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HomeMy WebLinkAbout2020.0225.TCRET.MinutesTOWN OF FOUNTAIN HILLS MINUTES OF THE COUNCIL RETREAT OF THE FOUNTAIN HILLS TOWN COUNCIL FEBRUARY 25, 2020 CALL TO ORDER — Mayor Dickey Mayor Dickey called the Retreat to order at 9:01 a.m. ROLL CALL — Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Sherry Leckrone; Councilmember Mike Scharnow; Councilmember Art Tolis; Councilmember Dennis Brown; Councilmember Alan Magazine; Councilmember David Spelich Staff Grady E. Miller, Town Manager; Aaron D. Arnson, Town Attorney; Elizabeth A. Burke, Town Present: Clerk; ; Council Retreat Overview Mayor Dickey said that there had been a few comments about the layout of the room and the audience having the back of the Councilmembers facing them. She said that last year they heard complaints that the audience could not hear the Council speak and could not see the presentations. Additionally, Mr. Ciccarone has provided more microphones so it easier to hear them. She added that it was being taped and will be posted on the website. Mr. Miller noted that packets this year were prepared using AgendaQuick, which provided a staff report on each item. He said that they kept the lighter items at the beginning of the retreat. Mayor Dickey thanked everyone present. She said that this was an opportunity to step back, assess and look to the future. She thanked the Town Manager and staff for the agenda which was clear and had careful preparation. She also appreciated the Council's engagement. She understood it was difficult to get away for a whole day. She added that Councilmember Scharnow had submitted some topics for consideration and she believed they have been incorporated into those listed on the agenda. 4. Town Council assignments to attend and represent the Town of Fountain Hills in regional organizations Mayor Dickey said that they have had Councilmembers taking on responsibilities on boards of various organizations. She has had a couple of requests to do something different, so she wanted to know if anyone had any comments, or if they should wait until after the election when new members will be on the Council. Councilmember Magazine said that he would be willing to go to the Domestic Violence committee at the League. He said that he also sits on GPEC (Greater Phoenix Economic Council) Board. He said they would send them information on companies that may want to locate in Fountain Hills, but are not able because there are no facilities or land available. He said that they could continue to be members, but he did not see a value of sitting there with representatives of the various jurisdictions on items that do not affect them. Town Council Work Session of February 25, 2020 2 of 16 Mayor Dickey said that she has found a benefit in attending the various meetings, with Maricopa County being the fast-growing county in the country. She then asked for Mr. Smith's thoughts on sitting on the board. Mr. Smith said that it is a Town Council decision, but he sees a lot of value in participating in GPEC. One of the things is that he met with Joe and Nancy Bill and Chris Camacho, the Executive Director of GPEC, and they are dedicated to getting that built. He said that the Town may not have the facilities. There are a handful of them that they can respond to, but they are willing to meet them where they are and support the initiatives the Town does have. He said that he is a supporter of GPEC for their activities and their lifting the regional aspect; it adds a lot of value. Mr. Miller said that he was hearing that membership is not a question, just representation on their board. He said that he did think that they get in excess of their $10,000 membership. He said that just the tools and software they have access to. Councilmember Scharnow said that he sees Valley Metro as similar to GPEC, but there is still value in having an elected official sitting on their board and he would continue. Mr. Smith noted that there are different meetings associated with GPEC. They have the Mayors Meeting every month, Board meetings are quarterly and the economic development directors meet every month. Mr. Smith said that every other city/town that is a member has a member on the board. Councilmember Tolis asked what the goals and objectives, and the mission, of the organization is. He said that they need to have some sort of measurement and come back to say what they accomplished. Mayor Dickey said that they make of it what the member makes of it. Two of them led to proposals that became legislative items. She was happy to know they had membership on that committee. He attendance has led to some discussions that led to things that have happened in Town. Mr. Miller said that for many years they had staff that did not believe that some of the grants through MAG were worth going after. They believed that the paperwork and hardship to go through the process was not worth it. Staff has been very active lately, and they are now getting a lot grants. He said that there is a value. He said that GPECjust came forward with the Canadian Arizona event. Mayor Dickey said that another example is the committee looking at homelessness. It is an opportunity to get the information from other communities and exchange information. While they are talking about engagement, she has had people living in the community wanting to help. There are so many people that have talents from their experience in the past that have a lot to offer. An example is with the Community Services Advisory Commission taking over discussion about parks and their use. They were able to vet some issues. Councilmember Tolis said that Mr. Smith mentioned that GPEC was interested in helping with the Discovery Center, and asked in what capacity. Mr. Smith said that their CEO has a lot of contacts. He can make in -roads with technology companies to donate or participate. Town Council Work Session of February 25, 2020 3 of 16 5. Update on General Plan 2020 review and adoption process Mr. Wesley gave a brief update on the General Plan process, reviewing the calendar. Mayor Dickey said that they have another meeting tomorrow. She asked if they had the opportunity to see if the Saguaro access road was in the Plan. Mr. Wesley said that he did not think that they were, but he has conveyed that to their consultant. Mayor Dickey said that it was up in the air on whether they need to do it or not. Mayor Dickey said that there have been recent discussions about underground storage tanks and possible leaking. She asked if there was any place in the General Plan that addresses environmental hazards or their reactions to them. Mr. Wesley said that he did not recall one as specific as that, but there are some environmental sections in general. They can look to see if it could be more specific. 6. Discussion regarding the Strategic Plan Update Process Mr. Miller said that this year the Strategic Plan will be expiring and the Strategic Planning Advisory Commission (SPAC) has started to make plans for updating the Plan. He said that they are working on a number of ways of engaging citizens through a visioning process, groups, and surveys. He noted that Tammy Bell with the Leadership Academy had a citizen engagement process outlined and she is going to see how it works, and possibly utilize those same tools to reach out to citizens on important issues. Mr. Miller said that there was some concern from SPAC about updating the plan at the same time that the General Plan is going to the voters. He said that they are already making all of the steps necessary to start at the midpoint this year. He said that they found that the last time they did this, in 2015 or 2016, that they tended to have a lot of similar -minded people attend. They are going to make sure that people invited are of various diverse backgrounds. They hope to get more consensus and compromises in the end. It may end up being near the end of the year or as late as January of 2021. Councilmember Scharnow said that the table he was at on Saturday had a very diverse background. Mr. Miller said that there will be some new tools as well, such as online surveying and possibly a telephone survey. Discussion regarding the Town's procurement practices and procuring goods and services from local vendors Mr. Miller said that staff has looked at the process and vendors used locally. They do use a lot of local vendors, but there is room for improvement. He then introduced Colby Wattling, the Town's new Procurement Officer, which has been with the Town since last November. Mr. Wattling then gave a PowerPoint presentation which addressed: LOCAL VENDOR PROCUREMENT FREQUENTLY USED LOCAL VENDORS NIGP - OPINION ON LOCAL PREFERENCE Town Council Work Session of February 25, 2020 4of16 Mr. Wattling said that the type of bid or proposal determines how much lenience there is for local preference. There is no local preference policy right now. He said that there are some towns that will consider giving a preference to a local vendor if their price, minus the sales tax, would bring the total within a percentage of the lowest bid. LOCAL VENDOR FORUM Discussion was held on different opportunities for improving the process and it was agreed that everyone was on the same page as to giving local vendors a preference, when at all possible, and seeing how other communities handle the issue as well. Mr. Miller said that they will continue to do research and come back with minor revisions to their policies to reflect the discussioni. Discussion regarding the acquisition of a new pumper truck versus repair of the existing pumper Fire Chief Ott said that they are in an unfortunate set of circumstances with their current engine as it needs major repairs. According to the vehicle replacement policy, it exceeds the amount that would justify spending the money. He has worked with Mr. Pock and Mr. Weldy and they have determined that it was prudent to look for a replacement at this time. He said that the current unit is a 2008, with a 15-year anticipated life. He said that they would normally begin looking for a replacement in 18 months, but because of the costs involved of needed repairs, they started looking now. They found what they wanted and if they were build it themselves, it would cost another $100,000 and take 15 months. Chief Ott said that this is a demo truck. Similar to their ladder, that was a demo truck and they saved another $150,000. He said that they do have a number of trucks that the manufacturer will produce. This is more of a stick build and it meets all of their needs and would be a truck that is sustainable for another 15 years. It has less than 2,000 miles and will handle the hills in the Town. Chief Ott said that the existing truck would either be used as a trade-in or sold at auction. He said that there are funds in the Vehicle Replacement Fund for acquiring vehicles once they meet their useful life. This one is being replaced a little early. Mr. Pock said that when the fund was set up, it was not fully funded. Right now they have about $250,000 to $300,000 to go toward the purchase. Mr. Miller said that there are funds within capital to allow them to acquire this and over the next few years they will try and put that fund back into the full balance. He said that this item will be coming before the Council next week at their Regular Meeting, but they wanted to provide some information ahead of time. 9. Discussion regarding the proposed replacement of Council Chamber Audio/Visual Equipment Mr. Ciccarone said that they installed the equipment in the Council Chambers in 2005 and a few years later they added the camera system used to produce the meetings that are posted on YouTube. Over the last few years they have had multiple equipment failures. They have had complaints from people not be able to hear Council members and presentations. he said that currently all of the speakers are on one system. They are the same over the dais as they are over the audience and they cannot control them. The new system will enable them to control the mikes from the dais. Town Council Work Session of February 25, 2020 5of16 Mr. Miller asked Mr. Ciccarone to explain what he does after each meeting. Mr. Ciccarone said that an example is the Daybreak public hearing, which was about six hours long. It took another six hours to be re -encoded for YouTube and uploaded --an hour for every hour of the meeting. He said that he started the re -encoding, drives home and waits to upload the video. This allows everything to be posted in the following morning. He said that with the new equipment it will be encoded when reordered so it will be almost instantaneous. Additionally, they are looking at some new microphones in the ceiling, similar to the u-shape on the floor. He said that a lot of times people say they cannot see or read the presentations, and the Town Council has a hard time seeing the screen. He said that the problems they had at the last meeting had more to do with the Cox equipment, but some of that has to do with the Town's equipment. He said that the Channel 11 equipment is from 2005. They are looking to go with high definition which will provide better video and audio. Mr. Ciccarone said that right now when something breaks, he has to provide a band -aid fix by going on EBay or Amazon to find the old equipment. They are still using VCR's for some aspects of the system. He said that the equipment has been on 24 hours a day for the past 15 years. With the new system it will be easier to power it down and power it up. Mr. Miller said that they have had this in the CIP. Mr. Pock said that they have approximately $127,000 in the budget. Mr. Miller said that it is a lot of money. It is not like they are remodeling the room; this is what goes on the air and it will be a much better product. They are also looking at new monitors for the Council, and a new projector. The current projector is 2,100 lumens; the newer ones are 5,000 to 6,000 lumens. They will not need to dim the lights as presentations will be high quality and easier to read what is being displayed. Councilmember Brown asked how many years ago they made a run at replacing the equipment. Mr. Ciccarone said that it was five years ago. Councilmember Brown said that he is the one that brought this back because he has received so many comments from the public. Councilmember Magazine said that he totally concurred with this. Mayor Dickey said that it is important with the emphasis they have been putting on transparency. Councilmember Scharnow asked if this would help the Council get the presentations on the laptop. Mr. Ciccarone said that the laptops are also from 2005. They are looking to have screens in front of each Councilmember that will display what is on the big screen. He said that once this is approved they would be around six to eight weeks out. There is a lot of equipment to be purchased and configured. They would do it at their shop and roll it in the audio rack. They would be looking at two to three months out altogether. Mr. Miller said that they are receiving bids right now. It sounds like there is consensus on the Council. The Town Council will ultimately have the say when it is brought back for approval. Councilmember Spelich said that technology changes all of the time. He asked if there was a way that the system could be leased. Mr. Ciccarone said that they can look into that, but part of the issue they are running into is that all of the equipment is standard definition. They are trying to find equipment like that today which is impossible as everything is HDMI. They are so far behind that he cannot buy single components to replace. He said that the new system will be HD and HDMI. If a component fails, they will be able to replace it. The new system will be more upgradable. Mr. Miller said that they could look into the possibility of leasing. He said that they also talked Town Council Work Session of February 25, 2020 6of16 about phasing. Mr. Ciccarone said that it is all integrated. They only phasing that he sees possible is the video and then the audio. Mr. Miller said that they are thinking that with economies of scale, they would save on the labor side. A break was taken from 10:37 a.m. to 10:58 a.m. 10. Update to the Town Council on mid -year FY 2019-20 fund balances and year-end projections Finance Director David Pock gave a PowerPoint presentation which reviewed: MID -YEAR REVENUES MIDYEAR EXPENDITURES MIDYEAR TPT COLLECTIONS All Funds REAL ESTATE CONSTRUCTION MIDYEAR FUND BALANCES COMMITTED (COUNCIL ACTION) ASSIGNED (TOWN POLICIES) UNASSIGNED (BUDGETED DAY TO DAY EXPENDITURES) Discussion was held on the differences between the different funds. Mr. Pock explained that the Unassigned category can move between the two classifications. Once they sign a contract, it becomes Assigned. OUTSTANDING BOND DEBT RESTRICTED (EXTERNALLY RESTRICTED) ESTIMATES COMMITTED ESTIMATES ASSIGNED ESTIMATES UNASSIGNED ESTIMATES TOTAL FUND BALANCE COMPARISON Brief discussion was held on the Vehicle Replacement Fund. Mr. Miller noted that they plan to cover the purchase of the fire truck over the next few years. Accountant Beata Bogdan said that there were two vehicle purchases on next week's agenda, but they are both funded out of the HURF fund. Mr. Pock said that they will have time to build back up the Vehicle Replacement Fund before more equipment is needed. Mr. Miller said that when he began working for the Town, that fund was in the red. Three years ago they started using future value versus current value. They have come a long way in this fund and he feels strongly that it will remain int he black while they get it back to where it needs to be. Councilmember Spelich asked if the Court Enhancement Fund included future monies to be collected in the past delinquencies. Court Administrator Victoria Reuss said that $30 of every case goes into that fund. She then reviewed how different amounts go into different funds as dictated by the State. Mayor Dickey asked Mr. Miller if he thought they had too many or not enough of the specific funds. Mr. Miller said that for now he thought it was working very well with the reserves. He said that they will see through the process that he will be coming forward with a PC and Server Replacement Fund. Most organizations their size have had these types of funds for years. As they Town Council Work Session of February 25, 2020 7of16 start find their revenues not keeping up with the operating budget, they will see that the operating budget is getting squeezed further. That is why it was important last year to increase the sales tax from $.26 to $.29. 11. A preview for the Town Council on town -wide revenues for FY 2020-21 Mr. Pock began his presentation on Revenues, stating that when they look at the formulas, the Town's population is stable, but many around the state are growing, and that reduces their percentage of state shared revenues. He said that the average median income across Arizona is growing. Those two things should be keeping it even for now. Councilmember Scharnow said that potentially after the 2020 census and everything is recomputed, they may see a major shift in the population. Mr. Pock said that was correct. He said that in between the census estimates are made each year, so there could be a change. Mr. Miller said that for this year they were anticipating a modest increase or no increase due to MCSO since the year before last they had a horrible year with crimes. As a result they had a huge adjustment this year of 12%. He said that they just received notice indicating that the percentage of benefits and salaries is up to 65%; normal places it around 35%. He said that they are anticipating a 5.2% increase, which includes the 3% administrative fee which is now built into the base. Councilmember Spelich asked when the Town will be on the hook to sign this again. Mr. Miller said that it is a multiyear agreement. If the Town Council wanted to make change, they would have to give proper notice. Councilmember Spelich said that he would like to discuss some aspects of the contract. Mr. Miller said that changes would require an amendment to the IGA. Mayor Dickey said that they have been reach out to Council and asking about proposed changes, whether with increased speeding enforcement activity within the community. Without having to change the contract they have been highly responsive to the requests of the Town. She said that when they spoke with th Sheriff's Office, they were open to things not in the agreement that should be because they want to serve each community the best way relevant to that community. Councilmember Spelich said that in no way whatsoever does he have any concerns with the men and women that serve the community. They have nothing to do with the budgetary process. His problem is with the bean counters at MCSO and he would like to discuss those issues further. Councilmember Tolis said that based on what Councilmember Spelich said, it sounds like it would be appropriate to set up an executive session to discuss his concerns. Mayor Dickey said that if they wanted to talk openly they could do that at a work session. Councilmember Tolis said that he did not think they should talk about anything outside of executive session having to do with contract negotiations. Councilmember Scharnow asked if the 5.2% increase the Town was notified of included the 3% administrative fee. Mr. Miller explained that the 3% administrative fee is now part of the base. The 5.2% is the overall increase based on benefit proportion and wage increases. Councilmember Scharnow said that they really could not negotiate those types of increases. He said that they would have this issue regardless of whether they contract for service or had their own department. Town Council Work Session of February 25, 2020 8of16 ECONOMIC CONDITIONS Councilmember Magazine said that they are going to have a recession and he asked how that would effect these rates. Mr. Pock said that they have it figured at 2.5% right now. If it starts to get out of hand and they go into a deep recession, inflation will not be so much of an issue. Councilmember Magazine said that the trajectory right now is not good; they are way overdue for a recession, and adding the coronovirus, perhaps they should look at alternative scenarios. Councilmember Tolis said that there are varying risks associated with financial models. This is something they should have a work study on to look at potential risks. TPT FORECAST Mr. Miller said that in the past they have tried to be very considerate in not spending all revenues based on sales tax. He said that they are starting to see online purchases and it is actually a big contributor to the sales tax. REVENUE FORECAST EXPENDITURE FORECAST FINANCIAL FORECAST Mr. Pock said that this year they increased by five positions; they do not see that for next year. He said that at the end of the fiscal year they will have $3.2 million in the rainy day fund, which is 20% of the five-year average of the General Fund. Councilmember Magazine said that as they go forward they should look at what they cna do to increase that fund. At some point they are going to have to discuss the primary property tax, which he tends to favor, but if they have a recession people are not going to pay for another tax. Mayor Dickey said that they have to have a balanced budget. This does not reflect any increase in any services or staff. Thinking about some of their e-mails, what most people are talking about are park staff, senior programs, facilities, code enforcement, changing public safety services, landscaping and median cleaning. She said that this has nothing new in it, and does not include capital, streets, fountain improvements, etc. At this time, a break was taken to allow attendees to get their lunch and return to their seats to continue the work session. TPT STATE SHARED REVENUE ENVIRONMENTAL FUND Mr. Pock said that the Town's case regarding the environmental fund is being watched by many municipalities around the state. As of December 31, the contractor gave the Town a list of outstanding accounts. The Town has been contacting property owners, once it is verified through the County records. They have no contract yet, They have identified a CPA in Mesa that charges $4.50 per $36 collected. Mr. Miller said that they are looking at the state contract as well. Mr. Pock said that there are 2,744 parcels that have paid in varying years; 607 parcels that have not paid anything for the four years. They are going after them first. Town Council Work Session of February 25, 2020 9of16 Discussion was held on whether this information could be publicized. Mr. Miller said that it might be good for them to have an executive session on this issue. There were varying views on whether this would be a good idea. USER FEE STUDY Brief discussion was held on the ability to ensure that transient vendors are paying sales tax. Mr. Miller said that for the first time the cities and towns were able to use the letterhead from Department of Revenue, which gets their attention. COURT FEES Court Administrator Victoria Ruess came forward and said that they have already collected more than they did this time last year. She said that this is not all Town money. It also goes to the state, and the county. There are certain things that are automatically a part of a fine. Ms. Ruess reviewed the activity between September 9, 2019 and February 5, 2020. She said that it is difficult to determine what portion is attributed to enhanced court collection efforts because it depends on where they are at with what they owe. Councilmember Spelich said that since he was the one that brought this up, he would like her overall impression of how things are going. He said that the number might be low to some, but they should take into consideration that there is on the job training for the first 30-40 days, learning the court system. He said that he was disappointed with the numbers, but he is still optimistic. He said that he has locked up people with outstanding warrants, and he asked the judge for his impression. Judge Melton said that they are early in the process with Rachel. As they go along, her efforts will bear fruit. Councilmember Scharnow said that last year they were supplied with some possible revenue enhancements. He did not know if any of that was on the table for this year. Mr. Miller said that if they have ideas for exploring further, they can bring that back at a later time. He said that they did some analysis and looked into a primary property tax. That is something that would have to go to voters, and they are not ready for this year. Mr. Miller said that one thing that has thrown them off is the public safety fee and environmental fee case, which is in court. That type of methodology would be challenged at this point. Councilmember Tolis said that they should be talking about this at a separate work session. 12. An update to the Town Council on increasing town -wide revenues TPT STATE SHARED REVENUE ENVIRONMENTAL FUND Mr. Pock said that the Town's case regarding the environmental fund is being watched by many municipalities around the state. As of December 31, the contractor gave the Town a list of outstanding accounts. The Town has been contacting property owners, once it is verified through the County records. They have no contract yet, They have identified a CPA in Mesa that charges $4.50 per $36 collected. Mr. Miller said that they are looking at the state contract as well. Mr. Pock said that there are 2,744 parcels that have paid in varying years; 607 parcels that have Town Council Work Session of February 25, 2020 10 of 16 not paid anything for the four years. They are going after them first. Discussion was held on whether this information could be publicized. Mr. Miller said that it might be good for them to have an executive session on this issue. There were varying views on whether this would be a good idea. USER FEE STUDY Brief discussion was held on the ability to ensure that transient vendors are paying sales tax. Mr. Miller said that for the first time the cities and towns were able to use the letterhead from Department of Revenue, which gets their attention. COURT FEES Court Administrator Victoria Ruess came forward and said that they have already collected more than they did this time last year. She said that this is not all Town money. It also goes to the state, and the county. There are certain things that are automatically a part of a fine. Ms. Ruess reviewed the activity between September 9, 2019 and February 5, 2020. She said that it is difficult to determine what portion is attributed to enhanced court collection efforts because it depends on where they are at with what they owe. Councilmember Spelich said that since he was the one that brought this up, he would like her overall impression of how things are going. He said that the number might be low to some, but they should take into consideration that there is on the job training for the first 30-40 days, learning the court system. He said that he was disappointed with the numbers, but he is still optimistic. He said that he has locked up people with outstanding warrants, and he asked the judge for his impression. Judge Melton said that they are early in the process with Rachel. As they go along, her efforts will bear fruit. Councilmember Scharnow said that last year they were supplied with some possible revenue enhancements. He did not know if any of that was on the table for this year. Mr. Miller said that if they have ideas for exploring further, they can bring that back at a later time. He said that they did some analysis and looked into a primary property tax. That is something that would have to go to voters, and they are not ready for this year. Mr. Miller said that one thing that has thrown them off is the public safety fee and environmental fee case, which is in court. That type of methodology would be challenged at this point. Councilmember Tolis said that they should be talking about this at a separate work session. 13. Review of current and future Capital Improvement Program projects Public Works Director Justin Weldy began review of the Capital Improvements Program (CIP). STATUS UPDATE Panorama Storm Drainage Improvements Mr. Miller said that he and staff met last months trying to identify capital funding, the status of all current year projects, and what they will have left over. The good news is they found money to make these improvements happen. For this year they have set aside design for the project for Town Council Work Session of February 25, 2020 11 of 16 $97,000. They will probably see that contract come before them soon. Mr. Weldy said that it would probably be around 90 days with the restoration. There is $400,000 from the environmental fee going toward this project. Mayor Dickey said that it would be good to have this done during the summer when there are not so many residents. 56053 Mr. Weldy said that there were some complications with this project, and it was cancelled because the necessary change orders exceeded the 10%. Due to federal funds received, ADOT was obligated to cancel the project. He said that ADOT has just finished negotiating a settlement with the contractor. When the Town gets the final numbers from ADOT staff will bring this back to Council. Mr. Miller said that this is a shovel -ready project. They did the design initially, but when they realized the power lines and dry utilities were not where they were supposed to be, they stopped the project. He said that they are going to get some firm numbers and he would like to get this started this summer. FY19/20 CAPITAL PROJECTS Mr. Weldy said that at the end of FY20 they will have around $3.9 million as the ending balance. Based on the Town's policy, half of those proceeds goes back into the CIP. PROPOSED FY20/21 CIP D6047 D6057 D6058 D6059 F4035 F4036 56058 Mayor Dickey asked how this relates to what was done the other night. Mr. Weldy said that they will use the information approved the other night to request money with future Prop 400 and Prop 500 funding. Councilmember Tolis asked if the corner of Shea and Fountain Hills Blvd. will be eliminated which this project moves forward. Mr. Weldy said that it will not displace anything outside of the right-of-way. They will just be adding one additional lane. 56061- Sidewalk Infill Program S6062 - AOTF & Verde River Intersection 56063 - Palisades Median Landscape Improvements Mr. Weldy said that he reached out to a well -respected landscaping company, but their bid was not reasonable. He and Mr. Miller worked to determine the needs and what could be done. They have put this in as a multi -year project where the first year they would reestablish and rehab the irrigation and then each year work on the vegetation. They are anticipating $150,000 going toward the first year. After further discussion, it was consensus of Council that while it would be nice to have them beautified throughout town, at this time they just need to be cleaned up and have decomposed granite replaced where it is gone. Mr. Miller said that when they come back with the Town Council Work Session of February 25, 2020 12 of 16 CIP, they will see this looking different. 56064 - Desert Vista Park Crosswalk Mr. Weldy reviewed this proposal. Discussion was held on whether this was the best location, or if it could be done differently, such as under the roadway. He said that as it moves forward they will look at all of the safety aspects. They would probably recommend a flashing beacon and it would be illuminated at night. He clarified that this cost was for design only. Councilmember Brown left the meeting at this time (1:57 p.m.) T5005 - Palisades Blvd. and Eagle Ridge/Palomino Drive Mr. Weldy said that this cost is just for the design. It will also help them understand the total cost for construction in the future. Councilmember Tolis asked if this would be recouped from the Copperwynd expansion. Mr. Miller said that it would include their prorata share of 20 or 25%, but that is only if Phase 3 is built. P3033 - Video Surveillance Cameras Community Services Director Rachael Goodwin continued the presentation, noting that this was for continuing their efforts at Four Peaks Park. This year the will have the bathroom renovation. Next year they will continue the sidewalk and dugout, and include shade areas. P3042 - Fountain Lighting Replacement Ms. Goodwin said that they will see some photos later, but there are a number of lights that illuminate the fountain at the base and on the shoreline and most of those lights are out. There is a need to upgrade those. Most are dated and inconsistent with their goals as a Dark Sky community. They would like to look at LED lighting and revamp the existing night visibility. Councilmember Magazine said that he bumped into Ted Blank who said the experiment with the painted bollards was very successful in terms of reducing glare. P3045 - Four Peaks Park Playground Parking Lot Ms. Goodwin said that this would provide additional accessible parking spaces at the facility. FY20/21 CAPITAL PROJECTS Mr. Weldy said that the total funding for these projects was $4.9 million, with a projected ending capital fund balance of $784,000 if all were approved. He said that these costs do not include staff time. The majority of this is design, construction, implementation, acquisitions. Brief discussion was held on an item listed later on the agenda about the CIP and review of its projects. It was agreed that staff would provide a quarterly report to the Council on the status of CIP projects. Town Council Work Session of February 25, 2020 13 of 16 FY19/20 VEHICLE REPLACEMENT Mr. Weldy said that this is what was set out in the budget for the year. Working with Community Services staff they were able to reduce the costs of some of their vehicles requested to get an additional vehicle. FUTURE CIP 22/23 23/24 24/25 Mr. Miller said that they were going to have a workshop just on the CIP. He said that they were going through a process right now with the Pedestrian Safety Committee to discuss grant funding through MAG. They are trying to get the small ones, like sidewalk infill, addressed sooner. Mr. Weldy said that they have applied for and believe they are in a great position to receive such grant. Mayor Dickey said that she saw the Pumphouse Replacement item. Ms. Goodwin said that it would not be the structure, but rather replacement of the mechanisms within the pumphouse. 14. Review of current and future Facilities Replacement Program projects Mr. Miller said that back in FY14/15 when Ken Buchana was Town Manager, they had a study done that identified all of the different assets in Town and when they needed to be replaced/repaired. They set aside so much money a year, and they identified $1 million a year to adequately save for these items. They have not been able to do much more than $500,000 to $600,000 a year. FY19/20 IN -PROCESS PROJECTS Mr. Miller said that they have been working on the balcony repair at Town Hall, which was leaking into the judge's chamber below. He said that after the projects this year they are estimating a year-end balance of $1.2 million and after the proposed FY20/21 projects an estimated year -ending balance of $1.1 million. 15. Review of fund balance classifications, current reserve policies, and suggested updates Mr. Polk continued the presentation. FUND BALANCE CLASSIFICATIONS RESERVE POLICY - RAINY DAY FUND Mayor Dickey asked if the Town made interest on this fund. Mr. Polk replied absolutely. ASSIGNED FUND BALANCE TRANSFER OF EXCESS REVENUES Councilmember Magazine said that he would caution against prepaying Town debt. Mr. Polk said that under the new IRS rules, the last tax packages, there is no refunding being allowed. UNINTENDED CONSEQUENCES PROPOSED REVISIONS Mr. Miller said that he thinks it was a good policy at the time, prior to them having these Town Council Work Session of February 25, 2020 14 of 16 replacement funds, but once the funds were established, they should have revised the policies. Mr. Polk said that this does move $1.5 million into unassigned funds. He said that once they revise the policy they wil bring it back to Council for formal adoption. 16. Discussion regarding a proposed Fountain Park Infrastructure and Maintenance Assessment Ms. Goodwin said that there has been a lot of discussionabout the fountain and the lake, with it turning 50 this year. The lake liner is turning 20 and its maintenance needs to be looked at. She then showed pictures of the current condition of the fountain, its corrosion and standard wear and tear. THE FOUNTAIN, LINER, AND LAKE THE LAKE LINER Ms. Goodwin said that the current liner was the second highest quality of liner manufactured at that time. The only higher quality goes into nuclear power plant storage. She said that they have started down the path of looking at the CIP and one they get the idea of when, where and how that research would go much deeper. AN ENGINEERING ASSESSMENT Ms. Goodwin said that while they have located historical data from the last time this was done, they do have some unknowns. She said that it is a special project, and there are not a lot of comparisons. They reached out to two firms to get an idea of what they were looking at. She said that one of the firms was the one that did the project back in 2000. She said that the two firms were Black & Veach and HDR, which are both national level firms. Mr. Miller said that time is of the essence. This is the 50th anniversary. He does think this is the namesake of their community and with it being the 50th anniversary, there is a lot of momentum to get an idea of costs and get it referred to the Town in November. Ms. Goodwin said that they cannot afford to not have some sort of plan in place. Councilmember Tolis said that he would agree that this is something they need to get focused on. He would hope that in any proposal they would have a lot of public participation as to what their visions may be for Fountain Park. It is not just fixing the liner; it is due for a reimaging of the Park in many aspects. Councilmember Scharnow asked when they were going to be discussing the Pavement Management Plan. Mr. Miller said that they are trying to get that scheduled at a regular meeting with a very light agenda. He said that he would like to do what happened last time. They would have a citizen committee to study and evaluate the proposed plan and come back with their findings as to a number of what should be bonded for streets. Councilmember Scharnow asked if the study would include review of the soil conditions. Ms. Goodwin said that they could add that to the scope. They do think tht the water quality in the future will affect the soil. Mr. Miller said that storage is going to be absolutely critical. They do not want to have a loss of all of the vegetation. Mayor Dickey said that they had an opportunity to get the sanitary District intricately involved in this and the storage part is important. She said that they have some knowledge now. To Councilmember Tolis's point, perhaps there is a way to mitigate some of the issues at the park. Town Council Work Session of February 25, 2020 15 of 16 Councilmember Tolis said that they have talked in the past about engineering an entrance off of Avenue of the Fountains, making it more pedestrian friendly. He said that they are paying off two bonds; now they could potentially go to the voters and ask them to pass a park improvement bond, which would have a minimal effect. Mayor Dickey said that the challenge is that they have an everyday infrastructure and as they go forward they need to make sure that if they put off bonding for streets that they are addressing the $3 million question per year. They need to show a lot of repsonsiibility and make sure that people are engaged and seeing everything for the next five years. Councilmember Magazine said that they need to do bonds for 20 years and not 5, as was done in the past. 17. Discussion of Arizona State Retirement (ASRS) Mr. Trimble said that they wanted to bring forward the discussion of looking into having the Town join the Arizona State Retirement (ASRS) system. He said that when the Town was first incorporated the decision was made to not opt into the ASRS system. They have found over the years that it is becoming a deterrent in trying to recruit employees, especially for those that already have years in with the ASRS. Mr. Miller said that during the last five years they have been able to do parity with benefits. He said that he wanted to be clear that this is not the Public Safety Personnel Retirement System. Mr. Trimble said that what they are requesting today is if the Council supported us moving forward with researching this further, and meeting with employees for their input. If it is not popular once that is done, then they would stop there. Councilmember Spelich said that he was all for giving the Town employees whatever they want within reason, but he would caution them to look into this greatly. He said that the cost of healthcare with ASRS is outrageous. Mr. Miller noted that with the current system, there is no healthcare available at all. Mr. Miller said that he was hearing consensus to at least pursue researching this. He said that they want to get the employees the factual information. 18. Discussion of Proposition 500 and its impact on Fountain Hills and the region Mayor Dickey said that they would not be discussing this now as the Council will receive a thorough presentation from ADOT at their March 3, 2020, meeting. 19. Review and Consider Changes to Town Council Prioritization Process for Projects Contained in the Capital Improvement Program Discussed earlier in the meeting. Town Council Work Session of February 25, 2020 16 of 16 20. ADJOURNMENT The Work Session of the Fountain Hills Town Council held February 25, 2020, adjourned at 3:10 p.m. Staff was thanked for their work in preparing for the session and the audience was thanked for attending. I f <ePdl Ril 2 ril11L y /_W L' 11110 Gin 0ickey, Mayor ATTEST AND PREPARED BY: lizrurke, Town C er