HomeMy WebLinkAbout2012.0405.TCRM.Minutesz:\council packets\2012\r4-19-12\120405m.docx Page 1 of 8
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR SESSION OF THE
FOUNTAIN HILLS TOWN COUNCIL
APRIL 5, 2012
* CALL TO ORDER AND PLEDGE OF ALLEGIANCE
Mayor Schlum called the meeting to order at 6:30 p.m. in the Town Hall Council Chambers.
* INVOCATION – Mayor Jay T. Schlum
* ROLL CALL
Present for roll call were the following members of the Fountain Hills Town Council: Mayor Schlum,
Councilmember Contino, Councilmember Leger*, Councilmember Hansen, Councilmember Brown,
Councilmember Elkie and Vice Mayor Dickey. Town Manager Ken Buchanan, Town Attorney Andrew
McGuire and Town Clerk Bev Bender were also present.
* Councilmember Leger participated in the entire meeting through the use of telephonic equipment.
* MAYOR'S REPORT
i) NONE.
* SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS
i) The Mayor will read a PROCLAMATION declaring April 15 through April 22, 2012, as Days or
Remembrance.
Mayor Schlum stated that the Holocaust was the state-sponsored systematic persecution and annihilation of
European Jewry by Nazi Germany and its collaborators between 1933 and 1945 and reported that during the
Holocaust, six million people were murdered and millions more suffered grievous oppression and death under Nazi
tyranny. He said that the history of the Holocaust offers an opportunity to reflect on the moral responsibilities of
individuals, societies and governments and added that we should always remember the terrible events of the
Holocaust and remain vigilant against hatred, persecution and tyranny -- and should actively rededicate ourselves to
the principles of individual freedom in a just society. The Mayor further stated that pursuant to an Ac t of Congress,
the U.S. Holocaust Memorial Council has designated Days of Remembrance to remember the victims of the
Holocaust, as well as to reflect on the need for respect of all peoples. Mayor Schlum proclaimed the week of April
15 through April 22, 2012 as Days of Remembrance in the Town of Fountain Hills in memory of the victims of the
Holocaust and in honor of the survivors, as well as the rescuers and liberators and further proclaimed that they, as
citizens of Fountain Hills, should work to promote human dignity and confront hate whenever and wherever it
occurs.
ii) The Mayor will read a PROCLAMATION declaring April 2012 as Child Abuse Prevention Month.
Mayor Schlum stated that preventing child abuse and neglect is a community problem that depends on involvement
among people throughout the community. He said that child maltreatment occurs when people find themselves in
stressful situations, without community resources and don't know how to cope. He reported that the majority of
child abuse cases stem from situations and conditions that are preventable in an engaged and supportive community
and noted that child abuse and neglect can be reduced by making sure each family has the support need ed to raise
their children in a healthy environment. The Mayor further stated that child abuse and neglect not only directly
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harm children, but also increase the likelihood of criminal behavior, substance abuse, health problems and risky
behavior. He added that all citizens should become involved in supporting families in raising their children in a
safe, nurturing environment and all citizens should be supportive of child abuse prevention programs in the
community. Mayor Schlum proclaimed April as Child Abuse Prevention Month in the Town of Fountain Hills and
called upon all citizens to do their part in preventing child abuse and strengthening the community in which we
live.
* CALL TO THE PUBLIC
Town Clerk Bev Bender stated that three citizens wished to speak under this agenda item.
Bruce Hansen, Chairman of the Fountain Hills Sanitary District Board of Directors, addressed the Council and
stated that the District supplies irrigation water for three golf courses and three parks in Town. He advised that for
the first time ever they are not going to have enough water for people this summer and some people are going to
have to do with less or without. He said that they are trying to take steps to mitigate the impact as much as they can
and there is one thing they can do and they have approached the Town about rectifyi ng a situation. He noted that
there is a wash in back of Morningside that discharges about 30,000 gallons of water a day and there used to be a
pump back station to pump the water back up into the lake a number of years ago. He advised that about seven
years ago that pump back station stopped working and the Town decided not to fix it. He stressed the importance
of the 30,000 gallons of water (almost a million gallons a month) and the District approached Town staff about two
months ago and said they will do it, pay for it (all the expense) and they are still awaiting Town permission to do
so. He further stated that every day and every week they delay they lose that much water and added that although
this measure will not entirely solve the problem, it will help. He requested that the Council place this item on their
next Council agenda for action and approval and reiterated that the pump back replacement cost will not be borne
by the Town.
Alice Brovan addressed the Council and stated her intention to discuss a situation that probably affects a number of
people in the community who would very much like to use the Town's Library but the distance from the parking lot
to the door is very lengthy for a lot of people. She said that it keeps people, including her husband, from using the
Library, which is really a shame because he loves going there. She suggested that they come up with a way to
allow access to that door so that people can use the Library. She urged the Council to look into this situation and
find a way to make it possible for people to be dropped off right at the door.
Linda Bordow addressed the Council and said that the last time she was present (at the Budget Session) she
discussed the budget survey which would cost $30,000 plus an additional $5,000 to add the bond issue. She stated
that at that meeting she informed the Council that she would be happy to "dig down deeper" into this issue and
report back to them on her findings. She informed the Council that she does not have that information tonight and
should have it by next week but she wanted to give the Council an update in the meantime. She said that she
previously discussed the fact that a survey that would go out to 15,000 citizens would cost $7,000 (a robo -call style
survey with 10 questions/multiple choice answers). She reported that this was a "broad brush stroke" type of an
estimate she had obtained. She advised that she looked up the 2007 Funding Solutions survey and reported that that
survey only covered 400 residents and the cost was $15,620 and it was done all by phone. She said that she thinks
she is going to be able to come up with a way for the Town to save thousands of dollars that can be put towards
something else. She added that she hopes to bring two proposals before the Council at their next meeting for their
consideration.
Mayor Schlum thanked all of the speakers for their input.
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* CONSENT AGENDA
AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING
MINUTES FROM MARCH 12 AND 15, 2012.
AGENDA ITEM #2 – CONSIDERATION OF AUTHORIZING PAYMENT TO THE MARICOPA
COUNTY ELECTIONS DEPARTMENT, IN ACCORDANCE WITH THE INTERGOVERNMENTAL
AGREEMENT, FOR DIRECT SUPPORT OF THE TOWN OF FOUNTAIN HILLS MARCH 13, 2012
PRIMARY/SPECIAL RECALL ELECTION, IN THE AMOUNT OF $34,011.16.
Councilmember Contino MOVED to approve the Consent Agenda as listed and Councilmember Brown
SECONDED the motion.
A roll call vote was taken with the following results:
Vice Mayor Dickey Aye
Mayor Schlum Aye
Councilmember Leger Aye
Councilmember Hansen Aye
Councilmember Contino Aye
Councilmember Brown Aye
Councilmember Elkie Aye
The motion CARRIED UNANIMOUSLY (7-0).
REGULAR AGENDA
AGENDA ITEM #3 – CONSIDERATION OF A REQUEST BY THE PUBLIC ART COMMITTEE TO
ACCEPT A DONATED SCULPTURE TITLED "STARBURST" FOR PUBLIC DISPLAY.
Director of Community Services Mark Mayer addressed the Council relative to this agenda item and said that he is
pleased to bring forward for their consideration an additional piece of public art. He stated that as indicated in his
Staff Report, the piece is entitled "Starburst" and it is a stainless steel sculpture that is 16 -feet tall. He displayed a
photograph of the sculpture (Copy available on line and in the office of the Town Clerk). He reported that the piece
was created by Texas artist Jim LaPaso and has a gallery price of approximately $6 ,500 but a negotiated price of
$5,000 has been successfully agreed to and the cost will be paid for by a donation from one of the Town's local
residents. He added that there is an annual insurance cost based on the value (43 cents per $100, which comes to
$27.95). He informed the Council that the suggested location for the work is in the Centennial Circle and noted
that the acquisition has been approved by the Board of Directors of the Fountain Hills Cultural & Civic
Association. He noted that staff recommends approval and added that Mr. Miles is present should the Council have
any questions.
Mayor Schlum thanked Mr. Mayer for his presentation.
There were no citizens wishing to speak on this agenda item.
In response to a question from the Mayor, Mr. Miles confirmed that the location would be fairly close to the other
piece of sculpture in the Circle that depicts birds flying. Mr. Miles said that they running out of places to put the art
pieces but hope to identify additional locations that they will propose to the Council this summer. He expressed the
opinion that the location for the piece is a good one and will provide some synergy between the two art pieces. He
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confirmed that it will be placed in the dirt within the Circle (this will take up one of the six sites in the Circle that
have been approved).
Councilmember Elkie asked if there is any history/story behind this piece of art and Mr. Miles advised that all of a
sudden they are in a remarkable position -- a lot of people are calling to say that they would like to donate a piece
of art. He reported that they have four of them on the agenda right now. He stated that they keep a "wish book" of
pieces and for quite some time they have been looking for a good mobile -- one that is tall. He advised that this is a
very strong, wind-resistant piece. He said that the donor went through the "wish book" and selected this particular
piece and following negotiations the deal was done.
Mayor Schlum requested that Mr. Miles pass along the Town Council and citizens' appreciation to the donors for
their generous contribution and to the Fountain Hills Cultural & Civic Association for their ongoing excellent
efforts.
In response to a question from the Mayor, Mr. Miles confirmed that the piece will move with the wind and referred
to cups on the sculpture that were designed to catch the wind.
Mayor Schlum thanked Mr. Miles for his efforts and his comments.
Councilmember Contino MOVED to accept a donated sculpture titled, "Starburst" and placing it on public display
and Councilmember Hansen SECONDED the motion, which CARRIED UNANIMOUSLY (7-0).
AGENDA ITEM #4 – CONSIDERATION OF RESOLUTION 2012-09, AMENDING EXHIBIT E OF THE
DEVELOPMENT AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND AVENUE OF
THE FOUNTAINS, LLC. CASE #DA2011-02.
Senior Planner Bob Rodgers addressed the Council relative to this agenda item and said that this is a request by
Dave Fackler and George Kasnoff, the potential developers of The Avenue potential downtown theatre project for
an amendment of Exhibit E of the existing Development Agreement. He explained that Exhibit E is a schedule of
performance that is attached to the Development Agreement and outlines the basic timelines and tasks to be
completed by the developer. He noted that the current schedule requires that the property acquisition occur within
60 days of the effective date of the Development Agreement (February 2nd) and the applicants have requested that
Exhibit E be amended to modify the performance timelines so that they may continue with the project under the
existing Development Agreement's terms (the applicants have not been able to meet the first task of acquiring the
property within the 60 days, which would be April 9th, next Monday). He reported that this task will most likely
not be completed for another 30 to 45 days as a result of financing glitches that have occurred. He said that the
applicants have requested that the 60-day timeline date be moved out six months to approximately August 28th. He
added that the plan submittal date is also being requested to be moved out from three months to eight months and
the start of construction date is requested to be moved out from six months to ten months. He said that staff
recommends approving the amendment as proposed and outlined in the Staff Report (Copy of which is available on
line and in the office of the Town Clerk). He added that the applicant is present in the audience to res pond to any
questions the Council might have.
Mayor Schlum thanked Mr. Rodgers for his presentation.
Ms. Bender advised that Mr. Fackler wished to speak to the Council on this item.
Mr. Fackler addressed the Council and thanked them for their consideration of the amendment that is before them
this evening. He referred to a letter that he sent to the Council and stated that they have been going through some
tortuous outside interference in trying to put the financing together and they are very close (escrow papers are in the
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final stages now). He said that they had hoped to be standing before the Council with escrow in hand but it looks
like it will be early next week when that happens. He advised that with him this evening is John Willis, who is the
broker working with the Kennedy Trust on the bond financing and his partner George Kasnoff, who has also been
working on a day-to-day basis with the Trust in order to move things forward. He added that a representative from
AP, their contractor who is also the equity investor in the project, is also present and he is standing ready with $2
million to open escrow as soon as the paperwork is worked out between the bond attorney for the Trust and AP's
attorneys. He indicated his willingness (and the representatives’ willingness) to respond to any questions from the
Council.
Mayor Schlum thanked Mr. Fackler for his comments.
There were no citizens wishing to speak on this item.
In response to a question from Councilmember Elkie, Town Attorney Andrew McGuire clarifi ed that the requested
extension is for six months from the effective date, which was February 2nd.
Councilmember Elkie said that they are looking at around August 3rd. He asked Mr. Fackler if it is safe to say that
everything will be done before August 3rd and Mr. Fackler replied that the information they are getting from the
Trust's representatives is that as soon as the escrow is opened (hopefully next week) they feel they can close it in as
early as 30 days but when they attempted to nail the representatives down they said 60 to 90 days is their standard.
He reported that everything has been approved and they have been working on the due diligence for four months
now and are way ahead of the game as far as closing this. He added that right now they are saying it could close as
early as 30 days after the opening of that escrow. He said that they have negotiated a new purchase contract with
the owner of the property and she will place that property in escrow as soon as the loan has closed (and they should
be able to close within 30 to 60 days after the loan).
Councilmember Hansen asked how this will affect the timing of the traffic study.
Town Attorney Andrew McGuire responded that all of the requirements that are in place for all of the other items
are still in place and will not change (they are still under the same constraints).
Councilmember Hansen stated that she was a little surprised when the Council received the request because she was
already under the assumption when it was approved that there was a lot of pressure to do it right then, simply
because a delay would put the financing in jeopardy, so she was taken back when they were asked to look at
another extension.
Mr. Fackler apologized and said that they were in the same boat and were getting pressure to move the project
forward and get everything in place so that the loan could close quickly. He noted that they and the Trust were
working with a third party and there were actually six projects -- theirs being one of the six -- that were bundled
together into a $300 million loan. He stated that the third party, who was funding the escrow f or that money, did
not put up the money at the last minute and all of those projects were in the same boat. He added that luckily for
them their contractor, AP, stepped in and said they would put up the 10% if the Trust split off our project from the
others and it took a while for the Trust to consider that but they finally came back and said they would do that. He
said that they had hoped they would be closing the loan on March 3rd, their target date, but once the third party fell
apart they had to put everything back together and that is where they are at right now. He apologized for the delays
and for pushing the Town so hard and said that they were pushing themselves hard at the same time. He stated that
he did not feel good about putting the Council "in that boat" and standing there with a little "egg on his face" but he
wants to tell them that they are still working hard to make the project work and they hope to be underway quickly.
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Mayor Schlum asked if they progress with this when groundbreaking would occur. He advised that he gets asks
this question a lot because people are excited about the movie theatre coming to Town.
Mr. Fackler replied that groundbreaking should occur by the first or second week in July. He reported that
construction is anticipated to take 12 months and escrow will open early next week and hopefully close 30 days
after that. He confirmed that this timeframe will provide a little cushion. He explained that he sat down with Town
staff and the Town Manager since they are not in control of the closing of this and said that the 60 to 90-day time
period will be the worst case scenario.
Mayor Schlum noted that they are talking about an extra four months from April 9th to August 3rd. He asked what
requirements must be met by the August 3rd date.
Mr. McGuire advised that the August date is for acquisition, followed by the construction plans for Phase I and then
commencement of construction (six months, eight months, ten months after the February effective date).
George Kasnoff addressed the Council and indicated his intention to clarify why it has taken so long to get to this
point. He said that he has been mostly involved with the financing with the contractor and the Kennedy Trust. He
stated that originally they were doing bond trades and the funds that were going into the escrow account were to be
for bonds. He noted that the Kennedy Trust came back and offered a better position if they were to do a cash
position and that changed everything (all the paperwork, everything that ha d already been completed and agreed
upon). He said that they then had to go back to square one. He discussed the work that has been ongoing to
successfully work out this deal and stated that the only remaining issue to be worked out is the language -- how to
satisfy the parties involved and make sure that the funds are safe in the transfer. He noted that the Kennedy Trust
has talked to the Town and acknowledged that they have been approved for the loan; there are no issues there, they
have gone through their due diligence -- it is now just the escrow language and hopefully they will have the
agreement penciled out within the next couple of days.
Councilmember Elkie advised that he appreciates the work that Mr. Kasnoff has put into this and he understands
that unexpected delays occur. He encouraged him to make this happen and noted that a lot of time, effort and
energies have gone into this and everyone in Town is looking forward to being able to see a movie in Fountain
Hills. He said that he looks forward to the project's completion.
Mr. Kasnoff assured the Council that they are not stopping and will continue to work on this. He added that he
would like to thank the new Town Manager, Ken Buchanan, for getting in there and making this a proactive
situation in bringing this forward to the Council so they have the time and not the pressures. He added that the
contract will go into place when they go into escrow and the price and the terms have been worked out so the day
that they open escrow they will enter into the contract, place the earnest money up and go to closing from there. He
stated that all of that has been worked out and resolved.
Councilmember Elkie MOVED to approve Resolution 2012-09, amending "Exhibit E" of the Development
Agreement for "The Avenue" relating to the schedule of performance for the proposed development on property
located at 16725 E. Verde River Drive and Councilmember Brown SECONDED the motion, which CARRIED
UNANIMOUSLY (7-0).
Mayor Schlum thanked everyone for their efforts to see this project to fruition and requested that the Council be
kept updated on this matter.
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AGENDA ITEM #5 - DISCUSSION WITH POSSIBLE DIRECTION RELATED TO ANY ITEM
INCLUDED IN THE LEAGUE OF ARIZONA CITIES AND TOWNS WEEKLY LEGISLATIVE
BULLETIN (#11 AND 12).
Mr. McGuire addressed the Council relative to this agenda item and referred to Legislative Bulletins #11 and #12
included in the Council's packets (Copies available on line and in the office of the Town Clerk). He said that the
purpose of this agenda item is to provide the Council an opportunity to discuss and provide any direction they may
want to give regarding legislation that might impact the Town. He stated t hat a number of municipal-related bills
are still working their way through the Legislature and indicated his willingness to follow any direction the Council
may have.
Town Manager Ken Buchanan informed the Council that per their direction staff has active ly sent the Town's
opposition to the Election Consolidation bill (HB2826) to all the voting members affected by this. He reported that
they voted it down but it was brought back with an amendment and could be considered by the Senate President
and come back for reconsideration on Monday. He stated that staff will stay on top of this issue.
The Mayor asked if they know why other municipalities support this piece of legislation and said that he realizes
that the larger municipalities are already on the fall election cycle and would not have to change election schedules.
Vice Mayor Dickey stated that she thinks Scottsdale is already on that schedule so she is not sure why they are
weighing in.
Mr. Buchanan advised that he thinks the election people have not provided a lot of input on this issue and reported
that someone on the floor commented that there was no opposition being expressed by the Maricopa County
Election Director. He added that this probably has a lot to do with the consideration that the bill is receiving.
Vice Mayor Dickey referred to SB 1288, the Arizona Department of Water Resources (ADWR) bill, and said that it
passed by a unanimous vote of the Senate and Committee of the House. She stated that it should have been put on
Rules by now so it might be something that they should pay some attention to and noted that the Rules Committee
that came out on Monday did not have anything on it so she doesn't know if they want to have it renewed or show
more vigorous support for that bill.
Mr. Buchanan advised that the Council advocated for staff to express support for that piece of legislation and they
will continue to do that and keep watch on it.
Vice Mayor Dickey suggested that Representative Jerry Weiers, Chairman of the Rules Committee, be contacted
and asked to place this item on the agenda. She explained that that would be the next step and they can't do
anything until they get in on Rules.
Mayor Schlum thanked staff for the update.
AGENDA ITEM #6 – 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.
Mr. Buchanan addressed the Council relative to this agenda item and advised that a request was made earlier in the
meeting by the Chairman of the Fountain Hills Sanitary District Board of Directors. He advised that he met with
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the District Manager and he realizes the importance of getting that on the front burner and ensuring that the pump
back is in working order once again. He said that he will work on that on Monday.
AGENDA ITEM #7 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES
BY THE TOWN MANAGER KEN BUCHANAN.
Mayor Schlum brought up the issue raised this evening about Library access and asked whether utilizing the back
door would be a way to provide access for those who have difficulties walking any sort of distance. He said that
this issue is worth spending some time on to enhance overall access to the Library.
Councilmember Hansen suggested that the solution might be as simple as providing wheelchairs at the Library for
those patrons who have difficulty walking.
Vice Mayor Dickey noted that they are having a Sign Ordinance meeting on April 11th from 6:00 p.m. to 8:00 p.m.
at the Community Center.
Mayor Schlum added that the Council will hold a Work Study Session to discuss the budget next Tuesday at 5:30
p.m. He said that Ms. Bordow will have survey data for the Council to review at that time.
Councilmember Elkie advised that he read that the VFW donated $2,500 towards repair of the memorial and
expressed appreciation to them for that generous donation.
AGENDA ITEM #9 – ADJOURNMENT.
Councilmember Contino MOVED that the Council adjourn the meeting and Councilmember Brown SECONDED
the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 7:10 p.m.
TOWN OF FOUNTAIN HILLS
By_____________________________
Mayor Jay T. Schlum
ATTEST AND
PREPARED BY:
___________________________
Bevelyn J. Bender, 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 5th day of April, 2012. I further
certify that the meeting was duly called and that a quorum was present.
Dated this 19th day of April, 2012.
_____________________________
Bevelyn J. Bender, Town Clerk