excess tax collection refunds (none in Fountain Hills). EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doe Page 4 of 13 Ms. Ghetti advised that staff recommended approval of Resolution 2006-31 as well as Ordinance 06-17. There were no citizens wishing to speak on this agenda item and no questions from the Council. Councilmember Archambault MOVED to approve Resolution No. 2006-31 and Vice Mayor Schlum SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #11 — CONSIDERATION OF ORDINANCE 06-17, RELATING TO THE PRIVILEGE LICENSE TAX,• ADOPTING THE "2006 AMENDMENTS TO THE TAX CODE OF THE TOWN OF FOUNTAIN HILLS," BY REFERENCE; ESTABLISHING AN EFFECTIVEE DATE; PROVIDING FOR SEVERABILITY AND PROVIDING PENALTIES FOR VIOLATIONS. Councilmember Archambault MOVED to approve Ordinance 06-17 and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #12 — CONSIDERATION OF A TRAFFIC CONTROL CHANGE FOR THE GATED REAR ENTRANCE TO KERN PLAZA. THIS AGENDA ITEM WAS TABLED TO A FUTURE MEETING AT THE REQUEST OF THE APPLICANT TO ALLOW ADDITIONAL TIME TO WORK TOWARDS A SOLUTION TO THE ISSUES AT HAND. Councilmember Dickey MOVED to table this agenda item to a future Council meeting and Councilmember McMahan SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #13 — PUBLIC HEARING REGARDING A SPECIAL USE PERMIT TO ALLOW THE HOURS OF OPERATION TO BEGIN AT 5:00 A.M. FOR A STARBUCKS TO BE LOCATED AT 16815 EAST SHEA BOULEVARD, SUITE 106, AKA FOUR PEAKS PLAZA. CASE #SU2006-04. Mayor Nichols declared the public hearing open at 7:15 p.m. Senior Planner Robert Rodgers addressed the Council relative to this agenda item and said that Starbucks would be opening at their new location and under the terms of the Four Peaks Plaza PUD, any business in that plaza that wished to open earlier than 6:00 a.m. must apply for, and be granted, a Special Use Permit by the Council. He explained that this was a request for a Special Use Permit to allow Starbucks to open at 5:00 a.m. and be allowed to extend their business sign lighting hours to match their operating hours. He referred to a slide depicting the location of the business. He noted that the request was in keeping with Starbuck's standard hours of operation and was consistent with the other Starbucks in similar coffee shops throughout the Valley and the country. Mr. Rodgers added that Starbucks currently has two other locations in Town, one in the Safeway Plaza that opens when the Safeway store opens and the other at Fountain Hills and Palisades Boulevards, which opens at 5:00 a.m. He stated that the request would not create a noise or light nuisance or impact the residential areas. The store will be set back approximately 200 feet from Shea Boulevard. He advised that staff recommended approval of the request for a Special Use Permit subject to the stipulations outlined in the staff report. JAY CARPENTER, 16815 East Shea Boulevard, said that he has a retail shop in the Four Peaks Plaza (a Postnet) and represents a couple of other merchants at that location who believe that Starbucks will be a welcome addition to that center as well as a beneficial tax base for Fountain Hills. He added that hopefully they could attract people driving up and down Shea Boulevard. He said that the business would create more needed activity in the center and urged the Council to approve the request. Mayor Nichols thanked Mr. Carpenter for his remarks. EABBender\DocumentACurrent Minutes 2006\5-18-06 MINUTES.doc Page 5 of 13 There being no additional citizens wishing to speak on this item, the Mayor declared the public hearing closed at 7:22 p.m. AGENDA ITEM #14 - CONSIDERATION OF A SPECIAL USE PERMIT TO ALLOW THE HOURS OF OPERATION TO BEGIN AT 5:00 A.M. FOR A STARBUCKS TO BE LOCATED AT 16815 EAST SHEA BOULEVARD SUITE 106, AKA FOUR PEAKS PLAZA. CASE #SU2006-04. In response to a request from Councilmember Archambault, Mr. Rodgers outlined the location of the proposed sign and noted that it would be on the fascia, similar to the other stores, in addition to the freestanding sign out front. Councilmember Kavanagh stressed the importance of being sensitive to the neighbors who live across the street. He added that if this were a freestanding operation near the road, he would have some major concerns. He said that with the exception of seeing a few extra parked cars at that location, he did not believe there would be any impact. Councilmember Archambault MOVED to approve the request for a Special Use Permit and Councilmember McMahan SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #15 — CONSIDERATION OF ORDINANCE 06-14, A TOWN CODE TEXT_ AMENDMENT TO REMOVE ALL REFERENCES TO THE MARSHALS DEPARTMENT. Town Manager Tim Pickering addressed the Council relative to this agenda item and said that the Town Council directed the Town Attorney to go through and clean up any ordinances that needed work and this was one of the items that came forward. He stated that staff was seeking Council's approval. There were no citizens wishing to speak on this item. Councilmember Archambault MOVED to approve Ordinance 06-14 and Vice Mayor Schlum SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #16 — CONSIDERATION OF RESOLUTION 2006-18, ADOPTING THE MAXIMUM AMOUNT FOR THE TOWN OF FOUNTAIN HILLS FISCAL YEAR 2006-07 TENTATIVE BUDGET WITH APPROPRIATE DIRECTION TO PUBLISH SAID DOCUMENT IN ACCORDANCE WITH STATE LAW. THE COUNCIL MAY ADDRESS ANY OR ALL ITEMS CONTAINED IN THE BUDGET DOCUMENT AND INITIATE ANY SUGGESTED CHANGES PRIOR TO ADOPTION. Mr. Pickering addressed the Council relative to this agenda item and said that the first workshop, an introduction to the budget, was held and the next step in the process was to simply set the "cap". He explained that this action did not stop the Council from making changes in the budget; it just basically lets the public know that the Council would not spend more than this amount of money. He advised that at their next meeting in June a more thorough discussion would take place about the budget. He added that he met with the Councilmembers and there were a number of issues they would like staff to research further. Staff was currently preparing the additional information and at the next meeting, staff would present their findings. Councilmember Kavanagh MOVED to adopt Resolution 2006-18 and Vice Mayor Schlum SECONDED the motion. Councilmember Kavanagh said that at the prior meeting he requested that the Town Manager address an issue as to how this particular budget was beginning to take care of the upcoming decrease in revenue from home construction. He asked for staff input on this matter. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 6 of 13 Mr. Pickering responded that the budget addresses this issue in two ways: 1) Through the Strategic Plan, a major priority was to address the long-term stability of the Town's financial situation. There were monies in the budget to provide education and potentially even hold an election on that topic; 2) the budget was strictly based on construction revenues that were one-time revenues to be used for capital items. He reported that they had about $6 million in capital items (23%), which was much larger than they had in the past. He reiterated that they were one-time items that were not repeated year after year as opposed to operating expenses like personnel. They were using the construction revenue, which was about one -fifth of the General Fund, for those types of items. Councilmember Kehe said that he would like to discuss the Community Benefits and Special Programs. He advised that they each received a letter dated 2/23/06 from the Extended Hands Food Bank, David Iverson Director, requesting funding in the amount of $50,000 in order to stabilize his operation in Town. He said that he learned that 51 % of the Food Bank's clients were Town residents and added that it certainly met the definition of a community benefit that he would like the Council to support. He discussed the importance of providing a "firewall against hunger" and said that they had the ability to do so. He noted that the proposed budget contained a request from the Boys and Girls Club in the amount of $100,000 for operating expenses; $50,000 for the Community Theater and $125,000 for the Tourism Bureau, a total of $275,000, and last year the approved budget for the same category had a budget of $335,000. He stated the opinion that the addition of $50,000 to aid the Food Bank would still put them under last year's budgeted amount. He requested that the Council consider this important request and approve an amendment to the Community Benefits and Special Programs account to add funding in the amount of $50,000 for the Extended Hands Food Bank. Councilmember Kehe MOVED to amend the Community Benefits and Special Programs funding allocation to include an additional $50,000 for the Extended Hands Food Bank. Vice Mayor Schlum SECONDED the motion. Vice Mayor Schlum acknowledged the need to support such a worthwhile organization but expressed the opinion that changes such as this should be discussed in a Work Study Session, prior to the next budget preparation, with all of the other groups/organizations seeking funding in attendance. He discussed the proposed "late hour change" and said that a future meeting to evaluate the process for addressing Community Benefit funding options in a manner that was fair to everyone appeared to be the appropriate manner in which to proceed. Councilmember Archambault stated the opinion that they had already "opened the floodgates" and supported many organizations because they were worthwhile and served a tremendous need. He added that he would like to hear a representative from the Extended Hands Food Bank plead the organization's case before deciding on this issue. He agreed that in the future they had to treat these requests in the same manner that the Town was treated when they get grants — they had to report back showing the return on dollars spent so they had something with which to go back to their constituents. He noted that they currently did not receive reports except from the Tourism Bureau and he would like to tie a stipulation to the monies that states that the Council receives a report on a quarterly basis from all funded organizations. MR. DAVID IVERSON, representing the Extended Hands Food Bank, addressed the Council and said their records attest to the number of people living in Fountain Hills who received food and added that some members of the Council had personally made sure that they had food to distribute. He stated that their greatest need was keeping the doors open and one of the unique things their organization offered to the Town was community service hours in a variety of ways (Boy Scouts, Girl Scouts, high school students who need their community service hours before graduating, juvenile and adult probation areas, some through the courts needing up to 100 hours of service who must serve in a non-profit setting, etc.). He said that although some of the people were not happy that they had to serve community service hours, after they put in some time they began to see the benefits of serving others. Many returned to volunteer their services at this all -volunteer Food Bank. He discussed challenges associated with paying the food bills and noted that the community had been wonderful as far as food donations. Mr. Iverson said that he would greatly appreciate the Council's approval of some monetary assistance to allow them to carry out their work. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 7 of 13 Mayor Nichols thanked Mr. Iverson for his comments and for the work his organization carries out in the Town of Fountain Hills. Councilmember Kavanagh said that he had been around the Council for six years and similar situations had arisen. He stated that they dealt with those situations by forming a citizens committee. He added that they first had to advertise that there were funds available so that all of the interested organizations could file applications and request funding. Then they had a citizens group investigate and divide the monies up in what they felt was a fair manner. He agreed that the Food Bank was a worthy beneficiary and had they set up a process prior to this, they probably would be approved for some amount of funding. He expressed concern relative to the fact that all of the other worthy groups were not given the opportunity to present their applications and spoke in support of tabling this item for a short time and scheduling an expedited Work Study Session to determine whether the Council wanted to re -institute these type of contributions, set an amount that they could take out of the budget with the cap that had already been proposed, form a citizens committee, advertise, review applications and have an organized process in place for the distribution of the funds in a non -political and fair manner. Councilmember Dickey said that she did not receive a copy of Mr. Iverson's letter since she was not on the Council at that time. She added that she was not prepared to make that type of decision this evening. Councilmember McMahan advised that he had worked at the Food Bank and found it to be a very enlightening experience from the perspective of actually seeing the people of Fountain Hills that the organization helps. He stated that he would support allocating some funds to the organization prior to the final adoption of the budget. Mayor Nichols commented that he served as a member of the Community Benefits Committee for several years and monies were put into a pot ($30,000; $40,000, etc) and they advertised that the money was available and reviewed applications from people seeking assistance. He said that he would rather come up with a procedure than approve funding for a single organization. He spoke in support of the Vice Mayor's recommendation. Councilmember Archambault asked how quickly a Work Study Session could be scheduled and Mr. Pickering said that he was under the impression, from the discussion at the last meeting, that this was the way they were going to proceed so staff had been looking into the matter. He stated the opinion that the issue would be discussed sometime in August. He added that staff needed time to research the issue and develop a long-term policy. Councilmember Archambault commented that the process would then be in place for next year and Mr. Pickering concurred. He added, however, that if the Council so desired, they had the ability to make changes in the budget. He reiterated that all they were doing at this point in time is setting a "cap" and they could always move things around. Councilmember Kehe clarified that his motion was not to increase the cap. He also expressed concerns regarding delaying action on this issue until the next budget year. Town Attorney Andrew McGuire requested that the amendment be restated. Ms. Robinson read the following amendment to the motion: "Move to amend the Community Benefits section of the draft budget to add $50,000 to fund the Extended Hands Food Bank." Mr. Pickering said that in order to reallocate those dollars, they would have to reduce something else within that division by $50,000 and therefore the "cap" would remain the same within that small section of the budget. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 8 of 13 Mayor Nichols asked whether there was money in the budget for grants and Mr. Pickering replied that there was money for grants if they received the grants. He added that if they received extra revenue for a park, for example, they would have the money to spend it, but unless they got that money, they could not spend those dollars. Councilmember Archambault expressed the opinion that Councilmember Kehe was suggesting that this was the point in the budget process where the Council could give direction to staff relative to the maximum dollar amount of the budget and it was also the time when they could say they want to move funds around. Mr. Pickering responded that he would say that this was the point in the budget where the Council sets the "cap". He added that reallocations were the next step. Councilmember Kavanagh MOVED to amend Councilmember Kehe's motion to make the amount to be given to the Food Bank indefinite at this time, subject to the recommendation of a citizens advisory committee in August, based upon the results of a Work Study Session that will hopefully put this process in play prior to the second meeting in August. Councilmember Kehe SECONDED the motion. Vice Mayor Schlum stated that they could proceed in that manner and charge staff with the job of finding potential monies (reallocations); they were not changing the "cap". Mayor Nichols expressed the opinion that at their next meeting in June, the Council would have to ask the Town Manager to establish a Community Benefits fund of "X" amount of dollars and then at the Workshop in August, they would come up with a procedure as to how the money was to be allocated and have the various groups apply for it. Mr. Pickering noted that if he was going to be asked to do that, then he had to have that money and to have that money meant he would have to cut it from somewhere else. He said that this could be done if that was the Council's desire. Mayor Nichols called for a vote on the motion as amended and a roll call vote was taken with the following results: Councilmember McMahan Aye Mayor Nichols Aye Councilmember Kehe Aye Councilmember Kavanagh Aye Vice Mayor Schlum Aye Councilmember Archambault Aye Councilmember Dickey Nay The motion CARRIED BY MAJORITY VOTE (6-1). Mr. McGuire advised that Councilmember Kavanagh added an amendment to an amendment and so there was still an amendment to the main motion to vote upon. Mr. Pickering commented that this amendment would not increase the "cap" and the Councilmembers concurred. The motion CARRIED UNANIMOUSLY (7-0). Mayor Nichols called for a vote on the main motion to approve the maximum budget amount ("cap"). Mayor Nichols requested that any citizens wishing to speak on this agenda item come forward at this time. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 9 of 13 MR. PHIL GAZIANO addressed the Council said that he was present this evening to reiterate the request he has made over the past year for $20,000 in Town support for the Fountain Hills Automated External Defibrillator Program. He stated that they had received tremendous support from the public and organizations, the Sheriff's Department, Southwest Ambulance, the realtors, etc. but they required support from the Town for public safety. He requested that the Council fund this program through the Fountain Hills Civic Association, which has a dedicated line for the AED Program and they could then purchase the balance of the AEDs to complete the public access portion of the program for Fountain Hills. He advised that he could get the manufacturer to donate one for the first thirteen purchased through the Civic Association and that would complement the last request he received for an AED at Golden Eagle Park. He urged the Council to support this important request and discussed proposed locations for the equipment. He added that in working with the School District, particularly youth sports, they probably would need more AEDs so they would have to raise more money for that. Mayor Nichols thanked Mr. Gaziano and recommended that he submit his request in writing to Mr. Pickering. MR. BRUCE TOMINELLO addressed the Council and said he was not there to ask them to raise the "cap" but rather to stimulate some thought as to how they could save some money in the future by spending some money in the present. He noted that this year's budget contains funding for shading for the performance pad and asked how much more that will cost today than it would have if it had gone in when the performance pad was constructed. He added that they were hopefully going to begin to build the skate park but said it was his understanding that they might not build all of it because only a certain amount of money had been budgeted for this purpose. He stated the opinion that it would cost more to finish the skate park later on if they delayed and urged the Council to look at the budget carefully and find ways to finish projects rather than waiting until the prices increased. Mayor Nichols thanked Mr. Tominello for his remarks. BOB DEPPE, Boulder Drive, addressed the Council and said that this year the Town gave a grant of $125,000 to the Chamber of Commerce for tourism costs and in next year's budget, there was a grant in the amount of $125,000 again for tourism costs for the Chamber. He noted that this year the Chamber had extra monies and said they used it to pay off their bonds early and next year they would have extra money again because they did not have to pay the principle and interest on the bonds. He stated that Fountain Hills gives a grant, which is taxpayer's money, because of a need and expressed the opinion that the Chamber did not have a need. He suggested that the Council delete the $125,000 to the Chamber of Commerce for tourism costs and said he would much prefer to see some of the money go to the Food Bank. He also requested that this year's grant be returned because the Chamber used "our money" to pay off their bonds. Mayor Nichols thanked Mr. Deppe for his comments. There were no additional citizens wishing to speak on this item. In response to a question from Councilmember Dickey, Councilmember Kavanagh commented that regardless of an amendment or an amended amendment, between now and the final adoption of the budget any of the monies could be switched around. Mr. Pickering further stated that the Council has the ability to change the budget anytime between now and June when it was adopted. He added that this option has always been there but this evening they would set the "cap" for the maximum amount. Vice Mayor Schlum advised that when the budget is adopted, the line items needed to be identified in that budget with either specified or unspecified amounts if they planned to do a budget transfer. He stressed the importance of ensuring that they had the ability to spend the money. He said that until the budget was "fixed" they were free to move things around but they were going to have to identify something under the "cap" to create the new funding amount. He emphasized that nothing was in the budget until they agreed upon what should be in it and they might wind up having no line item for any Community Benefit yet in the budget or monies would be moved EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 10 of 13 around. He added that they would not spend more than the "cap" amount they were voting on this evening. He added that in August, if it was specific to one group, there might not be a budget to spend based on the line items that they agreed to when they adopt the budget in June. Town Attorney Andrew McGuire said that staff needed clarification as to the direction in which the Council wanted to proceed because staff believed that the Council was going to be presented with options as to how they could add $50,000 or whatever number they waned into the budget at the next session for final adoption. He added that whatever was set at that meeting would either allow or not allow them to spend in that funded area for the next fiscal year; it was not in the budget. Mayor Nichols commented that they have a preliminary budget now, which has monies and if the Council wanted to set up a pool of money for Community Benefits, $50,000, $60,000, etc., they had to find the money someplace else in the budget to transfer and set it up as a category. They are going to try to find some money to set up a specific category, Community Benefits, and then come up with a process in August to try to determine how they were going to allocate that money. Councilmember Kehe reiterated that he did not intend to cut any existing program and said no one else on the dais said that they wanted that to happen. He recommended that they "not worry." Councilmember Kavanagh requested that Mark Mayer respond to a comment from Mr. Tominello to clarify that it was not the Council's intention to cut the skate park. He added that it was his understanding that they actually added additional monies to take into account increased concrete costs, etc. and they were proceeding with Phase I. Mr. Mayer concurred with Councilmember Kavanagh's summation and said Mr. Tominello was correct is stating that they had not currently funded Phase II because the direction from the Council at that time was to pursue a local effort/fund raising activities. Councilmember Kavanagh added that the other reason why they did not fund Phase II was because they wanted to make sure that there was sufficient interest in Phase I. He said that they were going to monitor Phase I to ensure that it is used by, and popular with, local residents before moving on. He emphasized that they were committed to finishing Phase I. Councilmember Kehe stated that he thought Phase II was heavily dependent upon a promise by citizens to raise half of the needed funds and Mr. Mayer concurred. Mayor Nichols advised that there was a motion on the floor to adopt a maximum "cap" of $26.7 million for the 2006-07 budget and called for a vote. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #17 — CONSIDERATION OF RENEWING THE LICENSE AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND COX COMMUNICATIONS. Mr. Pickering stated that this was the same agreement the Town had with Cox Communications for the last 10 years and said that they were asking the Council to renew it for an additional 5 years. He added that they were not making any changes. Councilmember Archambault MOVED to approve the License Agreement for an additional 5-year period of time and Councilmember Dickey SECONDED the motion. Councilmember Kehe noted that several residents indicated that they had been experiencing problems with their service and asked whether the issues had been addressed. Mr. Pickering responded that the problems had been rectified. EABBender0ocumentACurrent Minutes 2006\5-18-06 MINUTES.doc Page 11 of 13 Councilmember McMahan asked questions about business access to Cox Cable. Mayor Nichols said that he believed the point was that the cost to put the cable in was not a cost to be borne by the Town; it was a cost that was borne by the business owners. He added that Cox pays to put the cable into residential areas. Mr. Pickering added that businesses had to pay for extensions and said that this was a Valley -wide policy. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #18 - 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: A. NONE AGENDA ITEM #19 — SUMMARY OF COUNCIL REQUESTS BY TOWN MANAGER. Mr. Pickering stated that he would bring the budget back before the Council for them to make any desired changes. He added that a Work Study Session would be scheduled for August. The Mayor said that staff would also look into ways to "massage" the budget to identify funds. Mayor Nichols announced that this coming Sunday at 7:00 a.m. at Fountain Park, the Arnie Dvorkis Dialysis Awareness Walk would take place and encouraged attendance at, and support for, this worthy event. AGENDA ITEM #15 — ADJOURNMENT Councilmember Kehe MOVED that the Council adjourn and Councilmember McMahan SECONDED the motion, which CARRIED UNANIMOUSLY. The meeting adjourned at 8:12 p.m. EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 12 of 13 TOWN;OFFOUNTAIN ILLS I a %By W 'Nicho , ayor ATTEST AND PREP RED B Jan Robinson, Acting Town Clerk ERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills on the 18`h day of May 2006. I further certify that the meeting was duly called and that a quorum was present. DATED this 1st day of June, 2006. Jane obinson, Acting Town Clerk EABBender\Documents\Current Minutes 2006\5-18-06 MINUTES.doc Page 13 of 13