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2017.1003.TCRM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL OCTOBER 3,2017 • CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 5:31 p.m. in the Fountain Hills Town Hall Council Chambers. Pledge of Allegiance was lead at the request of the Mayor by Young Marine MSGT Jascha Ely. • INVOCATION—Paster Todd Forest,Fountain Hills Christian Center. • ROLL CALL- Present for roll call were the following members of the Town Council: Mayor Linda Kavanagh, Vice Mayor Alan Magazine, Councilmember Henry Leger, Councilmember Cecil Yates, Councilmember Dennis Brown and Councilmember Art Tolis. Town Manager Grady E. Miller, Town Attorney Andrew McGuire and Town Clerk Bevelyn Bender were also present. Councilmember Nick DePorter attended via conference call. • MAYOR'S REPORT i) THE MAYOR WILL READ A PROCLAMATION DECLARING OCTOBER 28, 2017, AS MAKE A DIFFERENCE DAY,IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation and pointed out that the Town had participated in this program for the last nine years with the support from many residents in Fountain Hills. Mayor Kavanagh requested anyone who would like to participate to help others, contact the Town's Volunteer Coordinator Heather Ware. ii) THE MAYOR WILL READ A PROCLAMATION DECLARING OCTOBER 2017 AS DOMESTIC VIOLENCE AWARENESS MONTH,IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation and pointed out that Council had approved Resolution 2013-44 on August 15, 2013, and the Town had continued to support the "Start Believing Campaign" through the "End Violence Against Women" an international organization. Mayor Kavanagh also expressed the Town's appreciation for Councilmember Yates's participation by representing the Town in its endeavor to participate in this organization and its victims. iii) THE MAYOR WILL READ A PROCLAMATION DECLARING OCTOBER 15-21, 2017, AS FRIENDS OF THE LIBRARY WEEK,IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation and expressed Council's appreciation to the Library and the participation of the "Friends of the Library". Mayor Kavanagh presented the proclamation to Vicki Novak, Fountain Hills Library Branch Manager, and representative from the local Friends of the Library organization, who explained the group's purpose,funding and activities. iv) THE MAYOR WILL READ A PROCLAMATION DECLARING OCTOBER 15-21, 2017, AS ARIZONA CITIES AND TOWNS WEEK,IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation and declared October 15-21, 2017, as Arizona Cities and Towns in Fountain Hills. v) THE MAYOR WILL READ A PROCLAMATION DECLARING OCTOBER 23-31, 2017, AS RED RIBBON WEEK,IN THE TOWN OF FOUNTAIN HILLS. Mayor Kavanagh read the proclamation and acknowledged the "East Valley Young Marines" and their participation in the Red Ribbon Program and asked everyone to reinforce this campaign by wearing a red ribbon during this time. Mayor Kavanagh then introduced YM MSGT Jascha Ely, YM CPL Caleb Halliwill and YM PVT Ezra Halliwill who accepted the proclamation on behalf of the Young Marines organization. YM MSGT Ely expressed his appreciation for the program and its member participation who worked through a message of understanding by educating young people on the affects of drug abuse. z:\council packets\2017\r171121\171003m.docx Page 1 of 16 • SCHEDULED PUBLIC APPREARANCES/PRESENTATIONS i) THE MAYOR AND/OR COUNCIL MAY REVIEW RECENT EVENTS ATTENDED RELATING TO ECONOMIC DEVELOPMENT. Mayor Kavanagh stated that she would report on the Economic Development Committees activities at the next Council meeting. Councilmember Yates gave a brief outline of the domestic violence "Lighting Purple Campaign" to acknowledge the fight to stop abuse of women and families through resources and noted that Arizona's Governor Doug Ducey initiated the campaign known as "Domestic Violence It Can Stop" motto. Councilmember Yates reported that Fountain Hills was one of 15 municipalities outlined to participate in the "Light up the Color Purple"campaign in their Cities and Town Halls during the month of October. Councilmember Yates reported on the Greater Phoenix Economic Council (GPEC) and stated GPEC's new office space was completed containing numerous high tec resources to be used when courting new businesses to the area. He also declared that GPEC's financial report audit was positive with no adjustment entries needed. Councilmember Yates noted that ten new members had been added to GPEC to give support to members and added Phoenix had received the title of one of the top five places to do business. He also outlined numerous big businesses to watch as "Legacy Industries" that would also allow Fountain Hill's participation and gave guidelines to achieve these goals. ii) PRESENTATION BY THE FOUNTAIN HILLS BRANCH MANAGER FOR THE MARICOPA COUNTY LIBRARY DISTRICT VICKI NOVAK REGARDING ACTIVITIES AND EVENTS. Vicki Novak,Fountain Hills Library Branch Manager,gave an overview of the activities currently in place and offered to all ages within the community. Ms. Novak presented a PowerPoint presentation on the Libraries events (available on-line or in the office of the Town Clerk). Councilmember DePorter commented that he was very impressed with the programs offered by the Library. Mayor Kavanagh thanked Ms.Novak and members of the Friends of the Library for their support. iii) UPDATE BY GRACE RODMAN-GUETTER, COMMUNICIATION AND MARKETING COORDINATOR, REGARDING CURRENT ACTIVITIES AND THE STRATEGIC TOURISM PLAN FOR THE TOURISM DIVISION. Grace Rodman-Guetter gave the presentation and discussed the program's progress in a PowerPoint Presentation (available on-line and in the office of the Town Clerk). Ms. Rodman-Guetter included information on the growth of the program in 2016, grants, "Online Rules the World", marketing strides, new marketing endeavors, awards received, tourism division's five year strategic plan update, six goals to be achieved, listed the success factors and measurability and finally gave an update on program's progress from 2018-2020 and goals. Councilmember Yates complimented Ms. Rodman-Guetter on her targeted areas. Mayor Kavanagh announced that the new "Visitor's Guide" was available in many locations in Town and stressed how pleased she was with Ms. Rodman-Guetter's work. Vice Mayor Magazine agreed with the comments made by the members of Council, but questioned how the measuring of the positive impact on Fountain Hills would be accomplished. Ms. Rodman-Guetter responded that she agreed that measurement was extremely important and noted that an impact study was due and would measure funding and grant money usage to reach the public. Councilmember Tolis agreed Ms. Rodman-Guetter was doing a great job and pointed out specific financial benefits would be seen through increases in local taxes. z:\council packets\2017\r171121\171003m.docx Page 2 of 16 Councilmember Leger also agreed to the nice job being done and expressed he looked forward to additional analytics and more specific numbers. Mayor Kavanagh pointed out that the Salt River Community was an incredible partner in Fountain Hill's endeavors. CALL TO THE PUBLIC Mayor Kavanagh asked if there were any speaker cards and Town Clerk Bender answered one had been received. Tony Finocchio, a Fountain Hills resident, stated he was a candidate for a seat on the Fountain Hills Sanitary District Board of Directors and stressed if elected he would attempt to bring the Town and Sanitary District together in a working relationship. Mr. Finocchio discussed his concerns for some current board members and their agendas and pointed out that all Town water should be improved. Mr. Finocchio also acknowledged that the Town's residents pay for both the Town and Sanitary District services and discussed issues facing both entities in the future. CONSENT AGENDA AGENDA ITEM #1 - CONSIDERATION OF CANCELING THE NOVEMBER 7, 2017 COUNCIL MEETING,AS IT FALLS ON ELECTION DAY. AGENDA ITEM #2 - CONSIDERATION OF APPROVING RESOLUTION 2017-36, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST THE TOWN HAS IN THE CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED AT THE REAR PROPERTY LINE OF 15737 EAST THISTLE DRIVE (PLAT 603, BLOCK 2, LOT 6), AS RECORDED IN BOOK 161, PAGE 41, RECORDS OF MARICOPA COUNTY,ARIZONA. (EA2017-07) AGENDA ITEM #3 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY DURIM ZEJNELI, OWNER OF GEORGIE'S DINER LLC DBA GEORGIE'S DINER, LOCATED AT 13407 N. LA MONTANA DRIVE, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 12 LICENSE(RESTAURANT). AGENDA ITEM #4 - CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY MICHAEL MIN CHO,AGENT OF C&H IN ARIZONA, LLC,DBA THAT GUY'S PIZZA, LOCATED AT 16948 E. SHEA BOULEVARD, #104, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 12 LICENSE(RESTAURANT). AGENDA ITEM #5 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION FOR THE FOUNTAIN HILLS REPUBLICAN CLUB (TAIT ELKIE)PICNIC TO BE HELD IN THE GRAND BALLROOM OF THE FOUNTAIN HILLS COMMUNITY CENTER, 13001 N. LA MONTANA DRIVE,FOUNTAIN HILLS,AZ,FROM 2:00 PM TO 8:30 PM,ON SATURDAY,OCTOBER 21, 2017. AGENDA ITEM #6 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION FOR THE FOUNTAIN HILLS SISTER CITIES CORPORATION (CAROL CARROLL) DINNER TO BE HELD IN THE GRAND BALLROOM OF THE FOUNTAIN HILLS COMMUNITY CENTER, 13001 N. LA MONTANA DRIVE, FOUNTAIN HILLS, AZ, FROM 6:30 PM TO 10:00 PM, ON SATURDAY,JANUARY 13,2018. AGENDA ITEM #7 - CONSIDERATION OF APPROVING A SPECIAL EVENT LIQUOR LICENSE APPLICATION FOR THE KIWANIS CLUB OF SUNSET FOUNTAIN HILLS (MARGARET ZIEFERT) FOR THE PROMOTION OF A FUNDRAISER TO BE HELD ALONG THE AVENUE OF THE FOUNTAINS, IN CONJUNCTION WITH THE FOUNTAIN HILLS ART AND WINE AFFAIRE, FROM 10:00 AM TO 5:00 PM DAILY,FROM FRIDAY,MARCH 23,2018,THROUGH SUNDAY,MARCH 25,2018. AGENDA ITEM #8 - CONSIDERATION OF APPROVING A CONTRACT (C2018-030) WITH ARTISTIC LAND MANAGEMENT,IN THE AMOUNT OF$207,000,FOR WASH AND DAM MAINTENANCE. AGENDA ITEM #9 - CONSIDERATION OF APPROVING THE FIRST AMENDMENT TO COOPERATIVE PURCHASE AGREEMENT C2017-045, BETWEEN M. R. TANNER DEVELOPMENT z:\council packets\2017\r171121\171003m.docx Page 3 of 16 AND CONSTRUCTION,INC.AND THE TOWN OF FOUNTAIN HILLS,FOR ASPHALT REPLACEMENT -AND MISCELLANEOUS WORK,IN AN AMOUNT NOT TO EXCEED$2,500,000.00. Mayor Kavanagh requested item #10 moved to the first item on the "Regular Agenda" for Councilmember's discussion. AGENDA ITEM #10 — CONSIDERATION OF APPROVING THE FIRST AMENDMENT TO COPPERATIVE PURCHASE AGREEMENT C2017-045,BETWEEN M.R.TANNER DEVELOPMENT AND CONSTRUCTION, INC.AND THE TOWN OF FOUNTAIN HILLS,FOR ASPHALT REPLACEMENT AND MISCELLANEOUS WORK,IN AN AMOUNT NOT TO EXCEED$2,500,000.00. Councilmember Yates moved to approve the consent agenda (Items 1-9) as listed and Councilmember Brown seconded the motion. A roll call vote was taken with the following results: Mayor Kavanagh Aye Vice Mayor Magazine Aye Councilmember DePorter Aye Councilmember Brown Aye Councilmember Yates Aye Councilmember Tolis Aye Councilmember Leger Aye The motion CARRIED UNANIMOUSLY(7-0). REGULAR AGENDA AGENDA ITEM #10 — CONSIDERATION OF APPROVING THE FIRST AMENDMENT TO COPPERATIVE PURCHASE AGREEMENT C2017-045,BETWEEN M.R.TANNER DEVELOPMENT AND CONSTRUCTION,INC.AND THE TOWN OF FOUNTAIN HILLS,FOR ASPHALT REPLACEMENT AND MISCELLANEOUS WORK,IN AN AMOUNT NOT TO EXCEED$2,500,000.00. Town Manager Miller explained that M.R. Tanner Development and Construction was contracted with as part of the Town's Pavement Replacement Management Program and then introduced the Town's Director of Public Services Justin Weldy, who reviewed the information contained in a PowerPoint presentation related to the 2017-18 Management Program-for roads by zone phases one and three. Discussion ensued regarding replacement or repair of roads by need instead of zone and the how a decision was made not to use an outside contracted source for approximately $100K for an analysis since Council felt staff was able to review road needs. Mr. Weldy stated that he would initiate an analysis next week on the specific phases,but with the lack of funding available a determination would have to be made addressing the worst areas in those zones. Vice Mayor Magazine expressed the opinion it was a mistake to only repair roads zone by zone. Councilmember Tolis said in a previous discussion Council had suggested that the Director, at that time, attempt to work with local experts. He pointed out that Performance Paving had offered their services to help staff with the process to determine the worst streets that needed replacement or repair and that Council had decided to eliminate zone management. Councilmember Tolis still supported that proposal. Councilmember Yates said it was logical to do the worst roads in the stated zones and Mr. Weldy noted it was the Council's decision whether to change the approach and that he would follow their direction. Councilmember Yates asked if the cost would increase if the worst areas were addressed first and Mr. Weldy replied there would be additional costs due to mobilization of the equipment. Councilmember Yates asked if the $2.5M HURF funds budgeted for this program could be carried over to the following year and Mr.Miller replied they could. Councilmember Tolis asked if local experts had been contacted by staff as recommended by Council and Mr. Weldy answered that he had met with Performance Paving and others who had offered to help,but timing was a problem. Mr. Weldy stated he would be willing to follow-up with these companies if Council directed. z:\council packets\2017\r171121\171003m.docx Page 4 of 16 Vice Mayor Magazine requested this topic placed on an agenda and so Council could give staff clear direction. Mr. • Miller expressed concern for repairing the worst roads first as that would not be the best solution and would not manage residents expectations on which roads should be addressed first. Mr. Miller added the neighborhood streets Copy were lowest priority, then collectors with major roads having the highest priority due to the amount of traffic. Mr. Miller stressed this discussion would return to Council along with staffs ideas on how to implement the program. Councilmember Tolis requested to see streets graded by letter priority with the letters defined; he suggested this issue be fast tracked. Councilmember Yates asked for the time-line for the contract and Mr. Weldy replied the contract was good until the end of June 2018. Councilmember Leger emphasized that this was an important topic and of interest to the residents; he thanked Mr. Weldy for his presentation. Councilmember Brown encouraged Mr. Weldy to contact Tom at Performance Paving since they offered to help and then asked Mr. Miller to schedule a work study as soon as possible. Mayor Kavanagh asked if there were any speaker cards and Ms. Bender stated there were none. AGENDA ITEM #11 - CONSIDERATION OF APPOINTING ONE (1) CITIZEN TO THE COMMUNITY SERVICES ADVISORY COMMISSION FOR THE REMAINDER OF A ONE-YEAR TERM BEGINNING OCTOBER 3,2017,AND ENDING ON DECEMBER 31,2018. Mayor Kavanagh MOVED to appoint Sharron Grzybowski to serve on the Community Services Advisory Commission for the remainder of a one-year term beginning on October 3, 2017 and ending on December 31, 2018 and Councilmember Yates SECONDED the motion,which CARRIED UNANIMOUSLY(7-0). Councilmember Yates acknowledged Ms. Grzybowski attendance at the meeting and expressed he was to have her serve on the commission. AGENDA ITEM #12 - CONSIDERATION OF A COOPERATIVE PURCHASE AGREEMENT (C2018-040) WITH RIDDLE PAINTING AND COATINGS COMPANY, IN THE AMOUNT OF $189,108.98, FOR THE PAINTING OF BUILDINGS IN THE CIVIC PLAZA. Town Manager Miller gave opening remarks and introduced Raymond Rees, Facilities/Environmental Supervisor for the Town,who reviewed the staff memo and PowerPoint presentation information(available on line or in the office of the Town Clerk). Mr. Miller pointed out that this project was budgeted through the Capital Replacement Program. Councilmember Leger left the dais at 6:54 PM. Mr. Rees discussed the proposal for the Community Center, and Library/Museum, noting that the buildings have not been painted since 2007. He reviewed the Civic Plaza color palette and cooperative purchase agreement with Riddle Painting and Coatings Company. Mr. Rees also mentioned that various areas that would have stucco repairs. Councilmember Yates commented on the current budget and future funding and thanked Mr. Rees for his work. Councilmember Leger returned to the dais at 6:56 PM. Councilmember Brown asked if the pink painted monuments around Centennial Circle would be repainted and Mr. Rees replied that the monuments were not included in the current bid but that an amendment could be requested to paint the monuments. Mr. Rees noted that all doors and trim on the windows would be repainted along with the lighting and shade canopies located in the parking areas. Mr. Miller pointed out that the colors would be standardized. Vice Mayor Magazine requested that staff provide a list of items in the Capital Improvement Program so the projects could be prioritized and Mr. Miller stated he would do that; Mr. Miller remarked that the$1 M from last year had been carried over and in the future the priority list would be included. Mayor Kavanagh asked if there were any speaker cards and Ms. Bender stated none had been received. (610 Councilmember DePorter commented he appreciated Mr.Rees for removing the odd colors. Mayor Kavanagh asked for a motion. z:\council packets\2017\r171121\171003m.docx Page 5 of 16 Councilmember Yates MOVED to approve the contract with Riddle Painting and Coatings Company in the amount of • $189,108.98 and Vice Mayor Magazine SECONDED the motion,which CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #13 - CONSIDERATION OF AWARDING CONTRACT (C2018-056) TO CHRISTMAS LIGHT DECORATORS FOR THE TOWN'S HOLIDAY LIGHTS, IN AN AMOUNT NOT TO EXCEED $50,000.00 ANNUALLY, WITH FOUR ONE-YEAR RENEWAL OPTIONS FOR AN AGGREGATE OF $250,000.00; AND, AUTHORIZING A BUDGET TRANSFER FROM THE GENERAL GOVERNMENT CONTINGENCY FUND TO THE DOWNTOWN STRATEGY FUND,IN THE AMOUNT OF$19,650.00. Town Manager Miller reviewed the information in the staff report and introduced Community Services Director Rachael Goodwin who explained the process and the proposal for holiday lighting on the Avenue of the Fountains. She discussed the renderings presented by the vendor in a PowerPoint presentation(available on line and in the office of the Town Clerk). Ms. Goodwin mentioned this company was not the low bid, but was the most creative and had staffs favorable recommendation. Ms. Goodwin pointed out that the Avenue of the Fountains had been redesigned with additional trees that had now grown and noted some of the previous lighting displays were in disrepair and in need of upgrading. She explained that the cost of lighting the palms,trees,ramadas and government buildings had increased a lot since the previously renewable five year contract the Town carried until this year. Ms. Goodwin also pointed out a Christmas tree had been added as requested from residents and would be located at the end of Saguaro Boulevard. Staff had decided to give up the lighting on the government buildings due to the proposed cost for $8K, to allow for more lighting on the Avenue. Ms. Goodwin explained that the current budget was approximately $30K with a possible supplement from the Downtown Strategic Fund. Ms. Goodwin responded to questions from the Mayor regarding maintenance stating that the vendor would maintain both the new items and the refurbished displays and would cover any problems that may arise. The Town would store all the lighting fixtures in the future. Mayor Kavanagh asked about the cost of refurbishing the old displays and Ms. Goodwin answered the display LED upgrades would be a separate one-time cost. Councilmember Yates complimented Ms. Goodwin on her presentation and asked what could be done to reduce the cost to come closer to the currently budgeted amount and Ms. Goodwin responded that it would take significant decisions on what to keep in the plan and items to be eliminated; she pointed out the wrapping of trees were very expensive. Mr. Miller stressed the importance of signing a contract with this popular vendor as soon as possible to ensure lights were installed for the holidays. Councilmember Leger stated that the new contract was a 40% increase from five years ago and the Town needed to reduce costs. He noted that the Town was receiving less for more money and the lighting on the government buildings had appeared to be well received by the Town and visitors over the years. Vice Mayor Magazine stated his position due to the Town's financial situation and noted that because of the Town facing a$6.4 M shortfall he could not support the increase in funding. Mayor Kavanagh asked if the Chamber of Commerce had been contacted for financial assistance to support this project. Ms. Goodwin replied she could reach out them. She noted that the Town could "cherry-pick" items in an effort to reduce costs;but because of the increase,the overall display would be less. Councilmember Brown suggested lighting the Avenue of the Fountains from Saguaro Boulevard to Verde River Drive to cut costs and provide more lighting in a smaller area. Ms. Goodwin replied that was an option. Mayor Kavanagh stated that that was a great suggestion and could possibly be supplemented with the funding support from the Chamber of Commerce businesses as there is a benefit to them. Councilmember Tolis suggested business sponsorships be explored. He commented that residents such as Phyllis Kern who had always been able to raise money for Town causes in the past. Ms. Goodwin stated she would attempt to find outside funding,but the Town needed to secure a contract;time was of the essence to ensure a display. Councilmember Yates suggested Council adjust the holiday lighting budget to $36K and expressed he could not support funding$50K. Mayor Kavanagh asked if there were any speaker cards and Ms.Bender stated none had been received. z:\council packets\2017\r171121\171003m.docx Page 6 of 16 Mr. Miller and Councilmember Tolis discussed the funding source and its possible use for the Downtown and • Economic Development flexibility. Councilmember Tolis suggested buggy carriage rides, restaurant vendors and other activities be located on the Avenue during the holiday light display and collect fees to help with the additional Le. cost. Councilmember Leger requested Ms. Goodwin work with the holiday lighting vendor to see what the Town could receive for$35K for the total area on the Avenue. Mayor Kavanagh added that the purpose was to lock in the contract sooner than later. Mayor Kavanagh asked for a motion. Councilmember Brown MOVED to cap the holiday lighting budget at $35K with the most lighting possible on the total length of the Avenue of the Fountains and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #14 - CONSIDERATION OF AWARDING THE CONTRACT (C2018-055) TO BLUECOR CONTRACTING, IN THE AMOUNT OF $2,162,956.01, FOR THE CONSTRUCTION OF THE ADERO CANYON TRAILHEAD. Town Manager Miller reviewed the information on the trailhead project and noted the contract funding increase amount by the proposed bidder. Mr. Miller explained that Councilmember Brown and Chairman Bill Myers had been involved in the review and reduction of items so to come closer to the amount previously budgeted for the trail improvements. Mr. Miller introduced Director Rachael Goodwin who continued the presentation and review of the project with a PowerPoint presentation(available on line or in the office of the Town Clerk). Ms. Goodwin explained the areas pushed out to the future or reduced so to limit the amount of additional funding necessary and she noted a 30-day window to proceed, if approved. Ms. Goodwin pointed out the substantial completion date was the middle of May 2018,with total completion in June 2018. Councilmember Brown explained the bid process and how savings were identified. Councilmember Brown MOVED to award the contract to Bluecor Contracting in the amount of$2,162,956.01 for the construction of the Adero Canyon Trailhead and Councilmember Yates SECONDED the motion. Mayor Kavanagh asked if there were any speaker cards and Ms. Bender stated none had been received. Mayor Kavanagh asked for Council discussion. Councilmember Tolis asked what the funding source for this project was and Mr. Miller answered through Development Fees collected especially for this purpose; paid by developers and the funds must be used as proposed and within a specific time line. Mr. Miller continued that if not spent on the allocated project, the funds would be returned to the developers. Mr. Miller added that a balance of$400K had been appropriated by Council to increase the Capital Budget;he clarified that development fees could not be used for street maintenance. Mayo Kavanagh asked for a vote,which CARRIED UNANIMOUSLY(7-0). AGENDA ITEM #15 — DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING LEGAL SERVICES FOR THE TOWN OF FOUNTAIN HILLS. THIS ITEM HAS BEEN ADDED TO THE AGENDA AT THE REQUEST OF MAYOR KAVANAGH, COUNCILMEMBER YATES AND COUNCILMEMBER BROWN. Councilmember Brown MOVED to end the engagement agreement between the Town of Fountain Hills and Gust Rosenfeld, P.L.C, at the end of this Council meeting, with the termination sent to Gust Rosenfeld in writing for the engagement agreement, recommending that the Town Manger contact the League of Cities and Towns or Mr. Tim Pickering's firm to obtain an interim legal counsel until the Town Council could agree to obtaining another firm or hiring a full-time in-house attorney or some combination thereof and Councilmember Yates SECONDED the motion. Mayor Kavanagh asked for Council discussion. kixeVice Mayor Magazine requested clarification that Councilmember Brown motion would be in affect at the conclusion of tonight's meeting and Councilmember Brown stated"that was correct". z:\council packets\2017\r171121\17I003m.docx Page 7 of 16 Vice Mayor Magazine asked Mr. McGuire to list for Council on what Town issues he was involved in or those in ' process. Mr.McGuire replied he would not be able to list everything pending,but could list the key ones. (1.0 • Project referred to as Adero Canyon III and then he explained that in late 1990, there was an Adero Canyon Settlement Agreement entered into that was more than a settlement agreement, but actually a development agreement entered into with an extensive amount of land use associated with the agreement. Counsel and Town Council amended that agreement extensively in 2017, and that became Adero II, which took approximately eight months to get through. Mr. McGuire added that currently the amended agreement would be terminated and split into two agreements and would handle the transition between MCO Properties; the remainder of Adero Canyon and holding on to a piece of Eagles Nest allowing Toll Brothers to receive their obligation from the agreement. Mr. McGuire noted he drafted the Adero II agreement. • Pending Litigation on Park Place. • Fire Station#2 relocation,which had been challenging, since absent of a construction manager to assist in acquiring the necessary documents and oversee the building of the station,as expected. • Mirage Heights a development where the Town, as requested by property owners, would take over of right-of-ways involving approximately 90 parcels in this area. Mr. McGuire commented that it a challenge to collect the necessary deeds allowing for the change of ownership and pointed out that Rust Rosenfeld,his firm,had dedicated a paralegal to oversee this task and an a title specialist. • Lake water quality. • Traffic signal Tech. • Agreement to purchase a new ladder truck and initiate an intergovernmental agreement (IGA) with the state of Texas to loan the Town's old ladder truck to Texas for a period of time, assisting them after the hurricane. Mr. McGuire stressed this was the short list and a day-to-day list of a dozen or more items existed and actively populated as items were added or taken off. Vice Mayor Magazine asked Mr. McGuire if he was an expert in all these areas and Mr. McGuire replied that he was not,but within his firm there were five to twelve lawyers working on Fountain Hills business. Mr. McGuire stated that most recently fifteen lawyers or paralegals had performed work in one capacity or another for the Town at one time. He continued these resources were a benefit for contracting with a firm with such experience and as large as Gust Rosenfeld. Mayor Kavanagh acknowledged Councilmember Yates who read the following statement. "Probably all on Council decided to run for this position as a way to help the residents of Fountain Hills. We ran for the position in an idealistic manner, thinking everyone was working together towards a common goal in hopes to making the quality of life in Town a little better for everyone. Unfortunately, during the past couple of years I have observed a pattern that our Town Attorney's decisions and advice continually lead to judgments and conclusions not benefitting the Town. Over his tenure as Town Attorney there have been many lawsuits against the Town including MCO and the landowner of the old Town Hall, to name a few. There is an opportunity to work with the sanitation district to help with the filtration of the fountain lake. More recently there have been several project developments, projects discrepancies such as MorningStar and Park Place, as well. The Town Attorney advised the Council to fight MCO on a tax issue, which cost Fountain Hills $625,034.00; the same advice was given to Council to fight the landlord of the old Town Hall regarding breaking their lease,which cost Fountain Hills $717,774.00. Since Fountain Lake was one of our most treasured jewels in Town, the Council wanted to work out a service agreement with the Sanitary District in order to maintain the water quality. The Town Attorney took several weeks of negotiating; charging the Town thousands of dollars to only report"it didn't work out". The most recent MorningStar Development project had several miss-steps in his directions. Although it clearly stated that the TCCD in the Zoning Ordinance, homes for the aged, assistant care facilities were permitted with Special Use Permits, our Town Attorney with the help from the Development Services Director, at that time, would not allow this Le use to be accepted. They said the Vision Plan showed pictures of residential housing in the area, consequently tens of thousands of dollars were spent on legal fees,hearing,and zoning agreements,which made the project a residential use z:\council packets\2017\r171121\171003m.docx Page 8 of 16 in a commercial district. After spending all this additional time and tax dollars against the developer,they did not even 'collect any impact fees and by virtue of zoning changes,the Town was now unable to collect a bed tax. Le Now in regards to the $100M Park Place Development project, from the very beginning the Town Attorney used his skills to delay, blame and potentially litigate an incredible development opportunity for the Town. Most contracts should take a few revisions to find common ground on most topics. Some of us on Council attended many of those contract meetings helping the process along. The Town Attorney took this method of negotiations away and would act as the sole representative to report to Council on the contract negotiations. This lead the Town Attorney to make 24 revisions to the contract costing the residents of Fountain Hills tens of thousands of dollars for this agreement when only$5K was charged to the developer. When it was discovered that there may have been some miscalculations with the Development Impact fees and that no fees were collected, instead of taking the matter before Council for review and direction, an invoice was created after the fact and sent to the developer. When the developer questioned the invoice the Town Attorney steered the Council to send a pay or shut you down letter to the developer. During this time of potential litigation, the Town Attorney went to the press and made statements that implied to residents that members of the Council would potentially waive the fees. At no time did any Councilmember ever offer waiving the fees as a solution. The articles in the news and on social media inspired the Town Attorney to blame Council for undermining efforts for the Town to collect fees or fighting with the developer for not paying the fees. As the court transcripts from the hearing states; "the issue of Development Fees was never discussed" and the transcripts would also show that the firm, with Town Attorney, thought this case was about the assistant living developer not even Park Place. The Town Attorney then tried to set-up an undisclosed meeting without the Council's or developer's knowledge to unilaterally negotiate directly with the finance company of the Park Place project instead of the developer. One of the recipients of the email chain accidently clicked "reply all", which made the Council aware of the Town Attorney's intent. All of these issues now in the media, social media and the public have cause the finance company to withdraw their interest in working with the Town of Fountain Hills on Phase II or Phase III of the Park Place. It was at this point the Council took the Town Attorney off the Park Place negotiations. The Town Attorney has been telling Council, staff and even the general public how inexperienced and bad the developer is to work with on Park Place. Members of Council spoke to the 3`d party inspector before an E-Session to find out what his experience was with the developer. The inspector reported that the developer for Park Place is wonderful to work with; he stated kw he was building a high quality, well made project. He went on to state,realizing that this company's contract was with the Town of Fountain Hills, he stated he had worked with more difficult cities in the past, but can't think of one right now." Councilmember Yates stated that from 2012 to present the Town Attorney and his firm's fees have exceeded our budget by 18%to 20%. We cannot afford to continue in this manner. Mayor Kavanagh asked for additional discussion. Councilmember Brown stated that he did not have an ax to grind with Mr. McGuire, not for a second, but after the process that the Council had gone through in the negotiations on Park Place and the way Morningstar's land deal was handled,he had lost confidence in Mr.McGuire's advice to Council. Councilmember Brown referred to meetings held that resulted in 24 revisions to the Park Place development agreement; he noted he had been asked to attend the meeting to help with the lack of progress since each agreement appeared to be the same. Councilmember Brown said he was asked to attend, mediate and negotiate; during the two hour meeting, Councilmember Brown had one and half pages of notes that the Town, Mr. McGuire and the developer had all agreed on and changes were to be made in the development agreement. Councilmember Brown indicated that he had left that meeting due to prior work commitments, but after a time, a day had been scheduled for the next meeting. Councilmember Brown said he was told that after he exited that meeting, Mr. McGuire had stopped the person from taking the meeting minutes and the group in attendance became enraged and then he was informed that inappropriate language was used by Mr. McGuire, at that time. Chairman Brown pointed out that this of type issue involving Mr.McGuire had been addressed in the past. Mr. McGuire expressed his complete disagreement with Councilmember Brown's statements noting he would be happy to discuss. Councilmember Brown offered to ask the person who was taking the meeting minutes for her input. Mr. McGuire noted that the point of the number of drafts in a development agreement was some sort of bench mark for the quality of the agreement was a bit disingenuous for two purposes. Mr. McGuire continued that at least half-way through those drafts and everyone in the room knew the draft received back from the developer was a complete backwards step to the very beginning of the negotiations. Mr. McGuire offered to look-up the document on his z:\council packets\2017\r171121\171003m.docx Page 9 of 16 computer and read all the changes made and noted that if five words were changed a new draft would be prepared 'showing red lines and then returned to the developer. Mr. McGuire added that Councilmember Yates and Councilmember Brown went back to May of the year MorningStar was approved and a meeting with others involved was held in Mayor Kavanagh's office in the attempt to find a solution to move the project along and noted he was the only one that offered a solution involving the PAD Ordinance that required too large a site, so he recommended modifying the PAD to make the site requirement smaller, so the project could go forward along with recommending a General Plan Amendment to fix all the concerns. Mr.McGuire reported that within a three week time frame,there was Council's approval. Mr. McGuire believed this was problem solving and also speedy and he had not allowed the development to die. Mr. McGuire stressed that it made no sense for him to have a personal bias against a developer that he knew was supported by Council. Councilmember Yates stated that Mr. McGuire was now being very disingenuous. Mr. McGuire responded that there was no reason to place the economic future of himself and Gust Rosenfeld at risk by not making decisions that were best for Fountain Hills. Mr. McGuire addressed the allegation regarding the lawsuit with MCO Properties for taxes and pointed out that the issue originated before he was the Town Attorney and as far as the old Town Hall buildings, he could not recall what recommendations were to Council,but that was not his recommendation and felt that issue was misrepresented. Mr. McGuire acknowledged that Cities and Towns get sued and said it was his job to defend against the lawsuits. As in the Park Place issue, he felt the Gust Rosenfeld Law Firm had done their job. Mr. McGuire expressed it was personally and professionally insulting to have a comment basically saying that he would put his personal interest in ahead of his Oath of Office to the Town and Arizona State Bar, which is to provide Council with confidential and ethical counsel. He stated the Town's interests were his scope, not the developer's best interests. He said the statement that he had an ax to grind with the developer was an indictment of his professionalism. Mr. McGuire addressed the issue of legal fees charged to a Town the size of Fountain Hills noting that Fountain Hill's legal fees had been well below $300K per year for a long time, where as other peer cities' costs had increased by a 400. significant amount. Mayor Kavanagh pointed out that Council did not have the updated list of fees charged to other municipalities,at this time. Councilmember Brown pointed to a land deal and stated when the Morningstar and Park Place projects were presented to the Town,the project was presented as one development agreement and he asked how that would work with the land owned by one person, a lender, with two separate development owners. He stated that legal counsel had taken approximately 3-1/2 months before rendering a recommendation. Mr. McGuire responded that the gap in time had occurred over the summer months and was on the developer's side; he added that he could provide the email trail showing his firm had performed and met their obligation for the work necessary and then had waited for the developer's response. Vice Mayor Magazine proposed that he found remarks in Councilmember Yates statement held errors and that the last time legal services was discussed, it was mentioned that an in-house attorney would benefit the Town. Vice Mayor Magazine maintained that Fountain Hills attorney fees ranked in the bottom third in the valley and pointed out that these figures were presented to Council during the last discussion. Mayor Kavanagh stated she did not have updated figures at this time. Vice Mayor Magazine continued that in five-years, the average paid for legal fees was $285K where other municipalities ranged from$306K-$579K ,with seven out of eight contracting an in-house attorney, and did not include consultants, specialists in particular areas, and assistants for those attorneys. Vice Mayor Magazine stressed that what services we get for the Town's expenditures and what the Town received was stated correctly by Mr. McGuire. Vice Mayor Magazine also pointed out that he researched on-line salaries for attorneys in Arizona who were ranked one through four and only attorneys ranked four would have the qualifications that were currently supplied by Gust Rosenfeld's firm. Vice Mayor Magazine sated the opinion that this discussion had nothing to do about cost as expressed by some Councilmembers, but more about Mr. McGuire's performance. Vice Mayor Magazine stated he had not received any negatives about Mr. McGuire's performance until now, and asked for Councilmembers to state their grievances. Vice Mayor declared that he felt that Mr. McGuire had served the Town with distinction and had worked tirelessly in the best interest of Fountain Hills and remarked that in his 50 years of working,he had never heard of a dismissal without z:\council packets\2017\r171121\171003m.docx Page 10 of 16 a performance appraisal and in his two years on Council, had never seen a performance appraisal on Mr. McGuire 'addressing his performance or to discuss Councilmembers' concerns. Vice Mayor Magazine added that this maybe the first time Mr. McGuire was informed of their concerns and he was attempting to respond. Vice Mayor Magazine Coe pointed out that this was an inappropriate forum for this to happen and that Council should give Mr. McGuire the opportunity to hear Councilmembers' concerns and to discuss those concerns one-on-one with that Councilmember. Vice Mayor Magazine observed that Council needed a process that called for due process and that process needed to be transparent to the Town's citizens; Mr. McGuire deserved nothing less. Vice Mayor Magazine noted that if the proposed motion failed, he would make a motion to direct staff to create a process within the next 120 days to address a process related to this issue and allow at least due process for Mr. McGuire and then Council could make their decision,at that time. Mayor Kavanagh reported she had most of the same notes as Councilmember Yates and mentioned that after receiving feedback from previous serving Council members knew of many of these situations from the past. Mayor Kavanagh noted recent situations and stated that Council made policy, not the attorney. She pointed out the attorney was not allowed to schedule secret meetings without informing Council and that finding out through an email that the attorney was attempting to negotiate with the developer's financial institution without Council's knowledge was unheard of without Council's direction. Mayor Kavanagh continued a review of the attorney's opposition while staff was dealing with the Park Place development by attempting to shut the project down by going to the Town's Criminal Prosecutor and asking for his counsel in this action. Mayor Kavanagh explained that was not the direction Council gave him, but was told to avoid. Mayor Kavanagh also stressed her displeasure that Mr. McGuire misinformed people that she was against the Park Place project when she was actually working towards a positive resolution. She noted that she had approached him on his comments and addressed Mr. McGuire regarding making contact with a former councilmember that was opposed to Council's action and discussing Town business. Mayor Kavanagh added that she believe this never happened again as part of the Town discussion with Mr.McGuire,but she still felt his previous action was an issue. Mayor Kavanagh expressed that there had been long term issues regarding Mr. McGuire's actions and not once, but many times. She also expressed that it was difficult for her to have trust in Mr. McGuire and stressed that trust and confidence was a vital part of serving the Council. Mayor Kavanagh added that at times she felt it necessary to contact the State Attorney or local attorneys for their counsel due to the lack of confidence in Mr. McGuire. She found that she received different advice from them, which made her decisions more difficult. She stated it was necessary for the Town Attorney to give Council options instead of advice in the direction of his choice. Mayor Kavanagh pointed to a past issue, the possible loss of$80K of ground dirt donated to the Town for the Adero Canyon Trailhead project due to the legal advice from Mr. McGuire who advised Council that the Town could not just take the dirt; another deal had to be worked out. Councilmember Brown reviewed another development agreement incident that happened after the lengthy Park Place Development Agreement concerning the Americana/Copperwynd project. He discussed how smoothly this project development agreement went and how it was completed without revisions although the project was given benefits to achieve a positive completion,which Mr. McGuire facilitated on his own and was completed before Council was even informed. Councilmember Brown stated the opinion that Fountain Hills has the worse reputation in the valley for development issues and referenced that issues with MCO Properties were endless. Councilmember Brown added that after many attempts to build on the current Park Place properties that failed due to funding issues, the Town currently had a developer able to complete the entire land project with approved funding. Councilmember Brown pointed out that he had a problem with how developers were treated. Mayor Kavanagh asked if there were any speaker cards and Ms. Bender stated that two had been received. L z:\council packets\2017\r171121\171003m.docx Page 11 of 16 • Robert Wilson,a Fountain Hills resident,stated that he supported the Town,but questioned the direction the Town was 'going and felt Mr.McGuire deserved due process and questioned if this was not a personal vendetta. Mayor Kavanagh tie replied that his accusations were serious and wanted proof to his statement. Mr.Wilson added he did not say who. Mr. Wilson pointed out Mayor Kavanagh, Councilmember Yates and Councilmember Brown were all on the negotiating team involving unpaid Park Place Development Fees and questioned the remarks made by the developer's attorney stating those Councilmember's intentions. Mr. Wilson expressed his displeasure for the action tonight towards Mr.McGuire,by those same Councilmembers. Councilmember Yates stated he had a copy of the transcripts and a letter from the Park Place Attorney in question and explained that he contacted the attorney in question and expressed his concerns for the statements made involving himself, Mayor Kavanagh, and Councilmember Brown. Councilmember Yates informed the attorney that at no time were these three members of Council in support of waiving the development fees for this development. Councilmember Yates proceeded to read the letter from the attorney,Mr. Lunn,who stated he was shocked to hear the allegations. "Dear Councilmember Yates: We ranked a response to concerns my clients had been hearing regarding the Park Place Phase I project, more particularly we have heard that there were rumors that N-Shea or Council took the position in the hearing at the Maricopa County Appeals Court that the Mayor and certain Councilmembers agreed to waive the development fees when the terms of the development agreement were being negotiated. We can assure you that no such representations were made. Attached hereto is a rough transcript from the hearing in question and you will see that at no time did N- Shea or its Counsel suggest that the Mayor or Councilmembers agreed to waive the development fee. The attorney for the development continued to say that he sat in the development agreement meetings himself with Bart Shea, with Councilmembers, and knew that waving the fee was not part of the development agreement." Councilmember Yates stated that there was unfounded rumors that three Councilmembers were working together to waive the development fee, were never discussed, and he assured everyone that he fights for all developers coming into Town. Councilmember Yates pointed out that he personally had been lied to by Mr. McGuire on several occasions and felt the need to use his resources, as did the Mayor, when he questioned Mr. McGuire's advice. Councilmember Yates agreed that cost of services was a factor and added along with the necessity to trust the Town's Attorney. Councilmember Brown explained that if Council's actions tonight were discussed in an Executive Session, then the public would never know both sides of the story due to confidentiality of the Executive Session that prohibited outside discussions, so unfortunately when this happens things get twisted sometimes and statements this evening were not directly towards Mr.McGuire personally,but questioned his counsel. Mayor Kavanagh requested the other speaker. Michael L. Archambault, a 45-year resident of Fountain Hills, expressed his opinion regarding the firing of the Town Attorney and noted that on August 7th, the date of the court transcription stated David Lunn, Park Place Attorney, reported that Mayor Kavanagh, Councilmember Yates and Councilmember Brown would testify that they sided with the Park Place Developer that no fees were owed. Mr. Archambault stressed that those Councilmembers were placed in a conflict of interest with the Town in the negotiating letter sent to Park Place and to the court, by the Town Manager, on behalf of the Town and that the statement by Mayor Kavanagh, Councilmember Yates and Councilmember Brown required them to recues themselves from these discussions and if not there would be consequences. Mr. Archambault added that this was serious and urged the remaining Councilmembers to take the appropriate action including i) investigate the conflict of interest by Mayor Kavanagh, Councilmember Yates, and Councilmember Brown. and if necessary, hire an independent attorney or retired Judiciary Officer to conduct the necessary inquires, and ii) ask the Attorney General to investigate this matter, because to say the least there was a strong appearance of tie impropriety or conflict of interest in violation of the Town's Ethics Code. Mr. Archambault asked that the firing of the Town Attorney stop. z:\council packets\2017\r171121\171003m.docx Page 12 of 16 Mayor Kavanagh asked for proof of impropriety,so she could defend herself from the accusations. Councilmember Leger read from the court transcript that stated "While the Town says that the Town Development Fees were a matter of law, there was no reason to discuss them in negotiations,because it was a given the fees would have to be paid". The transcript continued that Mr. Lunn, N-Shea's Attorney responded "While he understood what the Judge was saying, that now,referring to the Judge's statement, Mr. Lunn continued that "He guaranteed the Judge when he had Mayor Kavanagh, Councilmember Yates and Councilmember Brown on the stand, they would testify otherwise". Mayor Kavanagh and Councilmember Yates requested Councilmember Leger to continue to read the next line in the transcript, and it said "They have never understood that developer's fees were an issue" and Mayor Kavanagh stressed that the last line Councilmember Leger read explained their position. Councilmember Leger asked how that statement explained anything. Councilmember Yates replied that it meant that the development fees were never discussed and his stated opinion that people were twisting the statement. Councilmember Yates addressed Mr. Archambault insinuations that members of Council were taking bribes and stated that his comments were unfounded. Mr. Archambault replied from the audience that he did not say that. Mr. McGuire asked to speak, while Councilmember Leger asked to continue along with Councilmember DePorter responding that he wanted to speak. Mayor Kavanagh called on Councilmember DePorter to comment. Councilmember DePorter commented that he was disgusted and disappointed with the Council meeting and found that each person had their own narrative on the issues. Councilmember DePorter expressed that he had always felt that the amount of money paid to our current attorney would be better spent by having someone on staff that would be available during Town business hours for employees' consultations. He also felt an in-house attorney could build trust and close relationships with those he served. Councilmember DePorter also questioned the timing for change of counsel as it was somewhat in between. He indicated he could support a change,but questioned with everything going on in Town, if this was the time. Councilmember DePorter commented that different personalities were involved in this action and decisions, which he stressed, should not happen tonight. Councilmember DePorter stated that Mr. McGuire and his firm were professional, but acknowledged that there were some missteps. Councilmember DePorter stated his recommendation that the firing action should not take place at tonight's meeting due to the need for legal advice on current issues. Councilmember Leger stated that he felt Council was going about this process the wrong way and it was the lowest point he had ever experienced after 11 years on Council. He added that after 11 years he could say that he had absolute trust in Mr. McGuire's abilities and in his counsel. Mr. McGuire was not responsible for the issues and that Councilmembers were the decision makers and they had to own their decisions and direction to Mr. McGuire, who always said"just give me direction". Councilmember Leger stated the opinion that the Town Attorney always acted in the best interests of the Town and never spoke negatively. Councilmember Leger pointed out that the Town had a lot of new people who did not have a lot of experience in Fountain Hills and pointed out Mr. McGuire had the institutional knowledge they could rely on,along with his firm's assets. Councilmember Leger went on to list various services the Town Attorney provides. • Drafting ordinances and resolutions. • Drafting and negotiating contracts. • Reviewing agendas and minutes. • Review documents generated by Town Staff. • Procurement. • Bonds borrowing and issuance. • Election laws. • Cable and franchise laws. • Public bidding and contracts. • Personnel and employee related issues. • Improvement and community services facilities. • Attendance and compliance review of Town Council,Commissions and Boards. • Environmental law. • Water issues. z:\council packets\2017\r171121\171003m.docx Page 13 of 16 • Planning and Zoning. • Property Law. • Code Enforcement. • Development Services. • Annexations. • Intergovernmental Agreements(IGA's). • Wireless telecommunications. • Employee benefits. • General State and Municipal Law. • Representation of Town for Administration Boards. Councilmember Leger concluded that the discussion needed to continue,but not in this type of forum to find out how to work through this process. He stated it was a privilege and honor to work with Mr. McGuire and offered that staff felt the same way. Mayor Kavanagh acknowledged Mr. McGuire. Mr. McGuire provided clarification for the record and discussed the actions that were questioned regarding the Park Place Development Fees. Mc McGuire explained that he felt he did nothing wrong since the financial person had requested a meeting and the development fee were going to be paid and it was the finance company that had decided not to include Bart Shea in the meeting. Mr. McGuire stated even though he expressed his concerns, his focus was that the fees would be paid and that benefited the Town. Mayor Kavanagh responded that her issue was that she should been called to let her know about the Monday meeting with the Finance Company; she noted the fact that Mr.McGuire was not authorized by Council to act. Councilmember Tolis pointed out that before his election in December 2016, he was unaware of most of these issues and explained that since his services began on Council that he has attended Executive Session discussions; he expressed what social media sends out was not always accurate. He also expressed that his feelings were mixed on this issue because he respected Mr. McGuire, but the Park Place backlash and the stories in the paper had placed political pressure on Council to resolve the issue. Councilmember Tolis requested that Bart Shea, Park Place Developer,who was in attendance, speak on the issue. Mr. McGuire advised that allowing Mr. Shea to speak would not be a good idea because of on-going litigation,but he said it was up to the Mayor to allow this. Councilmember Leger pointed out that Mr. McGuire's advice was good. Councilmember Tolis reiterated his request to hear from Mr. Shea so he could give an explanation of why Council was still dealing with this issue, allowing the public to know what was going on in an attempt to settle the matter. Vice Mayor Magazine stated he failed to see the relevance to the current discussion and also pointed out that this matter had been discussed in an Executive Session previously. Mayor Kavanagh stated that she felt all the issues had been discussed on this matter and asked for a vote from the Council. Mayor Kavanagh noted that a motion and second had previously been made. Mayor Kavanagh asked for a roll call vote. A roll call vote was taken with the following results: Councilmember Yates Aye Councilmember Leger Nay Councilmember Brown Aye Councilmember DePorter stated this was a major issue when it involved a Council that did not trust in the leadership or advice from their Town Attorney,but felt it was too early for him to agree with this action. Councilmember DePorter Nay Councilmember Tolis explained he had trust in Councilmembers Brown and Yates and felt he had to rely on Mayor Kavanagh's opinion. z:\council packets\2017\r171121\171003m.docx Page 14 of 16 Vice Mayor Magazine made a"Point of Order" on comments being made during a vote and Mayor Kavanagh stated 'that comments were allowed by Councilmembers at this time. Councilmember Tolis Aye Vice Mayor Magazine Nay Mayor Kavanagh Aye The motion CARRIED (4-3). Vice Mayor Magazine questioned what do we do beginning tomorrow and Mayor Kavanagh answered that Council was done with the item and that would be better answered during item#16. There was a comment made from someone in the audience, so Mayor Kavanagh asked Law Enforcement to escort the gentleman out of the room. AGENDA ITEM#16—COUNCIL DISCUSSION/DIRECTOR TO THE TOWN MANAGER. Vice Mayor Magazine again asked what does the Town do tomorrow regarding items Mr. McGuire was involved in and Mayor Kavanagh answered that direction was given in the motion and would allow everyone time to work out the transition. Mayor Kavanagh noted that Councilmembers knew the Council meeting was not over at this time. Mr. McGuire acknowledged Council's direction, but pointed out there were eminent items such as Adero Canyon that he felt someone else could complete,but there were others such as contracts that were being completed that needed to be addressed. Mr. McGuire added he did could not just walk away and asked where Council stood on these matters. Councilmember Brown replied an interim or replacement attorney would be brought in and that Council would let him know. Mr. McGuire asked the Town to let him know once his replacement chosen. AGENDA ITEM #17 — SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITES BY THE MAYOR,INDIVIDUAL COUNCILMEMBERS,AND THE TOWN MANAGER. None. AGENDA ITEM#18—ADJOURNMENT Councilmember Brown MOVED to adjourn the meeting and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY(7-0). The Regular Session adjourned at 8:54 p.m. L z:\council packets\2017\r171121\171003m.docx Page 15 of 16 TOWN OF FOUNTAIN HILLS By nda M. av agh,Mayo ATTEST AND PREPARED BY: Bevelyn J.Be r,T 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 3`d day of October,2017. I further p tify that the meeting was duly called and that a quorum was present. DATED this 21st day of November,2017. Bevelyn J. en , Clerk L z:\council packets\2017\r171121\171003m.docx Page 16 of 16