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HomeMy WebLinkAbout2012.0607.TCRM.Minutesz:\council packets\2012\r8-2-12\120607m.docx Page 1 of 6 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JUNE 7, 2012  CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:57 p.m. in the Town Hall Council Chambers.  INVOCATION – Dr. C. T. Wright, Vice President of Fountain Hills Unified School District  ROLL CALL Present for roll call were the following members of the Fountain Hills Town Council: Mayor Kavanagh, Councilmember Yates, 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.  MAYOR'S REPORT i) Rotation of Vice Mayor Position to Councilmember Leger. Pursuant to Section 2-2-2 of the Fountain Hills Town Code, that each member of the Council, except the Mayor, shall serve an eight-month term as Vice Mayor and shall perform the duties of the Mayor during his absence or disability. Mayor Kavanagh stated that at this time they will have the rotation of the Vice Mayor. She thanked Vice Mayor Dickey for serving over the last eight months and advised that the Vice Mayor's position will now rotate over to Councilmember Henry Leger.  SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS None.  CALL TO THE PUBLIC Town Clerk Bev Bender advised that two citizens wished to speak under this agenda item. Enrique Melendez addressed the Council and stated that his remarks this evening represent his thoughts as both a former Councilmember and a resident of the Town of Fountain Hills. He said that he was present at this meeting to congratulate and applaud Mayor Kavanagh on her willingness to serve as Mayor of this great community. He also congratulated Councilmember Yates and stated that he has not had the pleasure of meeting him yet but looks forward to that opportunity. He advised that sitting behind him e arlier was the Mayor's husband, State Representative John Kavanagh, an individual that he had the pleasure of serving with for many years. He stated the opinion that Representative Kavanagh should be their Representative in the United States Congress and said that he really feels that they need a change. Mr. Melendez discussed the lengthy meetings he attended when he served as a member of the Council and said that he hopes that Mayor Kavanagh does not have to attend those types of meetings during her ter m in office. He also commented on the three main issues that he focused on during his term in office -- law enforcement and said that contracting with the Maricopa County Sheriff's Office was a good decision; the Fire District and the continuation of services with Rural Metro, which was in the best interest of the entire community; and the importance of having a balanced budget. He commended Deputy Town Manager Julie Ghetti on her past and current efforts in this regard. z:\council packets\2012\r8-2-12\120607m.docx Page 2 of 6 In closing Mr. Melendez said that the important thing is to come together and make good decisions and to keep in mind the importance of one seven letter word -- RESPECT. He wished them all the very best of luck and again, congratulated the Mayor and Councilmember Yates on their election to office. Mayor Kavanagh thanked Mr. Melendez for his comments. James Ashley addressed the Council and stated that his is the Deputy Chief of Staff for Ben Quale and said that the Congressman regrets that he was not able to attend this meeting himself. He stated that the Congressman wanted to be here in person to congratulate Mayor Kavanagh and the new member of the Council and to thank the existing members as well as outgoing Mayor Jay Schlum and Councilmember Contino for their years of service to this community, to neighboring communities, to the Valley and to the State. Mayor Kavanagh thanked Deputy Chief Ashley for his comments and requested that he extend her appreciation to Congressman Quale. * CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM APRIL 30, 2012 AND MAY 8, 17 AND 22, 2012. AGENDA ITEM #2 - CONSIDERATION OF AUTHORIZING PAYMENT TO THE MARICOPA COUNTY ELECTIONS DEPARTMENT, IN ACCORDANCE WITH THE IGA (INTERGOVERNMENTAL AGREEMENT), FOR DIRECT SUPPORT OF THE TOWN OF FOUNTAIN HILLS MAY 15, 2012 GENERAL ELECTION IN THE AMOUNT OF $34,076.88. AGENDA ITEM#3 - CONSIDERATION OF RESOLUTION 2012-15, ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PORTIONS OF THE 10' PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED AT THE REAR PORTIONS OF THE SOUTHWEST AND SOUTHEAST PROPERTY LINES OF PLAT 505C, BLOCK 3, LOT 26 (16422 NORTH SKYRIDGE LANE) AS RECORDED IN BOOK 158 OF MAPS, PAGE 42, RECORDS OF MARICOPA COUNTY, ARIZONA EA12-03 (HURSH). AGENDA ITEM #4 - CONSIDERATION OF 2012-17, RELATING TO ACCEPTING A NON- MATCHING GRANT WITH THE MARICOPA COUNTY EMERGENCY MANAGEMENT DEPARTMENT, NOT TO EXCEED $20,000, FOR FIRE FUELS REDUCTION. AGENDA ITEM #5 - CONSIDERATION OF APPROVING THE CANCELLATION OF THE TOWN OF FOUNTAIN HILLS JULY COUNCIL MEETINGS (JULY 5, 10, & 19, 2012). AGENDA ITEM #6 - CONSIDERATION OF APPOINTING COUNCILMEMBERS CASSIE HANSEN, TAIT D. ELKIE AND CECIL A. YATES TO A TOWN COUNCIL SUBCOMMITTEE FOR THE PURPOSE OF INTERVIEWING STRATEGIC PLANNING ADVISORY APPLICANTS. Councilmember Hansen MOVED to approve the Consent Agenda as listed and Councilmember Yates SECONDED the motion. There were no citizens wishing to speak on any of these items. z:\council packets\2012\r8-2-12\120607m.docx Page 3 of 6 A roll call vote was taken with the following results: Councilmember Dickey Aye Councilmember Elkie Aye Vice Mayor Leger Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY (7-0). REGULAR AGENDA AGENDA ITEM #7 - CONSIDERATION OF MOVING THE KEITH MCMAHAN MONUMENT/PLAQUE, PRESENTLY LOCATED ON THE MEDIAN OF AVENUE OF THE FOUNTAINS, TO THE KEITH MCMAHAN MEMORIAL AT THE L. ALAN CRUIKSHANK RIVER OF TIME MUSEUM. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that he received a request for some citizens that the Council consider moving the Keith McMahan monument/plaque, which is presently located on the median of Avenue of the Fountains, to the Keith McMahan memorial at the L. Alan Cruikshank River of Time Museum. He said that the monument is currently obscured by the bench located in front of it. He stated that he has spoken to a lot of people since receiving this request and has not found a lot of support for moving the memorial but there has been a suggestion that the bench be moved. He informed the Council that he would like the opportunity to first look into that possibility and see if something could be done to ensure that the memorial/plaque is more visible. He noted that Avenue of the Fountains was basically former Councilmember McMahan's home and he loved it and that is why the memorial was placed there. He added that they also have a monument at the Museum and a street named after him in honor of his hard work for the community over the years. Mayor Kavanagh thanked Mr. Buchanan for his remarks. Councilmember Dickey MOVED to table his agenda item to allow sufficient time for the Town Manager to obtain additional information and make a recommendation to the Council and Vi ce Mayor Leger SECONDED the motion. There were no citizens wishing to speak on this agenda item. A roll call vote was taken with the following results: Councilmember Yates Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Brown Aye Councilmember Elkie Aye Vice Mayor Leger Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY (7-0). z:\council packets\2012\r8-2-12\120607m.docx Page 4 of 6 AGENDA ITEM #8 - CONSIDERATION OF RESOLUTION 2012-02, AMENDING THE TOWN OF FOUNTAIN HILLS FINANCIAL POLICIES SECTION III TO COMPLY WITH GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB) NO. 54, FUND BALANCE REPORTING AND GOVERNMENTAL FUND TYPE DEFINITIONS AND APPOINTMENT AND AMENDING AND RESTATING THE TOWN OF FOUNTAIN HILLS FINANCIAL POLICY. Deputy Town Manager/Finance Director Julie Ghetti addressed the Council relative to this agenda item. She said that this particular item is to amend the Town's financial policies, particularly the fund balance portion, in order to comply with the Government Accounting Standards Board (GASB) No. 54. She explained that t he mission of GASB is to establish and improve standards of state and local government financial reporting that will result in useful information and guide/educate the public and others involved. She advised that the Town's Financial Auditor Dennis Osuch is present to provide a summary of the requirements of GASB No. 54 and to answer any questions the Council may have. Mr. Osuch addressed the Council and advised that GASB No. 54 was actually implemented during the last fiscal year and referred to the resolution before the Council this evening to adopt a new fund balance policy that will bring the Town into compliance with this new regulation. He highlighted a brief presentation (Copy available in the office of the Town Clerk) and provided information relat ive to his objective this evening -- namely explaining to the Council the reasoning behind GASB No. 54 and the importance of the complying with this ruling. Mr. Osuch noted that this only applies to external financial reporting and said it focuses on who sets the spending priorities. He explained that there are five categories of fund balances -- non-spendable, restricted, committed, assigned and unassigned and provided a brief overview of each. Discussion ensued relative to key items related to new fund balances; balance sheet presentations; note disclosures; the new General Fund; special revenue fund evaluation; the Capital Projects Fund: Fund Balances; the Rainy Day Stabilization Fund; and a check list of items that need to be done in order to comply, each of which are addressed in the policy currently before the Council, and a check list that relates to the auditing process. Mr. Osuch indicated his willingness to respond to questions from the Council. Councilmember Dickey pointed out that GASB is not an enforcement agency and asked if during next year's audit the firm will be looking to make sure that the Town has conformed with the new regulations. Mr. Osuch explained that their job as auditors is to make sure that the financial statements are reported according to generally accepted accounting principles, which would include the new GASB No. 54 and so they would be looking at that. He said that Ms. Ghetti will be tracking and recording all of that inf ormation and that will be provided to the auditors for their review. Councilmember Brown asked what a substantial revenue source would be and asked where the line is between substantial and unsubstantial. Mr. Osuch replied that they left that a little vague and it is up for interpretation and depends on each organization. In response to a question from Councilmember Brown on what is going to change and what they are going to see in the financial statements, Ms. Ghetti advised that the only difference th ey will see will be in the annual financial report that the auditors present. She said that the fund balances may be categorized differently but the amount of monies will remain the same (they may just be categorized by different names). Vice Mayor Leger stated that he believes he is hearing that the Town is pretty well positioned for a smooth transition and they are not looking at something that is significantly labor intensive. Ms. Ghetti concurred with the Vice Mayor's comments. z:\council packets\2012\r8-2-12\120607m.docx Page 5 of 6 Mayor Kavanagh thanked Mr. Osuch for his presentation. Vice Mayor Leger MOVED to approve Resolution 2012-02 and Councilmember Yates SECONDED the motion. A roll call vote was taken with the following results: Councilmember Elkie Aye Councilmember Hansen Aye Councilmember Yates Aye Vice Mayor Leger Aye Councilmember Brown Aye Councilmember Dickey Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #9 – COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER KEN BUCHANAN. None. 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 TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM #14 – ADJOURNMENT. Councilmember Brown MOVED that the Council adjourn the meeting and Councilmember Yates SECONDED the motion. A roll call vote was taken with the following results: Councilmember Yates Aye Vice Mayor Leger Aye Councilmember Brown Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Elkie Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 7:33 p.m. z:\council packets\2012\r8-2-12\120607m.docx Page 6 of 6 TOWN OF FOUNTAIN HILLS By_____________________________ Linda M. Kavanagh, Mayor 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 7th day of June, 2012. I further certify that the meeting was duly called and that a quorum was present. Dated this 2nd day of August, 2012. _____________________________ Bevelyn J. Bender, Town Clerk