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HomeMy WebLinkAbout2013.1219.TCRM.Minutes . r , TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL DECEMBER 19,2013 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:30 p.m. in the Town Hall Council Chambers * INVOCATION—Pastor Don Lawrence of Christ's Church of Fountain Hills * ROLL CALL Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Councilmember Ginny Dickey, Councilmember Dennis Brown, Councilmember Cecil Yates, Vice Mayor Cassie Hansen. Councilmember Tait Elkie and Councilmember Henry Leger. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. * MAYOR'S REPORT i) The Mayor may review recent events attended relating to economic development. Mayor Kavanagh stated that she wanted to take this opportunity to thank all the residents of their wonderful Town who have given so generously through this holiday season. She said that starting with Thanksgiving, through Chanukah and now Christmas, they have outdone themselves with their kindness to give to the less fortunate. She added that from the Rotary bell ringers for the Salvation army, to the Banks with their Angels on the trees, to the VFW and Coldwell Banker for Toys for Tots, to the Elks shopping spree for needy kids, to Cruz'n Cars and the grocery stores for helping Extended Hands Food Bank, to the Hooks & Needles community center group for their hand-made blankets that went everywhere in the Valley and beyond, to all the faith groups who held collections for the needy, to all the residents who gave so generously to these groups and in so many other ways to make the holiday season just a little brighter for their neighbors. The Mayor also expressed appreciation to the Town of Fountain Hills for their Volunteer Coordinator, Heather, who gathered and gave information to the many people of their Town who called looking for help and stated that it is truly a season of giving in the Town of Fountain Hills. Mayor Kavanagh said that on behalf of the Town Council she wanted to wish everyone a Merry Christmas and very happy and prosperous New Year. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) None. CALL TO THE PUBLIC None. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM NOVEMBER 21 AND DECEMBER 5,2013. AGENDA ITEM #2 - CONSIDERATION OF APPROVING A LIOUOR LICENSE APPLICATION SUBMITTED BY CHARMAIN GLOVER BROWER, OWNER/AGENT OF DESERT DAVE'S BAR & GRILL, INC., LOCATED AT 13407 N. LA MONTANA DRIVE, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 12 LICENSE(RESTAURANT). L z:\council packets\2014\r140102\131219m docx Page I • AGENDA ITEM #3 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY MARGARET VAN ZEE,REPRESENTING THE CARE FUND,FOR THE PURPOSE OF A FUNDRAISER IN CONJUNCTION WITH THE DINNER D'ARTE. THE EVENT IS SCHEDULED FOR SATURDAY,APRIL 12,2014,FROM 11:00 A.M. - 11:00 P.M.AT FOUNTAIN PARK. AGENDA ITEM #4 - CONSIDERATION OF RESOLUTION 2013-15, ADOPTING THE REVISED TOWN OF FOUNTAIN HILLS EMERGENCY OPERATIONS PLAN. Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Brown SECONDED the motion. A roll call vote was taken with the following results: Mayor Linda Kavanagh Aye Councilmember Ginny Dickey Aye Councilmember Dennis Brown Aye Councilmember Cecil Yates Aye Vice Mayor Cassie Hansen Aye Councilmember Tait Elkie Aye Councilmember Henry Leger Aye The motion CARRIED UNANIMOUSLY(7-0). REGULAR AGENDA AGENDA ITEM #5 - PRESENTATION AND DISCUSSION OF THE TOURISM PROGRAM FOR THE REMAINDER OF THE FISCAL YEAR. Town Manager Ken Buchanan addressed the Council relative to this agenda item and stated that as promised, staff will present an update of the study conducted on the Tourism Program for the remainder of the Fiscal Year. He said a report was forwarded to staff from the Visitor's Bureau and the Chamber of Commerce. He noted that Supervisor of Recreation Bryan Hughes would highlight a presentation on this item and then discussion will take place relative to what the Council would like to do as far as the tourism program. Mr. Hughes addressed the Council and highlighted a PowerPoint presentation on this agenda item (Copy available on line and in the office of the Town Clerk). The presentation covered the following topics: * Balance of funding * Organization * Partnerships * Visitors Guide * Dining Guide * Website& Social Media * Visitors Center at Fountain Hills Chamber of Commerce * Visitors Bureau Advisory Committee * Budget estimates Mr. Hughes indicated his willingness to respond to any questions from the Council. Mayor Kavanagh advised that she met with the Phoenix Convention& Visitors Bureau who wants the Town to partner with them but after a meeting today they learned that Fort McDowell partners with them so even if the Town does not partner with them directly they still get the same benefits from partnering with the Fort. She said that she has a question about the IDS Technology Marketing and noted that the website is complete and belongs to the Town so can't they do that in-house--why do they need IDS? z:\council packets\2014\r140102\131219m.docx Page 2 • Mr. Hughes responded that there are some things they can do in-house but there are things in there that are hard coded and they may require someone's expertise with some of those on the website. He added that the amount might be less than what is listed but staff wanted to earmark a little bit of money for that. He pointed out that this is something IDS does every day and Town staff does not. He clarified that it is for a little bit of maintenance that staff can't do and not for marketing. Vice Mayor Hansen stated that she thinks Mr. Hughes has done a great job in view of the abruptness of when this came about. She said that she believes they have put together a good plan and she is very confident because Mr. Hughes has been on the Tourism Bureau for a long time and has been a major part of that. She further stated that there are a lot of prior members who would like to become involved as well and perhaps down the road Mr. Hughes can reach out and partner with them as well. Mr. Hughes advised that a lot of people who were in the room over the years have been directly involved with events and confirmed that staff will be talking with them. Mayor Kavanagh noted that the Council is already hearing from the hotels, which from the beginning were a big part of the Visitors Bureau and now they have heard that the Town is taking it over so they are coming back to offer their help and assistance in an effort to get the new program going. Councilmember Dickey commented that a lot of people have requested avenues to be involved in and it is a little bit complicated because they have an Economic Development person coming on part time but they did define that person's role the last time they discussed it and the responsibilities will focus a little bit more on the business end. She added that the Economic Development Plan does have tourism in it and they've got the Strategic Planning Advisory Commission (SPAC). She asked Mr. Hughes who would be the best point of contact for people who want to become involved directly with the visitors/tourism aspect of this. Mr. Hughes replied that he thinks the point of contact would be him and the Community Services Department and as needed and at the direction of Mr. Buchanan Economic Development and things like that would also become involved. Councilmember Leger advised that he has had the opportunity on several occasions to look at their website ExperienceFountainHills.org and when they originally started talking about that in their contract with the Chamber, he thinks it pretty much has met the scope and focus of what they as the Council agreed upon and budgeted for in this Fiscal Year. He stated that he is glad to see that they are going to take that to the next step. He added that it has done a very nice job in terms of what the intent was -- to give a visual of Fountain Hills in terms of what the Town offers as far as events, amenities and assets and he is hopeful that they can find an avenue to market that a bit more because it does do a pretty nice job. He note that there is certainly significant room for improvement and he believes Mr. Hughes has identified several of those areas. He asked whether the website offers a direct link to the Town's current website and advised that he hasn't seen a link on their website going to it. He said he knows that it is a unique platform and they can't integrate it into their platform but if they could link from their website which is heavily trafficked to that website he thinks it would be a positive thing to do. He further stated that he would like to mirror some of the comments he heard about IDS this evening because he thinks that Ken, Mark, Bryan and others have done a really tremendous job. He added that what has just been presented to the Council in terms of keeping it moving very much mirrors what the Council asked for during this Fiscal Year in terms of focus so great work and he expects that as they move through it staff will communicate in the same detailed format as they have in this presentation. Councilmember Elkie asked what the criteria is as far as who the Town allows to market or be on the social media websites and those types of things to make sure that they are not gifting some and not others. Town Attorney Andrew McGuire responded that they have copies of what other municipalities have done -- many have a full blown in-house staff that does all of this work and staff would be happy to implement the policy. He explained that there are limitations; they are usually pretty tight and unfortunately the local community sometimes doesn't like how tight they are but they are restricted to government use and that is really a narrow focus in most of the things they do. He added that that has really been the issue with the dual websites -- trying to figure out the best way z:\council packets\20I4\r140102\131219m.docx Page 3 to handle having the ability to use the non-Town website in a manner that doesn't have those same restrictions and staff is not there yet on what those specific criteria will be but it is something that is in the works. Councilmember Elkie commented that they have talked about what Payson does and they have a pretty good policy so they could probably mirror some of the things that they have done. He explained that when the Town contracted with the Chamber, the Chamber made those decisions so it was a different entity and now that staff is doing it they have to be very mindful of this responsibility. He asked whether the Town has new contracts or assumed the Chamber's contracts with the providers. Mr. McGuire replied that to the extent that they could get a new contract in place they have done that but there were a few where assuming the contracts was difficult so staff tried to put in place as best as they could a band aid approach until they get to the end of the term and then they can negotiate something different or go through a procurement process. He stated that for the most part staff is comfortable that they have been able to work out something that will last until the end without too much trouble. Councilmember Elkie questioned whether the intern program that was set up was coordinated with the Chamber in advance. Mr. Hughes responded yes, the Chamber has had an intern and the plan was for her to continue on until the spring semester. He explained that she needs an internship so staff thought as long as they are taking on the tourism program they could also take her on. He noted that they have had interns in the past in Parks & Recreation so they are using that same format and he believes it is a"win-win" situation for her and the Town. In response to a question from Councilmember Elkie, Mr. Hughes advised that providing a stipend is customary and said her term has some flexibility so at the end of four months they can see where they are at and if she doesn't have another job opportunity and the Town still has some work for her to do, then they could keep her on longer. He pointed out that they do have to be careful as far as the Obama Care restrictions go on how many hours a person can work before they get into benefits so staff is watching that very closely. Mr. Hughes informed the Council that the $4,500 figure listed for the Visitors Guide is for distribution and the Town contracts with a warehouse company which is provided pallets of the Guides and when someone calls for one they ship it out as opposed to having pallets in their storage room and then having the Town absorb the shipping costs directly -- it is a service that works well. Councilmember Elkie asked what the Town's obligations are as far as receiving a$5,000 Prop. 202 funding from Fort McDowell --what is the Town required to do? Mr. Buchanan explained that they need to have Mr. McGuire review with their legal counsel the current contract that they have for the 202 money. He stated that they actually have a contract with Fort McDowell today for this but they used Professional Services to contract that out so it still needs to be reviewed. He said that if it can stay in place,then hopefully they can continue being partners and staff has had some initial meetings with them but they still have a long way to go. Councilmember Elkie advised that he agrees in part with some of the comments that have been made and he believes they need to do a few things really well. He said he knows from personal experience that it is easy to spend a lot of money on a lot of different marketing things and the approach they should take should be more of a rifle one than a shotgun one. He further stated that he would be interested to hear from staff as far as keeping this in-house as much as possible, maybe having an assistant to the Economic Development person on board to work hand in hand on a part- time basis, etc., to do some of the social media, coordinate and handle those things, because he knows Mr. Hughes has a lot of his plate so he wanted to offer that as food for thought. Vice Mayor Hansen said as they go along over the next six months or so and get a feeling as to what the needs are, they might consider the possibility of contracting with someone like the Chamber did to help them out. She suggested keeping that in mind for the future. z:\council packets\2014\r140IO2\13I219m.docx Page 4 Mr. Hughes commented that this is only the very beginning and staff might find out that there is a lot more work to do and a lot of things that they can do better if they do contract with someone. He said they will see where they are long term as they get into the next Fiscal Year as well. Mayor Kavanagh advised that the meeting with Fort McDowell today proved that it is very beneficial for the both of them. She noted that they have offered to link the Town's site with their site and vice versa and the President and his General Manager were both in attendance to assure the Town that he wants to continue and strengthen the partnership between the Fort and Fountain Hills. She added that they did bring up the $5,000 and nothing was said to the effect that the Town was not going to be able to keep it so she thinks working with them is truly going to be a great benefit to the Town since they are the major destination in this area. Councilmember Leger noted that they are marketing and promoting the Fort and their amenities on the website to meet the criteria. The Mayor stated that she thinks that there have been some changes made since the Town took over the website, adding more criteria for Fort McDowell and they have done that with the Visitors Bureau (the Visitors Guide) and those pages were sent to the Fort for their review. She added that Mr. Hughes has also been meeting with the staff from the Fort and they have supplied additional information for the Visitors Guide, making it more personal for them by including information they would like to see in there. She said that the message from the new President is also in there and that is a great thing to have. Councilmember Yates advised that he is a big proponent of privatization and utilizing the existing market. He stated that he knows as they are coming off this contract that they are trying to determine what they did wrong and what they did right but he thinks that even at this point they might want to consider going back out to market it. He noted that there is a local marketing company, True Perceptions, and it's owner, Scott Timms was part of the BVAC group and the Town Center group and did a branding exercise that was adopted. He added that he also had a sub-contract with the Visitors Bureau that never went into play. He said that he has social media people ready to go as well and he has nothing against bringing something in in-house if they have the capacity and the expertise. He further stated that the Town may have the expertise but he is wondering whether they have the capacity. He stated that to all the legal points that Councilmember Elkie brought up, it would give them some freedom by subbing this out (some of the flexibility they may need and some of the social media aspects). He added that where he is basically going with this is in order for them to compete with their sister cities for that tourism dollar they can't think like everyone else does --they need to think more like a private sector entity. He said now that they know what the budget is he would ask the indulgence of the Council to let Scott Timms group present some ideas. He stated that they could probably do something in January and these guys are experts and he thinks that is a great opportunity for them. He added that he thinks it is a neat idea to talk about bringing some of these things inside but if they need to compete on a different level then they have to think differently and not like everybody else. He pointed out that all of the people in Mr. Timms group are locals and they do this work 24/7. He advised that he has nothing against interns, he was an intern himself, and there might still be an opportunity for that person to work with this group. He added that they have the numbers and he would like to give Mr. Timms one or two weeks to come up with something and then they can make a decision. Councilmember Brown thanked Mr. Hughes for the good information he brought to the table this evening and added that he has heard some good comments including Councilmember Elkie's suggestion that they take a more focused approach. He advised that he clearly hears what Councilmember Yates is bringing to the table but he thinks they all need to take a deep breath. He pointed out that they have six months to make some decisions and changes as opposed to trying to make any big decisions quickly and he thinks acting too fast could be a detriment to what they have working and standing right now. He stressed the importance of staying in tune with staff and he believes they should receive reports from staff on a fairly regular basis so they know what is actually happening and where this is going. He expressed the opinion that the most important part of what they are doing is the website and that is the rifle approach that was talked about. Mayor Kavanagh commented that her biggest concern is that this is the business community's strong season and usually the winter makes or breaks them for the summer. She stated that she doesn't want to not do any type of marketing -- they still need to get involved with marketing, whether it's through the Town or an outside company -- and she thinks they should immediately start that in January because they have the Lantern Festival, the Fair, the Kite Festival all coming up. She added that she is afraid that they will suffer if they don't get the marketing out there. z:\council packets\2014\r140102\131219m.docx Page 5 Mr. Hughes advised that the plan is to jump on it right away after the first of the year and staff just wanted to obtain some direction from the Council this evening. He emphasized that they are going to keep things moving forward and they have been going a bit slowly but if they get some help from the intern to do some of the leg work he thinks that will be a great help. He reported that he has had great success with people coming right out of schools as far as fresh ideas and concepts that a lot of them here are not aware of. He added that he is not sure if that will be a long-term solution but noted that they will evaluate those things and he doesn't think that they are going to be missing anything over the next couple of months. Mayor Kavanagh thanked Mr. Hughes for his presentation and input. AGENDA ITEM #6 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO THE SAGUARO BOULEVARD CONSTRUCTION SCHEDULE. Town Manager Ken Buchanan addressed the Council relative to this agenda item and stated that staff promised to bring this item back to the Council for discussion about the project following the successful results of the election. He noted that the question is the timing and right now they are out with a Request for Proposals (RFP) for an engineering firm to begin the design but the question is what do they do after the design. He said that Development Services Director Paul Mood will highlight a brief presentation and then they can discuss the matter in greater depth. He added that it comes down to do they stay the course and immediately start the construction project after design and go out for bids or do they put it on ice during their peak season and wait for the events to be over. Mr. Mood addressed the Council and briefly highlighted a PowerPoint presentation on this agenda item (Copy available on line and in the office of the Town Clerk). The presentation included the following topics: * Saguaro Boulevard Improvements * Avenue of the Fountains Intersection Improvements * Saguaro Boulevard Reconstruction Schedule Mr. Mood advised that staff is seeking some direction from the Council relative to the scheduling. He reported that right now the plan is to just move ahead with the project but if Council decides it would be better to delay the project, staff wanted to present the pros and cons associated with that. He indicated his willingness to respond to any questions. Mayor Kavanagh thanked Mr. Mood for his presentation and asked if there was any projection from the Finance Department as far as the interest going up on the bonds. Mr. Mood responded that the rates are always fluctuating. Mr. Buchanan commented that it would be very difficult to project and they have no idea what will happen, especially with commodities. He said it would be extremely hard to know what will happen to the cost of concrete, asphalt, etc., especially projecting that out another year. Mayor Kavanagh stated that it seems like the rates are on the rise and asked if Mr. Mood is saying it is possible to shut down half the road and still have the other half to use. Mr. Mood replied that that is one way the contractor could do it but that is not something that the Town would dictate. Councilmember Dickey asked when the median project will take place and Mr. Mood advised that staff hopes to go out to bid in January so they could begin construction April 1st and finish out about the end of October. He further stated that staff is also working with the engineer on the Shea project and they are planning on bidding that out in the spring hoping to get it done by the end of 2014. Councilmember Dickey commented that the median will be done no matter which way they go and Mr. Mood sli) concurred. Councilmember Dickey referred to the pros and cons and stated that if they look at the cons of waiting, z:\council packets\2014\rI40IO2\131219m.docx Page 6 • there are compelling pros for doing it now. She added that last year when it rained they had to spend $100,000 for an emergency situation and said they wouldn't want to incur that kind of expense again by waiting. She further stated that she understands what Mr. Mood was saying about not putting constraints on them but she is sure that they could stage 1/410, around certain things like the Fair to make sure there is access. She noted that Saguaro Boulevard is not the only way to get to the Fair. She discussed the monsoons and said if they waited and did the second alternative, then there is a chance that a lot of that construction could be going on during the monsoon season and she doesn't know whether that would affect the work or not. She advised that she is thinking they should do it right away. Town Clerk Bev Bender stated that one citizen wished to speak on this agenda item. Gene Slechta addressed the Council and said that he wholeheartedly supports staffs recommendation to begin the Saguaro project in late November early December. He noted that the largest impact is always on the Fairs but he thinks that staff has selected the best alternative by waiting to begin after the November Fair and believes that is a good compromise that addresses both business concerns and real risks from the delays. He pointed out that staff has identified several real risks including higher fees for starting and stopping and how much that could cost the residents of the Town. He agreed with other concerns expressed by the Council (it could easily be six figures). He said that the residents of this Town wisely approved the bond but they also want to get moving, as does he. He stressed the importance of avoiding large cost over-runs potentially for what may be a minimal impact on the businesses. He expressed the opinion that the residents were aware that inconveniences would occur and still voted yes on the bond in order to do the right thing and reconstruct Saguaro Boulevard. He reported that during the three-day Fair, a total of 15,000 cars travel on that road and he believes that would result in really bad traffic jams so he urged the Council to move forward as quickly as possible by reducing the lanes on Saguaro. Mayor Kavanagh thanked Mr. Slechta for his comments and noted that he is a Fountain Hills resident. Vice Mayor Hansen agreed that they should move forward more quickly and said that things can be re-routed and other locations can be found. She stated that for the February Fair, instead of having booths down Saguaro maybe they could use Verde River or Paul Nordin Parkway -- there are other things that could be worked out. She added that it seems a lot better to move forward quickly. Councilmember Elkie agreed that they should move forward and said there will not be any good time to do this, they are going to have issues and impacts no matter what. He stated that the end product is going to be wonderful and he supports moving forward as staff has recommended. Councilmember Yates concurred that they should do it now. Councilmember Leger questioned whether a motion was necessary. Vice Mayor Hansen noted that it would be an experiment to have Saguaro in the Downtown area narrowed down to see how much easier it would be for pedestrians because traffic will be going slower. Councilmember Brown also agreed that it is time to move forward. Councilmember Brown MOVED to approve staffs recommendation and move the project forward at a constant and steady pace and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #7 - PRESENTATION AND DISCUSSION OF THE LAND USE ASSUMPTIONS AND INFRASTRUCTURE IMPROVEMENT PLAN RELATED TO THE TOWN'S DEVELOPMENT IMPACT FEE STUDY. Town Manager Ken Buchanan addressed the Council relative to this agenda item and said that ARS §9-463.05 governs how development fees are calculated for municipalities in Arizona. he noted that during the State Legislative Session in 2011, Senate Bill 1525 was introduced which significantly amended the development fee enabling legislation and contains deadlines that must be met in order to conform. He advised that Mr. Rick Giradina, the Town's consultant from Raftelis Consulting, is present this evening to present an update on conforming the Town's impact fees to the new statutes. z:\council packets\2014\r140102\131219m.docx Page 7 Mr. Giradina addressed the Council and a highlighted a brief PowerPoint presentation on where they are in this process (Copy available on line and in the office of the Town Clerk). Topics discussed included the following: * Update on the process * Land Use Assumptions(LUA) * Infrastructure Improvements Plan(IIP) * Next Steps Mr. Giradina indicated his willingness to respond to questions from the Council and noted that they are not looking for any action this evening,this is merely a briefing for the Council and the public. Councilmember Leger thanked Mr. Giradina for the presentation and stated that he has taken a relatively complex subject and simplified it and made it perfectly clear. Councilmember Brown said along with the changes in the law is there also a change in the length of time they can hold the money before it is utilized. Mr. Giradina responded that the intent is that the money must be spent within ten (10) years of collection, otherwise the Town could be subject to refunds and all of the complications associated with that. Councilmember Brown asked whether the fees will be coming down because they have lost the ability to fund law enforcement, etc. Mr. Giradina replied that he thinks it is safe to say that with the elimination of the three fee areas (Law Enforcement, Library and Museum, and Streets) outlined in the presentation, the single most significant one being the street fee that in total Development Impact Fees will be coming down. Councilmember Dickey commented that they complained about this two years ago when this came through. She ik advised that she read an article in the Arizona Republic from October of 2011 that reminded her of how they got here and emphasized that she is really supportive of what Mr. Giradina and his firm is doing to meet the new requirements. She read a portion of the article, which stated, "The Homebuilders' Association has long chafed against what it considers abuses of impact fees charged by cities to pay for the cost of growth. Even after extensive negotiations with city leaders, the law ended up including a list of where the fees can and cannot be used, getting so specific as to limit them to libraries of less than 10,000 square feet, or parks with fewer than 30 acres. Swimming pools are okay but not aquatic centers. The law puts time limits on the use of the fees and requires every city to review its current fees, a process so legally complicated it has some cities turning to consultants. Cities also must establish review commissions that include developers. Most city leaders see that this law is an expensive intrusion into local affairs. Communities from Gilbert to Glendale are paying up to $150,000 for consultants to navigate the complexities of the bill and tell them which of their current impact fees must go. The news is often bad." Councilmember Dickey noted that even before they got to this point they had years of freezing the impact fees and not allowing cities and towns to collect the impact fees at all. She stated that she believes Mr. McGuire said at the time that perhaps the desire of this law was to get cities and towns to just forget about it and give up -- surrender and not collect them at all. She said they fail to realize that without this the burden goes on existing residents as it does on a lot of things in the Town of Fountain Hills so she is sorry that they had to go through this and about what they are going to get but she is glad that they did go through the exercise and are on target to be done by August 2014 (complying with the law) and they will be allowed to collect development fees on certain things that will help them provide infrastructure for their citizens --not just future but existing. Councilmember Dickey stated that she has one specific question about the funds that are left over that they cannot use and advised that Councilmember Elkie came up with the idea of using the funds that they weren't able to use before from open space she believes, something where the project was not large enough, and they used it to pay off the building, the debt on this building. She said that she was wondering if that was something that they would wind up being able to do with the police one,the open space one or the library one. z:\council packets\2014\r140102\131219m.docx Page 8 Mr. Giradina advised that that is indeed the case and there is legislation regarding these opportunities to use the accumulated fund balance from fees that have been in place but will no longer be in place -- they can be used for necessary public services or other eligible projects. He commented on that the Town has funds in law enforcement and the intent is to use those for space that will be part of the remodel for Fire Station#2 where law enforcement needs that space. He added that the library and museum fund balance is very small and will be used in part to pay for some of the remaining debt in the upcoming Fiscal Year. He reported that streets has a relatively small balance as well and that will be part of the project that they were just discussing on Saguaro Boulevard and the Shea Boulevard improvements and lastly open space has a very significant balance that will be a part of the Adero Canyon Trailhead improvements. In response to a question from Councilmember Dickey, Mr. McGuire advised that the deadline for the Adero Canyon Trailhead is Fiscal Year 2020. Mayor Kavanagh said that with these figures that they are looking at, on a typical residential home build, $250,000, and she asked what the original impact fee would be on that and what will it be now or whatever figure he has for a median home. Mr. Giradina replied that he can speak to the current fees but they haven't moved far enough along because they are waiting for comments on the land use assumptions and the infrastructure improvement plan. He advised that the current largest fee for a typical residence would be $5,600 and then they have to layer on top of that another$2,100 for Parks and Recreation, approaching approximately $8,000 for a single-family residence across the five fee areas that the Town has in place today. He added that three of those fee areas and the largest fee area, streets, is going away so those fees will go down by virtue of the fact they only have two fees versus the five they had in the past. Mayor Kavanagh stated that on the positive side of this it might spur some more development because it will be a little bit cheaper to build a house in Town. Mr. Giradina commented that he expects they will see very little development until August 1st of 2014. Le The Mayor advised that they are already seeing some development here in Fountain Hills so they are happy about that and there might be some more on the horizon. Councilmember Elkie thanked Mr. Giradina for his presentation and said that the discussion about the street fees going away and the previous agenda item has prompted him to suggest that they have a later agenda item sometime in the future because they are talking about the replacement of what they are doing as far as Saguaro Boulevard is concerned and a lot of the other work on Shea and that kind of thing. He stated that what they are not addressing yet is how they are going to maintain it and they still have a shortfall as far as maintaining the roads that they have especially with the fees going down or going away all together. He added that he thinks they need to have an agenda item in the future to determine how they are going to maintain Saguaro once it has been replaced. In response to a question from the Mayor, Mr. Giradina explained that that is one of the definitions of a Development Impact Fee-- it can only be used for capital so it is not a funding source for the maintenance that Councilmember Elkie is referring to. Mayor Kavanagh thanked Mr. Giradina for his presentation and input this evening. AGENDA ITEM #8 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING CHAPARRAL CITY WATER COMPANY'S WATER RATE INCREASE PROPOSAL. Town Manager Ken Buchanan addressed the Council relative to this agenda item and apologize for presenting this agenda item so late. He explained that staff received this late yesterday afternoon with a deadline for filing a Notice of Filing of Direct Testimony for an intervener as of December 24, 2013, it was imperative that this item be added to the agenda for Council discussion. He noted that the Chaparral City Water Company has filed for a 34.8% water rate increase to the Arizona Corporation Commission and the staff of the Corporation Commission has recommended an 11.46% rate increase. He advised that in order to get something filed, staff is asking that the Council consider supporting the Arizona Corporation Commission's staffs recommendation for a rate increase of 11.46%. z:\council packets\2014\r140102\I3I219m.docx Page 9 Councilmember Dickey asked why they are doing one or the other and do they have to approve something or it will be a bigger amount? She said that she knows they are an intervener but what if they just don't want to do anything. Mr. Buchanan replied that that is certainly an alternative, they do not have to do anything and can pass up the *,#) opportunity to comment as an intervener for this but he is saying if they don't file anything they can go into the public process as a citizen and talk about it but as an intervener they are required to file something stating a position. Councilmember Dickey commented that she feels they don't know enough about this even though Mr. Buchanan had provided them with copies of the transcripts and everything. She added that she didn't read it all because they just received it and it is extensive. She stated that she doesn't understand what the conclusion is --did anybody ask for it to be less, is this something that they spoke about in the past and thought it was a reasonable amount that she is just forgetting about? She said she just doesn't know how she can make this kind of decision based on what she knows. Mr. Buchanan noted that the Council has three perspectives of the rate -- the engineer's, the analyst's and the consultant's -- and they are the ones who pretty much recommended that this be the rate as recommended by the Arizona Corporation Commission's staff. He further stated that he thinks that without having their own analysis of those numbers, staff thought that would be a fair amount. Mr. McGuire informed the Council that the Arizona Corporation Commission's staff's recommendation is the lowest of all the recommendations (one was at 18% and Chaparral was at 34.84%). He added that the request is to weigh in with the lowest amount that has been proposed. Councilmember Dickey pointed out that they didn't talk to anybody in Town about this but she knows that is not anyone's fault--it was kind of rushed. Councilmember Brown asked how often they can come back in for a rate increase (how long will this rate stand?) and Mr. Buchanan responded he didn't know but he doesn't think they could possibly go back in and ask for an adjustment or amendments. He added that in the municipalities he has served in he has not seen them come back in an untimely manner to ask for an additional increase. Mr. McGuire advised that there is a timeframe but he doesn't know it off of the top of his head but he will be happy to provide the Council with that information. Vice Mayor Hansen stated if they go with the lesser of the evils and support the Arizona Corporation Commission's staffs recommendation, as an intervener can they go in and say, "Well, we really support 10%" or are they locked into that number? Mr. Buchanan replied that they would have to provide justification for that, they would have to have their own analysis. In response to a question from Councilmember Elkie, Mr. McGuire explained that the process is a lot like a court proceeding where they would weigh in adjourning their brief--the Town would be joining their position. He advised that the legal costs are pretty minimal and that was their goal,to find the best horse to ride at the cheapest cost. Councilmember Elkie asked what the impact is going to be if the Town weighs in and Mr. McGuire responded that it is important for the Arizona Corporation Commission to hear from the Town. He added that the Commissioners have said that it's important to hear from the Town. Mr. McGuire further stated that this puts the Town's foot in the door and if they have to present something later on or appear,this provides that opportunity. Councilmember Elkie advised that he is in favor of intervening at the lowest percent. Councilmember Elkie MOVED to authorize Town staff and the Town Attorney to join in the Arizona Corporation Commission's staffs recommendation of an 11.46% rate increase and Vice Mayor Hansen SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). z\council packets\2014\r140102\131219m docx Page 10 Mr. Buchanan wished the Council a very Merry Christmas and happy holidays. AGENDA ITEM #9 - COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER KEN BUCHANAN. Items listed below are 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 #10 — SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM#11 -ADJOURNMENT Councilmember Yates MOVED to adjourn the meeting and Councilmember Elkie SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 7:55 p.m. TOWN OF FOUNTAIN HILLS By n M. Kava a , Mayor ATTEST AND PREPARED BY: Bevelyn J. B d ,Town Clerk CERTIFICATION 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 in the Town Hall Council Chambers on the 19th day of December, 2013. I further certify that the meeting was duly called and that a quorum was present. DATED this 2nd day of January, 2014. Bevelyn J. Be r, own Clerk z:Acouncil packets\2014\r140102\131219m.docx Page II J