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Home My WebLink About2012.1220.TCRM.Minutesz:\council packets\2013\r130117\121220m.docx Page 1 of 24 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL DECEMBER 20, 2012 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:30 p.m. * INVOCATION – Pastor Todd Forest of the Fountain Hills Christian Center * ROLL CALL Present for roll call were the following members of the City Council: Mayor Kavanagh, Vice Mayor Leger, Councilmember Brown, Councilmember Dickey, Councilmember Yates, Councilmember Elkie, and Councilmember Hansen. Town Manager Ken Buchanan, Town Attorney Andrew McGuire and Town Clerk Bevelyn J. Bender were also present. * MAYOR’S REPORT Mayor Kavanagh said she wanted to acknowledge and thank all of the residents who contacted her over the weekend concerned about the Town and its school in light of the recent tragedy in Connecticut. She stated that she is sure that she speaks for all of the Council when she says that their thoughts and prayers go out to the families of the victims whose families and lives will never be the same. She added that she is sure everyone hugged their children a little tighter and thought about the important things in their lives -- family, friends and the community. She said that it is sad to think that now when people go to a mall, a movie or any event there is always going to be that little apprehension that makes us glance over our shoulders. She added that even safe environments like the schools are so vulnerable. She stated that she wanted to ensure everyone in the community that Town government, the schools and the Maricopa County Sheriff's Department (MCSO) are doing everything in their power to keep this community safe. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS None. CALL TO THE PUBLIC Town Clerk Bender advised that there were no citizens wishing to speak under this agenda item. Mayor Kavanagh announced that in response to a request from Councilmember Dickey, Consent Agenda Item #2 has been removed from the Consent Agenda and placed on the Agenda of the Regular Council Meeting. CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM DECEMBER 6, 2012. *AGENDA ITEM #2 – CONSIDERATION OF APPROVING A CONTRACT WITH NETSIAN TECHNOLOGIES GROUP (A MOJAVE CONTRACT VENDOR) IN THE AMOUNT OF $27,629.61, FOR A VIDEO SURVEILLANCE SYSTEM UPGRADE AND INTEGRATION BEWEEN TOWN HALL, COMMUNITY CENTER, GOLDEN EAGLE PARK AND FOUR PEAKS PARK. * This item has been placed on the Regular Council meeting agenda. AGENDA ITEM #3 - CONSIDERATION OF APPROVING RESOLUTION 2012-21, ACCEPTING A LICENSE AGREEMENT FROM EAGLES NEST COMMUNITY ASSOCIATION, INC. z:\council packets\2013\r130117\121220m.docx Page 2 of 24 AGENDA ITEM #4 - CONSIDERATION OF APPROVING THE DELAY OF THE CONTRACT TERMINATION WITH AREA AGENCY ON AGING (AAA) FOR HOME DELIVERED MEALS, UNTIL JANUARY 2, 2013. There were no citizens wishing to speak on the Consent Agenda items. Councilmember Yates MOVED to approve the Consent Agenda as amended with Agenda Item #2 moved to the Regular Council Meeting Agenda and Councilmember Elkie SECONDED the motion. A roll call vote was taken as follows: 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 #2 - CONSIDERATION OF APPROVING A CONTRACT WITH NETSIAN TECHNOLOGIES GROUP (A MOJAVE CONTRACT VENDOR) IN AN AMOUNT OF $27,629.61, FOR A VIDEO SURVEILLANCE SYSTEM UPGRADE AND INTEGRATION BETWEEN TOWN HALL, COMMUNITY CENTER, GOLDEN EAGLE PARK AND FOUR PEAKS PARK. Deputy Town Manager/Finance Director Julie Ghetti addressed the Council relative to this agenda item and noted that part of this year's budget included an expenditure to enhance the existing cameras at the Community Center. She explained that the original intent was to upgrade the cameras to cover the areas outside of the Community Center around the area where the art works are in the Event Circle. She advised that there are currently eleven (11) c ameras inside of the Community Center but they are all covering the inside. She reiterated that the goal was also to upgrade the recorder to a simple monitoring and recording system, integrating all of the cameras at the Community Center as well as Town Hall and the parks. She noted that the parks do have security cameras but they are not connected to a central surveillance system and so, for example, when they had vandalism occur at Four Peaks Park the cameras and the recording equipment were one piece of equipment so as soon as those cables were cut there was no security monitoring in place. She informed the Council that staff thought that since they were going through this process they would take the opportunity to create a monitoring system that would all be centralized and go to one computer so even if there was tampering they would still have video recordings (the IT Department would be responsible for that). Ms. Ghetti informed the Council that the proposal includes twenty (20) cameras at Golden Eagle and Four Peaks Parks as well as the Community Center to cover the Event Circle, the parking lot and Town Hall (they would all be integrated). She advised that the equipment would be purchased through a cooperative agreement with the Mohave Educational Services Cooperative and indicated her willingness to respond to questions from the Council. She added that Mark Mayer was also present to respond to questions as well as IT staff. Councilmember Dickey stated that she wanted to speak on this item, which represents a $27,000 plus expenditure to protect the Town's assets. She asked what the total value of the assets is that they are trying to protect and added that this is also a security measure. She commented on the previous remarks made by the Mayor regarding the recent tragedy in Connecticut and said that hopefully this will be something that will enhance safety in the Town. Ms. Ghetti responded that they will not have enough of a system to cover everything that the Town owns but the goal is to include the majority of the Community Center, which is a pretty open building and different pieces of art are displayed there every month. She added that this will also cover the parking lot and pointed out that presently there are no cameras in place in that area. She further stated that the Event Circle has a lot of art around it and the primary z:\council packets\2013\r130117\121220m.docx Page 3 of 24 purpose was to protect that art because it is all in one spot. She noted that this system will be a good start and added that they have equipment at the park, the restrooms, etc. and recently the restroom control building at Golden Eagle Park was broken into and one of the gators was stolen. She said that the equipment was there but didn't function properly and the goal is to have a system in place that they can depend on. In response to questions from Councilmember Elkie relative to how the cost will be covered, Ms. Ghetti advised that $20,000 was included in the FY 12-13 budget and the remainder of the funding will come from insurance reimbursements for the vandalized equipment and savings in the IT budget. She said that the biggest part s of the expense are the servers, not the cameras, and three servers will be required. She added that she would assume that this system can be added to and noted that staff is good about looking at the big picture (she said that if she is incorrect about this she is sure Director of Community Services Mark Mayer will correct her). Mayor Kavanagh asked if there were any plans to place cameras at Desert Visa Park and Mr. Mayer re plied that that is one of the things staff is looking to potentially place in the budget this year, specifically focusing on the restroom, the control buildings and the skate park itself. Mayor Kavanagh commented that she knows they had some incidents t here and asked if the cameras will be able to cover any of the fields. Mr. Mayer replied possibly and explained that the difficulty lies in the placement of the cameras and how many can actually be placed. He noted that the focus so far has large ly been on preventing vandalism. He added that they used to have similar issues over at Golden Eagle Park but they really haven't placed cameras on the ball fields to control/prosecute -- that is typically something that they would rely on the County to do. Councilmember Hansen stated that it is important to emphasize that the Staff Report indicated that over the past five years there have been 59 incidents of vandalism that could have been captured on the video equipment but because either the cables were cut or the system malfunctioned there were no videos of the vandalism acts. She stated that they are almost looking at monthly occurrences that hopefully will be curbed. Councilmember Elkie MOVED to approve staff's recommendation to approve the contract between the Town of Fountain Hills and Netsian Technologies Group through a cooperative purchasing agreement with Mohave Educational Services Cooperative and Councilmember Yates SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #5 - CONSIDERATION OF APPOINTING THREE (3) CITIZENS TO SERVE ON THE SENIOR SERVICES ADVISORY COMMISSION FOR TWO (2) YEAR TERMS BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2014, AND APPOINTING ONE (1) CITIZEN TO SERVE THE REMAINDER OF A TERM BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2013. Mayor Kavanagh MOVED to appoint Nancy Blumenstein, Gerald Colbert and Jim Judge to serve on the Senior Services Advisory Commission, each to serve a two-year term beginning January 1, 2013, and ending December 31, 2014, and to appoint Gloria Coleman to serve the remainder of a term beginning January 1, 2013, and ending December 21, 2013, 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 #6 - CONSIDERATION OF APPOINTING FOUR (4) CITIZENS TO SERVE ON THE COMMUNITY CENTER ADVISORY COMMISSION FOR A TWO (2) YEAR TERM BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2014. Mayor Kavanagh MOVED to appoint Alice Brovan, Patt Canning, Jerry Gorrell and Donna Yordy to serve on the Community Center Advisory Commission, each for a two year term beginning January 1, 2013, and ending December 31, 2014, and Councilmember Yates SECONDED the motion. z:\council packets\2013\r130117\121220m.docx Page 4 of 24 There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #7 - CONSIDERATION OF APPOINTING THREE (3) CITIZENS TO SERVE ON THE PARKS AND RECREATION COMMISSION FOR TWO (2) YEAR TERMS BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2014 AND APPOINTING ONE (1) YOUTH COMMISSIONER FOR A ONE YEAR TERM BEGINNING JANUARY 1, 2013 AND ENDING DECEMBER 31, 2013. Mayor Kavanagh MOVED to appoint Sharon Dennis, Don Doty and Danny Tancredi to serve on the Parks and Recreation Commission each for two year terms beginning January 1, 2013, and ending December 31, 2014, and to appoint Madeline Bloomquist to serve as Youth Commissioner for a one year term beginning January 1, 2013 , and ending December 31, 2013, and Councilmember Yates SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). Mayor Kavanagh thanked all of the newly appointed citizens for their willingness to serve their community. AGENDA ITEM #8 - CONSIDERATION OF ACCEPTING AND APPROVING THE PLACEMENT OF A DONATED BRONZE SCULPTURE TITLED, "DIGGIN IN," AND PLACING THE PIECE IN THE COMMUNITY CENTER LOBBY. Community Services Director Mark Mayer addressed the Council relative to this agenda item and advised that the Public Art Committee is requesting that the Town agree to accept and place a donated bronze sculpture in the lobby of the Community Center. He noted that the piece is titled, "Diggin In" and depicts a cowboy trying to break a horse. He added that the piece has a price of $12,000 and is by the artist Ed Mell, considered one of the most outstanding western artists. He said that due to the small size of the piece it will need to be placed on a pedest al and the Public Art Committee has agreed to cover that cost. He further stated that the annual cost to insure the piece at $12,000 would be $51.60 and added that the Community Center Advisory Commission (CCAC) supports this request. He said that Mr. Miles and Ms. Thompson from the Public Art Committee are present this evening should the Council have any questions. Councilmember Yates MOVED to accept and approve the placement of a donated bronze sculpture titled, "Diggin In" and placing the piece in the Community Center lobby and Councilmember Hansen SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #9 - CONSIDERATION OF ACCEPTING AND APPROVING THE PLACEMENT OF A DONATED CLOCK ALONG THE AVENUE OF THE FOUNTAINS. Mr. Mayer addressed the Council relative to this agenda item and stated that the Public Art Committee is requesting that the Town agree to accept and place a clock in the Avenue of the Fountains median on the far eastern side. He noted that the proposed location is adjacent to the intersection of Saguaro and Avenue of the Fountains. He said that the Public Art Committee has agreed to cover the $6,000 cost of the clock and is requesting that the Town cover the cost of installation, which is estimated at $1,000. He stated that the Public Art Committee is also considering donations for the clock and would place the name of the potential donor on the top of the clock. Mr. Mayer further stated that because electricity is not readily available at the sites preferred by the Public Art Committee, staff is recommending that the location be at the far east ern end on the Avenue of the Fountains median. He added that staff met with the Chair of the Public Art Committee, Sandi Thompson, and Jerry Miles and they indicated that the site proposed by staff was acceptable. He said that as Avenue of the Fountains gets redone there are no plans for disturbance in this area and so staff thought that this would be a good location for the clock as discussed the close proximity of the site to electrical service. He referred to a slide that depicted the clock at the proposed location. He z:\council packets\2013\r130117\121220m.docx Page 5 of 24 noted that the annual cost to insure the piece would be covered under the general coverage for the r eplacement of Town property. Councilmember Yates said that in the event the median project does go forward and the clock has to be moved, he would like Mr. Mayer to elaborate on the possibility of moving the clock without damaging it. Mr. Mayer stated that a concrete base would be poured and electrical would be stubbed out so it would be relatively easy to remove the clock. He added that joining them this evening is Marty Brown from the Public Art Committee and said that he has been working on this project behind the scenes for a number of years and the Committee has been seeking and may have already obtained commitments from a group and their name(s) would appear in the center of the clock and the name Fountain Hills would be on the top as the major donor. He further stated that they will have the ability to program the clock without having to actually go inside the piece. Councilmember Brown advised that they have talked about re-doing the intersection of the Avenue of the Fountains and Saguaro Boulevard and asked if this was taken into consideration. He added that if the clock is easily moved there probably would not be any big expense involved. Mr. Mayer replied that it really depends, moving the electrical and the pad is relatively inexpensive, but costs depend upon the run of the electrical. He said that most intersections have fairly close electrical access so he would not anticipate that there would be a major problem. Councilmember Dickey commented that since they are having a Work Study Session about the intersection on January 8th and the way the motion is written, if she was going to make a motion that way would that allow the Council some flexibility on the placement of the clock (after that Session)? She noted that they might find out something at that meeting that they are not anticipating right now and the motion is to accept and locate the clock along Avenue of the Fountains so perhaps they should graciously accept the clock but postpone the definite placement decision until after that meeting. She said if that is okay, she would make that motion to see what everyone thinks. Councilmember Dickey MOVED to accept and approve the acceptance of a donated clock to be located along the Avenue of the Fountains and Councilmember Brown SECONDED the motion. Councilmember Elkie asked whether the placement of the clock would have any impact on those who are donating it and Mr. Mayer replied that there was discussion on a couple of different areas that were proposed. He said that they finally had a discussion with Mr. Miles and Ms. Thompson and they were agreeable at the time but they may wish to add something else (they declined additional comment). Vice Mayor Leger thanked the members of the Public Art Committee for once again stepping up a nd providing the Town with another asset. He said that he is all in favor of accepting the clock and he thinks that rather than determine the placement this evening, they should create some flexibility for a variety of reasons. He noted that there is the possibility of constructing in that area and they are not sure how the median project is going to go . He said that the Council will be talking about that later on and maybe there is a different placement that might make as much sense as what is currently being proposed that will come forward. He added that if they do move forward with the median project, and they will be discussing that later on this evening, the Council will be looking at a concept design and he thinks it would be awesome if they go in that direction. He said that the designers will be able to look at this clock and provide input on where they think it should be placed. Mayor Kavanagh asked if the plan was to place the clock now because she knows there was some talk about storing it. Mr. Mayer responded that it is his understanding that as soon as the financing is in place, which he believes it has been secured, the plan was to purchase the piece. Jerry Miles, representing the Public Art Committee, said that he thinks it is important for everyone to understand that the clock is coming to the Town through the generosity of the local Rotary Club. He stated that the Public Art Committee found it, liked it, talked to a number of people about location and they would like to see it put in p lace as soon as possible. He added that literally the removal of four bolts and the unplugging of the clock is all it would take to move the clock should that need arise. He stated that he doesn't know how soon the road alignment will be taking z:\council packets\2013\r130117\121220m.docx Page 6 of 24 place but advised that the clock could be put into place by next month. He stated that he would hope that the Council would accept the clock now and put it in place. He agreed that it is possible that other appropriate locations may be identified in the future and noted that this will be the first piece of art accepted in 2013 and gives everyone something to shoot for. Mayor Kavanagh commented that the motion could be amended to accept the clock and place it at the proposed location with the option of moving it in the future if necessary. Councilmember Dickey stated that the suggested motion as written is what she said so she thinks if somebody wanted to amend it that is fine with her (she gave it as it is written). She reiterated that the Work Study Session will take place on January 8th and they will specifically be talking about the intersection and she doesn't think that the clock would be placed before that time but it is up to the Council. Councilmember Elkie expressed the opinion that the motion as given does give the Council the discretion to move the clock somewhere else along the Avenue if that is the ultimate desire. Town Attorney Andrew McGuire advised that the motion was intended to be broad, knowing that the Avenue of the Fountains project is an unknown for now. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #10 - CONSIDERATION OF RESOLUTION 2012-34, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH VALLEY METRO FOR A TRANSIT PLANNING STUDY IN THE AMOUNT OF $60,000 UTILIZING LOCAL TRANSPORTATION ASSISTANCE FUND II (LTAF II) PROJECT FUNDS AWARDED BY VALLEY METRO REGIONAL PUBLIC TRANSPORTATION AUTHORITY FOR FY 12-13. Human Resources Director Joan McIntosh addressed the Council relative to this agenda item and said that representatives from the Regional Public Transportation Authority (RPTA) are present in the audience to make a presentation but prior to that she wanted to provide some background information. She noted that prior to FY 10-11, the Town applied for and received LTAF II funding from the RPTA to provide special transit services to qualified residents (disabled, low income and seniors); the General Fund was required to match 25% as part of the application process. She noted that those funds were swept by the Legislature in 2011. She added that recently the United States District Court ordered the State Treasurer to reinstate public transportation funding in Maricopa County from the Powerball lottery game proceeds with an effective date of FY 11-12 and accordingly, the Town was eligible and applied for LTAF II funding for public transportation in the amount of $65,986 with no required matching funds. She said that the project description on the grant application was the option of either a Dial -A-Ride service or flex stop circulator for Fountain Hills' residents to connect to the Valley Metro bus system at Mayo Clinic in Scottsdale/Shea. She advised that during discussions between staff and the RPTA, it was determined that if the Town desires to plan for future transit services within the Town and throughout the metropolitan area, it would be best to conduct a transit planning study to determine which program will provide the most benefit to the Town's residents. She noted that staff's recommendation is to proceed with a Transit Planning Study to determine which programs will provide the most benefit to the residents. Mr. Wulf Grote, Director of Planning and Development for RPTA, addressed the Council and said that Mr. Deron Lozano, System and Service Development Manager from Valley Metro would highlight a PowerPoint presentation on this agenda item (Copy is available on line and in the office of the Town Clerk). Mr. Grote advised that their purpose is to initiate a planning study to help the Council better understand what it would take to provide a level of service that would also provide good ridership. He noted that when discussion started on this a few months ago with Town staff, they were initially asked just to share some cost information for extending one route from east Scottsdale into Fountain Hills and they recognized that the type of service they could provide with the funding that was available through the Lottery Fund probably wouldn't provide a high enough level of service to really access the community very well. He stated that they thought a better use for those funds as a first step would be to do a study to help everyone understand what it would take to provide a decent level of service and what would it take to get response if there is an opportunity. z:\council packets\2013\r130117\121220m.docx Page 7 of 24 He said they have been working with Town staff to develop a scope of work and they are here this evening to explain what the study would consist of. He reiterated that the study would be accomplished through the use of lottery funds and would not require a local match. He introduced Mr. Lozano to the Council as well as Janet Strauss, Project Manager for the project and Scott Miller, who is with HDR, their primary consultant (he and his team will provide support throughout the study effort). Mr. Lozano addressed the Council and highlighted a brief PowerPoint presentation that covered the following points: * Study Purpose - Identify transit system connectivity opportunities, identify transit ridership market, examine transit mode alternatives and develop short/long-term investment strategies; * Existing Conditions - Socioeconomic trends, current and projected land use, current and programmed transportation and transit infrastructure and transit investments located within the study area; * Public and Agency Involvement - Form a Transit Advisory Group (TAG) with area stakeholders, integrate input from an informational meeting and/or on-line survey, and Valley Metro project website will link to the Fountain Hills' website; * Review Prior and Ongoing Studies - Review regional, state and federal policies and studies and review local adopted plans; * Analyze Existing and Future Conditions - Analyze existing transit ridership within 15 miles of Town limits (demographics based on census data and ridership surveys) and review planned regional and local transit investments in the region; * Develop Preliminary Service Options - consider connecting to existing and planned bus transit services, examine service types (i.e. neighborhood circulator, fixed route local service, exp ress bus service, van pool, etc.), recommend hours of operation and frequency and provide cost estimates of service types, stop types and spacing (i.e. 1/4 mile, 1/2 mile, 1 mile, major transfer points, etc.), vehicle types (i.e. cutaway van, low floor bus, high floor bus, articulated bus, etc.), passenger facilities (bus stop needs, park-and-rides, transit centers, etc.), and transit corridor improvements (i.e. signalization, queue jumpers, etc.); * Develop Transit Recommendations and Performance Criteria - Assist in the development of transit recommendations and identify performance measures for evaluation of the proposed services; * Fountain Hills Transit Implementation Strategies and Action Plan - Develop an implementation plan to address timing, phasing and an analysis of issues, identify opportunities and constraints and present recommendations as long- term and short-term investments. Mr. Lozano informed the Council that this would be a year-long process and outlined the project schedule and tasks beginning in January 2013 and ending in December 2013. He thanked the Council for the opportunity to address them and indicated everyone's willingness to respond to their questions. Mayor Kavanagh noted that Mr. Lozano discussed a Transit Advisory Group and asked if people from Fountain Hills would be involved in that group and Mr. Lozano responded yes. The Mayor asked if they were considering multiple stops around Town and Mr. Lozano explained that that is something they would like to get out of working with the public, the TAG group and staff -- figure out where the stops should be located and added that they definitely envision more than just one stop. Mayor Kavanagh advised that the Town gets a lot of requests for transportation for the disabled and asked if that too will be taken into consideration (specialized type buses, etc.). Mr. Lozano responded yes and said again that is something that they will be asking for the Town's help on – the Town’s needs and desires. He added that it will be important to talk about short and mid-term solutions. In response to a question from Councilmember Dickey, Mr. Lozano clarified that Valley Metro and HDR will be involved during the entire process. She expressed her appreciation and said that the Board of Directors of Valley Metro had stated that this was going to be on their agenda last week and asked what action was taken. z:\council packets\2013\r130117\121220m.docx Page 8 of 24 Mr. Lozano advised that the item was heard and approved. Councilmember Dickey referred to Proposition 400 and possible integration or accessing any of that in this project and thanked Mr. Lozano because he mentioned infrastructure and things like that in his presentation and he heard the Council discussing a possible median project and it appears that they will be taking all of that into consideration. She said that since this is going into another fiscal year, last year the Town was told to come up with a plan and they didn't actually have anything definite at that point. She asked if Mr. Lozano thought there were going to be any problems with being given a short deadline to come up with a plan (as long as they can tell them they are doing a study right now will that put the Town in a good position?) In response to a request for clarification from Mr. Lozano, Councilmember Dickey stated that last year they were told that they were getting funding back because of the Air Quality issue and they wanted the Town to present a plan on what they were going to do with the $65,000 so they came up with something they voted on and she believes it was over the summer. She said that she is wondering since this project is going to take until probably December will they be put upon and have to come up with a plan on how they are going to use the money before they are actually ready to do so. Mr. Lozano replied that if Councilmember Dickey is talking about the LTAF II funds , this plan will fall within the allotted time frame. Mr. Grote interjected that with the lottery funding every year they receive funds and assuming this continues and every year they receive a similar amount of funding (may vary a little from year to year) and a similar opportunity , they will be fine. He said they have programmed these funds into the future and this first year they were surprised to get some money back so they quickly moved some money out to all of the communities to make sure they all got their share. He added that he cannot say exactly how they will disseminate those funds in the future but there will be a process each year for accessing the funding that is available. He also discussed Proposition 400 and said he believes Councilmember Dickey is talking about the sales tax funds that are available from 2004 and whether or not there is an opportunity for funds to be made available to this community from that sales tax. He advised that right now he would have to say that all of the funds have been programmed. He noted that they have had a lot of challenges over the past three or four years because the revenues have not been meeting the expectations -- they have been down substantially. He said they have had to slow down some of their plans related to the sales tax so he can't give a definite answer but he would say that it probably would be a challenge today because the funds are programmed and it would be difficult to loosen those funds up unless there was a big surge of additional funds coming in. Councilmember Yates stated that he is a big proponent of this type of operation and he appreciates the fact that they want to conduct a study before they just start saying, "Put in three stops." He added that some of the restaurants they are trying to get established in Town want to know where their wo rkers are going to come from and existing businesses have the same problems. He said moving forward, whether it is three stops that they need or five stops and hopefully more, he would like to know typically, when they do this with a municipality, how the breakdown works out as far as infrastructure. He noted that obviously they want the model to pay for itself but at the end of the day if a stop costs $10,000 (a random number) how is that paid for and what type of partnership are they looking for? Mr. Grote responded that as far as the payment for any bus stop improvements, typically that has been the responsibility of the local communities. He added that again, if there are funds like this available through the lottery, those funds can be used for that purpose. He said that the question is what is more important -- service or providing a lot of amenities. He further stated that obviously the Council would like to have both and that is one of the things that they will evaluate as part of this study -- how much will the different types of service options cost and if they want to look at improvements like bus stop improvements how much will those cost. He said that at some point they will need to assess the available funding sources (there may be more sources). He noted that there are some Federal monies that come to this region every year that all of the communities are able to compete for so although he can't say today that there is a pot of money he can give them for bus stop improvements, he thinks th at as they go through this study they will be able to see what the costs are and what opportunities exist as far as funding. He added that if there is an opportunity for funding, at least the Council will have an understanding of what it is going to take to obtain it. Councilmember Yates stated that they are not locked in where they have to have the full funds, it could be something as simple as starting out with a post, then a bus stop and gradually moving on to more. He noted that it is going to be expensive and he just doesn't want to have sticker shock all of a sudden. z:\council packets\2013\r130117\121220m.docx Page 9 of 24 Mr. Grote advised that in some of the communities, and he doesn't know how the Town feels about this, they have allowed advertising at shelters and the advertising companies actually pay for the installation of the shelters. He said he knows that some communities hate it and some love it but it is another option to consider. Councilmember Brown commented that this will be a 12-month process and asked how often progress reports would be received. Mr. Lozano replied that progress reports will be provided at the end of each major milestone (approximately every three months). Councilmember Elkie asked for some clarification regarding limitations associated with spending LTAF II funds (what are the areas they can use the funds for?) Mr. Grote advised that the funds are specifically available for public transportation purposes. He added that they can be used in a variety ways -- for service, improvements, studies, etc. He said that to some extent Valley Metro has been prodding what those uses are and can be through policy discussions. He stated that he doesn't think that the legislation itself is really that clear as far as what kind of transit uses the funds can be utilized for but it was specific to public transportation. Councilmember Elkie noted that the last time they talked about these funds there was a matching requirement to politely turn down the funds because they did not have the funding in the Town to support a program of this sort. He added that he is getting the feeling that the funds may not be there next year -- they could have more, they could have less, it all depends. He stated that if they are looking at doing a bus program here in Town based in part of these LTAF funds, he certainly does not think that they have enough monies to contribute and that was part of their discussion before. He added that some of the specific needs in the T own are transportation for those who need to get to the Mayo Clinic or for those with other medical needs and if they have the ability to use these funds to do capital improvements and other things (that was a concern of theirs before -- that they would have to dip into their Capital Improvement fund and the budget to do these things) and use those monies now and see what happens with LTAF funding later maybe that would be better. He said they will get the study done and he knows that they will do a good j ob but what happens if they don't get funding next year to implement the transit program in Town? He questioned how long the study could possibly sit on the shelf and said it could be a waste of money that they could potentially use (the $65,000 in capita l investments so later on if they do get additional funds, they would have to be used for actual transportation purposes). Vice Mayor Leger stated that he has the same concern that Councilmember Elkie has -- historically the LTAF monies that they have received have been consistent in terms of dollar amounts and there is not a whole lot that can be done with $65,000. He said his concern is that at the end of the day if they do the study, will they be able to implement the recommendations. He discussed the Capital Improvements and said that they are just not programmed to do that. The Vice Mayor asked Deputy Town Manager/Finance Director Julie Ghetti whether in addition to LTAF II monies there are any additional dollars she can see from a budgetary perspective that can be used for expanding the program. Ms. Ghetti responded that if there were any additional costs related to the program the monies would have to be taken from somewhere else. She clarified that transportation does not just mean bus -- it also applies to the Dial-A-Ride program, and some of those smaller projects may not cost as much. She added that there is also the issue of the LTAF funds continuing and she stated that she is pretty confident that they will continue because the Court has told the State that this money has to be used for transportation and over -ruled what the Legislature did so she thinks that the chance of those funds being swept away is pretty remote. Vice Mayor Leger stated that he was really disappointed with the amou nt of the funding that the Town received, and there is not a lot they can do. He said that that kind of puts to rest some of his concerns (having the flexibility to use the funds for Dial-A-Ride for example). He added that with respect to Federal transit grants, he would like to know what types of successes local municipalities have experienced in obtaining these dollars. Mr. Grote advised that each year this region receives Federal formula transit funds and they are programmed through the Maricopa Association of Governments (MAG). He noted that in addition to that there are also other Federal funds that also come through MAG and various communities have utilized those funds for improvements -- the Federal funds are for capital improvements -- and it is very rare to see Federal funds for operations and if they are available they may be available for only the first couple of years for a demonstration operation and then they go away after that. He z:\council packets\2013\r130117\121220m.docx Page 10 of 24 added that each year MAG has what they call a "close out program" for funds that are going to be lost if they are not used and sometimes there are opportunities for these funds as well. Mayor Kavanagh stated that no one likes to see more studies but said that their biggest difficulty is that they don't really know what the needs are -- how many people need to go three times a week for dialysis treatments or how many people need specialized transportation, how many people just need to get out of Town to access hospitals and clinics. She added that Mr. Grote and his organization is the only group that can do this type of in-depth study for the Town. She said that she is glad that the study will include less expensive options for the Council's consideration and emphasized the importance of starting small and determining where the absolute needs are and then concentrate on those needs first. Councilmember Elkie asked what the restrictions are on spending this funds (do they have to use them this year if they have a program in place and if they don't use all of the funding this fiscal year can the monies roll over into the next, etc. or would the Town have to refund it?). Mr. Lozano advised that it is his understanding that they can take two years from when the funds are dated (they have until the end of FY 2014 to use the money). Councilmember Elkie stated that if they get the funds this year they then have two years in which to spend them and Mr. Lozano concurred and added that that is with the extension. Councilmember Elkie said that in between that time they should expect to receive additional funding for the next fiscal year assuming everything goes as it is. Councilmember Elkie asked whether the Dial-A-Ride program is something they can do on a pay as you go basis based on the number of calls received. Scott Miller addressed the Council and noted that the Dial-A-Ride program has some fixed costs associated with it. He noted that some communities have opted to use different options such as cab voucher programs that involve negotiations between the cities/towns and the taxi cab companies that create special packages (taxi voucher program). Councilmember Elkie advised that he would be more in favor of using the $65,000 that they have for a taxi cab voucher program because he thinks that after all the time spent on the dais, the Council should have a pretty good idea of what the needs are in Town. He added that as far as Dial -A-Ride, he doesn't hear people clamoring for bus route service. He further stated that he would prefer to use these monies right away and pointed out that they have two years in which to spend it and in between that time they are hopefully going to get additional funds. He stated that they should set up the voucher program and use the money until it has all been spent. He said they can see how that goes and whether this is a way in which to better serve the Town's residents. Mayor Kavanagh commented that with the cab vouchers, they are not talking about the type of services that could transport the disabled (that is a specialized type of service) and that is why they are now faced with the problem of transporting people -- there is a need for specialized vehicles and equipment. She added that the Dial-A-Ride program is able to transport citizens just to a destination without any of these specialized items. She noted that there are people who become ill going to and from their places of treatment and that is why they cannot just use cars and the Volunteer Program. She pointed out that the Town's Volunteer Coordinator has been dealin g with this and it is very difficult to know what the community's needs are -- they have no idea how many people need to get to the hospital, to the Mayo Clinic, and how many are just looking for a ride. She added that that is why this seems like a lot of money that they could use for different programs and she doesn't believe they have the expertise now because they don't have any numbers. She said she couldn't say how many people need specialized transportation (vans) to get to their destinations and back again. She stated that she thinks that the money would run out pretty fast if they started giving it out. Councilmember Dickey noted that over the past couple of years the Town stopped getting funding from the County and they looked at the numbers and how much was being spent to provide a certain number of rides to Town residents. She said they had to really evaluate whether that was a good way to go about it. She noted that that is when they came up with the great Give-a-Lift program and she knows that the Council is spending quite a bit of money for a community-wide survey, a general survey, and there is value in that because it is a good way to obtain some broad - based input. She said that she doesn't believe anyone up on the dais has the knowledge to determine what would really be the best thing for the most people and it could eventually be determined that they don't need or want a certain z:\council packets\2013\r130117\121220m.docx Page 11 of 24 program but there are quite a few incidents of people requesting regular bus service. She added that perhaps a ride to the light rail in Mesa would be helpful so she sees the value in conducting the study. She stated that she doesn't have the same concerns about the LTAF monies -- they could vary but they are based on revenues and the economy is picking up so she thinks there is a good chance that the money will be there (as long as they continue to work on solving air pollution the monies will come to them and Maricopa County). She said that she would ask that they look at the long term effect of doing something like this and come up with an answer to a problem that they have been grappling with for years -- is there a way to address transit issues in Fountain Hills? She noted that the answer could be that they don't want it but they will never get there unless they go for it. She added that this isn't taxpayer dollars from the Town, this is money that the Town was fortunate to find out they could get and now they must determine how they want to use the money to obtain the maximum benefit for the residents. Councilmember Brown commented that he agrees with Councilmember Dickey's comments and stated that he too is tired of the studies and the surveys but after being on Council for four years and hearing the discussions about where the money is going to come from, etc., he believes that one day soon they will be faced with more public transportation and he believes that this is a good starting place. He added that he supports moving ahead with the study so that the Town will have a roadmap of how to get there. Mayor Kavanagh advised that there is someone who would like to speak on this item and asked him to come forward at this time. Jim Judge, representing the Senior Services Advisory Commission, addressed the Council and stated that he is really happy to hear that there is some money coming back to the Town but he doesn't think that they want to go through the same thing they did in 2011 when they had to tell people that they no longer could be provided transportation. He stressed the importance of ensuring that whatever they do will be sustainable. He advised that there are two things that he feels very strongly about -- people have to have access to a good quality, nutritious meal and they need transportation when they need to go to see doctors, participate in physical therapy and even go to the grocery store. He noted that there are a number of people in Fountain Hills who are living on social security and do not live close to their families and so they are very limited. He stated the opinion that the Give-a-Lift program is working pretty well and said that the program needs to be expanded. He informed the Council that one of the things that the Senior Services Advisory Commission has agreed to do is to work on transportation and try to make improvements because there are a number of issues (liability insurance, etc.). He stated that they could put the $65,000 to very good use immediately with Dial-A-Ride. He said that he has talked with the Dial-A-Ride people and with these vouchers people don't have to call and say they need a cab in a half hour. He noted that other organizations in the Valley such as Duet in Phoenix schedule a week in advance and the people in Cave Creek have a wonderful program as well but again they all schedule in advance. He added that people going to work know exactly when they have to go and many doctors ’ appointments are on an appointment basis as well -- usually a week or more in advance. He informed the Council that he certainly would be willing to work with a committee of citizens and perhaps Town Manager Ken Buchanan to conduct their own survey first and determine what the needs are. He said that he thinks they have a pretty good idea and the doctors in Town could provide some information on the needs as well. He spoke in support of seeing what they can do in Town first before they spend the money on the study. Councilmember Elkie commented that he thinks they will have this study completed in December of 2013 and it will lay out a number of things that the Town can do, it will have the whole laundry list and ala carte's in there -- the low end, high end and then the Cadillac version and he thinks that they are going to find out that they will not even be able to afford the low end based on funding in the amount of $65,000 a year. He added that the study will go on the shelf and then three, four or five years later they might have the funds to develop some type of a program and at that time they will probably have to have another study done to determine what the needs are at that particular time so the money will be wasted. He advised that he agrees with Mr. Judge and thinks that with the help of the Senior Services Advisory Commission and the other commissions in Town they can get a good handle on it and use the $65,000 on the residents immediately and they have two years in which to spend that money. He further stated that it will be another year before they know what the LTAF funding will be next time around and maybe it will be more but maybe it will be less and they can use that money now on the residents and not on another study. Councilmember Yates stated that he respectfully disagrees with Councilmember Elkie's comments and said that in order for the Town to get to the next level where they are protecting everyone's quality of life, providing Dial-A-Ride service and rides to the hospital, grocery store, etc., they need to do a market study and figure out what they want to z:\council packets\2013\r130117\121220m.docx Page 12 of 24 do. He said that there are probably several different markets that t hey haven't even considered and no matter what the different Councilmembers' backgrounds are, and he would like to think that he is somewhat versed in this, there are good ideas that are going to come out like Councilmember Dickey's idea about accessing the light rail line in Mesa. He added that all of those types of things will come to fruition by conducting the study and he views this as an investment and knowing they will have the flexibility to do a bus stop -- a pole with sign and sell some advertising -- he can buy into that and jump on board. He said they can go with the lower end of the spectrum as well as the higher end but he is definitely in support of this and thinks it is a necessity in order for them to realize and maximize what their potentia l is. He stated that two, three, four years down the road, by doing this now, the investment will grow into something that will help everybody. He noted that on the business end, the need to get workers to and from work has come up multiple times so he thinks that there are untapped markets that they are not thinking about. Mayor Kavanagh stated that she would agree with what Councilmember Yates just said and pointed out that this study is also going to show how the Town can link up with other communities around them and how perhaps they can get a bus system in the Town and they have seen what creative things they can do while keeping costs down (and it would be good to have something permanent in place instead of spending money on one ride and then another ride because the money will run out). She reiterated that she would like to see something a little more permanent so that the residents can count on something always being there. She added that they do need bus service and they know that and some people who are using Dial-A-Ride or getting rides from their neighbors will have something to count on. She said that she doesn't have the expertise to state how many people use or need certain services but even if she did, she thinks that would just be a temporary fix. She further stated that she does not want to assume that the money is not going to be there and added that she doesn't think that the study is going to become obsolete within two or three years because the Town's demographics are pretty much stable. She advised that although she is not in favor of doing studies, she knows that they have tried to determine how many people need certain kinds of services and have not been successful. She noted that there are doctors in Town who would like to kno w how many residents in Fountain Hills are in need of dialysis because they are actually considering providing that service here and they haven't been able to come up with that information. She said if they were able to provide the doctors that information they might be able to get more services in Town. She pointed out that their local medical facilities are growing with more and more doctors as they realize the different needs of the Town. She emphasized the importance of getting the big picture. Councilmember Hansen expressed the opinion that conducting a thorough assessment now is going to help the Town spend the money more wisely in the future. She said that they have tried different things in the past and agreed that they need a more comprehensive study done on this entire issue so that going forward the money will be spent in the most effective manner. Vice Mayor Leger commented that having served on the Council for six years, to him this is a very circular discussion. He stated that the greatest need in the Town is transportation for the most disabled people in Town. He noted that they could hardly afford that when they talked about it numerous times before and now they are talking hundreds and hundreds of thousands of dollars to do what he is hearing being proposed in terms of the needs that exist. He added that it is cutting to the chase -- do they currently have services in Fountain Hills? Town Manager Ken Buchanan advised that they have the Express Bus. The Vice Mayor asked if anyone could tell him what the ridership is on that service. Mr. Grote stated that there are two trips a day (on weekdays) carrying twenty people each trip each day (for a total of 40 people a day) from here through Scottsdale where the bus picks up additional passengers and the service ends in downtown Phoenix. Vice Mayor Leger asked how many of those people are from Fountain Hills and Mr. Grote replied that all of those riders are from Town and then the bus picks up more people as mentioned above. Vice Mayor Leger commented that it has been his experience observing those busses for years that they look virtually empty most of the time (going in and out of Town). He said that his point is that they do have transportation and it is not utilized and he knows that there are needs that they can probably afford in the hierarchy of needs -- special transportation, which they have run before and they know what those needs are. He requested that Ms. McIntosh come forward to answer a question. z:\council packets\2013\r130117\121220m.docx Page 13 of 24 Vice Mayor Leger stated that they are talking about doing a study and he would like to know how they determined in the past who needed this service. Ms. McIntosh responded that they had the transportation program provided by the County and when they stopped providing that, the Town took over providing service to the disabled/went to the STAR program (probably a total of 12 people). She stated that they took those people into the special transportation program because that was all of the funds they had. Mayor Kavanagh said that the only comment that she would agree with is that the Express Bus service is probably underutilized but pointed out that it does leave at about 6:00 a.m. and comes back in the evening so it is probably used more by people who are going to work and hooking up with light rail or something like that. She added that she can see why there are not many people utilizing that service because if they have doctors' appointments they probably do not want to leave at 6:00 a.m. for a 2:00 p.m. appointment. She stated that if they had more of a service they might not have to be limited to just a 6:00 a.m. bus and then people might utilize the service more. Councilmember Dickey said that wouldn't get people to light rail -- it will take people to downtown Phoenix and light rail is in Mesa. She agreed that the Express Bus leaves very early in the morning and people have to be able to leave work about 4:30 p.m. because the bus leaves from the capitol. She added that it is better than nothing but she believes when they were using the vans they were spending about $10,000 per person on those special trips (could buy a car for that amount of money). She advised that she is just trying to provide some perspective -- there weren't that many people using it and they were spending a lot of money per person. She commented that they represent the entire Town and the only way she can feel comfortable about the fact that they will be bringing the best solution forward for the entire Town is to get this knowledge. She pointed out that it is a one-shot deal and will not cost hundreds of thousands of dollars and they have the expertise to do this study (and since they know the parameters she cannot see them recommending something that they know the Town has no way of affording). Mayor Kavanagh announced that there is another speaker who wished to address the Council. Fred Coleman came forward and advised that he has been involved in the transportation issue in Town for a number of years. He noted that about 15 years ago the Town had a Red Cross van in Town and they made arrangements with the Red Cross to give them van time for those residents who needed medical transportation. He said that unfortunately that program ended and the van disappeared. He further stated that after that they had a bus system for a short time running in Town that was always underutilized. He reported that right now in Fountain View Village they have two busses (a well equipped handicapped unit) and they are being underutilized. He said that if they tried to get them involved in the discussion it might be helpful. He stated that they have $65,000 and a portion of that could go towards the survey to develop some information but their most pressing need today is the people who need medical transportation and quite frankly the only people who can help with that is Fountain View Village -- they've got the bus and the driver and are underutilized at this time. Mayor Kavanagh stated that perhaps some personnel from Fountain View Village could be added to the team as one of the involved stakeholders. Councilmember Yates commented that he is all for paying for this type of service but it has to be sustainable. He pointed out that they have already said that the funds may fluctuate so if they pay for the service this year that does not mean that they will have the money to pay for it next year. He emphasized the importance of looking for sustainable business models that generate revenue to pay for the services or the programs that they need (every non -profit is doing this). He said that they have to try and find a sustainable model and it might come back that there is no such thing and then they are back to subsidizing this internally but he is saying that he more than appreciates the needs but he thinks there are some other ways to get the private sector to pay for the public sector and that is what he is hoping they will get out of this. Mayor Kavanagh said that there has been quite a lot of discussion on this and they have heard varying viewpoints. She asked if someone would like to make a motion. Councilmember Dickey MOVED to approve Resolution 2012-34, in substantially the form attached hereto as exhibit A the intergovernmental agreement with the Regional Public Transportation Authority relating to the tran sit planning z:\council packets\2013\r130117\121220m.docx Page 14 of 24 study for a transit planning study in the amount of $60,000 utilizing LTAF II project funds awarded by Valley Metro Regional Transportation Authority for 2012-13 and Councilmember Brown SECONDED the motion. There were no additional 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 Nay Vice Mayor Leger Nay Mayor Kavanagh Aye The motion CARRIED by majority vote (5-2) with Councilmember Elkie and Vice Mayor Leger voting nay. Mayor Kavanagh thanked Mr. Grote and his staff for their presentation this evening. She said that she looks forward to working with them and hearing from them periodically on the status of the study. AGENDA ITEM #11 - CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT (C2013-118) WITH LANDMARK DESIGN, LLC FOR THE AVENUE OF THE FOUNTAINS IMPROVEMENTS PROJECT IN THE AMOUNT OF $141,940.00. Director of Development Services Paul Mood addressed the Council and stated that on November 1, 2012, Council directed staff to reduce the scope of the project and bring back a revised concept plan for approval as well as a revised design contract. He said that in working with the previous design firm they felt that they could not meet the time constraints to have the design completed, agency approvals, power company designs and all utility clearances necessary to have the project bid with construction completed prior to November 1, 2013. He advised that staff met with the Landmark Design team to go over the scope of the project per the November 1, 2012, Council meeting and the time constraints to have the project constructed by November of 2013. He referred to a contract included in the Council packets and noted that it provides for the revised concept plan, design, regulatory agency approval, utility company designs and approvals. He informed the Council that anticipated key milestone dates include the followi ng: * December 20, 2012 Design Contract Approval * January 7, 2013 Concept Plan Due * January 17, 2013 Concept Plan Approval * February 21, 2013 45% Plans Due * March 28, 2013 95% Plans & Specifications Due * April 10, 2013 100% Plans & Specifications Due * May 1 and 8, 2013 Advertise for Construction Bids * May 14, 2013 Pre-Bid Meeting * May 29, 2013 Construction Bid Opening * June 13, 2013 Construction Contract to Council Mr. Mood advised that a construction duration of approximately four months (July through October) is anticipated to have the project completed by November 1, 2013. He added that the total project budget required is $1,760,000 and includes $145,000 for architectural services, $15,000 for permitting and utility company desi gn fees, $1,200,000 for construction (including $50,000 for unforeseen conditions) and $400,000 for the site lighting bid alternate package. He said that the site lighting package will be bid out and will be brought before Council to determine if it will be included in the construction project once the actual cost is known. He noted that the entire project may be funded through the Downtown Fund, which has a balance of approximately $2,100,000. He stated that staff recommends approval of the proposed Professional Services Agreement with Landmark Design, LLC and indicated his willingness to respond to questions from the Council. z:\council packets\2013\r130117\121220m.docx Page 15 of 24 Mayor Kavanagh said that she is very glad that the amount is a lot less than it was and once again thanked Councilmembers Yates and Brown for their hard work on this issue. Town Clerk Bender advised that there were citizens who wished to speak on this agenda item. Ms. Bender noted that Hugh Henry does not wish to speak but indicated on his card that the Town's priority is to fix the roads. Pam Aister addressed the Council and referred to pictures of the Avenue median displayed in the Council Chambers and said they love the trees, the berms and the beauty of the median. She stated that many people do not want the median to be "flat as a pancake" and many question why anyone would want to destroy its aesthetic beauty at this time. She urged the Council to just repair whatever needs to be repaired and cut down the one sick tree. She asked if a compromise could be reached and reiterated her opposition to removing the large, beautiful trees and flattening the median. Ken Quick addressed the Council and said he is a professional forester. He noted that on October 8th and November 28th he wrote letters to the Mayor relative to the tr ees on Avenue of the Fountains. He stated that after a careful assessment of the median, he has only found one tree that should be removed based on health and safety issues (tree #6 on the plan brought forward by staff). He added that he also found two citrus trees that are dying and should be removed at any time. He said that the other trees have no safety issues and he could walk the Avenue with a couple of climbers and do the necessary pruning all in one day. He further stated that he does not see an y problems with the fountains that cannot be corrected and commented that the trees are a very valuable asset, some took decades to grow, and the Council should retain as many trees as possible and design around this valuable asset. He said they should only plant replacement trees when needed. He added that he would hire a project manager just for this project, just like a building contractor, and stated that this process would save the Town hundreds of thousands of dollars. Michael Miller addressed the Council and said that there would be a lot more people in the audience this evening if so many people did not think that this issue is a foregone conclusion. He stated that many have told him that their dissatisfaction will be reflected by their vote on the bond issue and added that there is linkage between this issue and the bond vote. He noted that most don't care which fund the money comes from and say it is all their tax dollars and that will be reflected in the bond vote. He commented that two months ago they said this should happen to promote development on the south side of the median and increase tourism and both of those reasons seem to have been tossed at this point. He added that now the rationale is to create an event center and improve the s ight lines for the fountain and he has no idea how that works if they plant 100 trees. He advised that most of the Council are aware of his development background and he spent about two hours on the median with landscape architects, people he has worked with for 20 years, and they all agree that improvements are needed but it is a question of when. He stated that he would hate to see this happen and then have the bond issue be tanked. He further advised that he is not opposed to improvements and repairs, that is not the issue -- the issue, in his mind, is the roads and what are people going to remember -- that the lights were out for two nights on the median or that they had to get a front end alignment on their car because of all the potholes in the roads. He commented that advertising this as a fixed priced contract is misleading -- he said he knows they are not doing that but they are implying that. He noted that they have no as-builts for the underground and no one knows what is under those trees and that is going to be a cost over-run. He added that maybe money can be saved in the bid package when that all comes forward but he would not count on that. He added that the big public backlash will occur when trees start coming down and the land is leve led by heavy equipment. He said that the Town has nine controversial issues to deal with, mainly the Town's aging public facilities that should be kept in good repair and, more importantly, the health, safety and liability issue of the disconnect on their current sidewalk activity. He noted that Fountain Hills is a pretty conservative town and that means the residents are more than happy to spend money on necessities but not necessarily niceties unless they are flush, which this town is not. He stated that it would be great to have the median "up to snuff" on ADA issues and requested that the Council ask themselves what their priorities are. Councilmember Yates said that it is his understanding that the bare bones minimal cost to fix the median was pretty substantial and asked Mr. Mood to provide some information on this. Mr. Mood advised that Concept A was right around $1 million (for bare bones minimum, just fix what they have to). z:\council packets\2013\r130117\121220m.docx Page 16 of 24 Councilmember Yates noted that this bid potentially, because of t he way they wrote it up, is "not to exceed $1.2 million." Mr. Mood stated that staff does not have a bid written up yet; they will design the project and bid the package out and if it comes in over the $1.2 million then Council will have to make a decisio n as to whether or not they want to proceed. Councilmember Yates said that the point is that the Council set some parameters of "not to exceed" and Mr. Mood advised that in the Design Contract they are to design the project to within $1,150,000 and they would reserve $50,000 as an owner's allowance for unforeseen conditions such as something underground that has to be dealt with. Councilmember Yates asked Mr. Mood if he would agree that the vast majority of the "not to exceed funding" is going towards fixing bare bones and Mr. Mood concurred. Councilmember Brown commented that a few things that Landmark would bring to the table that he thinks are different from the previous contract include the fact that the estimate that the Council is actually going to see will be from a general contractor so they will have some real hard numbers to look at. He added then they can start the process of weighing when they can reach the goal of $1.2 million and also it is his understanding that it is going to be bid out and the Council will be able to pick and choose what they want and the level of finishes that they want. He noted that with that happening, they will have total control over how much money they spend and how the elements all come together. He said that somebody put out a $400,000 number for the lighting package (as an allowance) and he believes that is a little high but again they will actually have hard numbers. He asked when those numbers would be available (the estimate from Landmark). Mr. Mood advised that he believes in their contract it states that they will be provide the Town with the first estimate at the 45% stage and Councilmember Brown stated that by then the Council will have a true grip on the cost of the project and the scope that they will be able to afford. Councilmember Hansen said she wanted to clarify something that was said and noted that the bare bones $1 million wasn't to fix what they have, she believes it is to replace what they have and asked Mr. Mood to address this. Mr. Mood stated that the money would replace the electrical and the irrigation and basically remove and replace existing fountains. Councilmember Hansen said that the money will not repair the items and Mr. Mood concurred. Councilmember Hansen added that she wanted to clarify that because it makes a difference. Councilmember Yates commented that he was just trying to show that it is going to be a substantial fix whether they do the full package or the bare bones minimum and apologized if it sounded like he was tal king about repairing -- it would cover doing the necessities. Councilmember Yates stated that with regard to the trees, he is a very big fan of them and landscaping is very important to him. He asked what the tradeoff is for every one tree (for every tree that has to be removed, how many will be replaced?). Mr. Mood reported that the goal is to save as many of the large trees as possible and added that in the last concept the Council saw, they actually had estimated approximately 100 24-inch box trees and that can be cut in half if the larger trees are used. He added that Landmark Design will have to look at this, revise the concept and then with costs in mind, will look at how many trees. Councilmember Yates asked whether at the end of the day they are going to end up with fewer trees than they have now and Mr. Mood replied that he does not believe so. Councilmember Hansen pointed out that there may not be fewer trees but they will be lot shorter. She said that for the sake of time she will not repeat what she has said at previous meetings but advised that she does agree with what the speakers tonight had to say. She added that she knows that there would have been a lot of other people in attendance but they are out of Town. She noted that one in particular told her that he went down to the median and spoke to each z:\council packets\2013\r130117\121220m.docx Page 17 of 24 of the vendors down there about the proposed project and the removal of trees. She said that he advised her that each one of those vendors asked, "What are they thinking?" She stated that she is sorry that they didn't do more work around what is currently on the median and she is concerned that this will have an impact on any future bond election. She added that even if it was only $1 million that would have gone a long way towards helping to improve the streets in the Downtown area. Vice Mayor Leger pointed out that the project was at about $2 million and the Council worked very diligently to set up parameters. He said that they looked at construction costs and made them pull it back more. He added that he has advocated that any savings realized (from the Downtown Development Fund) should be used for road improvements between El Lago and Palisades, which would hopefully reduce the overall cost of the bond. He stated that it is very possible that they could in fact have additional dollars in the Downtown Fund as well as the Capital Improvement Fund that could reduce the bond and noted that that has always been his position and he will strongly advocate for that when they have their Work Study Session. Vice Mayor Leger further stated that with respect to the trees, he respects the trees and thinks that they are awesome. He said that the Christmas display was amazing and it is his understanding that the designers who will be engaged in the concept plan will work around as many trees as possible. He pointed out that the previous concept plan did not do that and he has advocated for that all along -- to save and work around as many trees as possible, particularly the large trees. He added that if the Council approves this, they should come back and take a look at whether the plan will preserve the trees. He noted that the Council has minimized the cost, reduced the scope of the project and saved a significant amount of money that can be used to reduce the cost of the bond. Councilmember Dickey advised that when the Council discussed this before, they had numbers from the Arts, the Civic Association and the Greening Committee as well so they have heard from both sides. She added that they have also heard from a large number of residents. Councilmember Elkie said that he too supports keeping as many of the trees as possible and he appreciates the comments he has heard from everyone. He added that he loves the Downtown area and would like to see some improvements made to it. He noted that shortly after he was elected two years ago he went and talked to all of the Downtown businesses and many of the owners who have been down there for many years and he asked them what they would like to see happen. He stated that of course they are concerned about the success of their businesses and the Downtown area as well. He advised that one of the business people he spoke with said that he had been down there for 15 years and as far as improvements in the Downtown area, he will believe it when he sees it. He pointed out that this is something that has been discussed by previous Councils and he thinks it is time to take some action on it. He said that in years past they have discussed waiting for the south side of the Avenue to get developed before doing improvements in the area and he thinks it is time to stop waiting for a developer to save or help improve the Downtown area. He added that they can improve upon what they do have and make it attractive for those businesses that are there and perhaps for businesses that might relocate there in the future. He also discussed the importance of making it attractive for the Town's residents and stated that he looks forward to many more years of Christmas ligh ts and other events in that area. Councilmember Yates advised that the designers are present in the audience and stated that he would like to hear their take on the tree situation. Wade Felkins addressed the Council and said that he is a landscape design architect and his firm was retained by the Town to create a cost estimate for professional services for the median project. He stated that he was very happy and excited about being involved in this project and it is something that he is taking very personally (he was a ten -year resident of the Town and a former member of the Architectural Control Committee). He said that he agrees that Saguaro needs to have some improvements. He advised that with regard to the citizens' input, his firm heartedly agrees with and supports their recommendations and their effort will be to retain every mature tree that they possibly can. He noted that they have walked the site twice and spent about four hours out there looking at every tree, every shrub and every existing element in the median and, with the exception of trees #6 and #4, every effort will be expended to retain all of the mature trees. He said that in addition they may recommend removing the ornamental orange trees (they believe they are out of character and that they can do a better job with more mature trees in those locations). He added that there are several areas where supplemental irrigation will be needed for the pines (a deepe r underground system is needed). He informed the Council that his firm's intent overall is to strengthen and enhance the z:\council packets\2013\r130117\121220m.docx Page 18 of 24 viability and overall usability of the median. He noted that they are working with the property owner to the south, Sam Gambacorta, in an effort to assist him in trying to develop his property. He said that Mr. Gambacorta is excited about the project and hopes that they can pull off a really great enhancement and they will. Mr. Felkins further discussed the overall scope and stated that what they are hoping to do is to come in and strengthen the usability of the median. He complimented the Town on its Christmas light display and said that he would like to build on that type of interaction with residents on a more frequent basis -- conduct other special events, invite more residents to come down to the area and linger within the median area. He stated that they want to create a stronger path throughout the median and create a stronger linkage to the Fountain Park area as well. He note d that they will attempt to do that by bringing in certain architectural hardscape elements that will tie in visually with what has already been created around the park area. He added that as far as grading, it is not their intention to flatten the entire area within the median and they are going to try and retain as many of the berms as possible. He noted that they are going to incorporate recessed seating into the project and put in some retaining walls in areas where people can sit and linger. He said that he thinks they are all on the same page as far as what the citizens are seeking and he hopes to accomplish as many of those goals as possible. Mayor Kavanagh commented that it appears that Mr. Felkins has been listening to what everybody has said a nd the proposal he is bringing forth seems to be a very good compromise. She stated that everybody loves the trees and of course they want to have seating areas with benches and lighting so that people will come down to the Avenue on a frequent basis and not just at Christmas when the lights are on. She added that she is very pleased that Mr. Felkins is willing to work with the citizens' ideas. Councilmember Brown thanked Mr. Felkins for his presentation and added that he appreciates the fact that he bro ught up that he is working with Mr. Gambacorta. Councilmember Yates MOVED to accept the proposal as listed and Councilmember Brown SECONDED the motion. Councilmember Yates advised that he would bring forward a more specific motion. Councilmember Yates MOVED to accept the Professional Services Agreement (C2013-118) with Landmark Design, LLC for the Avenue of the Fountains Improvements project in the amount of $141,940.00 and authorize funding from the Downtown Fund and Councilmember Brown SECONDED the motion. Councilmember Hansen clarified that her vote has nothing to do with Landmark -- what they are saying sounds really great and the way they are working around things is wonder. She advised that her vote is about how she feels this came out as far as the Town's priorities (what she thought the priorities are). A roll call vote was taken with the following results: Councilmember Yates Aye Councilmember Dickey Aye Councilmember Hansen Nay Councilmember Brown Aye Councilmember Elkie Aye Vice Mayor Leger Aye Mayor Kavanagh Aye The motion CARRIED by majority vote (6-1) with Councilmember Hansen voting Nay. AGENDA ITEM #12 - CONSIDERATION OF A PROFESSIONAL SERVICES AGREEMENT (C2013-117) WITH ARRIGNTON WATKINS ARCHITECTS, LLC FOR THE FIRE STATION NO. 1 RENOVATIONS, IN THE AMOUNT OF $87,707.00. Development Services Director Paul Mood addressed the Council relative to this agenda item and stated that on July 25, 2012, the Town advertised a Request for Qualifications (RFQ) from architects for the Fire Station No. 1 Renovation Project. He said that a mandatory pre-submittal meeting was held on August 7, 2012 and statements of qualifications were received from ten (10) firms on August 15, 2012. He informed the Council that based on the z:\council packets\2013\r130117\121220m.docx Page 19 of 24 scoring criteria provided in the Request for Qualifications, Arrington Watkins was unanimously selected. He stated that funding for this project is included in the FY 2012-13 budget (Capital Improvement Program). Mr. Mood further stated that the Fire Station No. 1 Renovation Project will provide new living quarters (approximately 1,450 square feet), renovation of existing living quarters for EMS personnel, an existing bathroom remodel to meet ADA requirements, demolition and removal of an existing trailer, backup power for the Town's fueling facility and associated site improvements along Palisades Boulevard. He noted that the Professional Services Agreement will provide for architectural services during design as well as the construction phase . He noted that approximately $59,000 has been allocated for the design, $2,000 for surveying, $2,000 for the asbestos survey, $3,000 for reimbursable items such as printing costs and mileage to/from meetings and approximately $21,000 for architects/consultant services during construction. He added that the original scope and fee that was proposed was well in excess of $100,000 and staff worked with the architect, reduced the scope, Town staff will be doing most of the inspections and said that staff recommends approval of Professional Services Agreement C2013-117 with Arrington Watkins Architects, LLC for the Fire Station No. 1 Renovations. He indicated his willingness to respond to questions from the Council. In response to a question from Councilmember Brown, Mr. Mood advised that the Town received ten (10) responses to the RFQ. Councilmember Brown asked what the spread was in the proposals dollar wise and Mr. Mood replied that State law prohibits them from requesting pricing. Councilmember Brown commented that he is glad that staff did an RFQ and said that he was not aware of that. He added that it changes the comments that he had written down earlier. He discussed the numbers (costs) that came forward in the Work Study Session and stated that he was a little surprised to se e the 24% that went up and not down. He added that one day he would like to review the RFQ with Mr. Mood and have him explain how this all took place so that he is comfortable with it. He said he is totally ready to build this for the firefighters and the ambulance/EMS personnel and he would propose that they move this forward. Mr. Mood explained that he inherited the prior budget and noted that it did not include design services. He discussed the various numbers that have been brought forth and reported that right now they are approximately $50,000 under the projected project budget. Councilmember Brown thanked Mr. Mood for his comments. Councilmember Yates noted that Mr. Mood stated that the Town will be doing most of the inspections internally and asked if the architects/consultant cost figure in the documents is a not to exceed number. He said that he doesn't have anything against the company -- they are very reputable and their qualifications are excellent -- but out of an $87,000 bid, to have $21,000 for contract administration caught his eye. He noted that they could write it up as either a not to exceed and/or trade some of that off by doing inspections, etc. Mr. Mood responded that right now the contract is for time and materials on their hour s and what they do. He added that the items during construction include a lot of their time to come out for meetings and walk the site. He said that every month the contractor will submit a pay application and the architect will look at that application and see if the work done corresponds with the amount of money that they are requesting. He stated that they will have to take the red line as-builts from the contractor every month and put it onto their drawings so that the Town staff will hopefully have correct as-builts at the end of the project. He added that their inspection type services are minimal unless there are special inspections that Town staff cannot handle. He explained that the only way it could go over is if they found something or scope something that the Town wants them to do over and above what is in the agreement. Councilmember Yates asked if they can get that lower and Mr. Mood replied that this is the typical public process going into this and this was their lowest bottom-line price. He added that if this is not acceptable to the Council and they do not want to move forward, he would then have to move on to the No. 2 architect on the list. Vice Mayor Leger stated that this Council approved $490,000 for this project, $75,000 for design, and he was a little concerned that the design was over by $12,000 but then he noticed that it goes beyond design. He noted that there is $420,000 for construction and said that he is sure that the firm will be mindful of the importance of brin ging this project in under budget ($495,000 total). He added that he shares some of the same concerns and stated that he thinks this is going to come in well within the budget or perhaps under. z:\council packets\2013\r130117\121220m.docx Page 20 of 24 Councilmember Dickey MOVED for consideration of Professional Services Agreement C2-13-117 with Arrington Watkins Architects, LLC for Fire Station No. 1 Renovations in the amount of $87,707.00 and Councilmember Hansen SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #13 - CONSIDERATION OF RESOLUTION 2012-32, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED THE "DECEMBER 20, 2012 AMENDMENTS TO CHAPTER 2 OF THE TOWN CODE." Mayor Kavanagh announced that there will be one report on Agenda Items #13 and #14. Town Manager Ken Buchanan advised that the Town Clerk and/or the Town Attorney will be happy to respond to any questions that the Council may have regarding these agenda items. Councilmember Brown asked if the Council is approving that they are going to use the Mayoral count or the total vote count and was told the total vote count. Town Attorney Andrew McGuire stated that the drafted version in front of the Council is the same version that was discussed in the Work Study Session and it has the alternative language to the Mayoral count so if it is not the desire of the Council to accept the proposed alternative, the motion will need to include striking that language. Vice Mayor Leger said that he appreciates he work that the Town Attorney and Town Clerk have put into this item. He advised that he is certainly in favor of supporting the League of Cities and Town's position to try and repeal consolidated elections. He noted that the legislation to begin with mandated that the Town move their elections to the dates necessary to consolidate elections. He added in that they are required to do this based on legislation, he believes it is extremely prudent that they have put this policy together and hopefully they won't have to use this code. He noted that some people say that it is doubtful that the League will be successful with this and others are hopeful but he wants to go on record as saying that he really supports the League's efforts to move ahead and repeal the legislation. He stated that with that being said, the legislation basically requires the Town to do certain things -- it requires them to move the date and they will do that and live with that -- but it didn't require the Town to change a policy that has been in place for a number of years. He advised that he will be supporting this as he stated earlier but the only thing he would be in favor of changing would be simply the date because the policy itself has worked very well f or the Town over the years. Councilmember Dickey asked Mr. McGuire if he would say that whoever makes the motion would do so deleting Section 2-3-2B and Mr. McGuire replied yes, and its counterpart (it appears in two p laces, in the regular election section and the referendum section). He added that just deleting the alternate for counting the total ballots cast will be enough for he and the Town Clerk to know what changes to make. Councilmember Elkie asked if what is being proposed by staff is the change and, to make sure that everything is clear, to delete the alternate language, which would be to stay as close to the system that they currently have in place and Mr. McGuire said correct. Councilmember Elkie advised that he would be in favor of the Council maintaining the status quo to the best extent that they can and maintaining the way the calculations are made. He added that if they can stay as close to what the Town has had since its inception he would be more in favor of that. Councilmember Dickey questioned whether this will be two different votes -- one for the resolution and one for the ordinance and Mr. McGuire replied yes -- the first one declares it as a public record. He added that the ordinance will adopt it as a public record with that one change. Mayor Kavanagh stated that the Council needs a little more explanation on this issue. z:\council packets\2013\r130117\121220m.docx Page 21 of 24 Mr. McGuire explained that Arizona law has a requirement that every ordinance passed must be published in full in the newspapers. He said that there is a carve out of that law that allows the Council to adopt by reference large documents, i.e. the Building Code. He noted that if the Town had to publish the numerous pages of items adopted by the Council it would be tremendously expensive and negatively impact the budget. He stated that the State Legislature has recognized that that is the case and when the Town has very large Code amendments such as ones that address an entire section of the Code, they call that out as a public record and adopt it by reference for the same reason -- budgetarily, when the Town is adopting major Code changes over six or seven pages, they will be adopted by reference. He noted that it first requires the Council to declare it as a public record (that is what the resolution does) and adopting that public record by reference (the ordinance is the actual enacting provision). He added that it is a roundabout way to ensure that the Town does not spend an inordinate amount of money advertising these things when the information is readily available on the Town's website. Mayor Kavanagh asked if the Council was more in favor of the 50 plus 1 calculation whether that would be in the second part and Mr. McGuire responded yes, the motion to approve the ordinance that adopts it by reference should include that change. Councilmember Elkie MOVED to approve Resolution 2012-32, declaring as a public record that certain document filed with the Town Clerk and entitled the "December 20, 2012 Amendments to Chapter 2 of the Town Code" and Councilmember Hansen SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #14 - CONSIDERATION OF ORDINANCE 12-08, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE, CHAPTER 2, RELATING TO THE CONDUCT OF THE MAYOR, COUNCIL AND ELECTIONS. Councilmember Elkie MOVED to approve Ordinance 12-08, amending the Town of Fountain Hills Town Code, Chapter 2 relating to the conduct of Mayor, Council and Elections and striking Section 2-3-2 as it relates to the tabulation of count based on the votes cast for Mayor and its counterpart and Councilmember Yates SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED by majority vote (6-1) with Councilmember Dickey voting Nay. AGENDA ITEM #15 - CONSIDERATION OF RESOLUTION 2012-36, ADOPTING THE TOWN OF FOUNTAIN HILLS SENATE BILL 1598 COMPLIANCE POLICY/PROCESS SUMMARY. Deputy Town Manager/Finance Director Julie Ghetti addressed the Council relative to this agenda item and stated that the resolution before them is the culmination of several months of drafting a policy to comply with Senate Bill 1598, otherwise known as the Taxpayer Bill of Rights that was approved by the State Legislatur e in July of 2011. She advised that the bill applies to all cities and towns and grants a series of rights to regulated private parties in their dealings with cities and other agencies. She noted that the bill requires that cities and towns process permi t applications within a public timeframe and permits include building related permits as well as licenses. She said that in developing the timeframes, staff was aware that the permitting process does not suit a "one size fits all" kind of form, however, the bill requires that the Town establish one timeframe for the permitting process. She stated that the timeframes proposed in the Compliance Policy are designed to be flexible for the taxpayers but are not intended to change the way business is done now. She emphasized that staff remains committed to providing the best level of service to the Town's customers while at the same time complying with the law. She indicated her willingness to respond to questions from the Council. (Copy of the Staff Report and proposal are available on line and in the office of the Town Clerk). There were no questions/comments from the Council and there were no citizens wishing to speak on this agenda item. z:\council packets\2013\r130117\121220m.docx Page 22 of 24 Councilmember Brown MOVED to approve Resolution 2012-36, adopting the Town of Fountain Hills Senate Bill 1598 Compliance Policy/Process Summary and Councilmember Hansen SECONDED the motion, which CARRIED by majority vote (6-1) with Councilmember Dickey voting Nay. AGENDA ITEM #16 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO THE GOVERNOR'S TRANSACTION PRIVILEGE TAX SIMPLIFICATION TASK FORCE'S RECOMMENDATIONS. Town Manager Ken Buchanan addressed the Council and stated that at the last the Council Work Study Session, the Council requested that this item be placed on an agenda. He explained that this has to do with the Executive Order that established the Transaction Privilege Tax Simplification Task Force (a study on basically the sales tax and how it is structured in Arizona). He said that the Task Force met a number of times during the year and came up with some recommendations. He noted that there are some significant issues that staff believes could have some adverse effects on the Town, particularly the construction sales tax and point of sale issues. He stated that unfortunately there are going to be some winners and losers in that and the larger communities are going to win and have those p oints of sales and the smaller communities are going to lose and be negatively impacted. He added that the information has been provided to the Council and said that staff would be happy to discuss any items contained in that and answer any questions that the Council may have. He advised that staff is looking for Council direction on this item. Vice Mayor Leger MOVED that the Council support the Town Auditor's recommendation and Councilmember Hansen SECONDED the motion. Councilmember Elkie stated that he asked that this item be placed on an agenda because of the dire consequences that the Town could face. He noted that the numbers that the Council has seen show potential losses in revenue to the Town and requested information on this. Deputy Town Manager Finance Director Julie Ghetti addressed the Council and advised that construction sales tax has been significant although not lately -- lately it has been down $600,000 (for the last fiscal year). She added that in 2008, the revenue was $2 million and with the economy as slow as it is the lowest they are getting is about $500,000 to $600,000 but again it has been up around $2 million (over $1 million a year). Councilmember Elkie advised that with the budget they have, taking this kind of a hit is a state of emergency as far as the potential ramifications are concerned. He discussed the potential negative impacts on the Town's budget in the foreseeable future, particularly since the Town relies so heavily on sales tax, and stated that he thinks the Council needs to take some strong action and of course be in touch with the Town's Representatives at the Legislative level. He added that even beyond writing a stern letter he would propose that either at this meeting or their next meeting that they take a vote opposing as a Town the change in the Transaction Privilege Tax to a point of sale. He said that there is not a lot they can do as a Town, he understands they are limited to some extent, but he thinks they need to be doing everything that they can and not just sit by and watch it happen. Mayor Kavanagh agreed that this certainly would be pretty devastating and big cities like Phoenix that have Home Depots will be pretty happy if this goes through. She added that with the Town still having the Ellman property to develop they could lose out on an awful lot of money. She agreed that the Town needs to oppose this very strongly. She noted that when State Representative Kavanagh addressed the Council he said that in looking at the final b ill if it came forward like it is now he certainly would oppose it -- he would oppose anything that would be detrimental to the Town. Councilmember Brown noted that State Representative Kavanagh highly recommended that the Town not just say they oppose this but that they would like some definite solutions to the problem. He said that being a contractor he would love to see it go away but putting that aside, it would be so detrimental to the Town and he would really like to see it stay in place as is or work out a sales tax on the residential sales at the end of the home -- as they pay every month into the sales tax, put a percentage on the homes and tax the end sale price instead of the construction price. He added that anything would be better than taking that money completely away from the Town. He added that another good point is that they have based their budget around the Transaction Privilege Tax on construction for at least the 15 years he has been in Town and if they are going to do this they need to give the Town at least a five-year notice before they actually drop the hammer. He said that this is something that he would hate to see happen overnight, which it could, just like z:\council packets\2013\r130117\121220m.docx Page 23 of 24 the general contractors got away with development fees and rammed that down their throats he can very possibly see them doing the same thing here because they are a powerful organization. He stressed the importance of putting their heads together and coming up with five good reasons why they should not change the tax law in the State of Arizona. Vice Mayor Leger stated that his motion was somewhat broad and in response to Councilmember Elkie's comments, the motion is to support the Town Auditor's recommendation and the report and in so doing they are opposing the elimination of construction sales tax to be replaced by retail sales tax at the point of sale. He reiterated that by approving the Auditor's recommendation they will be voting on their opposition to the change in the law and there are a couple of other things in there. He added that in response to Councilmember Brown's comments, he had an opportunity to look over Mr. Al Holler's report and he does in fact mention a number of items/reasons for opposing the tax change so they can draw from that as well as other areas. Councilmember Dickey commented that she really appreciates the fact that this item was placed on an agenda so quickly because when Representative Kavanagh was here she got the feeling that he was already being told that the League was not necessarily against this. She stated that it could look like cities are against each other but now not only do they have the recommendations from the Tax Auditor, they also have this unambiguously opposed statement from the League. She asked if they were going to oppose all three of those or are they drilling down on the one -- she said she was fine with all three but wanted to know what the rest of the Council was thinking. Vice Mayor Leger advised that the motion included supporting the Town Auditor's recommendation and he favored seven of the ten recommendations and is opposing three of them. Councilmember Elkie stated that besides a letter or resolution from this Council he thinks that they should direct staff to invite State Senator Michele Reagan to come and speak to the Council, their State Representatives and extend an invitation to the Senate President and Speaker of the House so that they can hear from the Council face to face their concerns and the impacts this would have on the Town. He added that he really doesn't think that a sternly worded letter of a resolution is strong enough -- they are pieces of paper -- and he thinks that being invited to Town in January or February (the sooner the better) would be the best thing to do. He stated the opinion that that would carry the most weight and certainly e-mails and phone calls from the Town's residents will be helpful as well because this will ultimately affect the quality and level of service provided to residents. He reiterated the importance of speaking to their representatives directly. Mayor Kavanagh concurred that the Council needs to do everything that they can to oppose this and said that she hopes the League opposes this. She added, however, that the only problem with the League of Arizona Cities and Towns is that they represent all of the cities and towns in Arizona and there are a lot of very large cities who always seem to get more of their way than the smaller ones do because they've got a bigger voice. She said that there are a lot of other small cities and towns like Fountain Hills and they need to join forces with them to present a united front and not just be one voice but a very loud voice. Mr. McGuire advised that with the broad nature of the motion, he and Mr. Buchanan will take this pretty much as direction to place a full court press on everything that is available to them -- inviting the Town's representatives to appear before the Council and also to support efforts at the Legislature to talk with us about this. He added that one of the things that he doesn't think anyone has a very good handle on right now is that there is a presumption that the larger cities may lose on sales of materials coming in from out of state. He said he doesn't think anyone has a good handle on the net gain and loss that the larger cities with large purchasing centers may suffer as a result of this. He stated that this certainly is something they should be concerned about. Mayor Kavanagh agreed with Councilmember Brown about the importance of directing staff t o be very specific about the Town's position and why the Town is opposing this. She agreed that they should come up with five main reasons why they are opposing it so they can clearly see the harm that this would cause the Town of Fountain Hills. Councilmember Dickey read the last sentence in the League's letter and said that they are totally against it. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). z:\council packets\2013\r130117\121220m.docx Page 24 of 24 AGENDA ITEM #17 - 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. Mr. Buchanan said that they have a piece of artwork in the Community Center lobby. He added that they have a clock that they think will be in the median and a project architect for the median that will bring back work with the subcommittee and bring back the concept to the Council to consider. He stated that in January they have an architect for Fire Station No. 1 and advocacy against the Transaction Privilege Sales Tax. Mayor Kavanagh wished everyone a Merry Christmas, Happy Hanukah and Happy Holidays. AGENDA ITEM #18 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM #19 - ADJOURNMENT Councilmember Yates MOVED to adjourn the meeting and Councilmember Brown SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 9:07 p.m. 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 on the 20th day of December 2012. I further certify that the meeting was duly called and that a quorum was present. DATED this 17th day of January, 2013. _____________________________ Bevelyn J. Bender, Town Clerk