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HomeMy WebLinkAbout2008.0619.TCREM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE EXECUTIVE AND REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL Lir June 19,2008 Mayor Schlum called the meeting to order at 5:00 p.m. AGENDA ITEM #1 — ROLL CALL AND VOTE TO GO INTO EXECUTIVE SESSION: PURSUANT TO A.R.S. *38-431.03.A(1) FOR DISCUSSION OR CONSIDERATION OF EMPLOYMENT, ASSIGNMENT, APPOINTMENT, PROMOTION, DEMOTION, DISMISSAL, SALARIES DISCIPLINING OR RESIGNATION OF A PUBLIC OFFICER, APPOINTEE OR EMPLOYEE OF ANY PUBLIC BODY, EXCEPT THAT, WITH THE EXCEPTION OF SALARY DISCUSSIONS, AN OFFICER, APPOINTEE OR EMPLOYEE WITH WRITTEN NOTICE OF THE EXECUTIVE SESSION AS IS APPROPRIATE BUT NOT LESS THAN TWENTY-FOUR HOURS FOR THE OFFICER, APPOINTEE OR EMPLOYEE TO DETERMINE WHETHER THE DISCUSSION OR CONSIDERATION SHOULD OCCUR AT A PUBLIC MEETING. (SPECIFICALLY, FOR THE PURPOSE OF REVIEWING APPLICATIONS SUBMITTED TO FILL VACANCIES'ON THE PUBLIC SAFETY ADVISORY COMMISSION FOR CONSIDERATION OF INTERVIEWING): AND (ii) PURSUANT TO s38-431.03(A)(4) FOR DISCUSSION OR CONSULTATION WITH THE ATTORNEYS OF THE PUBLIC BODY 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 FOR THE DISCUSSION OF POSSIBLE SETTLEMENT REGARDING THE HOLLOWAY/HADDY VS. THE TOWN OF FOUNTAIN HILLS LITIGATION.) ROLL CALL —Present for roll call were the following members of the Fountain Hills Town Council: Mayor Schlum, Councilmember Contino, Vice Mayor Leger, Councilmember McMahan, Councilmember Hansen, Councilmember Archambault and Councilmember Dickey. Interim Town Manager Kate Zanon,Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. Human Resources Director Joan McIntosh (left the meeting at 5:31) and outside legal counsel Justin Pierce(joined the meeting at 5:20 p.m. and left at 5:31 p.m.) were also in attendance for a portion of the meeting. Councilmember Archambault MOVED to convene the Executive Session at 5:00 p.m. and Councilmember McMahan SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). Councilmember Contino MOVED to recess the Executive Session at 5:45 p.m. and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). AGENDA ITEM#2—RETURN TO REGULAR SESSION * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Schlum called the meeting to order at 6:31 p.m. * INVOCATION—Pastor Tom Daly, Trinity Lutheran Church * ROLL CALL ROLL CALL—Present for roll call were the following members of the Fountain Hills Town Council: Mayor Loy Schlum, Councilmember Contino, Vice Mayor Leger, Councilmember McMahan, Councilmember Hansen, z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 1 of 17 Councilmember Archambault and Councilmember Dickey. Interim Town Manager Kate Zanon, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. * MAYOR'S REPORT None. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS PRESENTATION BY FIRE CHIEF SCOTT LAGRECA, REGARDING THE NEW FIRE TRUCK WITH A VIEWING TO FOLLOW. Fire Chief Scott LaGreca addressed the Council, highlighted a brief slide presentation and said that they had completed their Engine 823 Vehicle Replacement Schedule for 2007-08. He noted that the engine that they were replacing was a 1990 FMC Engine that had 135,000 miles on it and said that the last couple of years the engine had been in reserved status. He added that the engine was currently being used as a backup brush truck. He reported that the capital replacement schedule called for fire apparatus replacement projects to begin every 15 years or 100,000 miles. Discussion ensued relative to the fact that the project had begun in February 2007 when an Apparatus Committee was formed; the fact that he as the Fire Chief set the vision/direction and had final approval over the design specs; the fact that the equipment had to be cost sensitive (no non-essential equipment of features), environmentally compliant, have a 20 year life (15 year front line and 5 year reserve life or 125,000 miles); they wanted to use all available technology in an effort to reduce future repairs and service costs; the fact that the truck had to have grade-climbing capability under power, stopping ability, and be able to meet street and driveway challenges (length and grade); the extensive amount of time spent on the bidding process and the fact that four bids were received with the highest being $432,194, the lowest being $367,127 and the final delivery cost(without tax) being$349,645; the fact that the contract was awarded to Summit Emergency Equipment; the fact that when they participated in the pre-built conference in September 2001, they found enough savings to equal $17,482 and that amount was taken off of the original pricing; the fact that this amounted to a savings equal to the sales tax and the fact that the successful bidder was given 270 days to build the truck before the penalty phase would"kick in" ($100 per day). Chief LaGreca referred to conceptual designs of Engine 823 and reported that the final acceptance inspection took place in May 2008 and training had taken place. He discussed the unique functions of the truck and expressed appreciation to the citizens, the Mayor and Council, staff and members of the Apparatus Committee for their participation, direction, expertise and support. The Chief invited the members of the Council and everyone present to step outside and view the new truck. He added that the public was welcome to stop by at any time for a tour and/or a ride on the new vehicle. In response to a question from Vice Mayor Leger, Chief LaGreca stated the opinion that the new equipment would save valuable time in responding to situations. The Vice Mayor suggested that they conduct a community contest to name the new engine and the Chief said he would be happy to look into that. (At this time the meeting was briefly recessed while the Council, staff and members of the public viewed the new truck—6:49 p.m.—6:58 p.m.) CALL TO THE PUBLIC None. L z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 2 of 17 Public Information Officer Katie Decker addressed the Council and provided history relative to the Town's current contract with Buse Printing, which would expire on June 30t. She noted that the contract with Buse (bar Printing was for $57,878 annually and for that amount of money the Town received six issues of AveNews (before The Compass and the Manager's Memo was rolled into one under the title of "AveNews") and three issues of"In the Loop," the Parks and Recreation Activity Guide. She stated that the Public Information Office compiled Town-wide printing needs and explained that in the past different divisions had utilized different printers. She said that they decided to group all of the needs together and go out for one large bid, for cost and continuity purposes. Ms. Decker advised that staff went out to bid with eight different bidders and requested eight issues of"AveNews"per year, three issues of"In the Loop," binding for the budget books and a variety of printing needs (forms, envelopes, etc.) She reported that four bids were received and noted that the number that was being presented would remain stagnant for the next three years due to a contract "lock in" price. Ms. Decker stated that based on the bids staff received back, ColorPress was the lowest bidder at $61,520.92 and staff was recommending that the Council approve this bid. She noted that the company provided excellent references and were very diligent through the process. Ms. Decker informed the Council that as a result of compiling all of the printing needs for the Town, a savings of approximately$40,000 a year would be realized($120,000 over the next three years). Vice Mayor Leger MOVED to approve the three-year contract with ColorPress as recommended by staff and Councilmember Dickey SECONDED the motion. In response to a question from Councilmember Contino, Ms. Decker stated that to address who received the mailings she would like to clarify that each of the printers utilize a cast verified system; they had met with representatives of the U.S. Postal System and asked who had been verified in the address system and who had not. She added that they only send materials to those homes that their addresses had been verified through the U.S. Postal Service. Ms. Decker said that she would be happy to look into why Councilmember Contino had (lily not received copies of AveNews. She added, in response to Councilmember Contino's comments, that should the Council prefer to go back to printing in black and white, staff would be happy to pursue doing so. She said that the way the bid stood before them right now called for color. Ms. Decker advised that no local printing businesses had participated in the bidding process although the primary printer in Town had been invited to bid. Councilmember Contino said that he spoken with the local printer and was told that they get "hammered on by the Town" each time they go out for a bid and they were tired of it. He said that after talking with them they were willing to go back and take a look at the bid. He stressed the importance of enhancing economic development and utilizing local businesses. Ms. Decker stated that staff would be willing to pursue this issue if the Council so desired but reiterated that the local printer was invited to bid and had received the same opportunity as other bidders. Mayor Schlum requested that Town Attorney Andrew McGuire comment on the Town's bidding process. Mr. McGuire discussed staffs efforts to ensure a full and fair bid evaluation. He said that he was not quite sure what the "hammered on by the Town" comment referred to and so it was difficult to address. He noted that there was a preference provision in the Town Code that allowed a 10%preference for local businesses but added that they had not often applied that and he had some concerns as to whether the Town could actually enforce that provision. Councilmember Contino stated that the "hammering" comment referred to the pricing and he asked whether ColorPress had a Fountain Hills business license. Ms. Decker advised that the company did submit a business license as part of their packet. Councilmember Contino said that he did not see one listed in the packet of materials provided by staff and added that he would not vote to approve the contract unless they did in fact have a business license in the Town. Lir z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 4 of 17 Interim Town Manager Kate Zanon commented that the Town required anyone who did business in the Town of Fountain Hills to have a Fountain Hills' business license and said that if such was not the case, it would be corrected before the company could actually begin the work. Councilmember Archambault congratulated staff on looking into the Town's printing needs and saving approximately$120,000 over the next three years,especially without an escalation clause. In response to a question from Councilmember McMahan, Ms. Decker advised that printing the Town's newsletter eight times a year in black and white was an option that could be pursued but was not included in the current bid because it would have represented a cut in current services. She added that citizens could access the newsletter on the Internet and subscribers automatically received the newsletter in their inboxes (every two weeks). Councilmember McMahan commented that he had a P.O. Box and did not believe he had ever received a copy. Ms. Decker stated that she was not certain how the verification process took place but added that it was the most verified system that existed because it was done by the U.S.Postal Service. Councilmember McMahan said that he personally did not like the name of the newsletter but added that they could probably not make everyone happy in this regard. Councilmember Dickey thanked staff for their efforts that would result in saving the Town money. She said that she understood and appreciated everyone's comments but believed that the low bid was the way to go to protect taxpayer dollars. She too stated that the business license aspect should be verified and taken care of before the contract moved forward. She added that if the Council wished to make changes that could be brought up in a future discussion but she personally believed that what was being presented was in good taste and "not over the top." Councilmember Contino said that he too appreciated the good job that staff had done but as a former business owner he also looked at the fact that the owners' incomes come from getting business and he believed that the Town had slighted a lot of people in that regard. He added that it was time that they took a look at this issue. Mayor Schlum commented that everyone on the Council would like more local businesses involved in the bidding processes that takes place and if there were issues out there causing trouble as far as doing business with the Town then the Council could work with the staff to address those issues. He said that the Council was available and willing to work with staff to address any issues that were brought forward. He also stressed the importance of being competitive and said that limited dollars were available. The Mayor stated that the Council's objective was to communicate with the public as much as possible and the contract before them appeared to represent a quality product with a significant savings. He also noted that citizens could also access the information on line and thanked staff for their efforts. A roll call vote was taken with the following results: Councilmember Hansen Aye Vice Mayor Leger Aye Councilmember Dickey Aye Councilmember Contino Aye Councilmember Archambault Aye Mayor Schlum Aye Councilmember McMahan Nay The motion CARRIED by majority vote(6-1) with Councilmember McMahan voting Nay. AGENDA ITEM #7 - CONSIDERATION OF THE REAPPOINTMENT OF FOUNTAIN HILLS' MUNICIPAL JUDGE TED ARMBRUSTER TO A NEW FOUR-YEAR TERM BEGINNING JULY 1, Lay 2008 AND ENDING JUNE 30,2012. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 5 of 17 Vice Mayor Leger MOVED to reappoint Municipal Judge Ted Armbruster to a new four-year term beginning July 1, 2008, and ending June 30, 2012, with an annual increase of 5% and Councilmember McMahan Li" SECONDED the motion. Councilmember Contino stated the opinion that the Judge had done a fine job and deserved everything he gets. Ms.Bender advised that there were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY(7-0). Mayor Schlum thanked Judge Armbruster for serving the Town of Fountain Hills so well. AGENDA ITEM #8 — CONSIDERATION OF APPROVING A PURCHASE AGREEMENT WITH WHOLESALE FLOORS, INC. IN THE AMOUNT OF $38,515.58 FOR CARPET INSTALLATION IN THE COMMUNITY CENTER GRAND BALLROOM AND GLASS HALLWAY AREA. Community Center Director Samantha Coffman addressed the Council and noted that for Fiscal Year 2007-08 the Community Center submitted a budget request to replace carpeting throughout the facility. Due to budget restraints at that time they were told to split the job into two phases. In the first phase they chose to replace carpet in the hallways, offices, meeting rooms and lounge areas. For Fiscal Year 2008-09 they had budgeted to replace carpeting in the remaining areas, which included the Grand Ballroom and glass hallway. She noted that since the carpet originally placed in the Center was no longer available, they had an opportunity to look at several different types and styles of replacement flooring and decided to use two foot by two foot carpet tiles, which had become the trend in public facilities because it significantly extended the life of the carpet. She pointed out that one benefit was instead of replacing an entire room they could simply pull up and replace only the specific areas that showed wear patterns or stains. Ms. Coffman referred to slides that depicted the wear and (is" tear on the carpeting. She noted that installation was scheduled for the end of July and it was estimated that the carpeting would last eight to ten years. Ms. Coffman requested that the Council approve this request and thanked them for their continuing support. In response to a question from Councilmember Archambault, Ms. Coffman advised that additional replacement tiles were part of the order. Councilmember Contino MOVED to approve the purchase agreement with Wholesale Floors, Inc. as recommended by staff and Councilmember McMahan SECONDED the motion. Councilmember Contino reiterated his concerns relative to not utilizing local businesses and said that he had counted seven carpet businesses in Town. Ms. Coffman responded that staff utilized the State contract pricing and that did not require the Town to go out to bid. She explained that State contract pricing offered the lowest cost. She added that Wholesale Floors, Inc. was the contractor who laid the carpeting in the building so a relationship already existed and noted that the State contract process allowed participating municipalities to defer from the expensive and time-consuming process associated with obtaining multiple bids. Councilmember Contino emphasized the importance of thinking about the businesses in Town. Mayor Schlum agreed with the importance of involving local businesses in Town contracts and said that perhaps Mr.McGuire could talk about the State process as it equates to bidding. Mr. McGuire commented that generally staff's goal, especially during current austere budget times, was to find the best price. He added that not surprisingly, the State of Arizona could negotiate much better prices than almost any municipality could; however, there were occasions when the Town went to bid and they got the best z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 6 of 17 contract price then other municipalities would be able to purchase from the Town's contract. He noted that cooperative purchasing throughout the State was a means by which governmental bodies obtain the best pricing collectively by using a lot of purchasing power. He added that the only preference they had under the Town Code was for contracts under $10,000 and almost everything that the Town did would not be allowed to have a local preference so local vendors would have to come in at the best price in order to be selected. Mayor Schlum said that he was interested in having the "best of both worlds" and stated that they could have State contract prices "in their back pocket" and still go out for bids in the hope of having a local business win the bid. He added that this might be something that staff could consider further. Ms. Zanon advised that the Town's purchasing policy/procedures required staff to go through a bidding process or they always have the option to go through the State contract. She said that staff would be happy, on projects, to go through the bidding process as well as research State contract pricing. She noted that in this case, because it was the continuation of a project, using the person who had done the prior installation and continuing that seamless transition of carpeting throughout the rest of the building, seemed appropriate. She added that staff would be happy to explore other options Mr. McGuire pointed out that the process that the Town was following was in accordance with the Town Code and asking staff to go outside of that Code as far as purchasing was inappropriate. He said that if the Council wanted to address that and change the lowest responsible bidder requirements in the Code that could be pursued. He said that lowest bid was what wins the day unless Council addresses a revision to the Town Code. Mayor Schlum reiterated his desire to open up the process to allow it to include the State contract as well as open bidding and Mr. McGuire stated that the Code could be amended to allow for that to occur. He added, however, that they would lose the efficiency of being able to avoid the expense of a bidding process when they have a product that they knew did not exist in Town so they would have to "carve that out." He stated that he cor. would be very reluctant to advise the Council to adopt a policy that allowed them to pick and choose off of a list on any basis other than the lowest bid. Councilmember Hansen commented on the fact that local businesses generate sales taxes that came back to the Town and asked how that issue could be calculated into the process. Mr.McGuire said that they could have sales tax be part of the bid. Councilmember Dickey asked whether there were administrative costs associated with going out for bid as opposed to utilizing the State contract. Ms. Zanon replied that there were associated costs including staff time (the person in charge of the bid plus legal review of the documents). She said that bids were also sent out and there was a period where people could ask questions that staff responded to and then a bid opening took place where the lowest bidder was selected. She added that the cost depended on the complexity of the project being bid. In response to a question from Councilmember Archambault, Finance Director Julie Ghetti advised that this type of purchase was considered contracting and for contracting the sales taxes were collected in the city in which the work was actually done so it was a Fountain Hills' sales tax and it would remain in the community. Councilmember Archambault discussed the competition that existed among bidders and said that he was aware of local businesses that did not want to participate in the process or they were too busy; they said it would be a waste of their time or it was "too chopped up." He stated that if they did not bid on projects that was their fault because they were making executive decisions on their business level. He added that their job was to expend the monies that they were entrusted with in the most economic way possible and still provide the services that the Le citizens demand. He asked Ms. Coffman what was budgeted for this particular item and she responded just over $38,000 in the 2008-09 budget. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 7 of 17 Councilmember Contino said that he was not "hammering" staff but believed strongly that they needed to take a look at this issue and every department should be aware of the fact that they had businesses in Town that they could draw from. He stated that that was the point he was trying to make. In response to a question from Councilmember Contino, Councilmember Archambault clarified that the Town Attorney said that he would not advise the Council to go against the Code (to not take the lowest bid). He added that he believed that this issue should be placed on a future agenda for further discussion. Councilmember Contino advised that the bidder being recommended by staff did not have a Town business license in its possession and Ms. Coffman assured the Council that she would make sure that they had one before the work began. Mr. McGuire stated that he did not know that prior to bid time the Town required businesses to be licensed because a lot of the companies that bid did not typically do business in Fountain Hills and would not be aware of the fact that they needed a license to do the work. He said that Ms. Ghetti follows up with everyone to ensure that they obtain licenses prior to performing any work and the Town did require with most of the bids that the applicants provide the Town with a copy of their State Transaction Privilege License. He said that after bids were awarded, the bidders who were not already licensed were required to obtain one before any work was carried out. Mr. McGuire stated that he did not know how they could determine whether the company under discussion had been licensed at the State level when they performed the previous work in Town. In response to comments from Councilmember Contino, Ms. Zanon explained that a business license was required to do business in Town. When they solicit bids and they come back, the person awarded the bid was required to have a business license in order to operate. She noted that the Town would not release payment until this was done. She added that off the top of her head she did not know what the situation was as far as the previous work performed in the Town and said that they might have had a license that expired and they had to Lir renew it. She stated that staff would be more than happy to look into this and would ensure that a business license was in place before any payment was released to the contractor. Councilmember Contino commented that there were different rules for businesses in Town to open and different rules for businesses that bid on contracts and he had a hard time with that because local businesses had to pay up front before they could open their doors. Mayor Schlum stated that a company that opened in Fountain Hills was going to be doing business in Fountain Hills and therefore required a business license while a company that bids for a job in Town would not necessarily be awarded the bid and so requiring a business license before the bid had been awarded would be premature. Ms. Ghetti, in response to a request from Councilmember McMahan, provided a brief explanation of how the State contract process works. In response to a question from Councilmember Contino, Ms. Coffman advised that staff contacted the manufacturer of the carpet that was installed last year and the manufacturer recommended two companies, neither of which were in Fountain Hills. Both bid the project and were in the same range as the Wholesale Floors, Inc. bid. The motion CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #9 — CONSIDERATION OF AMENDMENT NO. 1 TO THE ENGINEERING AGREEMENT IN THE AMOUNT OF $110,759.00 WITH EPS GROUP, INC. FOR DESIGN OF A SIDEWALK ON FOUNTAIN HILLS BOULEVARD FROM FAYETTE DRIVE TO THE FOUNTAIN HILLS UNIFIED SCHOOL DISTRICT#98 MIDDLE SCHOOL. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 8 of 17 Public Works Director Tom Ward addressed the Council relative to this agenda item. He said that this evening the Council was considering the second phase of a contract with EPS Group to design a sidewalk on Fountain Hills Boulevard, approximately 3,600 feet long and runs from Fayette Drive to the Middle School on the east side and on the west side runs from Oxford Drive to the Middle School. He noted that this particular contract was part of a grant. In 2004, the Town applied for and was awarded a Congestion Mitigation Air Quality grant, known as a CMAQ grant, from Maricopa County Association of Governments in the amount of $354,200 (strictly for construction and not for design). He said that staff was here tonight to request that the Council proceed with the second phase and the award to EPS. He indicated his willingness to respond to any questions from the Council. Gary Zook addressed the Council and questioned the need for the sidewalks. He said that he didn't move to Fountain Hills for sidewalks, lights or stoplights and does not want to see the terrain "messed up." Mayor Schlum thanked Mr. Zook for his comments. Councilmember Dickey MOVED to approve Amendment 1 to the Agreement with EPS Group, Inc. in the amount of$110,758.00 and Vice Mayor Leger SECONDED the motion. Councilmember Dickey questioned whether surface options could be part of the discussion on the design aspect of the project. A citizen had mentioned a place in Scottsdale that had softer surfaces that were more jogger friendly. Mr. Ward stated that staff could talk to the consultant about that and added that when he had previously talked to Councilmember Dickey and the resident he found out that they were specifically talking about an area down on Frank Lloyd Wright Boulevard where there was a softer trail on the south side. He added that they had a concrete sidewalk on the north side. The trail on the south side was a horse trail and joggers tended to use that because of their knees. He advised that staff would look into that to see if there was an alternate surface that they could come up with. He noted that the situation they got into with softer trails was the Americans With Disabilities(ADA) requirements and how they transition from the softer material. Councilmember Dickey said that the softer surface also resulted in a more natural look, which she believes the speaker was talking about. She added that she lived right by the Middle School and believed that it was a safety issue they were talking about. She expressed the opinion that a soft surface would better serve the needs of the area. She also discussed ADOT Walkable Communities, which was a program that offered grants because they were trying to get people to walk instead of utilizing gasoline. She advised that Walkable Communities would also be on the score card that the State would rely on for discretionary spending and an effort such as this was worth applying for. Councilmember McMahan asked when the project would begin if it was approved and Mr. Ward stated that construction would begin in 2009-10. The Vice Mayor asked staff to zero in on the rationale for doing this type of project at this location and Mr. Ward said that many years ago staff started to work with the School about the pedestrians, bikes and the lack of sidewalks. Staff had observed a lot of pedestrian movement, young pedestrians, coming from the west side of Fountain Hills Boulevard and from the east side. He noted that they did have some sidewalks up by the Montessori School and in the commercial development but they did not have sidewalks running down to Fayette Drive. He added that staff believed "if you build it,they would come" and it would enhance safety. Vice Mayor Leger stressed the importance of citizens understanding why such a project was taking place and said that they had documented cases where children had been injured. He commented on the fact that this was a public safety issue and he knew personally that a need existed that must be met. Lire z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 9 of 17 Councilmember Contino stated that he did not agree that a need for sidewalks existed and questioned how many children were walking to school. He said that when his children were attending the school, he drove them and a majority were dropped off but added that it appeared that a need does exist now to enhance safety and so he Nikile would support the proposal before them. Vice Mayor Leger expressed the opinion that many parents drive their children to school because there were no safe sidewalks for them to walk on and this creates traffic congestion at the school. He said that he believes that a real need exists in this particular case. Councilmember Archambault commented on the fact that they were talking about a regional road that handles a lot of traffic and when the Ellman project was completed, there would be even more traffic. He stressed the importance of removing pedestrian traffic off the streets and enhancing safety. Mayor Schlum said that one of his goals was to connect to the schools and he supports the proposal. Discussion ensued relative to the time limit on the grant and staff's intention to request an extension; pedestrian counts and the number of children walking where they should not and the fact that CMAQ would not pay for the entire project. Mayor Schlum called for a vote on the motion. The motion CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #10 — CONSIDERATION OF A CONTRACT WITH RED OAK CONSULTING, A DIVISION OF MALCOLM PIRNIE, IN THE AMOUNT NOT TO EXCEED $65,000 TO PERFORM A DEVELOPMENT FEE STUDY AND UPDATE THE TOWN OF FOUNTAIN HILLS DEVELOPMENT FEES FOR CHANGES IN CAPITAL, GROWTH AND OTHER ASSUMPTIONS SINCE THE CALCULATION OF FEES IN 2006. Finance Director Julie Ghetti addressed the Council relative to this agenda item and reported that the last full development fee review was done in 2006 and it was based on the 2005 Capital Improvement Plan. She noted that a full review differs from the recent inflationary adjustment that the Council adopted in May. A full review includes an updated Capital Improvement Plan and since 2005 there have been significant changes to the Plan both in costs and projects. When the current fee schedule was adopted in January 2006, the Council directed staff to conduct a full study of the development fees every two years to keep up with construction costs. The 20- Year Capital Improvement Plan was being updated and would be the basis for any revisions to the development fee schedule. A full development fee process takes six to nine months to complete. The expenditure for the review was included in the Fiscal Year 2009 budget. She indicated her willingness to respond to questions from the Council. Ms. Bender advised that there were no citizens wishing to speak on this agenda item. Councilmember Archambault MOVED to approve the professional services agreement with Malcolm Pirnie, Inc. in an amount not to exceed$65,000 and Councilmember Dickey SECONDED the motion. In response to a question from Councilmember McMahan, Ms. Ghetti advised that development fee studies were very complex and technical and not something that staff could do. The motion CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #11 — CONSIDERATION OF A SYSTEM AGREEMENT BETWEEN TYLER Lw. TECHNOLOGIES, INC. AND THE TOWN OF FOUNTAIN HILLS FOR AN INVESTMENT IN AN INTEGRATED, ENTERPRISE WIDE SOFTWARE SYSTEM IN THE AMOUNT OF $152,565 TO z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 10 of 17 INCLUDE ACCOUNTING, BUILDING PERMITS, LICENSING, CONTRACT MANAGEMENTS GRANT ACCOUNTING AND CODE ENFORCEMENT MODULES. Finance Direction Julie Ghetti addressed the Council relative to this agenda item and said that the Fiscal Year 2007-08 budget included $206,800 to purchase new municipal software for accounting and a citizen alert request management system. The process of finding new municipal software started two years ago with the long term goal of integrating financial and other activities across the organization. The Town hired an Information Technology analyst to evaluate the Town's current and future technology needs and help with the bid process. The analyst's recommendation was to invest in a system that would provide integrated data across the organization for more reliable information, better efficiency and reduced redundancy and paperwork. To provide enhanced customer service, more transparency and access to information, the Town's information systems needed to be able to communicate with each other. The Town's current accounting system was 18 years old, was inflexible, inefficient and based on outdated technology. Ms. Ghetti provided examples of the inefficiency and ineffectiveness of the current system and said that there was no sharing of information and a significant amount of redundancies occur. She outlined the benefits that would be realized as a result of implementing the integrated system, provided background relative to the provider and noted that the software purchase was approved in Fiscal Year 2007-08 General Fund budget, however, a percentage of the cost would be allocated to development fees based on growth since existing residents would benefit from the expanded delivery of service as well as new residents. She said that staff recommended approval of the agreement and indicated her willingness to respond to questions from the Council. Ms. Bender advised that there were no citizens wishing to speak to the Council on this item. Vice Mayor Leger MOVED to approve the Systems Agreement with Tyler Technologies, Inc. in the amount of $152,565 as presented for Fiscal Year 2007-08 and Councilmember Archambault SECONDED the motion. Councilmember Contino said that he talked about this issue the other day and they discussed the fact that they really were far behind in the times. He stated that the purchase of this software would bring the Town up to date. He questioned why the Town waited 18 years to do this. Ms. Ghetti replied that the existing system worked "okay" but over the past few years the Town had grown and experienced a lot of development and this was actually the first time staff had been able to take a breath and be able to focus on a project this big. She noted that this was a huge undertaking; a lot of money and a huge investment and it took a lot of expertise to be able to make sure that they spent the money wisely and would be able to utilize the system for the next 18 years. Councilmember Contino commented that staff deserves a lot of credit for what they had been able to accomplish and thanked them for their efforts in this regard. Mayor Schlum thanked Ms. Ghetti for her presentation and said that although it was a big investment, it was important for the public to have access to information. In response to a question from Vice Mayor Leger,Ms. Ghetti confirmed that development fees could be applied. She said that the actual amount would depend upon the study. Councilmember Archambault discussed updates and asked what arrangements had been worked out. Ms. Ghetti advised that there would be an annual maintenance fee that had been waived for the first year. Beginning with the second year, the fee would come into play and that would include all updates. She reported that the cost would be approximately $50,000 a year. Lw The motion CARRIED UNANIMOUSLY(7-0). z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 11 of 17 AGENDA ITEM #12 — CONSIDERATION OF RESOLUTION 2008-21, LEVYING UPON THE ASSESSED VALUATION OF THE PROPERTY WITHIN THE TOWN OF FOUNTAIN HILLS, SUBJECT TO TAXATION, A CERTAIN SUM UPON EACH ONE HUNDRED DOLLARS ($100.00) OF VALUATION SUFFICIENT TO RAISE THE AMOUNTS ESTIMATED TO BE REQUIRED IN THE ANNUAL BUDGET, SPECIFICALLY BONDED INDEBTEDNESS, FOR THE PURPOSE OF PAYING PRINCIPAL AND INTEREST UPON BONDED INDEBTEDNESS; ALL FOR THE FISCAL YEAR ENDING JUNE 30,2009. Ms. Zanon addressed the Council relative to this agenda item and explained that this item represented the annual cost to homeowners for the Town's bond payments and said that the total cost to homeowners would be approximately$.22 per$100 assessed of value. Ms. Bender stated that there were no citizens wishing to speak to the Council relative to this agenda item. Councilmember Archambault MOVED to approve Resolution 2008-21 and Councilmember McMahan SECONDED the motion. In response to a question from Councilmember Archambault, Ms. Ghetti advised that the rate last year was $.21. Ms. Ghetti stated that the items that would be paid for would be the Library/Museum, the open space behind the Fountain and the McDowell Mountain Preserve. The motion CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #13 — DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING A TEMPORARY AMENDMENT TO THE SIGN ORDINANCE. „�. Councilmember McMahan said that this item had come up as a result of a conversation he had with Councilmembers Hansen and Contino and explained that they were worried about the lack of traffic in the downtown area this summer. He stated that they were wondering whether a temporary restoration of the A- frame signs might be in order. Councilmember Hansen advised that a significant amount of conversation took place during the election campaign regarding the importance of the Town being more business friendly. She added that their intent was to come up with some ideas and actually identify what being business friendly was. She said that with the economy being so bad and the summer being so slow signage was one of the things that they were hoping to look at. She noted that Councilmember McMahan put together an amendment to the Sign Ordinance and did a great job but they realized that no changes could be made to the Sign Ordinance until the proposal went through the proper process (through P&Z and coming back to the Council) but by then the summer would be over and the opportunity would be gone. Councilmember Hansen stated that what they were trying to accomplish tonight was to come up with some way to offer at least temporary relief through the summer while the ordinances were being reviewed. She advised that the Town Attorney was very helpful and had advised that although they could not make the amendments, they might be able to just look at enforcement issues. She pointed out that some things had happened lately and the Town might have been more zealous than they would like to be and the goal was to approach this problem and make it easier on the businesses. Ms. Bender advised that one citizen wished to address the Council relative to this agenda item. Sherry Sledge, the owner of Bodyworks Center for Perfect Health, addressed the Council and stated that she was involved with the sign issue a long time ago. She noted that the A-frame signs really did help businesses and cor. added that she tracked where she got all of her business from and when she was still able to put A-frame signs out, 18% of her new business was the direct result of those signs. She added that when she had to take the signs down, the amount of new traffic she attracted decreased to 1%, and this represented a significant financial loss. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 12 of 17 She said that she had talked with a lot of other owners who did not track their businesses as well as she did but they too had suffered financial losses since the A-frame signs were prohibited. She noted that this summer had been and would be a little "tighter" and anything that the Council could do to help businesses stay in business Vow and feed their families would be appreciated. She emphasized the importance of delving into the sign issue and pointed out that in the past over 1,000 people signed petitions in support of the A-frame signs because they helped people locate businesses. She added that there were certain businesses in Town that were difficult to find. She reiterated that anything the Council could do to support businesses should be looked at and considered and requested that the Council consider allowing the A-frame signs to be erected at least during the summer months. She said that they could review the entire signage issue but it was important that the businesses receive some relief now. Mayor Schlum thanked Ms. Sledge for her comments. Councilmember McMahan commented on the fact that they rushed this issue through ad hoc and he was "brought up short" when the Town Attorney reminded him that this was a zoning issue that must go through the proper process. He said that he was shooting for the first of July but they would not be able to make that date now. He noted that the Chamber of Commerce had not seen this proposal or endorsed it because they had not had a chance to look at it yet. He stated that anything they could do—even move the start date up to August 1st and extend it perhaps until the end of the year— would be helpful to the business community. He added that he voted against the signs before because there were too many of them and many were using hand-made signs. He said that he was proposing that the signs be displayed from August 1st through the end of the year and that significant period of time would justify the businesses purchasing professional signs, which he believed would cost approximately$200. Mayor Schlum said that the spirit of what Councilmember McMahan was bringing forward was appreciated and reflective of what they all went through when they conducted their discussion on goals. He emphasized that business vitality was one of the Council's important goals. He noted that staff was looking at ways to help in Niksy this area and so were the members of the Council and the Chamber of Commerce. He agreed that signage was an important component of this issue. He stated that the passion was appreciated and the process was in place for important reasons and the Council would not like to take action on something that would have future ramifications they were not aware of. He asked Mr. McGuire how thorough a discussion the Council could get into at this time relative to this issue. Mr. McGuire stated that this was a"discussion only" issue at this point in time but if the discussion was to move in the direction of considering this as part of upcoming sign amendments, Mr. Turner was present and he could provide information on how and when the Planning &Zoning Commission could take up the matter. He noted that P&Z could initiate the matter at their meeting next week then after that point, if they hit the 15-day notification requirements for an actual text amendment, the earliest this issue could come back to the Council would be the middle of August. He added that that would cut out any time to have an actual discussion about the text prior to P&Z's action. He pointed out that there was another sign process going on simultaneously and it might be good timing for both items to be discussed together. Mayor Schlum said that there was obviously more work being done to address sign issues with a variety of groups in Town and added that as times change ordinances change. He further stated that the Council was restricted as to what they could decide tonight or direct staff towards but added that they would not want to put something into effect that would ultimately be removed though another Sign Ordinance revision. Councilmember McMahan asked whether there was a way they could have staff look at the proposal and present it to P&Z and Mr.McGuire suggested that Mr. Turner be called on to speak to this issue. Planning &Zoning Director Richard Turner addressed the Council and said that he would be happy to speak to the Chairman of the Planning Commission in an effort to place this item on the agenda for their meeting next Thursday. He stated that they would move right into a study to amend the Sign Ordinance. He added that they z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 13 of 17 would certainly include this proposal as part of any review and noted that there was another group working on changes to the Ordinance and they would include that as well. Li' Vice Mayor Leger asked Ms. Zanon to share with everyone information about the group that had been commissioned to look into this and where they were at this particular point in time. Ms. Zanon commented on the fact that one of the Council's goals for this coming Fiscal Year was to look at the Town's sign regulations. She noted that the Chamber of Commerce oversaw the Business Vitality Advisory Council and that Council had several subcommittees that were looking into different aspects of business throughout the community. She added that one of those committees was looking at zoning regulations and they had been looking through the sign regulations and preparing some potential amendments that could be made. The document that they had been working on had been submitted to the Chamber of Commerce for their review and had not yet come back to the Business Vitality Executive team though she was certain that would happen shortly. She reported that although nothing had been submitted to the Town to date and that was the process that was alluded to by the Mayor and Mr.Turner. Ms.Zanon further stated that in light of that,because this was a Council goal for the Town for this Fiscal Year, Mr. Turner had also crafted a process to go through the regulations with P&Z and take any outside documentation, such as the proposal submitted by Councilmember McMahan, as well as any documentation that came out of the committee that was part of the Business Vitality Advisory Council and feedback from the community. She noted that sign ordinances were very sensitive issues and they want to ensure that it would be a very comprehensive process that incorporated various members of the Town's business community so that all voices would be heard in this review. Mayor Schlum pointed out that it would be a collaborative effort. Vice Mayor Leger stated that with that being the case and with this proposal on the table, he would like to know whether it would make sense to take this initiative and the recommendations of their colleagues and "piggy Le back" that on to the initiative that was currently on the table. He said that it was his understanding that there was a draft of the sign ordinance and this could be added to that during the review process. He noted that he had read both documents and it was very possible that there were some opposing views and they would have two parallel tracks. He added that trying to do something in short order might have an adverse outcome because of conflicting goals. He said that he was very sensitive to what happened to the Town during the summer months and added that perhaps this discussion should have taken place three or six months ago to prepare for the summer. He spoke in support of "piggy backing" on to the other proposal and having them discussed as one proposal. Councilmember Archambault commented on the fact that the Council had set timeframes for their various goals, including this one, and asked what the timeframe was for this particular goal. Ms. Zanon replied that she believed that the Council wanted staff to report back to them with some initial findings during a Work Study presentation by the end of September or October; she would have to check to make sure. She added that included bringing back to the Council the findings of various groups that had put together some ideas, which were welcomed by staff. Councilmember Archambault stated that this would be additional feedback that could be considered and applied to that particular goal. He noted that when they got to that point, they would have to begin holding Work Study Sessions to address any revisions that might be made. Ms. Zanon said that that was correct and advised that Mr. Turner had actually tried to look through this process since it was a very exciting topic in the community and they wanted to avoid delays. She stated that they had already had groups that were working on providing valuable feedback, which made the process a lot easier. She added that Mr. Turner had crafted a timetable whereby this issue could get to a certain point as quickly as t possible so that the Council could receive some feedback. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 14 of 17 Mr. Turner said that it was not his intention to "open up"the entire Sign Ordinance, recognizing that that would take a long time and a lot of work. He explained that it was his intention to hit on the major concerns and issues, C. most of which had been identified by many of the groups already looking into this issue. He had projected a process that would ultimately conclude at a Town Council meeting in October. He said that was about as quickly as he could see getting this done with input from key stakeholders and certainly the business community providing major input into the process. He added that staff also wants to hear from sign companies, the real estate community and other stakeholders. He stated that that provides adequate time to meet the legal notice requirement, the P&Z Commission hearing, the notice requirements for the hearings before both this body and the Planning Commission and also the subcommittee of the Planning Commission working with the stakeholders to get this issue resolved. Councilmember Archambault said that everything takes time but the important thing was to avoid having a fiasco take place. He agreed that the information received tonight needed to be added to the input that they were going to be getting from all of the other groups because that was how they came up with good revisions. Councilmember McMahan stated that he served on the Business Vitality Committee that was re-working the Sign Code and said that the committee was covering the whole universe of signs, including both merchant and real estate signs. He further stated that they had held very lively,productive meetings but he did not believe that they were going to have anything ready to present for three months. Councilmember Hansen expressed the opinion that the key word they were looking at was "temporary;" they really were not looking to bring forward an amendment to the Sign Ordinance. They simply wanted to identify something they could do now to make a difference tomorrow that would not change their lives at all but would provide temporary relief. Councilmember Dickey asked what measures could be put into place to grant some temporary relief and Mr. Le McGuire deferred to Ms. Zanon. Ms. Zanon stated that the Town's Zoning Ordinance was full of regulations to govern how the Town was developed and how people carry out a variety of things in Town from residential property, to commercial property to signs — it covered diverse areas. She said that if they were asking how they could enforce regulations in the Town, they did have Code Enforcement Officers whose job it was to ensure that the Town's codes were upheld. She added that that department could operate in a number of ways. Currently, public safety, health and welfare were their primary concerns so violations in those areas were addressed. She added that another primary means of operation was through complaints received through the Code Enforcement Hotline where they were actually asked to go out and investigate violations being reported. The third way Code Enforcement could operate was by proactively going through the community, finding violations and addressing them. At this time, the Town's Code Enforcement Department had three members, and one was new to the field so staff would be working with this person to train him. She noted that each season they had to evaluate what the key issues were for the season and so some discretion had to be used to determine top priorities for enforcement and low priorities for enforcement. Councilmember McMahan stated the opinion that Mr. Turner had come up with a great plan and suggested that the Council encourage him to continue on that path. Vice Mayor Leger commented on the fact that the Sign Ordinance was vast and said that due to the fact that the initiative this evening addressed A-frame signs specifically, and part of what the Business Vitality group was looking at was A-frame signs among other things, he would like to know Mr. Turner's thoughts on prioritizing or carving out the A-frame discussion and putting that on the front end. He said that the issue he heard the most about from members of the community was A-frame signs and the second issue had to do with grand openings, cir balloons and banners. z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 15 of 17 Mr. Turner stated that if that was the direction the Council would like staff to go in they would do so but questioned whether they would save a whole lot of time. He noted that they still had to schedule and hold public hearings, they still have to have the Planning Commission involved, and they still had to have the public hearing by the Council. He advised that they could segregate that portion out but they would wind up saving perhaps one month's time. He agreed that A-frame signs were a major topic and added that real estate signs and signs along Shea Boulevard were other major topics. Mayor Schlum said that he had been encouraged by what he had heard as far as the efforts that had already gone into addressing this Council goal. He added that times change and needs change but there was still a process to go through. He stated that what he was hearing tonight was let's fold it into the overall plan and see that issues were addressed promptly. He added that the collaborative effort must encompass all of the parties that need to be at the table and emphasized that it should not take 18 months to complete but rather occur by October 2008. Councilmember Contino commented on the fact that a lot of good dialogue had taken place this evening but what they have missed was helping businesses during the summer months. He noted that two or three of them were about to go out of business and said that signage was critical. He acknowledged that they were"behind the eight ball on this" and said that perhaps next time they could get staff working on this earlier. He expressed concern relative to the success of local businesses. Mayor Schlum stated that during the summer when they did not see anyone on the streets, they would not see an A-frame sign either so the impact of an A-frame sign was not as traumatic as when there were people here who would actually see it but obviously the signs would help to some extent. Councilmember McMahan said that business would not really start to pick up until November. Mr. McGuire expressed the opinion that Mr. Turner had received good direction from the Council on how to proceed. He stated that next week's P&Z agenda would likely include something on this and then moving forward they would focus on targeted parts of the Sign Ordinance and not necessarily the whole ordinance. He added that they would address whatever the other committee was working on as well and try to bring the whole issue to some sort of resolution by October. Councilmember Hansen commented that they should emphasize Ms. Zanon's explanation of prioritization of enforcement. She said that perhaps this area could be considered a low priority area. AGENDA ITEM#14—COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER Items listed below were related only to the propriety of(i) placing such items on a future agenda for action or (ii)directing staff to conduct further research and report back to the Council. A. NONE AGENDA ITEM#15—SUMMARY OF COUNCIL REQUESTS BY INTERIM TOWN MANAGER. Ms. Zanon said that staff would bring back a future discussion item for the Council related to the Town's bidding process/procedures. AGENDA ITEM#16-ADJOURNMENT Councilmember McMahan MOVED to adjourn the meeting and Councilmember Archambault SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). The meeting adjourned at 8:44 p.m. L z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 16 of 17 TOWN OF FOUNTAIN HILLS (likw By� T. Schlum,Mayor ATTEST AND PREPARED BY: Bevelyn J. e er,Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Executive and Regular Session held by the Town Council of Fountain Hills on the 19th day of June 2008. I further certify that the meeting was duly called and that a quorum was present. DATED this 7th day of August 2008. Bevelyn J. nd ,Town Clerk coy z:\council packets\2008\r8-7-08\06-19-08 minutes.doc Page 17 of 17