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HomeMy WebLinkAbout2012.0621.TCRM.Minutes z:\council packets\2012\r8-2-12\120621m.docx Page 1 of 17 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JUNE 21, 2012 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:31 p.m. in the Town Hall Council Chambers. * INVOCATION – Pastor Bill Good, Fountain Hills Presbyterian Church * ROLL CALL Present for roll call were the following members of the Fountain Hills Town Council: Mayor Kavanagh, Councilmember Yates, Vice Mayor Leger, Councilmember Hansen, Councilmember Brown, Councilmember Elkie and Councilmember Dickey. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bev Bender were also present. * MAYOR'S REPORT i) The Mayor will read a proclamation declaring July 2012 National Recreation and Parks month in the Town of Fountain Hills. Mayor Kavanagh stated that parks and recreation pr ograms are an integral part of communities throughout this country, including the Town of Fountain Hills and parks and recreation are vitally important to establishing and maintaining the quality of life in our communities, ensuring the health of all citizens and contributing to the economic and environmental well-being of a community and region. She added that parks and recreation programs build healthy, active communities that aid in the prevention of chronic disease, provide therapeutic recreation services for those who are mentally or physically disabled and also improve the mental and emotional health of all citizens. The Mayor further stated that parks and recreation programs increase a community's economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses and crime reduction. She said that they improve water quality, protect groundwater, prevent flooding, improve the quality of the air we breathe, provide vegetative buffers to development and produce habitat for wildlife. She noted that the U.S. House of Representatives has designated July as Parks and Recreation Month and since the Town of Fountain Hills recognizes the benefits derived from parks and recreation resources, it is her honor to designate July 2012 as Parks and Recreation Month in the Town. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS i) None. * CALL TO THE PUBLIC Town Clerk Bev Bender stated that there were no citizens wishing to address the Council. z:\council packets\2012\r8-2-12\120621m.docx Page 2 of 17 CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVAL OF RESOLUTION 2012-16, ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN CERTAIN PORTIONS OF THE PUBLIC UTILITY AND DRAINAGE EASEMENT LOCATED AT THE REAR PROPERTY LINE OF PLAT 601B, BLOCK 1, LOT 6 (15828 TUMBLEWEED DRIVE) AS RECORDED IN BOOK 166 OF MAPS, PAGE 31, RECORDS OF MARICOPA COUNTY, ARIZONA. EA 2-12-04 (JENSEN). AGENDA ITEM #2 – CONSIDERATION OF APPROVING A LIQUOR LICENSE APPLICATION SUBMITTED BY RICKLYNN MCHONE, OWNER/AGENT OF FOUNTAIN HILLS ENTERTAINMENT, LLC D/B/A/ PINZ LOCATED AT 16737 E. PARKVIEW AVENUE, UNIT A, FOUNTAIN HILLS, AZ. THIS IS FOR A SERIES 07 LICENSE (BEER AND WINE BAR). AGENDA ITEM #3 - CONSIDERATION OF CONFIRMING THE APPOINTMENTS BY MAYOR KAVANAGH AS FOLLOWS TO SERVE ON TOWN COUNCIL SUBCOMMITTEES FOR THE PURPOSE OF INTERVIEWING APPLICANTS FOR THE TOWN'S BOARDS AND COMMISSIONS FOR FY 2012-13: (I) COMMUNITY CENTER ADVISORY COMMISSION - COUNCILMEMBER CASSIE HANSEN, VICE MAYOR HENRY LEGER, COUNCILMEMBER GINNY DICKEY; (II) PARKS AND RECREATION COMMISSION - COUNCILMEMBER DENNIS BROWN, COUNCILMEMBER GINNY DICKEY, COUNCILMEMBER TAIT D. ELKIE; (III) PLANNING AND ZONING COMMISSION - COUNCILMEMBER CECIL A. YATES, VICE MAYOR HENRY LEGER, COUNCILMEMBER TAIT D. ELKIE; (IV) MCDOWELL MOUNTAIN PRESERVATION COMMISSION - COUNCILMEMBER GINNY DICKEY, COUNCILMEMBER CASSIE HANSEN, COUNCILMEMBER DENNIS BROWN; (V) PUBLIC SAFETY ADVISORY COMMISSION - COUNCILMEMBER CECIL A. YATES, COUNCILMEMBER TAIT D. ELKIE, VICE MAYOR HENRY LEGER; (VI) SENIOR SERVICES ADVISORY COMMISSION - COUNCILMEMBER DENNIS BROWN, COUNCILMEMBER CASSIE HANSEN, COUNCILMEMBER GINNY DICKEY; (VII) STRATEGIC PLANNING ADVISORY COMMISSION - COUNCILMEMBER TAIT D. ELKIE, COUNCILMEMBER CASSIE HANSEN, COUNCILMEMBER CECIL A. YATES AND (VIII) BOARD OF ADJUSTMENT - COUNCILMEMBER DENNIS BROWN, VICE MAYOR HENRY LEGER, COUNCILMEMBER CECIL A. YATES. Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Dickey SECONDED the motion. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). The Mayor thanked all of the Councilmembers for serving on the Subcommittees. z:\council packets\2012\r8-2-12\120621m.docx Page 3 of 17 REGULAR AGENDA AGENDA ITEM #4 – CONSIDERATION OF APPOINTING TWO CITIZENS TO THE STRATEGIC PLANNING ADVISORY COMMISSION (SPAC), EACH FOR A TWO-YEAR TERM EXPIRING ON JUNE 30, 2014. Mayor Kavanagh MOVED to appoint Audra Koester-Thomas and Peter Bordow to the Strategic Planning Advisory Commission (SPAC), each for a two year term expiring on June 30, 2014 and Councilmember Brown SECONDED the motion. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). Mayor Kavanagh thanked Ms. Koester-Thomas and Mr. Bordow for their willingness to serve on the Commission. Councilmember Hansen also expressed appreciation to the other applicants who applied to serve. AGENDA ITEM #5 – CONSIDERATION OF A SPECIAL EVENT LIQUOR LICENSE APPLICATION SUBMITTED BY ROBERT BOE JAMES REPRESENTING THE VETERANS OF FOREIGN WARS, POST #7505, FOR THE PURPOSE OF A FUNDRAISER TO BE HELD AT FOUNTAIN PARK PERFORMANCE PAD AND IMMEDIATE AREA ON WEDNESDAY, JULY 4, 2012 FROM 4:00 P.M. TO 10:00 P.M. Town Manager Ken Buchanan addressed the Council relative to this agenda item and advised that staff is recommending approval of the Special Event Liquor License application. He highlighted the various activities that will take place at the park on July 4th and indicated his willingness to respond to any questions. There were no citizens wishing to speak on this agenda item. Councilmember Elkie stated that this will bring back to Fountain Hills a wonderful 4th of July celebration. He too highlighted the wonderful activities planned for that evening and said that although they will not have fireworks it will be a fantastic event and encouraged everyone's attendance. Councilmember Yates MOVED to approve the Special Event Liquor License application and Councilmember Dickey SECONDED the motion. z:\council packets\2012\r8-2-12\120621m.docx Page 4 of 17 A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Abstain The motion CARRIED UNANIMOUSLY by those voting (6-0). AGENDA ITEM #6 - CONSIDERATION WITH POSSIBLE DIRECTION TO STAFF RELATING TO THE OPERATION OF THE FOUNTAIN IN FOUNTAIN PARK. Director of Community Services Mark Mayer addressed the Council relative to this agenda item and stated that over the years he has received a number of requests from the public to look at the operations of the Fountain and he is sure that the Council has received even more requests. Mr. Mayer reviewed the information listed in the staff memo relating to the various suggestions that he has heard over the years (Copy available in the office of the Town Clerk) and noted that given all the variables there are hundreds if not thousands of options. He added that staff also tried to look at the alternative options that stayed within their budget and stated that some of the listed options would exceed the budget which is $138,500. He clarified that the night runs are unaffected and this is simply talking about the time that the Fountain would be running for the purpose of people's enjoyment. He discussed costs that would be associated with changes to the current operation of the Fountain ($600) and said that changes would require that a new program be written and installed into the system. He also stated that currently there are six locations around the Fountain that have signs that inform the public about the operation of the Fountain and said that these would need to be replaced at a cost of approximately $6,000 to reflect any changes in the operation of the F ountain. He added that based on the possible scenarios and the cost estimates it is staff's recommendation that before any options are initiated, SRP be asked to calculate any chosen option so that a potential estimate from their staff can be determined. Mr. Mayer highlighted the following: 1) Current Operation - 15 minutes on the top of the hour from 9 a.m. to 9:00 p.m. 2) Run the Fountain on one pump continually for twelve hours (9:00 a.m. to 9:00 p.m.) and have the second pump come on four times daily (9:00 a.m., Noon, 3:00 p.m. and 6:00 p.m.) for fifteen minutes 3) Additional 15-minute run times (total of 30 minutes) 4) Continuous 8-hour run - two pumps 5) Continuous 8-hour run - one pump 6) Running the Fountain on one pump during windy days (wind speeds over 10 M.P.H. (the Fountain does not currently operate on windy days). Mr. Mayer pointed out that the first five options would operate on a daily basis. Mr. Mayer indicated his willingness to respond to any questions from the Council. Mr. Buchanan advised that staff recommends Option #2 at a total cost of $126,613. z:\council packets\2012\r8-2-12\120621m.docx Page 5 of 17 Councilmember Brown commented that he lives adjacent to the Fountain and is a very big fan -- but he can see some value in letting the Fountain run 9:00 a.m. to 9:00 p.m. and spoke in favor of Option #2. He recommended that they try it for a 90-day trial period. He said they could get all of the programming done and start it on August 1st. Mayor Kavanagh asked if that could be set into place by August 1st and Mr. Mayer replied yes, he believes it would take a total of eight hours. Mayor Kavanagh questioned whether they could erect some temporary signage and Mr. Mayer responded yes but it will not look as nice as what they currently have. Discussion ensued relative to the fact that by running the Fountain for a longer period of time they are moving more water and that has positive impacts on water quality; Councilmember Dickey's comment that the motivation behind this has to do with attracting tourism and with regard to that she likes that the Fountain goes on at a certain time; her opinion that the businesses could use that (if someone missed it by ten minutes they could offer, for example, two scoops of ice cream for the price of one and use the time it is off as an advantage); her request th at she be provided more information on the wear and tear on the pump and the motor, replacement timing, etc.; the "big picture" and the fact that medians, water quality and the theatre are part of that and she believes they are on the verge of making some big decisions about the area and she wonders if doing something on a temporary basis would be a source of some confusion and asked what they would be hoping to find out within the 90 days (what is the goal and would it be okay to wait a while); her comment that she is just throwing these thoughts out there for consideration and possible discussion; Mayor Kavanagh's comment that the actual starting and stopping of the pump causes more wear and tear on the equipment than running it longer; Mr. Mayer's concurrence with the Mayor's comment and his statement that the other wear and tear that takes place is at the base of the pump; and Councilmember Yates' request to hear staff's recommendation. Mr. Mayer advised that for the most part, people he hears from seem to be happy with the Fountain and the way it currently operates but added that he also recognizes that there are a lot of people who would like to see the Fountain run longer for a variety of reasons. He stated the opinion that Option #2 is the best of bo th worlds and his recommendation would be go to with that option, which actually saves the Town money over the way the Fountain operates now or they could leave operations as is. Councilmember Yates agreed that the more movement the better and he wishes t hey were doing more but he would recommend running it constantly and run the second pump every hour on the hour. He added, however, that he would defer to the Visitors' Bureau and said that perhaps they should sit down with the people who are in the know and come up with a plan. He stated that he would support Option #2 with the caveat that they sit down with the Visitors' Bureau or another organization that might have even more expertise in that area and come up with a budget. He added that he is not against spending extra funds to run it every hour on the hour or more frequently to create that ambiance. Additional discussion ensued relative to the amount of water that is being circulated at the current time; the fact that Option #2 would double the amount being circulated, which would be better; Vice Mayor Leger's comment that he would be interested in hearing from citizens on this item and the fact that no citizens had submitted requests to speak on this agenda item; his statement that longer run times enhances the water quality, however, constantly running the Fountain, in his opinion, diminishes the appeal; the fact that people anticipate the Fountain coming up and get excited when it does but five minutes after their attention is elsewhere; his belie f that they do need to enhance what they are currently doing more and move beyond the status quo; his opinion that if they are trying to generate more interest by running the Fountain constantly he is not sure that that addresses that goal; his z:\council packets\2012\r8-2-12\120621m.docx Page 6 of 17 statement that running it constantly on one pump actually makes it less spectacular; his recommendation, if the Council is in favor of Option #2, to run the Fountain as suggested 9:00 a.m. to 9:00 p.m. but take a risk and move it from one pump to three pumps twice a day for two hours (at high Noon and 6:00 p.m.) which would create an event; his hope that they would research this recommendation and could hopefully stay within the budget; and his opinion that this could create something exciting and enhance an amenity for the Town’s businesses as well as the residents. Councilmember Hansen asked about changes as far as how it fits in with the Sanitary District and a possible IGA and Mr. Mayer responded that there are obviously going to be some benefits associated with t his but they won't go all the way towards improving the water quality so although it will not solve the issue he does believe it will help the issue. Councilmember Hansen expressed that perhaps they are overstating the benefits and noted that the lake is very large and this is not going to do anything to move the water all around the perimeter so she wants everyone to keep this in perspective. She agreed with Vice Mayor Leger's statement relative to the fact that when you have something all the time you tend to take it for granted and there is something spectacular associated with watching the Fountain go up and then come down. Vice Mayor Leger also agreed that going with all three pumps would change the dynamics but added that she would like to see it running on one to see what it looks like. He added that getting together with representatives from SRP should be one of the first things they do in order to get some firmer numbers. In response to a question from Councilmember Brown, Mr. Mayer confirmed that if the Fountain comes on during the day the lights will not come on as well (just at night). Councilmember Brown asked, if they could program it so that, if the wind fall is 9 to 10 miles an hour, only the second pump would come on but, if it is below that, then all three pumps would come on (to avoid overspray). Mr. Mayer advised that he doesn't have an answer to that question but everything they have asked the programmer to do up to this point he said he could do so he is sure that could probably be worked out as well. Additional discussion ensued relative to wind velocity (mostly out of the southwest) and the number of pumps that should be used; the importance of obtaining input from residents who live in the area and are or could be affected by the pumps as well as how they feel about possible changes; the importance of determining more definite ramifications; the fact that one pump does not spray outside of the lake area; water heights and the fact that three pumps would make the Fountain go 560 feet high, two pumps 330 feet high and one pump 160 to 165 feet high; Councilmember Dickey's interest in hearing more about utilizing three pumps ; the Mayor's statement that she believes the consensus is that the Council likes Option #2 and Vice Mayor Leger has gotten them all excited about using three pumps twice a day; Vice Mayor Leger's comment that he was willing to put forth a motion relative to having staff do some additional research in case they determine that moving to three pumps is cost prohibitive (he wants them to stay within their budget); the fact that the times could be flexible and high Noon was suggested because it seemed like a good time and draws the lunch crowd and 6:00 p.m. may draw the dinner crowd but costs have a lot to do with it; Councilmember Elkie said they could also consider 6:00 a.m. when there are a lot of walkers out and agreed that it would be good to wait and get s ome feedback from the residents; and his suggestion that this could be a topic of discussion for the Council's first meeting in August. Mayor Kavanagh asked if they were in agreement then and like Option #2 with possibly going to two times a day with three pumps and want staff to conduct additional research on this option. z:\council packets\2012\r8-2-12\120621m.docx Page 7 of 17 Councilmember Hansen suggesting leaving out how many times because depending on what they find out it could even be four times a day. She added that that could be determined when they have more information. Councilmember Yates asked if they needed a motion for that if the Council is only giving direction. Mr. McGuire replied that that Council has given direction in a number of ways over the years and providing direction by general consensus is fine or they could do a motion if there was some clarity that needs to be provided. Councilmember Elkie stated that he agrees with what appears to be a theme and said he does like the idea of continuously running one pump because it has a certain draw for the Town. Mayor Kavanagh advised that it appears they have a consensus that they want to look into Option 2 f urther with the possibility of going up to two or three pumps depending on cost and staff will research costs and provide additional information for the Council's consideration at their first meeting in August. The Mayor thanked everyone for the discussion on this item. AGENDA ITEM #7 - CONSIDERATION OF ACCEPTING A MEMORIAL WITH THE BILL OF RIGHTS AND THE PREAMBLE ON IT FOR LOCATION IN FOUNTAIN PARK. Mark Mayer addressed the Council relative to this agenda item and explained that the Public Art Committee is interested in putting up a memorial that would have both the Preamble and the Bill of Rights on it and are willing to pay the costs associated with that ($4,000). He referred to a PowerPoint presentation showing what the memorial would look like and its location in Fountain Park, which is by the sculpture of Lincoln (Copy available in the office of the Town Clerk). He added that a representative of the Committee, Mrs. Miles, is present should the Council have any questions. Councilmember Brown advised that he had an opportunity to visit with Jerry and Jackie Miles recently and he is glad that Jerry is coming along. He said that he has had a chance to think about this and would like to place the memorial beside the flagpole and possibly adding a third light on the pole so that people would be able to walk by it at night and read the wording. Mr. Mayer stated that since this was proposed by the Public Art Committee he is not sure of what their thoughts would be and if there were additional costs associated with Councilmember Brown's suggestion, would the Town pay for the extra costs. Mayor Kavanagh asked if the Council could accept the memorial but not determine its location at this time and let that issue go back to the Public Art Committee for discussion. Mr. McGuire advised that the Council can pretty much do whatever they want as far as the placement of this art but noted that typically the Council moves to accept the different pieces as well as their location but he is sure that Mr. Mayer could work with the Commission on this suggestion. He said that the location could be selected and that detail could be worked out between now and once they have had a chance to discuss it. There were no citizens wishing to speak on this agenda item. Councilmember Yates MOVED to accept and approve placing a memorial with the Bill of Rights and the Preamble to the Constitution in Fountain Park and Councilmember Hansen SECONDED the motion z:\council packets\2012\r8-2-12\120621m.docx Page 8 of 17 Councilmember Elkie expressed appreciation to the Cultural and Civic Association for another wonderful donation that will improve the quality of life in Town. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #8 - CONSIDERATION OF ACCEPTING AND APPROVING THE PLACEMENT BY THE AMPHITHEATER IN FOUNTAIN PARK OF A BRONZE SCULPTURE TITLED, "COYOTE AND KEY" ON LOAN FOR A PERIOD OF UP TO ONE YEAR DURING A FUNDRAISING CAMPAIGN. Mr. Mayer also addressed the Council relative to this agenda item and referred to a PowerPoint presentation that depicted the bronze sculpture titled "Coyote and Key" (Copy available in the office of the Town Clerk). He stated that the Public Art Committee is requesting that the Town agree to place the bronze sculpture of a howling coyote by the amphitheater in Fountain Park. He noted that half of the cost of the piece, $4,500, will be paid upfront an d the piece will be on loan for up to one year while a fundraising campaign is conducted to cover the remaining cost. He reported that the piece has a gallery price of $9,000 but is being acquired for $5,000 from the artist Deon Duncan. Jackie Miles, with the Public Art Committee, provided an update and said that a donor has been found and the entire piece will now be paid for in full. Mayor Kavanagh asked if the donor was okay with the proposed location and Mrs. Miles replied yes. There were no citizens wishing to speak on this agenda item. Councilmember Yates MOVED to accept and approve placing the piece entitled "Coyote and Key" in Fountain Park by the Amphitheater and Councilmember Dickey SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #9 - PRESENTATION BY MIKE TYLER WITH AZ BUSINESS ADVISORS RELATING TO THE 1ST QUARTER REPORT AND PROGRESS ON GOALS AS SPECIFIED IN THE PROFESSIONAL SERVICES AGREEMENT FOR THE JUMPSTARTBIZ INCUBATOR; DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING CONTINUATION OF TOWN SUPPORT FOR THE INCUBATOR PROGRAM. Economic Development Administrator Lori Gary addressed the Council relative to this agenda item and provided background information. She noted that in September of 2011 at a Council Work Study Session, Mike Tyler presented information regarding the establishment of a Fountain Hills "virtual" business incubator. She noted that the presentation outlined the incubator's goals, which ultimately are to create quality jobs in Fountain Hills. She explained that the program is intended to provide start-up and small businesses with support services and resources to nurture their growth and increase the likelihood of the businesses' success for the long term. She z:\council packets\2012\r8-2-12\120621m.docx Page 9 of 17 highlighted the information that was presented at that time and added that at the December 15, 2011 Council meeting, the Council reviewed the program again and discussed the funding request since the program was an unbudgeted item. She said that an outline of the proposed scope of services was presented to the Council (drafted from the goals presented at the September 2011 Work Study Session). She said that at the December meeting, the Council directed staff to prepare and execute a six-month contract for services in the amount of $375 per month ($2,250 total funding) for the time period beginning January 1, 2012, through June 30, 2012, and added that the contract for services will end on June 30th, which is the end of the Town's fiscal year. Ms. Gary informed the Council that Arizona Business Advisors submitted its quarterly report for the January through March 2012 time period and said that Mr. Mike Tyler will review the progress of the incubator program as it relates to the scope of services. She added that funding to continue the support of JumpStar tBiz is included in the FY2012-13 budget in the amount of $375 per month ($4,500 per year). She stated that staff is seeking direction as to the Council's desire to continue Town funding for the incubator program and advised that if the Council desires to continue the funding staff will work with Arizona Business Advisors to craft a scope of service and execute a contract. Mike Tyler addressed the Council and highlighted a brief presentation on the Fountain Hills Incubator (Copy available in the office of the Town Clerk). He noted that they originally set this up as a public/private partnership between the Town, the Chamber of Commerce, Craig Capirchio CPA Ltd., Meridian Bank and the law firm of Sternfels & White PLLC. He noted that it is managed and operated by Arizona Business Advisors LLC and they operate out of a 1500 collaborative space in the Meridian Bank building offering structured business support to startups and early stage companies. He said that it was termed an experiment when it started because at that point it time they didn't know the extent the demand would be for this type of service in Fountain Hills. Mr. Tyler discussed initial results and learning (had a good start with initially three clients soon after opening and that number has now been reduced to two); they had a slow start in finding Fountain Hills resident clients; most start up candidates have been found in colleges and universities and so far there is limited interest from the existing business community. He briefly touched on their two current clients (Mapit USA and Piano Kingdom) and discussed current activities, which include building relationships (ASU, other incubators, College of Technology & Innovation, Skysong); monthly workshops that are offered free to the Fountain Hills business community and marketing -- consisting of press releases, social media, presentations and a newsletter. Mr. Tyler also commented on planned activities, which included: * "Best Business Idea" contest for Fountain Hills residents * Scholarships offered at the High School based on a business idea contest * Offer opportunities for Edson Grant applicants to become clients * Monthly lunch for 4-5 Town businesses and * Use relationships to develop strong referrals and candidates Mr. Tyler highlighted goals for 2012 as follows: * Engage with at least five clients * Attract at least two more sponsors * Support the existing business community * Evaluate the opportunity for a residential business incubator z:\council packets\2012\r8-2-12\120621m.docx Page 10 of 17 Mr. Tyler also provided a summary assessment, which included the following: * Developing excellent relationships and lead referrals * Steady start should ramp up in the second half of the year, as reputation and awareness continue to build * Initial "experiment" has demonstrated enough potential to continue to develop the incubator with the support of current sponsors * Required funding from the Town in the amount of $375 per month Mr. Tyler thanked the Council for the opportunity to address them this evening and r equested that they look favorably on the request to continue with this program for the current fiscal year. Mayor Kavanagh thanked Mr. Tyler for his presentation and said that the group has done a great job in the short period they have been operating. She added that she thought that there would be more businesses in Town interested in this effort. She stated that perhaps the word just needs to get the word out a little more about the great services that are available and reiterated that she believes they have made good progress (partnering with ASU and she loves the idea of reaching out to the colleges). Mr. Tyler advised that they are hopeful that as they continue and interact with the local business community they will see better results. Councilmember Brown commended Mr. Tyler and his partners on their efforts and said he believes they started up at exactly the right time, have gone through some learning curves and if the economy picks up he hopes they get overwhelmed with new clients. Councilmember Brown MOVED to direct staff to continue working with the Incubator program and Councilmember Dickey SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #10 - CONSIDERATION OF THE PROFESSIONAL SERVICE AGREEMENTS BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE FOUNTAIN HILLS COMMUNITY THEATER, IN THE AMOUNT OF $72,240; THE FOUNTAIN HILLS CHAMBER OF COMMERCE TOURISM BUREAU, IN THE AMOUNT OF $103,200; THE BOYS & GIRLS CLUBS OF SCOTTSDALE-MCKEE BRANCH, IN THE AMOUNT OF $80,000, AND THE EXTENDED HANDS FOOD BANK, IN THE AMOUNT OF $30,250 FOR THE FISCAL YEAR BEGINNING JULY 1, 2012. Mr. Buchanan stated that the Council is being asked to consider a Professional Services Agreement with the Fountain Hills Chamber of Commerce for Tourism in the amount of $103,200 for the fiscal period July 1, 2012 , through June 30, 2013, to promote tourism in Fountain Hills. He added that staff recommends approval. Councilmember Hansen MOVED to approve the Professional Services Agreement with the Fountain Hills Chamber of Commerce for Tourism in the amount of $103,200 and Councilmember Yates SECONDED the motion. There were no citizens wishing to speak on this agenda item. z:\council packets\2012\r8-2-12\120621m.docx Page 11 of 17 A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). Mr. Buchanan stated that the Council is being asked to consider a Professional Services Agreement with Extended Hands Food Bank in the amount of $30,250 for the fiscal period July 1, 2012 , through June 30, 2013, to provide food and social service referral for Fountain Hills’ residents. He added that staff recommends approval. Councilmember Hansen MOVED to approve the Professional Services Agreement with Extended Hands Food Bank in the amount of $30,250 and Councilmember Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). Mr. Buchanan stated that the Council is being asked to consider a Professional Services Agreement with the Fountain Hills Community Theatre in the amount of $72,240 for the fiscal period July 1, 2012 through June 30, 2013 to provide general production and workshop/camp support for Fountain Hills' residents. He added that staff recommends approval. Councilmember Hansen MOVED to approve the Professional Services Agreement with the Fountain Hills Community Theatre in the amount of $72,240 and Councilmember Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. Mayor Kavanagh advised that she has the same problem she had when this was brought up before and that is that the Theatre uses a Town building (an approximate $80,000 a year in-kind donation). She said that she believes that is a substantial donation and so she will be voting no on this one. z:\council packets\2012\r8-2-12\120621m.docx Page 12 of 17 A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Nay Councilmember Dickey Abstain Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED by majority vote (5-1) with Mayor Kavanagh voting Nay and Councilmember Dickey abstaining. Mr. Buchanan stated that the Council is being asked to approve a Professional Services Agreement with the Boys & Girls Clubs of Scottsdale, McKee Branch, in the amount of $80,000 for the fiscal period July 1, 2012, through June 30, 2013, to provide teen activity programs to include academic success, good character and citizenship and healthy lifestyles for Fountain Hills' residents. He added that staff recommends approval. Councilmember Hansen MOVED to approve the Professional Services Agreement with the Boys & Girls Clubs of Scottsdale, McKee Branch, as listed above and Councilmember Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #11 - CONSIDERATION WITH POSSIBLE DIRECTION TO STAFF TO AUTHORIZE AN UNBUDGETED EXPENDITURE IN THE AMOUNT OF $28,017.21 TO THE ARIZONA DEPARTMENT OF WATER RESOURCES (ADWR) FOR THE MUNICIPALITY FEE FOR FY 2011 -12 AS ESTABLISHED BY THE ARIZONA LEGISLATURE UNDER A.R.S. §45-118, WHICH WAS TABLED AT THE DECEMBER 1, 2011 TOWN COUNCIL MEETING. Facilities/Environmental Supervisor Raymond Rees addressed the Council relative to this agenda item and stated that on December 1, 2011, staff presented to the Town Council information regarding the Town's obligation to pay a "Water use" fee imposed on the Town by the Arizona Department of Water Resources (ADWR) in the amount of $28,017.21. He explained that the authority for the imposed fee was given to ADWR by Senate Bill 1624, which is the State's Environmental Reconciliation Bill. He said that during the meeting the Council chose to table this issue because the Council was given information that legislative action was still pending regarding the possible repeal or modification to Senate Bill 1624. z:\council packets\2012\r8-2-12\120621m.docx Page 13 of 17 Mr. Rees reported that on Wednesday, March 21, 2012, the House Appropriations Committee considered and unanimously passed the bill (municipal water fees; repeal; appropriation). He noted that the l egislation repealed the statutory authority of ADWR to impose an assessment on cities and towns to fund departmental operations. He added that the bill further provided for funding of the agency through the State's general fund in FY 2012 -13 (no provisions were made to repeal fees for FY 2011-12). Mr. Rees informed the Council that ADWR has not directed legislated enforcement mechanism for non -payment of fees but added that they are required to report all non-paying municipal entities to the Governor's Office of Strategic Planning and Budgeting, the Joint Legislative Office and the Senate President's Office. He said that the Council has all the information that was presented at the December 1st meeting and indicated his willingness to respond to questions from the Council. Councilmember Elkie thanked Mr. Rees for his presentation and said that based on the previous discussion that the Council had when they tabled this back in December he cannot vote to pay this fee considering the fact that the Town does not have a water company. He added that the fee is being imposed unnecessarily and without cause and based on the information they currently have he cannot support payment of the fee. He said that he appreciates the information provided and added "let them send us to collections." Councilmember Dickey referred to the budget transfer where the money to pay the fee would come from and said it appears to come from a salary line -- she asked how that was determined. Mr. Rees replied that it is a savings from the Chief Building Official when he left (the money would be paid out of that). He further stated that in anticipation of having to pay this staff cut back on the wash maintenance program and realized additional savings. Councilmember Dickey commented that when this fee was imposed on municipalities that were incorporated (73% of the State and 27% of the State was not mandated to pay this). She pointed out that without having water service in Town they couldn't pass on the fee to consumers nor would she have wanted to do that so she has no intention of voting for this either. Mayor Kavanagh thanked State Representative John Kavanagh for fostering the bill to end this (he was the Sponsor in the House and when it was originally passed he is the one who fought against it). She asked what the implications are of not paying this fee. Mr. McGuire responded that there are a handful of municipalities who have not paid this fee and most of the larger cities that have water systems are passing the fees onto the us ers and have made the payments. He noted that there are no penalty provisions built into the provision. He added that initially when the bill passed there were concerns that State Shared Revenue would be withheld from those municipalities who balked at p aying the fee. He stated that it was supposed to be a one year hit but when it became a continuing fee that is when it turned into an uproar. He said that he doesn't know how many cities and towns have decided not to pay the fee but he does know that there was a handful. Mayor Kavanagh commented that it is the law and they are supposed to pay it, penalty or not, and asked how it looks to residents if the Council just decides that they don't want to pay it just because they don't like it and there's no penalty involved. She said that she just doesn't see how they can do that. Councilmember Elkie advised that he appreciates the Mayor's comments as far as this being the law but added that they are talking about tax dollars that the residents have paid into t he coffers and the State is asking them to pay this fee in his opinion unjustly (passing this fee on Fountain Hills). He expressed the opinion that it is important to take a stand in this particular situation. He stated that he believes the Legislature's thinking was that z:\council packets\2012\r8-2-12\120621m.docx Page 14 of 17 cities and towns would then pass this fee on down to its residents and that is how they would recoup the money. He emphasized that he is not in favor of raising taxes just to recoup this nor does he want to pay this. Councilmember Elkie MOVED to direct staff not to pay this fee that has been set by the State and inquire as to what additional action can be taken and Councilmember Brown SECONDED the motion. Mayor Kavanagh stated the opinion that they are setting a really bad precedent an d pointed out that they charge fees in Town for all kinds of services and for them to not pay something that they are required to pay and then ask residents to pay other fees just sets a bad example. She added that this is not raising taxes and they do have the money in the budget to pay it. She said that she thinks they should follow the law and pay it. She pointed out that they didn't make it retroactive so they didn't give them an option to not pay it. She stated that regardless of whether it was unfair or when it was first imposed, it was imposed and they are supposed to pay it. She added that she believes they should set a good example for their taxpayers who they expect to pay their fees and pay the fee. Councilmember Hansen commented that when they assess fees they are providing a service and with this , taxpayers are being asked to pay for a service that we don't provide. She questioned why they would pay for this. Vice Mayor Leger said that he heard the words violation of law and that is a pretty strong term because he doesn't want to violate the law but it appears to him that the law has been repealed so he is not quite sure what law they would be violating by voting not to pay this fee. He added that this is akin to asking the State Legislature to pay for the Town's Parks & Recreation Department, one of the Town's business units. He noted that the State has asked the Town to pay for one of their business unit s and that is something that they balked at when they had this discussion initially. He stated that he simply does not see this as a violation of law because the law has been appealed and he likes the motion by Councilmember Elkie that they direct staff to investigate this further to determine consequences/additional action that can be taken. Mayor Kavanagh disagreed and said that the law has been changed but it has not been totally repealed because if they repealed it and made it retroactive they would have said that the Town doesn't have to pay for this year -- they said from now on they are not going to have this fee but for Fiscal Year 2011-12 they still owe them that money. She added that the Town didn't pay it then, they tabled it, but that doesn't mean that it isn't still on the books that they owe it. Councilmember Elkie stated that the Legislature passed a bad law; they realized they passed a bad law and they repealed it, and they didn't want to accept a refund for those cities and towns that had paid the fee. He noted that they had the foresight back in December to say that this didn't sound like a good law or something that the Town should not have to pay and to wait. He added that they waited and the Legislature did the right thing and now what they are looking at is paying a fee that was assessed before and has since been acknowledged to be a bad law. He expressed the opinion that they would be setting a bad precedent if they said you can do this to the cities and towns and we will pay it -- even if it is not something that should be passed on to cities and towns. He stated that they are saying no and he believes it is the right thing to do. Vice Mayor Leger asked if the Council decides not to pay the fee, whether they are violating the law in any way. Mr. McGuire replied that he doesn't think there is any way to frame it other than to say that there was a State requirement to pay the fee and it has been repealed, but it did not impact the fee that was due in the current fiscal year and adopted by the Legislature. z:\council packets\2012\r8-2-12\120621m.docx Page 15 of 17 Mayor Kavanagh advised that she thinks she is hearing Mr. McGuire say that this was in effect in 2011-12 and the Town is still required to pay for that year because it wasn't retroactive that they didn't have to pay it, regard less of the fact that there are no penalties, they are still going to get a bill that says they have to pay this. Mr. McGuire commented that the current bill does not contain a retroactive clause, it omitted the prior year and the discussions at the Legislature were very clear regarding the fact that cities and towns that had agreed to pay the prior year's bill had done so only because it was presented as a one-time hit. He added that when it became known that it wasn't a one-time hit discussion took place to repeal it so that it remained just a one-time hit. Councilmember Elkie MOVED to withdraw his motion based on what they are hearing and MOVED to table this issue and wait and see what the Legislature does and if they get a bill. He said this will avoid having a vote on an issue that may potentially be a violation of the law but he would like staff to not take any action one way o r another on this and to wait and Vice Mayor Leger SECONDED the motion. Councilmember Yates stated that he concurs with the comments that have been made and added that to get a bill for a service that they don't provide seems ludicrous to him but he agrees with the Mayor regarding the law although they don't always agree with the laws that are passed. He said that he supports Councilmember Elkie's motion. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #12 - CONSIDERATION OF AUTHORIZING A BUDGET TRANSFER IN THE AMOUNT OF $28,017.21 FROM THE DEVELOPMENT SERVICES, BUILDING SAFETY DIVISION SALARIES LINE ITEM TO DEVELOPMENT SERVICES, ENGINEERING WASH MAINTENANCE LINE ITEM. Mr. Buchanan advised that based on the previous discussion, no action will be taken on this item. AGENDA ITEM #13 - CONSIDERATION OF RESOLUTION 2012-19, RELATING TO THE INTERGOVERNMENTAL AGREEMENT WITH MARICOPA COUNTY FOR LAW ENFORCEMENT SERVICES PROVIDED BY THE MARICOPA COUNTY SHERIFF'S DEPARTMENT TO THE TOWN OF FOUNTAIN HILLS FOR THE FIVE-YEAR PERIOD BEGINNING JULY 1, 2012, AND ENDING JUNE 30, 2017, IN THE AMOUNT OF $2,762,382 FOR FY 12-13. Mr. Buchanan addressed the Council relative to this agenda item and advised that the Council has before them an agreement for law enforcement services to be provided by the Maricopa County S heriff's Office (MCSO) to the Town for a five year period. He noted that the previous agreement was for three years with an automatic renewal of one year periods for up to the five years. He briefly reviewed some minor changes and additions but noted that there will not be any change in the level of service currently being provided. He said that staff believes this is a z:\council packets\2012\r8-2-12\120621m.docx Page 16 of 17 very good agreement and thanked MCSO for cooperating with the Town for a five-year period of time and recommended approval. Mayor Kavanagh expressed her appreciation to MCSO for the great clean-up job their chain gang did up on Shea Boulevard and said that the Town is very grateful for this valuable assistance, which saved the Town a lot of money. Councilmember Dickey noted that in the Budget Book, there is a portion that talks about public safety and 2011- 12 objectives and accomplishments and the accomplishments are now listed for 2012-13. She said that it is important that they are still able to have priorities/objectives for 2012-13 even though they are not contained in the budget at this time. She added that she confirmed this and pointed out that the Town Manager meets regularly with the Council and will make sure that should items arise they will be included. Councilmember Yates MOVED to approve Resolution 2012-19 and Councilmember Brown SECONDED the motion. There were no citizens wishing to speak on this agenda item. A roll call vote was taken with the following results: Vice Mayor Leger Aye Mayor Kavanagh Aye Councilmember Dickey Aye Councilmember Hansen Aye Councilmember Yates Aye Councilmember Brown Aye Councilmember Elkie Aye The motion CARRIED UNANIMOUSLY (7-0). Mr. Buchanan said that he would like to give personal recognition to Town Attorney Andrew McGuire and Deputy Town Manager/Finance Director Julie Ghetti for working this contract through with the staff of MCSO. AGENDA ITEM #14 – 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: None. AGENDA ITEM #15 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM #16 – ADJOURNMENT. Councilmember Hansen MOVED that the Council adjourn the meeting and Councilmember Yates SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 8:06 p.m. z:\council packets\2012\r8-2-12\120621m.docx Page 17 of 17 TOWN OF FOUNTAIN HILLS By_____________________________ Mayor Linda M. Kavanagh 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 21st 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