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HomeMy WebLinkAbout2013.0117.TCRM.Minutesz:\council packets\2013\r130207\130117m.docx Page 1 of 22 TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL JANUARY 17, 2013 * CALL TO ORDER AND PLEDGE OF ALLEGIANCE Mayor Kavanagh called the meeting to order at 6:35 p.m. in the Town Hall Council Chambers. * INVOCATION – Dr. C.T. Miller * 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 Bender were also present. * MAYOR’S REPORT i) Mayor Kavanagh's State of the Town Address Mayor Kavanagh thanked everyone for their attendance at the meeting and delivered the following State of the Town Address: “It has been my great honor to be your Mayor for the past seven months and Mayor of our beautiful small Town. In that time, I have strived to be fiscally responsible, to facilitate an open, transparent government, to promote economic development, and to move forward with a solid plan for maintaining our r oads and infrastructure. But doing all this while keeping an eye to improving and enhancing our quality of life here in our hometown. That is something near and dear to my heart. Make no mistake...there will be challenges in the near future to reconcile limited revenue with the needed increasing expenditures but I am up to the challenge. Our core services, fire, police, roads and infrastructure must be adequately funded first and foremost. While our Town has room to grow, government must strive to be as lean and as non-intrusive as possible in the lives and wallets of its residents and the business community. Over -regulation should be avoided and, as the economy improves and more revenue flows into Town, we must resist spending just because the money is there, but rather allocate for what is truly needed and save for the uncertain future. As Mayor, I am always enthusiastic to attend events in Town as your representative, whether it's a ribbon cutting at a new businesses, a social coffee with residents, a school function, or a park event. Supporting our charitable organizations, businesses, our schools, and Town events is a most enjoyable part of being your Mayor. I want to thank you for including me in your special events. I also love it when residents stop by my office to talk about an issue important to them or just to say hello. My welcome mat is always out. I also spend a lot of time outside Fountain Hills, attending meetings and seminars, and events where other mayors are gathered. My presence at these events is very important to our Town. Fountain Hills' voice must never be muted and, when it comes time for the state or county to slice up the pie for funding or economic development, I want to make sure that Fountain Hills gets our fair share. I also keep a close watchful eye on legislation, which is easie r for me to do than most mayors. While some bills might be good for some cities and towns, they might not be right for Fountain Hills and some are downright detrimental. I am there to make our voice heard. While our staff at town hall has become lean in numbers over the years, the quality and professionalism they exude is admirable. I enjoy working with our staff, our town manager and our town attorney. I appreciate their expertise in their respected areas and how thorough their research is. I feel c onfident as Mayor that we are getting the best information to make the best decisions. I am very pleased to work with the Maricopa County Sheriff's Office and Rural Metro Fire & Ambulance. Their professionalism and excellent service are beyond reproach. In addition, we have an outstanding court system and staff, z:\council packets\2013\r130207\130117m.docx Page 2 of 22 doing a great job for our Town. But let me get down to business and look at the State of the Town. And while I hate to reveal the ending...Fountain Hills is alive and well and facing a prosperous future.” Mayor Kavanagh highlighted a presentation on the State of the Town (Copy available on line and in the office of the Town Clerk). The Mayor said that she hoped that the information presented will be helpful to residents as the Town goes through the budget process. The presentation covered the following areas: * An explanation of the Town's Organizational Chart (Note: The Town has 39 full -time employees and 18 part time for a total of 57 employees) * A comparison of FY 13 General Fund Operating Cost per 1,000 Citizens * A comparison of staffing levels from FY 2001-FY 2014 * A chart showing the Town's Revenues by Source - Total of all sources $31.4 million * A chart showing the Town's Expenditures by Use - Total of all uses $31.4 million * A chart showing General Fund Revenues & Expenditures (Fiscal Years 2008-2018) * A chart showing FY13-14 General Fund Operating Revenues * General Fund Revenue Projects (Excluding the Ellman Property) * Fountain Hills Sales Tax Revenues (Fiscal Years 2005-2014) * Local Tax by Category * General Fund Expenditures (In millions) * Highway User Revenue Fund (HURF) - (Fiscal Years 2005-2014) * Outstanding Bonds * The Town of Fountain Hills, General Fund Operating Costs - Total $13.1 million * 2012 Property Taxes in Fountain Hills (Who Gets What?) * The Sign Code (The Town adopted the new Sign Ordinance on November 1st and it became effective on December 1st) * The Median Project (Anticipated to be designed by April so that it can be bid out and construction completed by November of this year) * Pavement Management (A Pavement Management Program has been presented to the Council and is designed to extend the life of the Town's roads until such time that a mill and overlay or reconstruction is required) * Senior Services (Membership increased this year by 25% over last year and currently 33 programs per month are being offered along with a number of educational presentations. Home Delivered Meals (8,419 meals were delivered in FY 2011-12) * Recreation (Several new events were brought to the community, including the Mountain to Fountain Race. The Athena Iron Girl Fountain Hills Women's 10mile and 5K event brought 1,375 female participants from throughout the U.S. to Town and the Town continued to host popular special events such as Ballet Arizona, St. Patty's Day, Concerts in the Parks, Movies in the Park and more) * Partnered with a number of organizations for events like the Farmer's Market and Art on the Avenue, the Great Grape Stomp, Halloween in the Hills and others. The 23rd Annual Turkey Trot 5K and Fitness Walk was held with 1,240 participants * Parks - Finished the most successful season of the Rotary Splash Pad and refurbished 31 of the benches at the park, including the memorial bench for former Councilwoman Kathleen Nicola * Installed a number of pieces of public art donated for public display and the collection of public art on display now includes more than 100 pieces with an estimated value of over $1 million * The Community Center hosted close to 1,500 events this year with almost 24,000 participants. To help civic organizations who use the facility on a regular basis, fees for rental and equipment were reduced by 50%. Revenue from the beginning of the fiscal year was up 10% over the previous year and staff attends the annual Phoenix Bridal Show to showcase Fountain Hills as a destination Valley-wide z:\council packets\2013\r130207\130117m.docx Page 3 of 22 * The Community Center also helped host the Centennial Celebration for the Town on February 14, 2012, completed the final phases of the Centennial Circle by installing electricity at the site and finishing the landscaping, and hosted the dedication of Cutillo Plaza in honor of the Town's first Mayor * Work to complete a new Master Plan for Four Peaks Park continues. A proposed plan will be presented to the Council this spring * Fire Department - The Rural/Metro Fire Department is initiating a new customer feedback tool. Cards will be left with the residents that access Fire Department services directing them to the Town's website for survey. The feedback will help improve services to the Town's residents. * Design is underway for remodeling/addition at Fire Station No. One. These improvements will allow this Fire Station to continue to serve the community for many more years * Law Enforcement - The Town and the Maricopa County Sheriff's Office (MCSO) approved a new 5-year contract through 2017. Overall, drug and alcohol usage among teens has decreased from last year's survey conducted by the Fountain Hills Coalition * MCSO continues to participate and promote the Text-A-Tip Program, resulting in over 50 arrests the first year, many related to drug and alcohol use MCSO was able to intervene in several incidents prior to them becoming criminal matters * Quarterly Community Open House meetings are held for citizens by MCSO to provide crime statistics to the community * MCSO, in partnership with the Town and Midnight Madness Foundation, provides numerous youth events throughout the year for kids of all ages * Increased enforcement activity for criminal suspects and formation of a "Power Squad" made up of three deputies and three detectives. The squad works together during the week to investigate crimes and are also ready to respond to situations that might require special attention * The Volunteer Program - Volunteers Make a Difference. 64 volunteers serve on 9 Town Boards and Commissions. They help out at special events, with the Home Delivered Meals Program, the Give A Lift Program, serve as Art Docents and participate in the Save Our Sculptures Program in addition to ongoing placements in Town Departments * The 4th Annual Volunteer, Club & Organization Fair was held in October 2012, approximately 45 organizations and clubs participated and there were approximately 250 attendees. The 4th Annual Make a Difference Day was held in October 2012 and approximately 330 citizens offered four hours of volunteer service at 33 work sites throughout the Town * The Mayor's Youth Council - 16 high school students dedicated to serving their community through volunteerism and civic participation and the various programs and projects that they participated in and will participate in in the future * The 8th Annual Holiday Party for Community: "Gingerbread Junction," Quarterly Volunteer Coffees with guest speakers and the annual celebration of volunteers at the Volunteer Reception Mayor Kavanagh stated that in conclusion, she and the entire Council and staff of Fountain Hills are moving forward in 2013 to make Fountain Hills the very best place to live, work, learn and play. She again thanked the citizens for their attendance, said that she hopes that the presentation was helpful and added that she is very excited about 2013. Mayor Kavanagh announced January birthdays: Councilmember Dickey, Councilmember Hansen, and Councilmember Yates and wished them all a very happy birthday. * SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS (i) PRESENTATION by Supervisor Steve Chucri of the Maricopa County Board of Supervisors regarding County matters that affect cities and towns. Maricopa County Supervisor Steve Chucri addressed the Council and introduced his Deputy Chief of Staff to the Council. He thanked the Town Manager for the invitation to come and speak this evening and said that the first call he received as a candidate was from a resident of Fountain Hills and his first opportunity to speak to a municipality is z:\council packets\2013\r130207\130117m.docx Page 4 of 22 here at this meeting. He said if he had to pick a favorite city or town he would pick Fountain Hills and commented on how impressed he is with the Town. He advised that during his campaign he had three priorities and he listened to what people were saying to determine what the issues were for all of the cities and towns within his district. He noted that Maricopa County is the fourth largest county in the nation and said that while on the campaign trail one of the things he tried very hard to do was to work with the various municipalities in an effort to increase communication. He said that he also focuses on government reform and trying to bring back a steady ha nd to the Board because they have had some pretty exciting times in recent years as many know. He added that he is also focused on the conservative philosophy on how they can do things and do things better. Supervisor Chucri advised that the Fountain Hills Library is a very big part of what they do and said that the Friends of the Library sent them a check for $7,000+, which needed to be recognized so a thank you letter was sent to them in an effort to demonstrate their appreciation. He stated that it is his job to make sure that Sheriff Arpaio and his team have the tools they need to do their job and the same goes for elected officials -- they have a job to do and need the tools to carry out that job effectively. He reported that the Town pays the County over $2 million for that service every year and so they need to make sure that they are providing the highest service for the dollars that are paid. He said that based on the number of employees in Town, they have to do a lot more with less and so they have to work together to ensure that from an intergovernmental perspective they achieve their goals. Supervisor Chucri informed the Council that the property tax rates are a very big deal to him and the County has begun discussions on the tax rates. He said that his position is "How can they raise the tax rate right now?" He stressed the importance of bringing forth a business approach to solve problems. He stated that increases add up quickly and his commitment to the Council and the Town is to remain as strident as he was during his campaign and during his first nine days in office to ensure that they do not have to raise the tax rate. He added that one thing that they have control over is the tax rate and they are going to focus as a business with the Town to make sure they can cut spending or find some kind of revenue to make up for the shortfall. He advised that the Mayor is welcome to contact him any time, he has an open door policy, and he hopes he gets letters and calls from the Town asking "How can we do more together and problem solve?" Supervisor Chucri thanked the Council for the opportunity to address them this evening and indicated his willingness to respond to any questions. Mayor Kavanagh thanked Supervisor Chucri for his attendance at the meeting this evening and his comments. Vice Mayor Leger also expressed appreciation to Supervisor Chucri for his attendance and congratulated him on his election to the Board. He said that he liked what Supervisor Chucri had to say this evening and asked him what his governmental philosophy is when it comes to preserving or promoting decision making at the local level, particularly on the municipal level. He commented on the several unfunded mandates from the State that the Town has been faced with in recent years. Supervisor Chucri responded that he believes the cities and towns have to "put a stake in the ground ” and get away from the "silo mentality" that cities/towns are in one silo, the State is in another and the County in another -- from computer and data base systems on down the line. He added that he believes once they start breaking away from that , things will turn around and he indicated his willingness to work with the Town and other municipalities on this important issue because they cannot successfully operate government when they are in different silos. Vice Mayor Leger thanked Supervisor Chucri for his comments. CALL TO THE PUBLIC Town Clerk Bevelyn Bender advised that three citizens wished to speak to the Council under this agenda item. Charles Herman addressed the Council and said that he is a winter resident of Fountain Hills and very familiar with the Town. He noted that he spoke to the Council last year about the same issue he is bringing up tonight and that is the thousands of birds in the park that are colonizing the place. He stated that he walked around the park after returning to Town this year and despite all of the hard work done by the people who take care for the park, the birds are making a mess out of the place. He noted that when he spoke about this everyone agreed that they might have a problem so he z:\council packets\2013\r130207\130117m.docx Page 5 of 22 would like to know what has been done about it. He added that he thinks the answer is little or nothing but in thinking about it decided that wouldn't be fair and probably the better answer is not enough. He said that this is a problem that can be solved and offered possible solutions including contacting their legislators and having them change State law to include a line that states that people cannot feed birds on municipal property; passing a Town ordinance ; putting in a little fence around the water to keep them from accessing the lake or they could collect them by the hundreds and take them away and someone in the State Wildlife Department told him that if they did that they would be back in two hours. He urged the Council to do something about this situation. Mayor Kavanagh commented that the Council cannot respond to Mr. Herman but suggested that he contact Mark Mayer in the Town's Parks Department who will be able to answer some of his questions. Peter Bordow addressed the Council and said he understands that the Town is renewing the contract with the Jump Start Business Incubator and wanted to express his appreciation to them. He advised that he has just opened a new business in Town and it was a tough thing to do and a lot of work. He stated that if it wasn't for the Jump Start Business Incubator it would have been much more difficult and he is not sure he would have been able to open the business. He commended the members of that group and added that they do a wonderful job. Linda Bordow addressed the Council and commented on the Council's inability to respond to citizens' comments at the meetings, due to legal restrictions, and said that she wishes there was a way they could have a better dialogue under the Call to the Public or under another item placed on the agenda. She asked if the Council would consider implementing a way of allowing more dialogue to take place between the Council and the citizens and added that she believes they could share ideas and it could be very helpful. Ms. Bordow also discussed the roundabout that is under Council consideration for Saguaro Boulevard and said that she thought those kinds of things required a vote like they did the last time. She said she heard that the item might not be included in the bond and may be included in a separate bond and she hopes that is true because the public should have the right to vote on the roundabout. She stated that she has researched this and spoken to people about it and she knows that seniors have a hard time walking across there and commented on staff's recommendation of pulling down the medians to make it shorter and easier to cross at a cost of $150,000. She also discussed other options that are being proposed and their estimated costs, expressed concerns about the roundabout and urged the Council to go along with staff's recommendation, which will also keep the cost down. Mayor Kavanagh thanked the speakers for their comments. CONSENT AGENDA AGENDA ITEM #1 – CONSIDERATION OF APPROVING THE TOWN COUNCIL MEETING MINUTES FROM DECEMBER 20, 2012 AND JANUARY 3, 2013. AGENDA ITEM #2 – CONSIDERATION OF RESOLUTION 2013-07, ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN THE CERTAIN HILLSIDE PROTECTION EASEMENT LOCATED IN FIREROCK (COUNTRY CLUB) PARCEL J2, LOT 4 (9616 N. FOUR PEAKS WAY); WITH STIPULATION (TO GRANT A REPLACEMENT HPE). THE EXISTING HILLSIDE PROTECTION EASEMENT ON THAT LOT WAS RECORDED IN MCR 2008-0137097. (EA2012-10; CUNNINGHAM). AGENDA ITEM #3 - CONSIDERATION OF RESOLUTION 2013-06, ABANDONING WHATEVER RIGHT, TITLE OR INTEREST THE TOWN HAS IN PORTIONS OF THE CERTAIN PUBLIC UTILITY AND DRAINAGE EASEMENTS LOCATED AT A PORTION OF PLAT 605-a (THE FORMER "FIRE STATION PARCEL," 11240 NORTH FOUNTAIN HILLS BOULEVARD). PLAT 605-A WAS ORIGINALLY RECORDED IN BOOK 164 OF MAPS, PAGE 12 AND BOOK 883 OF MAPS, PAGE 10, RECORDING OF MARICOPA COUNTY, ARIZONA. EA 12-09 (MCO PROPERTIES). Councilmember Yates MOVED to approve the Consent Agenda as listed and Councilmember Elkie SECONDED the motion. There were no citizens wishing to speak on these agenda items. z:\council packets\2013\r130207\130117m.docx Page 6 of 22 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 #4 - CONSIDERATION OF AN EXTENSION OF THE ENCROACHMENT PERMIT, SUBMITTED BY CAROLYN REDENDO (SOFRITA, LLC), FOR THE PURPOSE OF CONTINUING AN OUTDOOR SEATING AND DINING AREA LOCATED IN FRONT OF THE RESTAURANT AS WELL AS A PERFORMANCE AREA FOR FLAMENCO DANCERS AND OTHER ENTERTAINMENT ON THE PUBLIC SIDEWALK AT 16848 E. AVENUE OF THE FOUNTAINS. Senior Planner Bob Rodgers addressed the Council relative to this agenda item and advised that the business' current permit expires at the end of this month. He said that the applicant wishes to continue to use a portion of the public sidewalk in front of the restaurant for outdoor eating, dining and entertainment purposes as well as the area under the canopy for outdoor dancers and other entertainment. He referred to the Staff Report and displayed a PowerPoint presentation that depicted photographs of the business in question (Copy available on line and in the office of the Town Clerk). Mr. Rodgers advised that the outdoor dining area directly in front of the restaurant was required to have a 3 -foot tall wrought iron fence around it (a requirement of the State Liquor License Department) and it is permanently affixed to the sidewalk. He noted that the fence has been located in such a manner as to provide ADA access in and around the area. He said that occasionally inside the fence ADA issues were reported by the Building Safety Division and added that they have been promptly addressed by the applicant when they were brought to her attention. He discussed the other steps the applicant has taken to come into compliance, such as the tire stops in the front of the parking spaces to ensure ADA access outside the fence is not blocked by vehicle bumper overhang and noted that proof of indemnification has been provided and the restaurant agrees that after hours cleanup will be done properly. Mr. Rodgers further stated that some complaints have been received by staff (outlined in the Staff Report) and advised that the applicant is present to address those issues if the Council so desires. He said that staff believes that activities like this should be encouraged as they will help enhance the Downtown business climate by attracting more residents to the area. He added that this business is operating in an appropriate and responsible manner and staff recommends an extension of the Encroachment Permit for Sofrita Restaurant subject to an annual review and re-approval of the permit and compliance with the Code requirements noted by Building Safety and Engineering. Mayor Kavanagh thanked Mr. Rodgers for his presentation. Vice Mayor Leger said that he noticed in the Staff Report that under complaints received, #2 states that "The Clear Path" between the fence and the curb, while meeting ADA requirements, is narrow and has cause d inconvenience to more than one passerby." He stated that although it meets the ADA requirements, he is not sure that it meets the requirements for a lot of disabled people who utilize motorized vehicles. He advised that he has been contacted by a number of people that are very concerned about that one particular area. He added that he is in favor of extending the permit and thinks that Sofrita's has done a tremendous job and is a great place to go. He said that it has brought life and vitality to the area but he has been down there and was stopped by people who are disabled and this is sue is a concern. He further stated that from a staff perspective, he would like to know what would be a solution that would create more space for those who are handicapped to get through that particular area where the street light and fence are located. z:\council packets\2013\r130207\130117m.docx Page 7 of 22 Mr. Rodgers responded that staff has had a couple of conversations with the applicant and talked about actually removing the fence now that the Town has actually removed that requirement but they would have to check and see whether the State Liquor Board would allow its removal. He expressed the opinion that that would probably be the best option because that pole is just in a bad location as far as that patio area is concerned. Vice Mayor Leger stated that it is his understanding that in order to serve alcohol outdoors, the State requires a fenced in area and asked if he is hearing that if they remove the fence they will stop serving alcohol out there. Mr. Rodgers replied no and said what he got from the State Liquor Department was they require those fences primarily because local municipalities do it and it is not necessarily a requirement of theirs so they could review it and potentially waive the need for a fence. The Vice Mayor advised that this is an issue that needs to be prioritized and address ed, whether taking the fence down or pulling it further in in that particular area would solve the problem. He noted that they discussed this when the permit initially came up and it was a concern then and it is a concern now. Mr. Rodgers explained if they pulled the corner in where it jogs, they will create a non-compliance issue -- right now the way it is in place is completely in compliance. Vice Mayor Leger reiterated that he is favor of the business and what they are doing but said they do need to a ddress this issue. Mayor Kavanagh asked if the applicant has applied to have the fence removed and Mr. Rodgers replied that he doesn't believe so but she is present and can speak to the Council. Carolyn Redendo, the applicant, addressed the Council and informed them that she has not yet applied for a waiver. She said that as a business person she would like to say that it has been a pleasure working with the Town staff, particularly Mr. Rodgers, and thanked them for their valuable assistance. She commented on the improvements she has made in order to comply and added that she understands the Council's concern and need to respond to the citizens. She stated that she does have an application and is going to go and meet with the Department of Liquor Licenses about that and another issue having to do with the dog patio, which she believes does require a fence. She informed the Council that she wants to make sure that she will be in compliance if and when she does take the fence down. She noted that previously, when the fence was not in place, people would pull the chairs out a little or push them aside if there was an access problem. Councilmember Brown asked Mr. Rodgers to display the slide that showed the fence outline and asked if he is saying that if they take 18" and cut that off at an angle that will no longer meet the Code requirements. Mr. Rodgers responded no and explained that is not the problem area. He referred to another slide and the location of the jog previously referred to that goes around the light pole. Councilmember Elkie commented that if Ms. Redendo submits the request to the Department of Liquor and the Town ultimately says "okay, no fence," they are still going to be able to serve liquor in that area and looking forward this i s a potential problem. He said that there will have to be discussion on table placement and asked what the "stopping line" is because there will be cars out there and people drinking alcohol right there on the patio. He added that he doesn't want to create a situation where they don't have a fence so people are congregating out there and blocking traffic that is trying to get by. He stated that he knows this is the business owner's responsibility but he would like to hear Mr. Rodgers' comments on that. Mr. Rodgers replied that staff will have to discuss this with the applicant and make sure that everybody understands what has to happen. He pointed out that it works in cities all over the world so it can work here too and they just have to figure out a way to do it. Mayor Kavanagh stated that she thinks that is why the Liquor Board decided to change their mind about the fence because this does occur in just about every other city. She added that obviously if Ms. Redendo puts in for the waiver, which she believes is fairly easy to do, this problem will certainly go away. She further stated that she believes there is z:\council packets\2013\r130207\130117m.docx Page 8 of 22 some sort of a marking that has to be put on the sidewalk to designate the area, something as small as a line that designates how far out people can go. She noted that it will be up to the business owner to make sure that their customers comply. She commented that it is unfortunate that the restaurant has a small space but this is beautiful Arizona and everyone wants to sit outside, especially when the flamenco dancers are there. She reiterated that she believes applying and obtaining the waiver will solve the problem. Mr. Rodgers noted that the Liquor Board most likely has its own regulations regarding what can and cannot occur if the fence is taken down and the Mayor agreed. Councilmember Dickey MOVED to approve the Encroachment Permit extension for the Sofrita restaurant, located at 16848 E. Avenue of the Fountains, as presented, until January 31, 2014 and subject to the applicant continuing to abide by the conditions of the existing permit and Councilmember Elkie SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #5 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING THE AVENUE OF THE FOUNTAINS IMPROVEMENT PROJECT. Director of Development Services Paul Mood addressed the Council relative to this agenda item and advised that on December 20, 2012, the Council approved a professional services contract wi th Landmark Design for the design of the Avenue of the Fountains Improvements. He noted that as part of the contract Landmark Design was directed to present a concept for the median improvements to Council for discussion and possible direction. He said t hat representatives from Landmark Design are present this evening and will highlight a presentation on the concept in order to receive final direction regarding the scope of the project. He encouraged the Council to provide any input they may have before they move forward with the design/construction documents. Wade Falcon from Landmark Design Architects addressed the Council and introduced Mr. Don Campbell, the landscape architect for the project. He commented that Capital Improvement Projects, as the name implies, are created by cities and towns to improve the living environment of their citizens. He stated the opinion that the project being presented this evening will provide new energy to the Downtown corridor and provide needed upgrades and repair s. He added that from the very beginning his company's goal has been to maintain a strong balance between the vision of the Council and the desires of the Town's residents and to give consideration to long -term efficient and cost effective maintenance. Mr. Campbell addressed the Council and highlighted a brief presentation on the concept plan (Copy available on line and in the office of the Town Clerk). He said that he is very excited about sharing what he has enjoyed being involved in over the last three short weeks. He stated that he has broken the design into two different sections, the east and the west, and described the water features as well as their locations and the concept/design for both sections. He informed the Council that the intent is to keep as many of the trees as possible and they have moved the pathway around them in order to accomplish that goal. He discussed event areas, the west end entry plaza, the importance of making the sculptures a key element in the project, locations where art will be integrated, the inclusion of picnic areas into the plan with shade trees/canopies, the use of concrete pavers, the importance of creating inviting, comfortable space that residents will want to utilize yet easy to maintain, picnic tables in the main plazas, rock walls enclosing the water features' equipment, the creation of a 10-food wide pathway, the inclusion of cost effective benches into the proposal, ADA accessibility, proposed shade structures, lighting, the proposed overall landscaping plan for the project, trees slated for removal due to safety hazards, their health/condition, or because they simply do not fit into the design and the proposed plant/tree pallet. Mr. Campbell indicated his willingness to respond to any questions from the Council. Mayor Kavanagh asked if any lighting was included in the proposal and Mr. Campbell responded yes in certain key areas (accent lighting). The Mayor said that she would like some bike parking included in the project and noted that there are a lot of people in Town who like to ride their bikes down there. z:\council packets\2013\r130207\130117m.docx Page 9 of 22 Mr. Campbell informed the Mayor that bike parking can be incorporated into the plan. Mayor Kavanagh advised that she knows there is a problem crossing from one to the other and noted that that has always been a bad spot. She commented that she likes the idea of blocking it so that people won't go that way. Mayor Kavanagh asked whether the concrete pathway is pretty much all they can do there (is that less expensive?). Mr. Campbell stated that the budget is extremely tight and pavers would cost approximately $20,000 to $25,000 more than the concrete walkway. Councilmember Brown said that he had Mr. Mood e-mail a list of questions and asked whether the consultants had obtained responses to them and Mr. Falcon replied that he had. Mr. Falcon responded to the various questions that were contained in the e-mail; he indicated that as far as the Rotary plaques, they will be relocating them and not replacing them with new ones. Councilmember Brown advised that the Greening Committee has offered to help the Town by supplying some of the trees and obtaining donations and they would like to have plaques added to the walls. Mr. Falcon stated that they are going to try and avoid a 400 amp service and added that they need to get their lighting package finalized and then they will sit down with SRP. He noted that he spoke with the lighting consulta nt today and stressed the importance of sitting down with SRP as soon as possible because their lead time on design for current subdivisions is about 60 days (so they want to get in and present their preliminary plan as soon as possible). He assured the Council that he will try to move this process forward as quickly in order to determine whether that additional service is needed. Mr. Falcon said that as far as a place to store their equipment, he hopes to work with the property owner of the undeveloped property to the south and work out some agreement. He also advised that dust control has been added to the budget. Councilmember Hansen commented that they are talking about creating a space that is going to attract people and be available for more events and that type of thing so she keeps thinking that down the line they are going to have to address restrooms (and that might be five or ten years from now). She asked if when they went through the design concept they have any ideas about where future restrooms could possibly be placed. Mr. Falcon responded that at this point they did not anticipate incorporating restrooms into the project. He added that that involves a whole other series of design decisions (security issues as well as design and maintena nce). Councilmember Hansen emphasized that she is not thinking about now but they are creating this and inviting more and more people and events to go down to that area and utilize it. She noted that this is the unspeakable necessity that at some point in time is going to have to be addressed. Mr. Falcon stated that they will work with staff to address that issue and see if there is some existing underground infrastructure for sanitary sewers and they might be able to create a path for future development and at least anticipate that occurring in the future. Councilmember Dickey referred to the olive trees and said a long time ago they were considered to be trees that should not be planted for various reasons. She asked if that is no longer the case. Mr. Campbell responded that the olive trees that are being proposed are the Swam Tree variety and they are fruitless. Councilmember Dickey discussed the end of the intersection and said she doesn't know when the Council is going to make a decision but if they go with the roundabout, they probably wouldn't need that little U-turn in there anymore. She stated that she wanted them to just keep that in mind because it would give them some space to do something in. Mr. Campbell advised that he has extended the turf over to that location already so if they ever do remove that portion of the drive thru they could extend it more and incorporate it in with the clock. Councilmember Yates commended Mr. Falcon and Mr. Campbell on their presentation and added that he appreciates their enthusiasm and their goal of keeping the project cost effective. He said along those lines he saw that they were z:\council packets\2013\r130207\130117m.docx Page 10 of 22 looking at a $6.00 per square foot line item for the concrete and pavers and he stated that he knows they spoke with a general contractor with this and he wondered if there was any flexibility with that number. He reported that he is seeing more of a $3.50 to $4.00 per square foot cost. Mr. Campbell explained that because of the nature of the pathway they need a certain amoun t of base and that is where the cost goes up. He agreed that the pavers can be bought at a lesser cost but said that once they add on the base, the materials and the cutting that goes into it, the price goes up. Councilmember Yates commented that as designed, and this is "not to exceed," the cost is $700,000 less than what the last proposal was and he applauded them on their efforts to cut costs. Councilmember Brown said that he assumes they will put the same base underneath the concrete walkway as they would they pavers if they are going to be driving fire trucks down there. He stated that he strongly supports the use of pavers. Mayor Kavanagh asked what plans have been made for the Keith McMahan memorial and Mr. Mood informed the Council that they will just relocate that marker. He noted that the marker has a very clear picture on it and he doesn't know whether they can remove that and put it somewhere else without damaging it. He added that they might have to move the whole thing as one. Councilmember Brown said that if they moved the Verde River intersection and moved the fountains back 10 to 15- feet, if they ever did redo that intersection they wouldn't have to redo the fountains. He stated that he thinks that is worth looking at. He noted that they are talking about putting major crosswalks up from the median area across both sidewalks from Avenue of the Fountains but yet they are being told that they shouldn't take a crosswalk and enjoin the two park areas. He commented that he is struggling with that and if they are going to put crosswalks out into the middle of the main street, he is struggling with not tying the two medians together. He added that it would be nice if they could talk about moving the trees just a little bit farther away from the paver walks so that when the roots come up they don't damage the pavers quite so quickly. Mr. Campbell advised that with the irrigation system they are going to encourage the roots to go downward. Councilmember Brown noted that he is being told by staff that bucket trucks are driven down there to change light bulbs, trim trees, etc., and if they study the entrance and the exit from getting onto the sidewalk with the wall configuration it appears they will be driving on the grass to get up to the sidewalk as opposed to not making it quite so symmetrical so they could load a truck from the side and get past the first fountain (the Verde River fountain) or opposed to having to back up clear up onto the sidewalk. He suggested that they look at reloading those sidewalks a little bit. He reiterated that the Greening Committee has indicated that they would like to participate in this project and commended them for their ongoing assistance. Councilmember Brown commented that Mr. Falcon and Mr. Campbell have done a good job and added that although the price is still too high he is sure that they can work on it. Councilmember Yates asked if the Council accepts this or makes a motion to accept it pending some of the comments. He said he would like to know what the next move is because there might be some minor changes moving forward so how would they accept this or pass this. Mr. McGuire advised that whatever level of direction is necessary for them to move forward to the next set of documents without making changes that are going to cost more is what they need to decide tonight. Councilmember Yates MOVED to accept the design as presented with some of the comments and leeway to make some of the minor changes and Councilmember Brown SECONDED the motion. Ms. Bender advised that one citizen wished to speak on this item. Jerry Butler, representing the Greening Committee, addressed the Council and noted that a lot of the issues that they were going to bring up this evening have already been covered. He added that the group is very pleased that the Council is moving forward with the project to make the Avenue and event mall or a park more attractive to the Downtown area. He informed the Council that over the last three years the Greening Committee has raised over z:\council packets\2013\r130207\130117m.docx Page 11 of 22 $300,000 (in-kind services/donations), planted a number of trees in Fountain Park and a lot of work on the vacant lots in the Downtown area. He further stated that the Committee is willin g to participate with the Town on the event mall or the park by adding more trees or raising funds to put more trees in. He said that he knows that the plan calls for 36" and 48" box trees and they are very expensive. He expressed the opinion that 24" box trees seem to be more reasonable and although they won't initially give off as must shade, if done right they will grow. He advised that the only thing the Committee would ask as they participate with the Town in this project is to get the watering syst em in place so they know where the trees need to go in the future. He pointed out that this will make the donated monies go a lot further. He agreed that deep root watering is very critical to the project and the future health and growth of the trees. He discussed the negative impacts of caliche and said that that is why some of the trees out there now are in the condition they are in. He said that the Committee continues to support the progress that is being made in this area and encourage them to continue to move forward. He noted that there are some details to be worked out and refined but stated that they are on the right track. He commented that the only reservation he would have is when they decide to move forward they should make sure that there are alternatives in the bid and they are able to take something out or not include it at this time rather than sacrifice quality. He added that perhaps they could cut back on quantity and add more later by creating a public/private partnership to raise money for more trees. Mayor Kavanagh thanked Mr. Butler and the members of the Greening Committee for the great job they continue to do. Councilmember Hansen commended Mr. Falcon and Mr. Campbell on what they have been able to do in such a short period of time. She added that she also appreciates their sensitivity in maintaining what is already there and what is safe and proper. She said that she is very enthused about what they have done and she wants to make it very clear that the way she will vote has nothing to do with this product -- she really likes the product, it is just the timing. She pointed out that they are probably going to be adopting a Pavement Management Plan and will probably have to sacrifice other things so for her it is just the timing. Councilmember Elkie thanked Mr. Falcon and Mr. Campbell for their informative and detailed presentation. He stated that this is something that has been discussed for many, many years and he thinks that what is being proposed will fit in well and achieve the vision. He added that he wants to applaud the members of the Council for continuing on with this and specifically thanked Councilmembers Brown and Yates for the amount of time and effort they have put into this. He commented that he hopes the residents of the Town recognize and understand the amount of money that has been saved as a result of their efforts which enables them to move forward in the most cost effective manner. He echoed what Councilmember Brown said relative to the fact that the project looks good but said he too believes they can do better as far as the pricing. Vice Mayor Leger advised that he has no questions because his fellow Councilmembers have done such a tremendous job, particularly Councilmember Brown who raised a significant number of excellent questions. He commented that he really appreciates the work that has been done within a short timeframe and, more than that, their enthusiasm is just awesome and he thanked them for that. A roll call vote was taken with the following results: Councilmember Hansen Nay Vice Mayor Leger Aye Councilmember Dickey Aye Councilmember Yates Aye Councilmember Elkie Aye Councilmember Brown Aye Mayor Kavanagh Aye The motion CARRIED by majority vote (6-1) with Councilmember Hansen voting Nay. Councilmember Yates noted that staff has also done a great job and a lot of work and commended them for their efforts. z:\council packets\2013\r130207\130117m.docx Page 12 of 22 AGENDA ITEM #6 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF REGARDING INITIATING AN AMENDMENT TO THE ZONING ORDINANCE RELATED TO BANNERS FOR SPECIAL EVENTS. THIS ITEM WAS ADDED AT THE REQUEST OF COUNCILMEMBERS BROWN, ELKIE AND YATES. Councilmember Yates advised that he was part of the Sign Committee regarding banners, A-frame signs, etc., and although he is very comfortable with the way it is written, he believes there might be some sort of discussion piece into the interpretation of a certain line item regarding banners at special events and whether they are indoor or outdoor events. He noted that he has read through it and he is not an attorney but his interpretation when he reads this is that it does not explicitly state that the banners are supposed to be used for outdoor events only and he just wanted some clarification from the Council. He added that he believes it can remain as written but if there is a discrepancy right now between staff and how they are communicating this to the business community, he thinks that should be cleared up at this time. Councilmember Elkie asked Mr. McGuire if he had received the e-mail from Shawn White with the Chamber and Mr. McGuire replied that he received it indirectly late today. He said that he doesn't think that it is valuable at all to try and interpret through this ordinance because consistency in the way this ordinance has been interpreted and supporting that position is the way it has been the same for years. He noted that the highlights in his discussion are not exactly as represented. He added that what they really want from the Council tonight is to tell staff what they want as far as banners -- what do they want the ordinance to do and say. He stated that staff will be happy to make what ever the Council wants happen and will put together whatever language is necessary in order to make it work rather than having to discuss interpretations. He further advised that staff can put together an amendment that makes it perfectly clear. Councilmember Yates commented that along those lines he would like to direct staff to come up with language that is crystal clear. He stated that he thinks the intent of the Committee was to include the use of these banners for inside special events as well as outside special events. Mayor Kavanagh agreed with Councilmember Yates' comments and said she too thought that the intent was for indoors as well. She added that the Town does not have a whole lot of sidewalk sales or anything like that and she believes that a lot of discussions during the meetings included letting restaurants put out banners for football season and no one ever said "you can't do that" so she thinks they all assumed that the banners would be for an inside activity, particularly if someone is going inside to watch games. She noted that that is what she thought it was -- for inside -- and if it was for outside then there were special conditions that would have to be met. In response to a request from Councilmember Elkie, Senior Planner Bob Rodgers addressed the Council and clarified that they are really talking about the smaller retail events. He pointed out that the banner interpretation as long as he has been with the Town has been that if someone wanted to put up a banner for a business it had to be outside the walls of the business (an outside event). He said that the confusion arose because some people thought it meant outside events only and some thought inside events so staff is now asking for Council direction on this to eliminate the confusion. Councilmember Elkie stated that with respect to banners he would like to know what the timing is whether for an inside or outside event. Mr. Rodgers responded that the Council adopted the policy of two weeks per month in seven-day increments. He added that currently that can only occur when the activity is behind held outside. Councilmember Elkie asked what would constitute an outside activity and Mr. Rodgers said that could be something as small as putting a table outside of the shop and displaying items on it. He said that they are typically sidewalk sales or parking lot sales. He added that staff's reviews the applications for safety and then signs off on them and give them a certificate (over the counter). Councilmember Dickey commented that that was the question she asked way back when -- how do they define a special event? She said that they don't and that was part of the problem. She added that if there is no definition for something that is unique or special then basically they are allowing another sign for two weeks a month. She noted that it doesn't have to say anything that's different or anything that means anything as far as something being on sale or really anything. z:\council packets\2013\r130207\130117m.docx Page 13 of 22 Mr. Rodgers advised that they don't really need a definition and if the Council tells staff what they want to do with banners they will figure out how to do it. Mayor Kavanagh indicated that she wanted some clarification and asked if someone comes in for an over -the-counter permit/certificate whether they have to tell staff what is on the banner. Mr. Rodgers explained that staff reviews them for safety issues and they never ask what is on the banner. He added that staff does check to make sure that the square footage is in line with requirements. Councilmember Yates stated that he appreciates everyone's comments but the market will prevail and for a small business owner to take time out of his/her day to go down and speak with Mr. Rodgers, and waste his time, they will make it an actual event. He said yes they could go down there to put up something saying they are open today just like they were yesterday but small business owners don't think that way -- they are thinking about how they can maximize their business and make the most money humanly possible. He added for them to put up a banner two weeks out of the month is wasting their time unless they actually have something to provide to the general public in the hope of bringing business in. He reiterated that he just doesn't think that a small business owner is going to use his/her time to do that unless they actually have something that they want to promote. He further stated that even if that was the case does that really hurt the Town that bad because the responsibility is still on them to take it up and down. He stressed the importance of clarifying this and letting the market prevail and said that he really has faith in the business community and that they are not going to bend over backwards to waste their time unless they have something to promote. Mayor Kavanagh stated that the Council cannot dictate what is put on an A-frame sign because they have to be content neural and said she thinks this would also apply to banners. Mr. McGuire responded that he doesn't believe that the Town has ever sought to regulate the content -- they only regulated the size of the signs. He noted that what regulated it before was that it was tied to an event and a review was necessary because the event was outside of the four walls. He added th at if the event takes place within the normal four walls there are not really any safety issues because that is a permanent structure that is operating every day. He said what staff needs to do is if the Council doesn't really care about what the signs say and they want it to apply regardless of whatever it is, staff will remove any categorization of a special event and it will just be that they can have a banner on their business (mounted, not flags) two weeks out of the month. He requested Council confirmation relative to the way in which staff would proceed. Vice Mayor Leger asked whether the Town Code defines an event (do they have a definition for that anywhere?). Mr. Rodgers replied that there is no specific definition in the Zoning Ordinance but there are a series of definitions in the Town Code in the Business Section (Chapter 8). The Vice Mayor stated that they do have events defined in the Town Code but not in an ordinance and asked whether any consideration has ever been given to taking the Town Code definition of events and incorporating it as a footnote in a current ordinance. He indicated his intention to provide some examples and said that the week after this Council approved the Sign Ordinance there were A-frame signs in front of businesses identifying the businesses and at the same time those same businesses had feather signs identifying their businesses so to him that was redundant. He added that he has never thought that a banner that said "Joes Smoke Shop" had anything to do with an event. He further stated that if they drove by Circle K they would see a 30-foot banner that says "Coffee 99 Cents" on a plastic pole placed in a tire with rocks mounted about it and asked if that was an event. He said that they are saying that content doesn't matter. Mr. Rodgers advised that the Town is not permitted to control content. Vice Mayor Leger stated that if content is not an issue then someone could have two flags outside of their business just saying what the business is and he is not sure that that was the intent for the banners. He pointed out that when this ordinance was approved by this Council, the content on the A-frames was not limited (by State law). He asked what would preclude a cigar shop from having an A-frame, since there is no restriction on content, that basically says "Half Price Sale." He questioned what precludes anyone from using the existing ordinance and putting an A-frame out there to promote their event. He said that someone might say that that would require two A -frames and it may and he would imagine that the second A-frame would have a message on it that would highlight their event and would last a lot z:\council packets\2013\r130207\130117m.docx Page 14 of 22 longer than a banner. He stated that he is just trying to understand the problem because right now it is extremely confusing and if they don't have any definition of an event and they don't have any limits on content then they are back to where they were the week after the Sign Ordinance was passed and the Town looked like it had a circus going on. Mr. Rodgers advised that whenever a business has a banner, according to the ordinance, they can only have one (multiple banners are not allowed). He added that the banner must be attached to the building (stand alone banners are not permitted and never were permitted). He said that as far as the A-frame signs, the businesses are allowed only one A-frame sign unless the business is located on a corner and in that case they can have two. Vice Mayor Leger stated that he believes he is hearing that the flags out there are not banners and Mr. Rodgers clarified that they are considered banners and added that banners, as permitted in the ordinance, are only permitted if they are attached to the building. The Vice Mayor thanked Mr. Rodgers for his helpful clarification and stated that the flags that were just stuck in the ground then are not permitted and Mr. Rodgers agreed. Vice Mayor Leger said that the Verizon sign that has been out there for two years on the corner of Technology and Shea is also not allowed and Mr. Rodgers concurred and reported that the business has been cited. The Vice Mayor said that he is just not sure what they are clarifying then. Ms. Bender advised that two citizens wished to speak to the Council on this agenda item. Frank Ferrara, representing the Chamber of Commerce, addressed the Council and asked the Council to look at Shawn White's e-mail (he is Chair of the Chamber's Board of Directors and a member of the Committee). He said that he believes the e-mail contains pretty much what Vice Mayor Leger was looking for as far as clarification. He noted that it is spelled out in Chapter 8 of the Town Code and said they know what a special ev ent is and he wouldn't want to confuse the two, which seems to have occurred this evening. He requested that the Council adopt the Chamber's position as outlined in Mr. White's e-mail. He asked that they allow the use of banners in accordance with the Town's ordinance. Linda Bordow addressed the Council and said she was active at all the meetings when the Sign Ordinance was developed and remembers discussion about removing the banner section under the special events portion and it is possible for a business to have two one-week long segments for use of their banner. She stated that they were supposed to be attached to the buildings and special events can be anything. She expressed the opinion that the banners can be very effective for businesses especially when they are placed on buildings -- they are another sign. She added that they should leave it to the businesses to decide because business owners are not going to run over to Town Hall two times a month. She urged the Council to vote to allow the b anners two weeks a month for seven consecutive days. She commented that she was disappointed to hear that members of the Council do not like the feather signs and said they are a neat little of way of helping businesses attract people. Mayor Kavanagh thanked the speakers for their comments. Councilmember Yates stated that he thinks they are just going through growing pains because this has just passed and he agreed with Vice Mayor Leger that there are a lot of things out there now that are in violation. He said that in his opinion this was already allowed and it was just a matter of clarification and added that he would like to again ask whether the Council needs to make a motion or just provide direction. Mr. McGuire advised that staff would like to obtain direction in the form of a motion from the Council to initiate an amendment to the Zoning Ordinance. Councilmember Yates MOVED to direct staff to come up with the content so that banners are allowed, whether for indoor or outdoor events, subject to the same terms and conditions that the Council passed last year and Councilmember Hansen SECONDED the motion. Councilmember Dickey commented that when they talked about this before she thought that two weeks a month was excessive in the way that they were talking about it before. She noted that they make decisions on signage and how much signage businesses are allowed and other things that she can go along with. She referred to Ms. Bordow's comment about special events being anything business owners want them to be and she doesn't see the definition of an z:\council packets\2013\r130207\130117m.docx Page 15 of 22 event so she doesn't think she wants to support this. She added that at this point she thinks it is an expansion of the use of the banners. Councilmember Elkie stated that they are going to get some lan guage back from staff and he knows that they are not making a final decision on this tonight. He added, however, that he thinks they should be looking at the easiest way to simplify it and make it completely crystal clear. He said maybe it should be looked at as whether it is tied to an event or not because they don't need staff running in and out asking if a business is having an event and if so what type of event. He added that perhaps they should be looking more at the fact that they are going to allow banners for a certain period of time a month and the business owners have to come in and meet with staff about safety issues (content is not an issue). He noted that the business owners can put anything on the banners that they want and he is sure that many businesses will use the same banner over and over again. He clarified that perhaps they should take the event language out and just say businesses may have banners up for x amount of days a month regardless of what it is. Mr. McGuire said that that is exactly what he was proposing and added that if they are going to go back and address the Zoning Ordinance on this topic he wants to make sure that the Council is comfortable with the result -- staff is going to remove any clarification questions whatsoever and it is going to be very clear that they will not be tied to any kind of an event. He added that there will be no need for interpretations because the language will simply state that banners are allowed for x amount of days a month. Councilmember Elkie commented that there are a lot of people present tonight who participated on the Sign Committee. He said that he would hope that there would be strict compliance with the laws in place and noted that the Council has tried to help the businesses and there will be zero tolerance for non-compliance. He urged everyone to get on board and said there should not be any more excuses in the future, just compliance. Vice Mayor Leger advised that he voted against the Sign Ordinance and he made it perfectly cl ear that he didn't have a problem with the whole laundry list of things that could be utilized to promote business but he did state very clearly that he had concerns about electronic signs for a variety of reasons (dark skies, etc.). He discussed complian ce and reported that they have an electronic sign that is currently out of compliance so if staff was not aware of that they are now. He stated that they might not notice it because Code Enforcement doesn't work until ten or eleven o'clock in the evening when it is dark. He reiterated that he opposed the ordinance for that and only that reason and added that he is more than willing to take a look at what staff brings back with respect to the notion of banners but he is looking for clarity. A roll call vote was taken with the following results: Councilmember Yates Aye Councilmember Dickey Nay Councilmember Hansen Aye Councilmember Brown Aye Councilmember Elkie Aye Vice Mayor Leger Aye Mayor Kavanagh Aye The motion CARRIED by majority vote (6-1) with Councilmember Dickey voting Nay. AGENDA ITEM #7 - CONSIDERATION OF RESOLUTION 2013-02, APPROVING THE PAVEMENT MANAGEMENT PROGRAM AND AUTHORIZING THE NECESSARY BUDGET TRANSFERS TO FUND THE PROGRAM. Town Manager Ken Buchanan addressed the Council relative to this agenda item and asked the Council if they wanted him to go through the presentation again (they have already seen it twice) and the Council declined. Mr. Buchanan stated that Resolution 2013-02 puts the proposal into motion and staff recommends that the Council approve it. z:\council packets\2013\r130207\130117m.docx Page 16 of 22 Ms. Bender advised that there were two citizens who wished to speak on this agenda item. Andy Murch addressed the Council and applauded them for tackling this issue. He commented on the declining condition of the Town's roads. He said that he knows they can't do everything at once and he knows that the last attempt to get a bond issue was not approved failed but he urged the Council to aggre ssively pursue that again. He expressed the opinion that with the proper presentation the bond can be passed and he knows that the Council is serious about this but said that the Council has an obligation to protect the Town's infrastructure and the roads are the biggest infrastructure in Town. He noted that the roads did not have the proper sub -grade initially and then they were not properly maintained and so they are failing. He stated that less than 3/4 of 1% on an infrastructure of $150 million will never get them back into the shape they need to be in. He stressed the importance of pursuing road reconstruction and stated that although it will be difficult it has to be done. He further stated he has worked and lived in Europe for a number of years and walking and bicycle riding is more of a way of life there than it is here. He added that roundabouts are not only an accepted way of moving traffic, they save money, fuel, reduce accidents and are an effective way of allowing people, pedestrians, and bicyclists to cross the streets. He said that although they are more expensive they can be more aesthetically pleasing than traditional intersections. He added if they are looking at ways to beautify the Town this is a good way to go because they can include a fountain, a special tree or a memorial. He encouraged the members of the Council to keep working on the road maintenance and hopefully reconstruction. Ms. Bordow declined to speak at this time. Councilmember Hansen commented that Mr. McGuire came up with the language in the resolution to make it not sound "as final." She read the proposed language and said that the revised language provides them with some comfort, knowing that what is being done is not engraved in stone for perpetuity. Councilmember Hansen MOVED to approve Resolution 2013-02 and Councilmember Yates SECONDED the motion. Councilmember Dickey said that perhaps she wasn't as successfully articulate as she wanted to be with some of the concerns that she has regarding the economic development aspect of this at the Work Study Session. She added that she made some copies of pages from the budget and other things to help illustrate what she is says this time maybe a little bit better and to make this a transparent discussion about a policy that they are moving to their taxpayers. She stated that she was concerned that the resolution to fund Pavement Management commits them to paying for it by including the removal of the funding for the Economic Development Plan ($90,000) and at the same time paying for the Tourism from the Downtown Development Fund in the suggested amount of $103,000. She noted that that means they are using specific Avenue of the Fountain area monies for a tourism effort that is for the entire Town and it also strengthens the commitment seemingly of this Council of the $103,000 to go towards Tourism, even though the amount and the idea of where tourism is going to lay in the entire Economic Development Plan is up for re-evaluation. She commented that if they are going to remove the $90,000 from the Economic Development Plan until the plan is fully vetted and prioritized with implementation that would be suggested by the proposed Steering Committee and sub- committee, why would they commit to this one part of the Economic Development Plan and in doing so divert Downtown resources that will make them unavailable for the plan that they asked come back to them. She noted that there are two things going on and one is the use of the Downtown Development Fund, which was a sales tax that was created for Downtown development in August 2000 and she knows that they are saying that there might not be legal ramifications with this but the intent was very clear. She stated that the quote from the minutes of that meeting was "designating .001% for Downtown development." The Town Manager then listed where those funds could be used and he said "by improvement districts, parking, a linear mall, capital and operating costs that are of vital interest in the viable and successful Downtown area." She added then during this Council's discussion a couple of months ago at the October 4th meeting, they again talked about using the Downtown funds and from the minutes of that meeting there were quotes that included from the members of the Council including herself that said "We know that we could use this money for something else but I am hesitant to break this sort of honor that was established, sort of a promise in honoring what past Councilmembers promised to do and they told the people they would do." She added that another quote stated "We know that our past Council has made a commitment and it is important to honor commitments. There is an expectation that if the dollars are there the y should be spent on this particular project." She read an additional quote from her which stated "I agree with not using the monies for another purpose and it is a pact in a way." z:\council packets\2013\r130207\130117m.docx Page 17 of 22 Councilmember Dickey advised that she also looked at the budget from this year and the part of the Economic Development Plan that comes from the Downtown Fund. She stated that if they look at how it has been used historically, it has only been used for the specific Downtown area. She added that the page where it lists what they would like to see come about from this expenditure, in this case $184,000 or so, and by the way only $50,000 of that or a little bit more is the salary. She noted that some of the things that they want to do, which she thinks are still relevant and will likely come out as a result of the Economic Development Plan is that this Economic Development Plan was to align with the Council's adopted Downtown Area Specific Plan. She advised that these monies were to be used to implement strategies for the retailers and businesses on the Avenue of the Fountains and other Downtown property and also to hold forums and such with the Avenue of the Fountains' property owners and other downtown pro perty. She added that there are two messages there -- it is not only for Downtown but it will require resources to get there. Councilmember Dickey stated that that is the part that she objects to as far as using the Downtown Development Fund for that and then they go to the Economic Development Plan that they just had the report on and that process, that very recent discussion that again was at a Work Study Session, but they had consensus at that meeting that they were not making specific funding recommendations until the proposed Steering Committee and the sub-committees came back with a solid plan to go forward. She said that they just approved the minutes for that meeting and it said there was a question, which she did ask the Town Manager about -- whether the Council will be looking into adding economic development staff. She reported that the Manager's response was that they need to focus first on the approach, look at the staffing and budget and how to get there. She advised that he was recommending that they not put the cart before the horse and they first had to find out what they wanted to do and what it would take to get it done and then have the further discussion. She added that the Arizona Republic published an article about their meeting and they described it by saying "The Town currently is operating without an Economic Development Administrator. Staffing, organization and funding to support the plan would be considered after it is approved Mr. Buchanan said." She said and then if they look at budget that they had this year that was also discussed at their Retreat is the budget for Economic Development, which is $89,904, which is the $90,000 that she believes is being taken out of their budget for next year. She further stated that if they look at the idea of taking the money for just this one part and she doesn't think should be funding tourism, which is looking like it could come down to be about a sixth of the Economic Development efforts in full from the Downtown Fund. She said that the Economic Development Plan that the Council originally looked at when Mr. Buchanan broke out the $50,000 (this was all approved by the Council) had three initiatives -- the Downtown Initiative, the Tourism Initiative and the Business Attraction Initiative. She added that even in this, which is Town wide, it was one third. Councilmember Dickey referred to the meeting the Council just had on the 3rd where they had a presentation from the SPAC about economic development and noted that they had profession al and technical, health care, finance, tourism, and added retail and education so it is even a smaller portion of what may come out from this Economic Development Plan. She further stated that the other thing about taking the money from this fund is that they are using the Downtown Fund for the median, the park, and they will be squeezing it and they are doing a good job of trying to do that so she can't reconcile putting $103,000 of the Downtown Fund towards one potential part of economic development. S he pointed out that the other thing they talked about obviously is the intersection and they are going to be looking at costs and when they say what do we want to do for Downtown, they are removing this tool from that. She added that they have a light that they are talking about at Palisades, which is a big chunk of money, and they talked about doing something else with that intersection which is part of the discussion she has had with the Town Manager about why don't we bring forward and start talking about Saguaro -- what if there was a way to avoid having to have a light there and there's the dirty word, roundabout, but the fact is there's no maintenance with that but there are costs for the traffic signals and they are a part of the Pavement Management Plan that requires them to have enough money for that plan. Councilmember Dickey advised that what she is trying to say is she would like to try and restore the funding for economic development and for tourism but not have it come out of the Downtown Fu nd. She added that then they get to the part about being $193,000 less than what they expected to take out for the Pavement Management. She noted that obviously they are showing a very big commitment to Pavement Management -- it is January now and they are going to be giving more than $800,000 between now and just this fiscal year towards it and next year they are talking $2 million, $1 million supposedly coming out of the CIP and $1 million coming from these various ways that they are making it work. She said if they are that tight that they couldn't do that, then why are they going through the Economic Development Plan scenario and exercise if there will be no money or resources to put towards it or very little. She added that if they think that they can, she would like to preserve that money and she doesn't want to take the money out of the Downtown Development Fund and she doesn't feel that people really knew that was what they were z:\council packets\2013\r130207\130117m.docx Page 18 of 22 doing. She stated that it was there -- it wasn't in the paper but it was discussed at a Work Study Session and she doesn't know if the merchants knew that they were thinking about doing that or the Greening people or the Farmers Market or anybody that has an interest in the Downtown. She commented that she doesn't know if they were all aware of the ramifications of this decision. She said that she feels they are creating almost a protected fund for a single sliver of the Economic Development Plan that has not been vetted or even brought back to them yet. She added that s he thinks they should keep the money in economic development if they are going to go through that exercise and they should not be saying where it is going to go until they go through the whole exercise. Councilmember Yates commented that by moving the line item out of the General Fund into the Downtown Fund that just says the first $103,000 if they so choose to pursue the Visitors Bureau -- that is where the first $103,000 comes from, it doesn't say that they have to spend $103,000. He asked whether this statement was correct. Mr. Buchanan advised that is a function of budget and the Council will be talking about that during the budget discussions on an annual basis. Councilmember Yates said that to answer his question then, there is a line item in the budget and the Council can, this year or next year when it comes up, agree to fund it or not and asked if that was correct. Mr. Buchanan responded yes. Councilmember Yates further stated that theoretically, using a business model, they use more like 3% to 6% of gross towards marketing/advertising so (and he is not saying he'd do this) if they bumped the advertising/marketing or Visitors Bureau budget up to $300,000, then only one third is coming out of Downtown. He noted that the $103,000 is a not to exceed number and it doesn't mean that they have to spend it; it just means that the money that they were taking out of the General Fund, the first $103,000, comes out of the Downtown Fund and likewise for economic development. Councilmember Elkie advised that basically, as he understands it, they are saying instead of taking the Economic Development Tourism appropriation out of the General Fund basket, if they are going to spend money on it, then it is going to come out of this basket. He added that the amount that is going to come out of this basket now is subject to Council approval on a yearly basis. He noted that it is not the first $103,000 off the top that comes from this -- if in the future they are going to be taking funds they are going to come out of this fund. He added, however, that if future Councils decide to take some of this fund and out of the General Fund, the Council, as he understands it, will have the discretion to do so. He said that they are just moving it there because it is limited as far as what those funds can be spent for. Councilmember Elkie responded to some of the comments made by Councilmember Dickey and noted that when they did have an Economic Development Director, a certain percentage of her salary was paid from the Downtown Excise Tax Fund. He asked if anyone knew what that percentage was offhand and Mr. Buchanan said about 50/50. Councilmember Elkie noted that presumably then 50% of that Economic Development Director's time was spent on things that would relate to the Downtown area and 50% was essentially the rest of the Town -- he does know if that was always the case on a month-to-month or even a year-to-year basis. He commented that he respects and appreciates Councilmember Dickey's comments about what past Councils have done and the votes that they cast as to what these funds are doing. He said that is what they are talking about here tonight -- creating a Pavement Management Program - - and they hope that future Councils continue to do that and do not repeal it. He stated that for him, when they were looking at the intent (and he thanked Councilmember Dickey for the handouts) one of the aspects that the Downtown Excise Tax Fund could be used for was operation costs and vital interests i n a viable and successful Downtown area. He expressed the opinion that that could apply to that. He added that he does understand the reservation about putting it all in there (all meaning all of the Economic Development Tourism Initiative) but he thinks that they are in a situation where there are limited monies in the General Fund to do this. He said that he wants to be very clear that if this Council does agree to put it all into the Downtown Excise Tax Fund or the monies to be paid from there that is no guarantee that year after year those monies are going to be paid, as far as the amount. He pointed out that it is not $103,000 from this point on -- it could be more or it could be less and he thinks that future Councils have the ability and the discretion to say "we'll just take $50,000 out of the Downtown Excise Tax Fund and now that the economy is doing a little bit better, we will take $50,000 out of the General Fund to pay for that." He reiterated that he respects and understands what Councilmember Dickey is saying as far as precedent is concerned but at the end of the day it is z:\council packets\2013\r130207\130117m.docx Page 19 of 22 still the taxpayers' dollars, the sales tax, a portion goes to the General Fund and a portion goes to the Downtown Development Fund. Mayor Kavanagh agreed with Councilmember Elkie's comments and said that she had basically the same notes on what he stated about the fact that part of the salary of the Economic Development Director's salary did come out of the Downtown Fund. She noted that there were other things that came out for memberships and other types of expenses and she believes that at one time she was trying to fill office space in various parts of Town, certainly not limited to the Downtown. She added that there are quite a few areas where office space is available. She commented that the money has been used in the past for things other than just the Avenue and she believes the Downtown area is a little bit bigger than just the area but that particular street. She further stated that she thinks that that had alr eady set a precedent that the money was used for other areas in Town. Councilmember Dickey pointed out that the former Economic Development Director was in charge of all economic development and not just tourism, which is just a section of it. She stated that if half of her salary was going to that, it was interpreted that that amount of money was to be spent Downtown, whether for events, offices, or other things like that and not just specifically for tourism. She added that if they take the other side of that, they are taking money out of the Downtown Development Fund to pay for golf and weddings and things like that. She asked how they are reconciling breaking from what that tax was imposed for called a Downtown Excise Tax. She pointed out that they are paying for tourism that has nothing to do with Downtown -- they are not saying take half of it, they are taking something and setting a huge precedent by saying from now on that is going to be taken out of here and, on the other hand if they are not and this is all just "we can change it at any time," then what are they doing and why are they down to the penny worrying about $1 million, $750,000. She added that if they are going to take $1 million out next year, say it is $1.190 million and put all the money back so that when they get the product back from the Steering Committee and the SPA about economic development, then they can say "hey, this is what we have to do economic development with." She stated that if they come back and say they have something going on that they can use and they think they should allocate their resources this way, the Council will have already made that decision to allocate these resources to one part of the plan and they haven't even gotten the plan back yet. She noted that about two weeks ago they sat there and said that they would not make decisions on how they are going to fund economic development until they get the plan back and here they are two weeks later taking a little piece of it, but a lot of money, and paying for it in a way that she doesn't think they should be paying for it. There were no citizens wishing to speak on this agenda item. Councilmember Dickey advised that she has an amendment she would like to propose and asked if everyone was done discussing this. Councilmember Dickey MOVED to delete Section 7 in its entirety and Section 9C, lines 4, 5 and 8. Councilmember Dickey explained that that restores the economic development money and all of that (the $193,000) back to the General Fund. Vice Mayor Leger SECONDED the motion for purposes of further discussion and said that hopefully that is not needed or just to bring it to a vote and to closure. Councilmember Yates referred to the $1.5 million and said as far as a maintenance program wasn't that at the very lowest end of what they really need. He said he remembers sitting at meetings and they were looking at $2.5 million and saying that that is really what they need. He asked what that would do to them -- taking $200,000. Mr. Buchanan advised that it would reduce the amount on an annual basis because he doesn't have any other place that he can take that money from. Councilmember Dickey noted that obviously they would have a $2 million budget for next year's Pavement Management. She said they have over $800,000 this year and $2 million next year (just for next year and that that is what she is talking about) She added that next year is when they are going to want to be doing an Economic Development Plan. She stated that if they have zero money for even this little bit of flexibility, why are they doing the Economic Development Plan -- how are they going to fund the recommendations that come back. She advised that she did have some ideas on how they might be able to make it up such as reprogrammi ng the $1 million from the CIP and z:\council packets\2013\r130207\130117m.docx Page 20 of 22 make it $1.190 million (just for 2013-14) and that will fill it in. She commented that she doesn't like to say it but if the bond doesn't pass then that will change the dynamics of Pavement Management so there would probably be some other discussion about that next year anyway. She said that she forgot that she had given the Council copies of the Policy Statement from the League about the HURF funding and stated that one of their proposals for the cities/towns it to ask their legislators to discontinue diversion of the Highway User Revenue Fund monies to fund operations of State agencies. She added that she gave them a chart that they probably can't read very well but basically that is over $100,000 and if the legislature didn't take it then they would have that. She noted that she thinks there are other ways to try and get that money back and to act like this isn't a commitment because she thinks they had made a commitment to do an Economic Development Plan and to try and restore that money back into the General Fund so that it is available to them when they get that plan back. She added that she really feels that there will be a way to make it work out as far as making up whatever this $193,000 is and she just doesn't think they should be taking it out. Mayor Kavanagh called for a roll call vote on the amendment with the following results: Councilmember Hansen Nay Councilmember Brown Nay Councilmember Elkie Nay Councilmember Yates Nay Vice Mayor Leger Nay Councilmember Dickey Aye Mayor Kavanagh Nay The motion FAILED for lack of a majority vote (1-6) with Councilmember Dickey voting Aye. Vice Mayor Leger stated that he would like to make a comment on the main motion brought forth by Councilmember Hansen and said that as many of the Councilmembers know, at their Work Study Session they talked extensively about changing that language and it has been changed as pointed out by Councilmember Hansen. He added that he believes that the language gives the Council the flexibility that they need. He said even going into their Retreat this fiscal year he was extremely sensitive to Councilmember Dickey's point of view on this and probably would have leaned in that direction if this flexibility wasn't here. He concurred with Councilmember Hansen that the flexibility in their language does allow them to take another look at this. The Mayor called for a vote on the main motion and a roll call vote was taken with the following results: Councilmember Elkie Aye Councilmember Hansen Aye Councilmember Yates Aye Vice Mayor Leger Aye Councilmember Brown Aye Councilmember Dickey Aye Mayor Kavanagh Aye The motion CARRIED UNANIMOUSLY (7-0). AGENDA ITEM #8 - CONSIDERATION OF THE ADDITION OF STRATEGIC DIRECTIONS CR8, EV9 AND EV10 TO STRATEGIC PLAN 2010, AS RECOMMENDED BY THE STRATEGIC PLANNING ADVISORY COMMISSION. Mr. Buchanan addressed the Council and advised that previously the Council asked that the SPAC come back to them with recommendations and strategies that would go with the three recommendations that they have. He noted that their recommendations are before the Council this evening. He informed the Council that the Chairman of the SPAC is present this evening to answer any questions that the Council may have or to hold further discussion. He added that there is a recommendation to approve these. Councilmember Hansen thanked the members of the Strategic Planning Advisory Commission for the detail that they provided. z:\council packets\2013\r130207\130117m.docx Page 21 of 22 Mayor Kavanagh announced that the Chairman of the SPAC, Nick Deporter, is present as well as Commissioner Bordow. Councilmember Elkie MOVED to approve the addition of Strategic Directions CR8, EV9 and EV10 to the Strategic Plan 2010 and Councilmember Hansen SECONDED the motion. There were no citizens wishing to speak on this agenda item. The motion CARRIED on a vote of members present (6-0). Councilmember Brown was not present in the room when the vote was taken. AGENDA ITEM #9 - SEMI-ANNUAL REPORT ON THE PROGRESS OF IMPLEMENTING THE COUNCIL'S STRATEGIC PLAN GOALS AND OPERATIONAL PRIORITIES FOR FY2012-13. Mr. Buchanan advised that he has submitted the semi-annual report for the Council's review and consideration and said that no action is required. He added that staff will be happy to answer any questions that the Council may have. Councilmember Hansen thanked Mr. Buchanan and staff for the report. Vice Mayor Leger said he would like to extend his appreciation to staff for taking action on the initiatives and making very good progress. AGENDA ITEM #10 - DISCUSSION WITH POSSIBLE DIRECTION TO STAFF RELATING TO ANY ITEM INCLUDED IN THE LEAGUE OF CITIES AND TOWNS WEEKLY LEGISLATIVE BULLETIN OR RELATING TO ANY ACTION PROPOSED OR PENDING BEFORE THE STATE LEGISLATURE. Mr. Buchanan addressed the Council and stated that the only thing that is out there is the Transaction Privilege Tax (TPT) and the Council has copies of the correspondence that was sent out to all of the Town's representatives. He commented that there is very little activity going on with the Legislature at this time. Mayor Kavanagh stated that Mr. Buchanan's letter was a very good one and included the points that they talked about. Mr. Buchanan said that Ms. Ghetti composed the body of the letter and deserves the credit for that. The Council thanked Ms. Ghetti for her efforts. AGENDA ITEM #11- COUNCIL DISCUSSION/DIRECTION TO THE TOWN MANAGER KEN BUCHANAN. Items listed below are related only to the propriety of (i) placing such items on a future agenda for action or (ii) directing staff to conduct further research and report back to the Council. A. None. AGENDA ITEM #12 – SUMMARY OF COUNCIL REQUESTS AND REPORT ON RECENT ACTIVITIES BY THE TOWN MANAGER KEN BUCHANAN. None. AGENDA ITEM #13 - ADJOURNMENT Councilmember Yates MOVED to adjourn the meeting and Councilmember Hansen SECONDED the motion, which CARRIED UNANIMOUSLY (7-0). The meeting adjourned at 10:01 p.m. z:\council packets\2013\r130207\130117m.docx Page 22 of 22 TOWN OF FOUNTAIN HILLS By _______________________________ Linda M. Kavanagh, Mayor ATTEST AND PREPARED BY: ________________________________ Bevelyn J. Bender, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 17th day of January, 2013. I further certify that the meeting was duly called and that a quorum was present. DATED this 7th day of February, 2013. _____________________________ Bevelyn J. Bender, Town Clerk