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HomeMy WebLinkAbout2022.0517.TCRM.Minutes TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL MAY 17, 2022 1. CALL TO ORDER AND PLEDGE OF ALLEGIANCE — Mayor Dickey Mayor Dickey called the meeting of the Fountain Hills Town Council held May 17, 2022, to order at 5:30 p.m. and led the Council and audience in the Pledge of Allegiance. 2. MOMENT OF SILENCE A Moment of Silence was held. 3. ROLL CALL—Mayor Dickey Present: Mayor Ginny Dickey; Vice Mayor Gerry Friedel; Councilmember Peggy McMahon (telephonically); Councilmember Mike Scharnow; Councilmember Alan Magazine; Councilmember David Spelich; Councilmember Sharron Grzybowski Staff Town Manager Grady E. Miller; Town Attorney Aaron D. Arnson; Town Clerk Present: Elizabeth A. Klein 4. REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER A. RECOGNITION: Stellar Students of the Month for April 2022. B. PROCLAMATION: Police Week I May 11 through 17, 2022 5. SCHEDULED PUBLIC APPEARANCES/PRESENTATIONS A. PRESENTATION: Mayor's Youth Council B. PRESENTATION: Update from the Citizen Streets Committee. C. PRESENTATION: Economic Development- Third Quarter Update 6. CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted(not required)on matters NOT listed on the agenda. Any such comment(i)must be within the jurisdiction of the Council, and(ii)is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may(i)respond to criticism, (ii)ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda. Town Council Regular Meeting of May 17, 2022 2 of 5 None 7. CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda. MOVED BY Councilmember Sharron Grzybowski, SECONDED BY Councilmember Alan Magazine to approve Consent Agenda Items 7-A through 7-C. Vote: 7 - 0 Passed - Unanimously A. CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes of the Council Retreat of February 22, 2022; the CIP Workshop of March 22, 2022; the Regular Meeting of April 19, 2022; the Special Meeting of May 3, 2022; and the Regular Meeting of May 3, 2022. B. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-27 designating the Town's Economic Development Department/Tourism Division as the Destination Marketing Organization (DMO) and approving the Town Manager as the authorized signatory for the Arizona Office of Tourism. C. CONSIDERATION AND POSSIBLE ACTION: Approval of the Final Condominium Plat for Motor Vault Fountain Hills Luxury Garages, a 31 Unit condominium subdivision at 11843 N. Desert Vista Drive (northeast corner of Desert Vista and Saxon). Case#FNP22-000001 8. REGULAR AGENDA A. CONSIDERATION AND POSSIBLE ACTION: Appointment to the Strategic Planning Advisory Commission. MOVED BY Councilmember David Spelich, SECONDED BY Councilmember Mike Scharnow to appoint Geoffrey Yazzetta to the Strategic Planning Advisory Commission with a term expiring April 30, 2023. Vote: 7 - 0 Passed - Unanimously B. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-24 adopting the Fee Reduction and Waiver Policy. MOVED BY Councilmember Mike Scharnow, SECONDED BY Vice Mayor Gerry Friedel to approve Resolution 2022-24. Vote: 7 - 0 Passed - Unanimously Town Council Regular Meeting of May 17, 2022 3 of 5 C. CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2022-075 with M. R. Tanner Development and Construction, Inc. for Pavement Preservation Treatments. MOVED BY Vice Mayor Gerry Friedel, SECONDED BY Councilmember Mike Scharnow to approve Professional Services Agreement 2022-075 with M. R. Tanner Development and Construction, LLC. for Pavement Preservation Treatments in the amount of$1,400,000. Vote: 7 - 0 Passed - Unanimously D. CONSIDERATION AND POSSIBLE ACTION: approving staff to seek and apply for grants from the Maricopa County Flood Control District (MCFCD). MOVED BY Councilmember Alan Magazine, SECONDED BY Councilmember David Spelich to approve staff to seek and apply for grants from the Maricopa County Flood Control District (MCFCD). Vote: 7 - 0 Passed - Unanimously E. CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2022-071 with Shums Coda for 3rd party plan review and inspection services for Phases II and III of Park Place. MOVED BY Vice Mayor Gerry Friedel, SECONDED BY Councilmember Sharron Grzybowski to approve Professional Services Agreement 2022-071 with Shums Coda. Vote: 7 - 0 Passed - Unanimously F. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-29, First Amendment to the Development Agreement between the Town and N-Shea Group, LLC and Park Place Properties, LLC. MOVED BY Vice Mayor Gerry Friedel, SECONDED BY Councilmember Sharron Grzybowski to adopt Resolution 2022-29, with an amendment to change 12 months to 3 months. Vote: 3 -4 Failed AYE: Vice Mayor Gerry Friedel Councilmember Alan Magazine Councilmember Sharron Grzybowski G. CONSIDERATION AND POSSIBLE ACTION: Resolution 2022-25 extending the contract with Maricopa County Sheriffs Office (MCSO) for law enforcement services until June 30, 2023. Town Council Regular Meeting of May 17, 2022 4 of 5 MOVED BY Councilmember Sharron Grzybowski, SECONDED BY Councilmember Mike Scharnow to adopt Resolution 2022-25. Vote: 7 - 0 Passed - Unanimously H. DISCUSSION WITH POSSIBLE DIRECTION: Relating to any item included in the League of Arizona Cities and Towns' weekly Legislative Bulletin(s) or relating to any action proposed or pending before the State Legislature. No discussion. 9. COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s)listed below are related only to the propriety of(i)placing such item(s)on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council. Vice Mayor Friedel said that awhile back he had asked about the possibility of ending the Cottonwoods Maintenance District, and have it taken over by the homeowners. Mr. Miller replied that staff would report back. Vice Mayor Friedel asked if staff had received a response from the State on being able to provide inspection services for them for sober living homes. Mr. Arnson said it was something they were looking into and he would report back once they have an answer. Vice Mayor Friedel said that he has been receiving a lot of calls about the new restrictions on election signs, and he would like to have further explanation on those regulations. 10. ADJOURNMENT MOVED BY Councilmember David Spelich, SECONDED BY Councilmember Sharron Grzybowski to adjourn. Vote: 7 - 0 Passed - Unanimously The Regular Meeting of the Fountain Hills Town Council held May 17, 2022, adjourned at 8:27 p.m. TOWN OF FOUNTAIN HILLS g jw.L.,- 6 e,,,Ly Ginn ickey, Mayor ATTEST AND PREPARED BY: Eli..Seth A. ?• -in, Town Clerk Town Council Regular Meeting of May 17, 2022 5 of 5 CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Regular Meeting held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 17th of May, 2022. I further certify that the meeting was duly called and that a quorum was present. DATED this 7th day of June, 2022. Eli a eth . in, Town Clerk TOWN OF FOUNTAIN HILLS Page 1 of 70 MAY 17, 2022 CITY COUNCIL MEETING Post-Production File Town of Fountain Hills May 17,2022 City Council Meeting Transcription Provided By: eScribers, LLC * * * * * Transcription is provided in order to facilitate communication accessibility and may not be a totally verbatim record of the proceedings. * * * * * Page 1 of 70 TOWN OF FOUNTAIN HILLS Page 2 of 70 MAY 17, 2022 CITY COUNCIL MEETING MAYOR DICKEY: Good evening, everyone. Would you please stand for the pledge and remain standing. ALL: I pledge allegiance to the flag of the United States of America. And to the republic for which it stands, one nation,under God, indivisible, with liberty and justice for all. Let's have a moment of silence,please. MAYOR DICKEY: Thank you. I think it's appropriate at this time to read these words that came from the president of the National League of Cities and Towns, Mayor Vince Williams. He says, "My heart goes out to the victim's families and my prayers go out to Buffalo,New York Mayor Byron Brown as he works to heal this city. Thank you. Roll call. Roll call, please. TOWN CLERK KLEIN: Mayor Dickey? MAYOR DICKEY: Here. CLERK KLEIN: Vice Mayor FRIEDEL? VICE MAYOR FRIEDEL: Present. CLERK KLEIN: Councilmember MCMAHON? COUNCILMEMBER MCMAHON: Here. CLERK KLEIN: Councilmember SCHARNOW? COUNCILMEMBER MCMAHON: Can you hear me? COUNCILMEMBER SCHARNOW: Here. Yes,we can hear you, Peggy. [LAUGHTER] CLERK KLEIN: Councilmember MAGAZINE? COUNCILMEMBER MAGAZINE: Here. CLERK KLEIN: Councilmember SPELICH? COUNCILMEMBER SPELICH: Present. CLERK KLEIN: Councilmember GRZYBOWSKI? COUNCILMEMBER GRZYBOWSKI: Present. MAYOR DICKEY: Thank you so much. As always,we start with reports from the town manager and the council. Grady? Page 2 of 70 TOWN OF FOUNTAIN HILLS Page 3 of 70 MAY 17, 2022 CITY COUNCIL MEETING TOWN MANAGER MANAGER MILLER: Mayor and Council, I have no reports for you tonight. VICE MAYOR FRIEDEL: A couple things, Mayor. I had the privilege of attending the 800-mile Warrior Expedition and representing the Town and honoring, along with the marine corps league detachment from Town here, and the American Legion Post 7507. That was an 800 mile walk that these two warriors did, so it was my honor to present them with a fountain pen from the Town. And I also had the privilege of attending the Daughters of the American Revolution banquet and to welcome them to our town and the area last Friday night. And for many of you who don't know who they are, they have 42 chapters in the State of Arizona. We have one here in Fountain Hills, the Four Peaks chapter, and I was amazed by the amount of work that they do for the veterans, running SA contests for a lot of the schools, the service work that they do, conservation, a lot of hospital work, and they actually have school as well, too, so. And I was presented with this challenge coin for being there and representing the town. So it was well worth-while attending and I learned a lot about DAR. Thank you. MAYOR DICKEY: Thank you, Vice Mayor. Peggy, did you have something? I'm sorry. COUNCILMEMBER MCMAHON: Yes. Good evening, everybody. Sorry I couldn't be there. I just wanted to let everybody know that I attended the East Valley Partnership 40th anniversary celebration. It was really, really nice. They did include Fountain Hills. And towards the end of the presentation they had a slide show of 40 years of the development of the East Valley. And towards the end they had, of course, the fountain, but they also included the International Dark Sky Discovery Center, and mentioned it, which was really, really nice to see that they know that's going on out here. That's all. MAYOR DICKEY: Thank you, councilwoman. Anybody else? Yes, Sharron. COUNCILMEMBER GRZYBOWSKI: Of course I do. I virtually attended the GPEG Broadband Task Force update. We've been meeting every other month for about ten months now. We've got support from USU, the Digital Equity Institute, APS, and Maricopa County. They're working with Speedtest.net to help break down the State's Page 3 of 70 TOWN OF FOUNTAIN HILLS Page 4 of 70 MAY 17,2022 CITY COUNCIL MEETING connectivity and speed issues throughout the entire State. They're hoping that in the next couple weeks they can kind of come up with a map so we can see the areas that are lacking both in connectivity as well as those with speed issue. And it looks like the federal monies were released on Friday. I think it was $42 million, billion -- -- there was a lot of money that was released on Friday to Governor Ducey to start handing out to the various areas, and that's why we've been meeting together for the past ten months or so. I also saw on Facebook today that our community services department has named finalist for the 2022 National Gold Medal Award for Excellence in Park and Recreation Management for the second consecutive year. I want to congratulate them. I know we all give them grief for spending all that money, but obviously, it's paying off and we're getting some recognition. MAYOR DICKEY: Thank you, councilwomen. The GPEC, Greater Phoenix Economic Council that Sharron is on the board for, they had their regular mayor-supervisor quarterly meeting. For the sixth straight year GPEC has been recognized as a top economic development organization by Site Selection Magazine. The 2020 Mac Conway Award for Excellence in Economic Development which is given to the top 20 local and regional U.S. economic development groups, so it's a good group for us to belong to. I did the eighth-grade graduation -- -- I mean,the eighth-grade practice jobs interviews with Mrs. Mell's class. Been able to do that every year, and of course the kids are impressive and very impressed with the teacher. And Betsy LaVoy(ph.) was there too, doing the interviews, so that went very well. Our pedestrian and traffic safety committee met and we were going to report today, but we we're going to postpone that until the fall for now. And then, Mayor's Youth Council, who's here tonight to present, they had their graduation last night and we look forward to hearing from you today. So thank you for coming. Next, we have our recognition of our stellar students. The year is wrapping up. What I do is I read about the kids up here, and then Angela (ph.)will hand them their certificates and then we'll come down and take a picture altogether. So we got two kids from each school. And before I forget, if parents are here with their Page 4 of 70 TOWN OF FOUNTAIN HILLS Page 5 of 70 MAY 17, 2022 CITY COUNCIL MEETING kids, if they want to stay after we're done, you're welcome to stay but you're also welcome to take off and enjoy the rest of your evening. Our first is from McDowell Mountain Elementary School, Lily Powinsky(ph.). Are you there, Lily? Come on up. Lily has been a stellar student all year long. She's very kind to her peers and is a very responsible student in character class. Lily always pays attention and has good questions and comments about the books we read in class. She has shown what she has learned about being a respectful, responsible, kind, and safe student every day in class and in school. That's Lily. [APPLAUSE] MAYOR DICKEY: Next, I have Adam Abushadop -- -- shanop (ph.), sorry. He is also from McDowell Mountain. Are you here, Adam? UNIDENTIFIED SPEAKER: Yeah, here he comes. MAYOR DICKEY: There you go. [APPLAUSE] MAYOR DICKEY: So Adam came to our school and has been a stellar student from the start. He has always been an active participant during character class. He asks good questions, stays focused on the lessons, and is there to help other students when needed. We're so happy that Adam joined our Falcom (ph.)family. Yay. [APPLAUSE] MAYOR DICKEY: Now we go to the middle school. Marcela Shirley(ph.), are you here? Marcela? Oh, yeah. [APPLAUSE] MAYOR DICKEY: Now, Marcela is one of the brightest stars here at Fountain Hills Middle School. She has done a wonderful job here at the middle school and has great things waiting for her in the next chapter of her life. She's a fabulous student and a wonderful athlete and a member of our back-to-back championship girls'basketball team. That's Marcela. [APPLAUSE] MAYOR DICKEY: Also from the middle school, we have Carter Blair (ph.). You here, Page 5 of 70 TOWN OF FOUNTAIN HILLS Page 6 of 70 MAY 17, 2022 CITY COUNCIL MEETING Carter? Well, we'll clap anyway. [APPLAUSE] MAYOR DICKEY: Carter is a superstar and an amazing student to have here at the Fountain Hills Middle School. Whether it is a fist bump, a joke, or just a Carter smile, it's impossible to not have a good day when you get to interact with this amazing student. That's Carter. [APPLAUSE] MAYOR DICKEY: And last but not least, we have the high school. Kaley Romain (ph.), are you here? Kaley. [APPLAUSE] MAYOR DICKEY: Kaley's an excellent academic scholar who has taken on many of the responsibilities of planning for the prom 2022. Kaley has called venues, planned decorations,the food, and produced a video with her fellow peers in order to generate interest for the event. That's Kaley. [APPLAUSE] MAYOR DICKEY: And from the high school, Ender Traveyna(ph.). Are you here, Ender? [APPLAUSE] MAYOR DICKEY: No doubt. Ender possess a rare maturity which is hard to find in many students his age. Don't tell anyone that. In the classroom, Ender is inclusive and always works to assist his peers in the room when possible. He's extremely respectful, elevates class discussions, and is a hard worker. Thank you, Ender. [APPLAUSE] MAYOR DICKEY: Thank you, kids. Thank you. So while I'm down here, I'm going to actually present two proclamations. I would like to ask Councilman David Spelich to come down and for Cpt. Kratzer to please come up here. Hold your Police Week proclamations that I will read, and then we'll get a picture with you too. Thank you, sir. There you go. Okay. So, oh, wow. Thank you. Come on up. This is awesome. Please. Thank you, guys. Whereas, in 1962, President John Kennedy signed a proclamation which designated May 15th as Peace Officer's Memorial Day and the week in which the date falls as Police Page 6 of 70 I TOWN OF FOUNTAIN HILLS Page 7 of 70 MAY 17,2022 CITY COUNCIL MEETING Week; and whereas there are more than 800,000 law enforcement officers serving in communities across the United States; and whereas since the first recorded death in 1786, more than 23,000 law enforcement officers in the United States have made the ultimate sacrifice and been killed in the line of duty; and whereas, the names of these dedicated public service are engraved on the walls of the National Law Enforcement Officer's Memorial in Washington, D.C.; and whereas the service and sacrifice of all officers killed in the line of duty are honored during National Law Enforcement Officers Memorial Fund's 34 candlelight vigil on the evening of May 13th, 2022; and whereas Police Week offers honor, remembrance, and pure support, while allowing law enforcement survivors and citizens to gather and pay homage to those who gave their lives in the line of duty; therefore, let it be resolved that I, Mayor Ginny Dickey observe the week of May 11th through 17th, 2022 as Police Week in the Town of Fountain Hills and publicly salute the service of our law enforcement officers in our community and in communities across the nation. Thank you, sir. [APPLAUSE] MAYOR DICKEY: Would you like to say a few words? David? Cpt. Kratzer, would you like to say a few words? I always put them on the spot. KRATZER: Well, thank you very much for that. And I know the Mayor and Councilmember Spelich worked to do the proclamation this year. And we're really honored by it and thank you very much. We have such a great community in Fountain Hills. This week, we've had people drop off treats and the chamber dropped off some protein shakes for everybody today. And just the outpouring of support that we see, not only this week, but every week, it's great to see from this community. And we've really appreciated all the men and women of law enforcement feel it every day in the community, and we just want to say thank you. [APPLAUSE] MAYOR DICKEY: Thank you. Thank you, guys. MCSO CAPTAIN KRATZER: Thank you. MAYOR DICKEY: So our next item will be our presentation from the Mayor's Youth Council. I'll ask Kade to come up, and like I thanked him last night, and Rachel, and Linda for having this program. We really appreciate it and we look forward to hearing Page 7 of 70 TOWN OF FOUNTAIN HILLS Page 8 of 70 MAY 17, 2022 CITY COUNCIL MEETING from you. NELSON: Thank you, Mayor, and councilmembers for having us up here. I'm not going to take much of your time at all. The kids are actually doing this presentation for you. And so I'll turn some time over to Gianna(Barker) and we'll go through what we accomplished this year, so. [APPLAUSE] BARKER: The very first thing that we did this year as a group is that we went to the Flagstaff Extreme Adventure Course. It was really a big opportunity for us to get to know each other better. In the past year, especially with COVID, we had a lot of our meetings online and we all were very awkward with each other. So this definitely helped us get more comfortable and bond really well. (BEN) ALKER: Right. After that, we attended the League of Arizona Cities and Towns where effectively we learned our role as a representative of Fountain Hills. We learned how to network and how to interact, really where we stood and what we needed to do, and some of the goals that we could accomplish with collaboration of our fellow towns here in Arizona. Just the -- --there we go. Okay. Right. This was our MOC Teen Takeover. It was a local event which we staged. Effectively, we were hoping to create an event in which the youth and teens of our town could have a gathering space, especially after last year. As previously mentioned, we took a pretty big hit in terms of how we interacted, so this was a new way to try and establish community, utilizing our local resources. BARKER: Our partners were the Fountain Hills Coalition, Sipp's Eatery, Fountain Hills Library, AZ Karaoke, Senior Taco, Visa Pizza, Rural Metro Fire Department. This was a really good event for us. We had a lot of teens come and we hope to make it an annual thing. These are some pictures from the event. Okay. (KEVIN) WILLIAMS: So in terms of community service this year, we had many events. So starting off with, we had the back-to-school bash where we went to Four Peaks Park and we helped setup and work the inflatables there. Then we worked Make a Difference Day where we went to somebody who couldn't or had difficulty cleaning up their yard, and we helped them clean that up. And it just made them very happy. (BROOKE) LYONS: Next up we have Spooky Blast and that was around Halloween 4 Page 8 of 70 TOWN OF FOUNTAIN HILLS Page 9 of 70 MAY 17,2022 CITY COUNCIL MEETING and that's when we had a bunch of fun bounce houses, a bunch of like little areas you could go and get candy. It's for the little kids. It was really nice and it was nice contributing there. The Fountain Hills Cares is a mental health presentation where it's basically awareness about, you know, mental health, how it like effects society, and yeah. (ELIZABETH) FRANZONE: Some other events that we did was the Turkey Trot and we handed out like bibs and T-shirts for the runners, and that would do the Turkey Trot, which is like a Thanksgiving-- --the Thanksgiving run. And we did the Noon Year's Eve, which was little kids would gather together to celebrate the New Year with each other. And we had tons of fun. We did like face painting, we had music, and it was a great thing for the kids to enjoy. (ANNA) WILLIAMS: So as Ben talked about before, this year our project was the Teen Takeover event where we invited teens to come and hang out with us at the community center. And then also we participated in the Extravaganza event for Easter where we helped spread out the eggs and my brother was the chicken. [LAUGHTER] And then we also helped to guide parents. (SKYE)ALKER: We also adopted a street where we went to a street and just picked up trash and helped, you know, clean up that one street and picked up trash while we're walking to the street. We also did Music Fest where we put wrist bands on people and just guided people to where they wanted to go and helped direct where it was. It was a good event for like the whole town I feel like, because like tons of people came and saw the music, so yeah. (OLIVIA) MELLOY: Some of the last events we did, we did Earth Day, which was recently. I did face painting at it. It was super fun and I think the kids really liked it and there was a lot of fun events that really enforce like the reduce, reuse, recycle. And then we also had Irish Fest, which I thought was really fun, with like the green fountain and stuff. I also did face painting at that. So yeah, that's just some of the events that we did this year. BARKER: As a group, all of us served 189 hours and we hope to do that again this year. Thank you. [APPLAUSE] 1 Page 9 of 70 TOWN OF FOUNTAIN HILLS Page 10 of 70 MAY 17, 2022 CITY COUNCIL MEETING NELSON: And as a town staff, I'm fortunate to be able to work with these teens, and what they accomplished this year is incredible. I can't commend them enough. I'm grateful for them and everything that they do to make this community better. And Mayor Dickey, we obviously appreciate your support for this program and I think it makes a very real impact on our community, especially our teenagers with the work that they accomplish. So thank you. MAYOR DICKEY: Thank you. Anybody have any questions or comments? Mike? COUNCILMEMBER SCHARNOW: Yes, thank you, Madam Mayor and cade and council. I had a privilege to attend a couple of their meetings upstairs and the, you know, Drug Prevention Coalition, we help sponsor the Teen Takeover, so we were there all night so I got to see them in action. And very, very good group and we just hope to continue that partnership between the coalition and the youth council. And just, you know, shows we have a lot of great kids in this town and it's just great that you guys could come here and share with us, so thank you. MAYOR DICKEY: Thank you. Councilman? COUNCILMEMBER MAGAZINE: I just want to thank you for all your work. It's really outstanding. I do have a question. When do you have time to do any homework? [LAUGHTER] MAYOR DICKEY: Well,two of them are graduating, so we know they did it. Again, we want to thank you so much. It does -- -- it means so much to the community to see the youth out there in action making a real difference in our hometown, so thank you so much. Appreciate it. NELSON: And Mayor, do you have a minute to grab a quick picture with the group? MAYOR DICKEY: Oh, sure. Yeah. NELSON: Thank you. [PAUSE] MAYOR DICKEY: All righty. Thanks guys. [APPLAUSE] MAYOR DICKEY: Thanks again. Our next item is an update from the Citizen's Streets Committee. Grady? Page 10 of 70 TOWN OF FOUNTAIN HILLS Page 11 of 70 MAY 17, 2022 CITY COUNCIL MEETING MANAGER MANAGER MILLER: Yes. Thank you, Mayor. Mayor and Council, the item before you is a status report from the Citizen Advisory Committee. A little background before the presentation commences. You recall at the retreat a year ago that this was discussed as a strategy to try and involve the community in addressing our street's needs, long-term street's needs. And so last summer there was an actual recruitment for a number of people to try to serve on the citizen's committee. And everyone who applied became a member of this committee, and this process started in December. I'm delighted to introduce Mark Graham, who's going to be the spokesperson of the group. And Mark will also, in addition to presenting the report to you tonight, he'll also be introducing the members who are here tonight. With that, I'll turn it over to Mr. Graham. GRAHAM: Thank you, Mr. Town Manager. Boy, following those kids, there's nothing worse, right? [LAUGHTER] Oh, my goodness. They put the pressure on. Thank you for putting us on the agenda so we can give you a status report of what we've been up to for the last little while. As Grady had mentioned, you guys know more about what our function is than anybody, but for those who were in the audience or were watching, you know, we really were setup to plan and formulate a long-term plan for our streets and include recommendations for financing. We started our first meeting the end of September. We've met monthly. We have had some a couple times a month, but mostly it's been monthly. And it's made up of 12 members who, as Grady, mentioned, I'd like to recognize. I've got half a dozen of us here, and the rest are probably tuning in or watching via the phone. But I'd like for them to stand. They're up here in the front row. And these are very -- [APPLAUSE] GRAHAM: The one thing I should mention is that when Grady put out an invitation for this committee, he put on everyone that he had a response from to try to get as broad of a spectrum of people as possible. And I can tell you that this folks -- --these folks here as well as those who are not present, if you look at your screen, you can see the amount of years of history and experience that these people bring to the table. I recall at our first meeting, Grady had us go around and introduce ourselves and tell us Page 11 of 70 TOWN OF FOUNTAIN HILLS Page 12 of 70 MAY 17,2022 CITY COUNCIL MEETING what our background was, and you know, it was engineers, it was designers, and road construction people, and by the time it got to me, I was like holy crap, I picked the wrong committee to be on. But these guys literally are street smart. You know, excuse the pun, but they really bring a great deal of knowledge to the organization. And they are from all over the country. They're from Arizona. They're from local counties, and the diversity here is just unbelievable in their knowledge, designing, planning, building, street management, best practices are all the things that they bring. As well as a very unique perspective that perhaps we -- --that locally, the staff doesn't really get. So it's been a very encouraging group. A little intimidating, but they know what they're talking about. So I think that you can rest assure that the information that's coming to you has been well thought out. So just to give you a little bit of understanding of what our process has been is there's a lot of catchup to do in the terms of knowledge and understanding of the 390 miles -- -- lane miles of streets in Fountain Hills. It's much larger than we all probably anticipated at the time. We analyzing conditions, projections, needs assessments, financial situations, we're going through all of it. We're identifying and understanding the different types of streets that we have. We have some that you probably are aware that are preincorporation streets that are little more than the desert graded over and some asphalt thrown on it,to some newer streets like Saguaro and Shae, all of which need attention at some point to continue their useful lives. We've looked at prioritizing what are the biggest challenges that we have. We've looked at cost estimates. And I want to tell you that this group challenges pretty much everything that's put before us. Is it right? Where did you get this? How old is it? All of those kind of things as we dig in deeply to try to find the real source of information. And we also are looking at the current funding limitations that we are facing. There's really, in my terms, there's really kind of three buckets that the challenges come from. And the first one on here is,to bring you up to speed,that 60 percent of our streets do not meet the minimum street standards and many more are deteriorating faster than any of us previously expected. What's even more significant of that is that the backlog of streets to repair has grown to 20 percent, a little over 20 percent, which is up from five Page 12 of 70 TOWN OF FOUNTAIN HILLS Page 13 of 70 MAY 17,2022 CITY COUNCIL MEETING percent, so it's quadrupled in a number of years. The next two points I'm going to talk a little more in depth, so I'm going to jump ahead of that. But it's really revolving around the street maintenance. Repair is underfunded and we need to raise awareness of the situation that we're facing as a town. So that second point is the -- -- is a street maintenance. As you all are aware, we have a $2.5 million budget for streets. But referencing back to the previous slide,that's not keeping up with the challenges that we're facing. We have a backlog, as I said, of 20 percent on our streets. Back in, I think it was 2020, the third party outside firm that helps us manage our streets, IMS, indicated that we need at least an additional $3 million to that 2.5. So clearly,that's five and a half million if my math is correct. So clearly, we're not keeping pace with the numbers that are needed in order to keep our streets up to acceptable conditions. And the other thing that I should point out which I -- --these next two bullet points really address is that the funding that we've been using, that 2.5, predominantly has been going to our arterials, our collectors streets, and the local streets have really been passed over in order to maintain the quality of those arterial and collector streets. Those need to be kept in really good condition and unfortunately, we've been having to spend a lot of money to keep those up to speed. Another pun there. And so you know, and so the local streets have really suffered is really the main point here. We've got to find a way to pay attention to that because 60 percent of our streets are local streets. So I hope that that brings some clarity to the situation. And as I'd indicated before, the other thing that we kind of feel as a group and a committee is that we need to raise the awareness, not just here with you guys,the council or the previous council or past councils and future councils. This is a resident issue. Everyone needs to understand that these streets are the lifeblood of Fountain Hills. It gets everybody to stores. It gets the delivery that shows up to their home. We have to get acceptance and buy in from everyone that this isn't a neighborhood problem. It's a problem that everyone has to step up and be responsible to make sure that we get everyone in the community excellent streets so that we can maintain the -- -- not only the lifestyle that we expect, our home values, our streets, and you know, our reflection of how well our cars are maintained. The list just goes on and on and on, but again, it's not Page 13 of 70 TOWN OF FOUNTAIN HILLS Page 14 of 70 MAY 17,2022 CITY COUNCIL MEETING a local problem. You know, we may live in a gated community where we say hey, it's being taken care of by my HOA. No, because you need streets to get to your house. You need streets to get to your stores. You need streets for your Uber drivers to get to and Amazon and so on. And it's not just your streets. It's everyone streets. So I think that, you know, starting today, we should make it a priority to start a campaign to raise the awareness of the importance of the streets throughout our community. The other thing that-- -- one of the things that I was shocked by and probably some of the other members of the committee were shocked by, is we were having some discussions about money spent and how they are allocated. And I was completely unaware that this isn't-- -- everything goes into one big bucket. So there's talk about Shae having to be widened for example, those funds are allocated for Shea. It's coming from a source outside of the town. It's got to be used for that. So it's not like this big giant slush fund that we can go dip into and repair this street or that street. Oftentimes, the funds are allocated to certain projects, and whether it's a federal, state, local, county type of a situation, we have to obviously, by law, honor those kind of things. So that throws a little bit of a ringer in the mix there. And so the other thing that the committee has talked a lot about when we learned that the ARPA, which is the American Rescue Plan, has provided $8 million. And the committee strongly recommends and suggests that you spend all that money to try to help get out of this hole that we've dug ourselves in the backlog of streets. It won't solve the problems, but it'll go a long way. The other big realization that we've all had as a committee, I think, is to recognize how not so far, the funds go when you're talking about street repairs. I mean, Grady had mentioned, I think, in the last council meeting that just to seal Shea to protected it is going to cost over a million dollars. So when you start thinking about those simple little projects,the money goes fast. And in fact,we did have a study done by IMS that said, okay, here's $8 million. What can we get for it on a map? And it was like, really, I can't even see. You know, it didn't make a dent in it. And so it just sort of expresses the importance of dealing with this,the tough challenges, and decisions that we have to make, you as leaders and all of us in the community stepping up and recognizing that this is a problem. Page 14 of 70 TOWN OF FOUNTAIN HILLS Page 15 of 70 MAY 17,2022 CITY COUNCIL MEETING We've talked about a lot of these things already. The inadequate funding for the street maintenance. Further research is one of the things that the council is doing. We're waiting on a report that will probably come to us late in the fall that'll update all of the information. So we can't really make hard suggestions in terms of fundings. We have some ideas about how to go about it, but we really need to get our arms around exactly what we're dealing with, and you know, obviously the severe financial crisis that we're looking at. So again, not a lot of detail tonight, but we want you to know that we've been busy working to get what we can get, analyze it, study it, make some recommendations. We've been out looking at the streets and looking at reports and data. It's almost overwhelming but it's very inclusive that we really need to pay attention to this now and not kick the can down the road so to say. So any questions? I'd be happy to try to answer-- -- or staff? COUNCILMEMBER MAGAZINE: I'm sitting here frustrated. GRAHAM: Not that-- -- I wouldn't call it frustrated. I would call it enlightened. COUNCILMEMBER MAGAZINE: I said I'm frustrated. GRAHAM: Oh, you're frustrated. I'm sorry. COUNCILMEMBER MAGAZINE: I'm frustrated. GRAHAM: Right. COUNCILMEMBER MAGAZINE: I've been hearing this -- -- I'm in my eighth year. I've been hearing this for eight years. When SPAC does its five-year plan, what's the top priority, roads. We did a survey of the public not that long ago. What was the top priority? Roads. And you said something about having to get our arms around it. I don't know how we get our arms around it. I hear you. I think we all hear you and hear that it's a crisis in the making. When it comes to, for example, economic development, how many new businesses want to come to town when they see these kind of conditions. I suspect it has a negative impact. GRAHAM: I agree. COUNCILMEMBER MAGAZINE: And so I really do appreciate what you've done. I think the qualifications and background of all of you are incredible. I know Jerry Butler Page 15 of 70 TOWN OF FOUNTAIN HILLS Page 16 of 70 MAY 17, 2022 CITY COUNCIL MEETING stalwart, particularlyin helping us with the h. verywell. He has been a st , p g Discovery �p ) Center. Without him, I don't think we'd be where we are. But I don't know what to do about it. I haven't heard a recommendation on funding, unless you have one coming up. You know, we're talking, what, four million this year, maybe. In the past, it's been two million. We had a consultant study two years ago, I think, maybe. Two years ago, that said we need at least $7 million per year-- -- GRAHAM: Right. COUNCILMEMBER MAGAZINE: -- --to maintain our roads. And now, we're talking about four million, but that's only because the governments helping. Without that, we're two,two and a half million. I'm not criticizing you or anybody sitting behind you, I'm just expressing my utter frustration at this. I don't know what to tell citizens when they call me and say, my roads are a mess, particularly the side streets,the neighborhood streets. And you tell them, well, we spent a million dollars or whatever it is on Shea and -- -- what's the other one? GRAHAM: Saguaro. COUNCILMEMBER MAGAZINE: Saguaro. Okay. But what about my street? GRAHAM: Exactly. COUNCILMEMBER MAGAZINE: What about my street? So I'm not sure there's an answer to what I'm saying, but I'm expressing my frustration. GRAHAM: Well, I could just say, councilman,that that is one of the top priorities of this committee, to make some recommendations. I mean, you always have the normal, you know, you've got tax increases, you've got bonds, blah, blah, blah, right. We need to think outside of the box and come up with some alternatives. And we're here because of exactly what you expressed. The citizens need better streets. COUNCILMEMBER MAGAZINE: Will you be coming back with some alternatives -- -- GRAHAM: Oh, absolutely, yes. COUNCILMEMBER MAGAZINE: -- -- of funding as well? GRAHAM: That's part of-- -- yes, yes. We're going to make some recommendations. Again, once we can figure out what we need, you know, because it's all over the place in Page 16 of 70 TOWN OF FOUNTAIN HILLS Page 17 of 70 MAY 17,2022 CITY COUNCIL MEETING terms of financing or what it's going to cost to do this on an ongoing basis. And that's the key is that we can't just fix this right now, this has got to be an ongoing program. You know, whether it's five million or seven million a year, we've got to figure out what that is and then figure out how to rebuild the streets that need to be rebuilt on top of it. COUNCILMEMBER MAGAZINE: I appreciate that. But when you said we figure out what we need, I think we all know what we need. And I would hope that you, you know, take all of the studies and all of the information and everything into consideration and come back with something that helps us. GRAHAM: Yeah, absolutely. That's the goal. One of the bigger goals. MANAGER MANAGER MILLER: And I think I just want to clarify, that is the goal from the beginning. In fact, this is just a status report right now. The plan is to come back with near term and longer-term street needs and funding recommendations. And so as you recall back when we were deliberating in the community about a possible primary property tax, the major component of that was about $4 million a year going to streets. And if you just look at that, at that time we had identified that that was necessary in addition to the $2.5 million. So the point on this, I'm not advocating for that. But when we did have those meetings with the public, and I remember very loud and clear, the public definitely wanted to have a say about their streets and they definitely wanted to be able to have a say as to how those streets were financed. So ultimately, what I expect that this committee will do is they're going to -- --they're doing their homework and they're doing a great job, and they're going to come back with a plan. And the plan is going to be basically what streets and what priority need to be done, and how they are recommending to fund those. And that's the plan that will be coming before you in the near future. COUNCILMEMBER MAGAZINE: Just a quick follow-up. What is the near future? Do we have any idea timewise when you'd be coming back with those recommendations? GRAHAM: Well, based on our last meeting, we were told that we should have some updated information probably in the fall of this year. And so I -- -- you know, my goal would be sooner rather than later. But by the end of the year is my goal is that we would have some pretty good ideas of what the funding level should be and the priorities and Page 17 of 70 TOWN OF FOUNTAIN HILLS Page 18 of 70 MAY 17, 2022 CITY COUNCIL MEETING that sort of thing. COUNCILMEMBER MAGAZINE: Please don't misunderstand my comments. GRAHAM: No, no, no. Not at all. COUNCILMEMBER MAGAZINE: I appreciate everything you're doing. It's a tough situation. We appreciate everything you're doing. Just sooner is better than later. GRAHAM: Absolutely. I agree. And I think everybody that's driving over those bumpy roads would agree with you as well. You know, I think the one thing-- --the other thing that I didn't kind of learn, that I did learn through this process is, you know, talking about bonds and is that a possibility. We've learned that bonds can only really be used for capital improvements. You know, it's not a maintenance thing. So we've got to figure out funding for long-term,the reconstruction, rebuilding of roads as well as the continuing ongoing maintenance, because the maintenance is never going to end on our streets and we have to have a long-term plan. So okay. VICE MAYOR FRIEDEL: Thank you, Mayor. Alan I sense your frustration and I'm just going to make this comment. You know we've got a capital budget coming up. We should take a hard look at those projects in there and anything that isn't necessary should be diverted to roads. This isn't an eye-opener to me. We know, like Alan said, our roads are in tough shape. So there's a way we can maybe direct some more cash to these projects and get something done, and we need to take a look at that capital budget when it comes up. MAYOR DICKEY: The -- -- Peggy, do you have anything that you'd like to add? I want to make sure I didn't forget? Councilman? COUNCILMEMBER MCMAHON: No, not at this time. Thank you. MAYOR DICKEY: Thank you. COUNCILMEMBER SCHARNOW: Well, I appreciate your comments and the work of the committee so far, and it's definitely another unsung heroes, you know, thankless type job. And you know, I've been working out here since 1983 and that's when the road districts were still in existence, so I've had almost 40 years of talk about streets and squabbles and finances. And Alan, it's not like -- --there have been attempts at different funding mechanisms. I mean, you know, there was what, $30 -- -- $31 million bond Page 18 of 70 TOWN OF FOUNTAIN HILLS Page 19 of 70 MAY 17,2022 CITY COUNCIL MEETING package back when Julie Getty (ph.)was here, and that was turned down. And it kind of came back around. They approved the bond for Saguaro but you know then the primary property tax was shot down again and you know we had a street fund fee proposed, which basically ran up against the state law, and so there have been a lot of attempts to do this. I mean, I like the approach in terms of the it's a community issue, it's a town issue. Because it seems like a lot of people want a lot of things out here, but they're not willing to pay for them. So it is frustrating, Alan, and we all sense that. But there's going to come a time where this is definitely going to catch up to us even worse than what we think. So definitely have to get the word out there and try to get some support. And it's going to cost, you know, something. We're going to have to pay for it in one way or the other. I mean, if you have some out of the box ideas, great, I just don't know that there's that many options out there. But good luck to you. GRAHAM: All right. Thank you. Thank you. And in fact, you know, we talk about the expertise of these people behind me is unbelievable. But you know, my motivation in joining this committee is that I came from a southern Arizona town whose roads are atrocious and have been since I was 15 years old, and today are even worse than and it takes forever to get across town. I didn't want to see that happening here. And although I don't have the technical background, I've got the creative background and the ability to hopefully get the attention of some people, so. MAYOR DICKEY: Vice Mayor? VICE MAYOR FRIEDEL: Just one more point. I hope that when you look at our process, if you see something that isn't done right or something that we could be doing better,that will also be something that you'll bring back to us, because we need your expertise, so thank you. GRAHAM: All the staff has been in our meetings and we rely on them for their information and I don't think anybody's been short on questioning, you know, what it is what we're doing and why we're doing things in certain ways that may be right, may be wrong, but that doesn't mean that we can at least question it to make sure everybody's understanding, so. MANAGER MANAGER MILLER: And to the Vice Mayor's point, based on the Page 19 of 70 TOWN OF FOUNTAIN HILLS Page 20 of 70 MAY 17,2022 CITY COUNCIL MEETING committee's recommendations, we will likely be changing vendors that has been advising the town on our roads, so. MAYOR DICKEY: I know there's been frustration with some of the numbers. The trying to hone in on our costs, what we think our costs are versus what the study might have said. I mean, the study, I know if you go back to 2017 or whatever it was, 2016, maybe, it was kind of clear cut, $60 million over ten years. And it's not changing and prices go up and the road gets worn down as we continue. But I do want to point out that last year we put an extra $2 million to the roads. This year we'll be putting $3 or $3 and a half million and next year we'll be putting an extra $3 or $3 and a half million. So it's just a gift of time, I guess. We know that this year in November there will be some other things on the ballot, and so it did give us a little bit of a break. But we know that the long term is still no different. 60 million, 70 million over ten years, whatever it is, it is what it is. To the Vice Mayors point about, you know,the nice to have kind of things, it's an always have to have that conversation. Years and years ago, the school district was going through this while I was on the board, and you know, we could stop doing all parks and recs stuff or any of the activities that we do. And I'm not saying that you are suggesting that, but you know, we could free up $3 or$4 million a year, sure. And when that happened at the school district, it was like but what if your kid is the one there in fourth grade when you decide we're not doing any extra curriculars. We're not doing anything. All we're going to do is, you know, the very basic. So you know, anything that we do has ramifications to the quality of life to everybody here. So it's always a balance. I totally agree with you, and that's why I think-- -- and I know Alan has said in the past, to make sure we use the bulk of this ARPA money, CARES money, whatever towards our facilities,the fountain, that's fine, the liner. But I think the roads have to take the priority. And you know, the technical aspect of it, you know, sometimes it is frustrating. The road we have to do first is the one that looks the best and that's not satisfying to do. We want to do the ones that look really bad. But some of them are a tipping point and they're going to have to be rebuilt and the others we're trying to prevent that from happening. So I can't say how much we appreciate all your work, and I know it's been fits and starts Page 20 of 70 TOWN OF FOUNTAIN HILLS Page 21 of 70 MAY 17, 2022 CITY COUNCIL MEETING and two steps up, one a couple steps back. But we really appreciate it and we look forward to what you're going to come back to us with. And we want to do what we can do to make that easier, whether it has to do with what Grady just said, where are we getting the numbers from? Making sure that they're right, and going forward from there. GRAHAM: I mean, the unique thing about this committee is nobody has any vested interest. There is, you know, no sway one way or the other. They just want to figure it out and provide you guys with the best information that's possible, so okay. MAYOR DICKEY: It's for all of us, the whole community, and we appreciate it very much. Thank you. GRAHAM: All right. Thank you. [APPLAUSE] MAYOR DICKEY: Next, we have -- -- you can tell when we get towards the end of the year because we have big agendas. And today, we'll switch gears to economic development and welcome Amanda, who is going to give us a third quarter update and we'll get a chance to chat with her. Welcome. ECONOMIC DEVELOPMENT DIRECTOR JACOBS: Thank you. Good evening, Mayor, members of council, bear with me as a navigate this, and members of the public. So as the Mayor said, I'll be providing an update on our third quarter, so January to March, because we are in the middle of fourth quarter. I may give you some teasers because I get excited all things economic development. And then since this is my first time before you with an update, do you guys want me to stop, take questions, or do you want to wait until after the presentation? What is your pleasure? Just at the end? MAYOR DICKEY: You're the one that always asks questions. DIRECTOR JACOBS: We're having fun already. All right. So I'll be giving you an overview of our business attraction, retention, advertising, marketing, and tourism. So again this last quarter, we welcomed The Havenly. I don't always do a shout out to our residential communities, but this was something big for the town as far as economic development. It helps with our diversity when we're trying to attract residents and businesses, it's another option. And so they're going gang busters over there. They are Page 21 of 70 TOWN OF FOUNTAIN HILLS Page 22 of 70 MAY 17, 2022 CITY COUNCIL MEETING now leasing phase 3. So they've already opened up phases 1 and 2, and there's a total of five phases. And then next, we're growing the health industry in our back yard with HonorHealth opening up their urgent care. And hopefully, in the coming months we'll see their primary care facility, which is adjacent, open. And then on the avenue, our downtown, we welcomed Lash a go-go. So that is eyelash extensions if any one's interested. And then Mathnasium for our little kiddos who need some tutoring. I know growing up, going through school, math like wasn't like my favorite, and so anyone who needs a little help, we've got Mathnasium. And then Park View Hair Salon (ph.) is really just a renaming of a business. And it's now actually FH Hair Studio. And so when those changes, either change of ownership or businesses come through, we get an alert through our business licenses, so just wanted to give a little shout out there. And then coming soon, right, people are always asking as we start to see dirt moving or reconstruction, you know, what's going over here? I'm still trying to get to know all of our street names, people's last names. But Dutch Bros will be coming soon. So their site map plans have either been close to approval or approved. That's going to be near HonorHealth. So perfect along the palisades. And then you guys are familiar again with our downtown, Classy-Jazzy on the Avenue. Well, the owners wanted to launch Manny's at Park Place. So a clothing store for gentlemen, and that should be opening this fall. I've been receiving a lot of questions about this next one. So there's been a lot of activity at what I call the Target shopping center off of Shea. And so what is happening there is they are splitting an area into two. Dollar Tree will be moving and then new it's Spacefit Auto Gallery. And what they're telling us that is and it seems to be kind of popular, a growing trend, and specifically in our community, is helping people find storage space. You know, so reaching out to businesses, hey, do you have a garage available to store this facility. So that you'll be seeing soon and lots of questions, so now the public knows and the council. And then, off of Park Place is Veetas Vegan. And so that is a health plant-based café that should be opening this July. So lots of fun things happening. 4 Page 22 of 70 TOWN OF FOUNTAIN HILLS Page 23 of 70 MAY 17, 2022 CITY COUNCIL MEETING And so attraction is always fantastic, but I always like to drive home the importance of really supporting our business who are already here, who have made that capital investment, who have employees. And so just wanted to make -- -- mention, there was a couple of relocations, so good that they stayed within Fountain Hills. So A to Z ReRuns and Desert Title and Tag Motor Vehicle Division. And next, super excited, I've talked with several of you during our one on ones, as well as Betsy(ph.)with the Chamber of Commerce. But what we're wanting to do in the next two to four weeks is launch a formal business retention and expansion program. Oftentimes what you see is businesses who are here, who have already made the investment, about 80 percent of them continue to expand. So right, we're hearing ADERO already has plans to expand. Fountain Hills Medical Center has a footprint. There's already plans to expand. And so the idea is to go out with our Chamber of Commerce, meet with our businesses, you know, hopefully once, a couple of times a week, and hear from them what is going well, but what are areas of improvement. You know, what can we do better and take some of that data and improve policies or implement new programs. And so some of that ties into the next thing. So the Economic Development Department in March actually conducted a walk downtown. We spent over four hours -- -- I have to admit, we didn't make it to everybody. But just wanted to introduce myself. Some of them were very open, what we could start doing for improvement, but also asking them. I don't know what I don't know. And that ties actually nicely into the next thing, which again, we're also going to partner with the Chamber on. But the businesses are already starting to feel the pressure of our winter visitors leaving, summer officially around the corner. And so what can we all do to continue to support and shop local? That hey, don't forget the mom-and-pop shops. And so Betsy and I have met a couple of times and then also approached the Fountain Hills Times of what type of advertising can we do? Articles? And so we'll be launching that at the end of the month, again,just that importance of our sales tax and bed tax is going back into the community, the quality of life that helps attract. It goes into our parks. We're talking about the road systems, the infrastructure. And so just raising that awareness and hopefully keeping the dollars here and not having that leakage. 4 Page 23 of 70 TOWN OF FOUNTAIN HILLS Page 24 of 70 MAY 17,2022 CITY COUNCIL MEETING And then so this was nice too, retention. So at the beginning of the year,thanks to Council, and the Council received, like many municipalities, ARPA funding. So American Rescue Plan Act funding. The Council decided to take some of that savings and reinvest it and do a grant program specifically for our nonprofits to help them continue to recover. The deadline was March, but based on some of the questions we were getting, maybe how we presented it, it wasn't quite clear, we extended that. I am pleased to inform the Council we received over 30 applications. Over 30 nonprofits will be awarded. Right now we're still doing some administrative stuff, so agreements, checks. And so as soon as we have that final list, we'll do something a little bit more formal, a press release, and bring that back to Council. And then advertising. So as I come in and am looking and assessing, we've done a great job this past spring on print and digital ads, and want to thank some of the grant opportunities that we're getting from the Arizona Office of Tourism, Fort McDowell,the Yavapai Nation, the Salt River Pima Community, a lot of this was possible through that grant funding and partnership. But as we've been assessing staff, what we're putting out there,the Town has been promoting the Fountain, which is fabulous. But as I'm your economic development director, I'm looking at our other audiences, so residents and businesses. And so our community relations manager has joined me and we've been talking with Debbie Classon -- --hopefully, I'm saying it. Classon? Yes? Okay. And so you'll see right there, that image, again, we're supporting local and we're doing some new graphics to show we've got a lot of the ingredients, the outdoor recreation,the restaurants. And so to really promote all the various assets. So you're going to start to see some fresh new looks. We've hired a photographer. We're going out to the businesses who love it. Our Vice Mayor even posed for us, so we went to Chocofin and he's like, hey, I'm happy to help. So thank you, Vice Mayor. Did I just skip one? No, yes. So marketing, so again, speaking to what I just said, I know in February the Council started talking about doing some branding, and I feel like now is the time to do a community-based branding effort. Again,just looking at what we've been doing, now is the time to really get our messaging in line for those target Page 24 of 70 TOWN OF FOUNTAIN HILLS Page 25 of 70 MAY 17,2022 CITY COUNCIL MEETING areas, businesses, the residents, the visitors, and know what our brand is. So coming in, I've seen about four to five logos, and as the new girl, I want to, you know, do right by the Town in asking what logo am I supposed to use? There's also been various tag lines. All that is Arizona. Desert living. What am I supposed to use? And so really thinking you've got a new economic development office and as we're assessing, now really is the time. And then as I go back to the downtown walk. As I was talking to the businesses, talking to the Chamber, and my first day here, I noticed our poles along the avenue were a little bit empty. Thanks to our public works department, we've now got our 4th of July patriotic banners up. But we thought that this was a perfect time in hearing from our businesses to sort of reach out to them, do some new graphic designs, get the business community involved to really create that sense of place and make it a vibrant downtown. So that will be coming. With our businesses, the Chamber has agreed to help us get that word out. So again, we're hearing from the community. How should we be branding ourselves? And partnerships, so you'll often hear that economic development is a team sport. And so some of these partnerships we've met with again this past quarter. I won't go through all of them. Some of them I've mentioned. But last week, we launched in partnership with the Arizona Small Business Association, what the Town has done is invested in a membership and then are hereby having over 1,000 of our businesses are able to participate within our membership for free. So free advertising, free connections, free industry meetings. And already, it's only been a week, we've had 42 of our businesses sign up. I'm receiving some of those personal messages of thank you. Thank you for thinking of us. Thank you for investing in the business community. And then also wanted to point out, did meet with our friends at Fort McDowell, Yavapai Nation. Again,just to introduce myself and see, you know, what can we do better? And one thing,just to share with all of you,they would like us to improve the experience website. So I appreciated that feedback. And then they also mentioned if we could improve the way finding signs. That again,that's sort of a brand messaging, if it's a bit faded or if it's outdated information, to direct our residents and visitors. And so I just-- -- I leave you with that. Page 25 of 70 TOWN OF FOUNTAIN HILLS Page 26 of 70 MAY 17,2022 CITY COUNCIL MEETING And then tourism. So again,the last quarter we had 50,000 unique page views. So unique is sort of capturing that one person and seeing how they're navigating through the site. And our top three pages where they're staying quite often is the homepage, and then no surprise, our events, and then of course, our wonderful fountain. And then a shoutout to our major events that we had. We had over 8,000 attendees attend the Irish Fountain Fest, and 7,000 attendees to the Music Fest. And again, want to give a shoutout related to the Music Fest to the Arizona Office of Tourism and Salt River Pima. We were able to put that on, expand it from a one day to a two-day event in part because of that grant funding we received. And I think we're at the home stretch. I think this is the last slide. So in looking at some of our data, I'm hoping to get more that we're in control of. But just meeting with the Arizona Office of Tourism, Visit Phoenix, and talking to some of our hotels,the hotel occupancy is reaching over 70 percent, which is good. What our hotels are seeing, and again, is a trend and coming from the Tucson area, is the leisure is coming back. So right, there's this pent-up demand, I was stuck because of that pandemic, not that we want to mention that ugly word, for a couple of years. That okay, let's get out and have a vacation. What is still lagging a bit is of course the business meetings. So what the hotels are saying is at the beginning of the year, right, looking at that first quarter when we started talking about the variant word, it scared people and so sort of delaying that business to '23, '24. And then last, in partnership, and again with Debbie and the Chamber, at the end of the month we're going to start a social media campaign. And so really encouraging people to stay, but right, not just stay at our hotels, but talk about the outdoor recreation, the relaxation, the health, and wellness, all again these wonderful assets that we have, but just driving that awareness. And with that, happy to answer any questions. MAYOR DICKEY: Thank you. DIRECTOR JACOBS: You're welcome. MAYOR DICKEY: Yes, Vice Mayor? VICE MAYOR FRIEDEL: Thanks, Amanda, you're doing a good job, but I do have a .cJ;' .#?�'SYa " .•,AzF+Ys4k�51.L:XnS >'-`_ ."Y4{ `=R'teR3:"^cs#;Yu3k :'ShL%".x3'&R'K.::Y;. ,+^".v 54.'. .--+2^.z"ay.: `yf' h` 'erio- Page 26 of 70 TOWN OF FOUNTAIN HILLS Page 27 of 70 MAY 17,2022 CITY COUNCIL MEETING question for you. So with all your partnerships, has there been any of them or any communication about reaching out to these various states where these companies want to leave high tack situations and come to Arizona? Do we get mentioned? Do we get any recognition? Are we picking up any of those businesses that are fleeing these states that they don't want to do business in anymore? DIRECTOR JACOBS: So Madam Mayor, Vice Mayor, yes,that would come through GPEC, so the Greater Phoenix Economic Council. Right now though, it's -- -- I'm assessing what space we can offer. Right now what is being sent out for us to bid on or put our names on, we're talking massive square footage that right now, I can't say, hey, we can submit a package for. Some of it is just too,too large. And then I'll admit, still need to do a bit of an assessment of what is available and what are opportunities for all of us to be creative to attract these type of businesses. VICE MAYOR FRIEDEL: And maybe we don't need that homerun, but maybe we need those secondary and other businesses that support those big businesses, maybe that would work too. So be smaller scale. DIRECTOR JACOBS: I agree. MAYOR DICKEY: So what do you have in relationship with the East Valley Partnership? DIRECTOR JACOBS: So I have not-- -- so Madam Mayor, I have not met with them officially. We have exchanged some emails this quarter, so hopefully in the next couple of months we'll be able to connect and just see again, what can, you know, the Town be doing to improve that partnership. So appreciate the question. MAYOR DICKEY: Yeah,that might align a little bit with what Gerry was saying, because you know, GPEC is really big and again, they do land the big boys like you were saying. But I think exactly what you were saying, what goes along with it? If you get a hospital, if you can't get like Mayo Clinic, but you can get, you know, medical supplies or stuff that goes along with it, it makes a lot of sense. You mentioned at the beginning when you mentioned Havenly, it's not normally part of this sort of a presentation. But it made me think about, I don't know, six years or so ago and the idea that silos -- --we always call it silos. So you have development and you have economic development. And the fact that you're sharing that -- --that you're Page 27 of 70 TOWN OF FOUNTAIN HILLS Page 28 of 70 MAY 17, 2022 CITY COUNCIL MEETING looking at that as an economic development, residential, it's always kind of been something here in Fountain Hills all the while. It's like, you know, we had aspirations for why can't we have, you know, X, Y, Z, but it's like, you need the residents for that. You know, I mean,these people have formulas for how these things can succeed so what are the -- --what part do we have? Well, we can bring residents in. We can make Fountain Hills a place where people want to live. And so I'm really -- --was really glad to see you mention Havenly and we also have other projects coming onboard that are residential. I just also wanted to ask you a little bit, I know that this was just a quarter that you were looking at more or less. But you know, and you mentioned the dreaded COVID. But there have been a lot of businesses that have expanded or located here or new businesses even throughout that. I was wondering if you could touch on some of those. The one that I think about is Rainbow Donuts. I don't know why. But I wondered if you had any of the others that might have come on board in the last, you know, despite what was happening here. DIRECTOR JACOBS: So Madam Mayor, thank you for the question. As I'm sort of still assessing the data, our business licenses, C of Os, looking over the last couple of years, there was actually over 200 people -- -- I'm going to call them people at the moment, who obtained a business license. And so I'm saying that because -- -- it's various business license, right. It could be a business, like for instance, ADERO opening, Fountain Hills Medical Center, but also, you know, having vendors come in, and then what you saw more of too is home based businesses. And so just off of the top of my head, remembering that list, and through some of my conversations, of course, what has been huge is again ADERO. I've met with the Fountain Hills Medical Center a couple of times. They've just had their one-year anniversary. You mentioned Rainbow Donut, of course. And then we had Georgies relocate is what I've heard, to the downtown Fountain Hills area or downtown. You're welcome. COUNCILMEMBER MAGAZINE: Amanda, excellent presentation. DIRECTOR JACOBS: Thank you. COUNCILMEMBER MAGAZINE: I noticed you didn't mention the employment shortage. And I guess I'm wondering if there's something you could do in cooperation 4 Page 28 of 70 TOWN OF FOUNTAIN HILLS Page 29 of 70 MAY 17,2022 CITY COUNCIL MEETING with the Chamber to try to find out how severe it is, what, if anything is being done to lure workers. It doesn't make a difference what kind of a store you walk into, there's a shortage. And mentioning Havenly, related to that. Several people have mentioned to me and I've noticed that Havenly seems to have stalled. There are a lot of shells of houses, but I haven't seen any progress. Do you know if that's a result of a shortage of workers? DIRECTOR JACOBS: So Madam Mayer, Councilmember Magazine, that is going to be a huge task ahead of all of us, it is the employment shortage. It is, you know, hitting us nationally. I saw some of our businesses, they can't be opened seven days a week or five days a week. They're modifying their hours or again,just saying, please be patient, because guess what, there's only two of us here. Usually we have 20. So I think definitely that is something we'll partner with the Chamber on. We need to do a lot more, you know, assessing. I've heard too from some of our, you know, major employers, you know, it is attracting the workers from Mesa, Scottsdale, and getting past to that, you know, Fountain Hills is so far away. We need to assist with some of that mentioning. And so Havenly, I'll say, has not stalled. I'm actually a resident there. So I could tell you first hand it has not stalled, and they are -- --they are going gang busters. You're welcome. VICE MAYOR FRIEDEL: Two points, and also some of our businesses are changing their menus and making it a little bit tighter so that they can deal with it. And also, you forgot Batchelor Pad. DIRECTOR JACOBS: Thank you. COUNCILMEMBER GRZYBOWSKI: I wanted to talk about the Havenly and how you said you wouldn't normally mention that kind of stuff in these reports. But because of the diversity that it brings and the fact that it is a less expensive house price point, so maybe some workforce people could afford to live there, I think those are important things to bring to our attention. Because again, one of the employee shortages is they don't have a place to live locally. So if they're coming in from Mesa, which is less expensive. And I don't know, if I lived there and I found a job making the same amount of money, I would certainly quit and want to work closer to where I live. So I feel like those kinds of things Page 29of70 TOWN OF FOUNTAIN HILLS Page 30 of 70 MAY 17,2022 CITY COUNCIL MEETING are very important for us to know because some of us are big into social media and can share that kind of stuff. So thank you for including it in this report. DIRECTOR JACOBS: You're welcome. And again, as I've been assessing, I'm like, okay, we need to talk more about the diversity of housing, education. Again, we've got the ingredients, we just need to package it. COUNCILMEMBER MAGAZINE: You know, one other comment with regard to Havenly. I actually went in and talked to a rental agent and what I found was for about 800 square feet, the rent wasn't too bad, but they had add ons. You want to park a car? You want to park a second car? You want this? You want that? And I came up with almost $4,000 a month for 800 square feet. We will never get workers from the region at those kinds of prices. I don't have an answer. I'm not sure there is an answer because of the cost of land. But if you can cure that, I mean if you can solve that,that'd be great. DIRECTOR JACOBS: Thanks, councilmember. MAYOR DICKEY: Well, that is a regional -- -- it's a huge problem everywhere. I just spoke with some realtors yesterday, and you know, there's no one answer to this. We actually talked about-- -- and I actually read an article a couple days ago that said the rents might be sort of normalizing a little bit. There's more inventory. You're noticing there's advertisements for a first month free kind of thing, stuff that was unheard of even just, you know, a month ago. So there may be some of that. Because this is just, you know, it's just not a normal time when it comes to real estate. So but again, another thing we don't have a lot of is transit. So even if we had people in Mesa, you know, we really only-- -- I mean, we have a better bus now, but it's still not, you know, it's not that flexible. So those are things that, you know, being in a town of our size,those are more of the challenges. But we recognize them and we look for some solutions and we are listening. So we appreciate it and we're listening to Betsy and we want to do what we can to just keep everything in balance here, so. Any other questions or comments? Thank you so much. DIRECTOR JACOBS: Thank you. MAYOR DICKEY: We appreciate it very much. You can clap. [APPLAUSE] Page 30 of 70 TOWN OF FOUNTAIN HILLS Page 31 of 70 MAY 17,2022 CITY COUNCIL MEETING ANNIIIIMMININKL MAYOR DICKEY: Okay. Next is our call to the public. Do we have speaker cards? Yes, I see. CLERK KLEIN: The first one is Ed Stizza. (Not present) Okay. Next is Susan Anderson (present to speak on an agenda item). MAYOR DICKEY: Thank you. Thanks so much. Next is our consent agenda, unless someone would like to remove anything, could I get a motion,please. COUNCILMEMBER GRZYBOWSKI: Move to approve. COUNCILMEMBER MAGAZINE: Second. MAYOR DICKEY: Thank you. All in favor,please say aye. ALL: Aye. MAYOR DICKEY: Thanks. Thanks, Peggy. Our first item on the regular agenda is appointment to the strategic planning advisor commission. We have a recommendation from the committees to appoint Jeffrey Azeta (ph.)to the strategic planning advisory commission. Is there any discussion? Can I get a motion? COUNCILMEMBER SPELICH: Motion to approve. COUNCILMEMBER SCHARNOW: Second. MAYOR DICKEY: All in favor,please say aye. ALL: Aye. MAYOR DICKEY: Thank you. Thank you, Jeffrey. Thank you. Thank you, Jeffrey, wherever you are. Our next item is adoption of the fee reduction and waiver policy. Grady? MANAGER MANAGER MILLER: Thank you, Mayor, and council. Rachel Goodwin, our Community Services Director will be giving the presentation and staff report on this. MAYOR DICKEY: Thank you. MANAGER MANAGER MILLER: Turn it over to Ms. Goodwin. DIRECTOR GOODWIN: All right. Let's see. Mayor and council, it looks like we have the wrong presentation pulled up here, so give me one moment. Okay. Yeah, of course we can't open it because it's open on my desktop. All right. Okay. Mayor and council,tonight we're here to review and hopefully bring home a policy that Page 31 of 70 TOWN OF FOUNTAIN HILLS Page 32 of 70 MAY 17,2022 CITY COUNCIL MEETING we have been working on for the better part of two years. It is our fee reduction and waiver policy. If you recall, we've talked about it in bits and pieces. We've looked at it from the perspective of ballfields and usage of our parks. We've looked at it through the perspective of our naming rights. We've looked at it through our streets and sponsorships. And tonight is the proposal for our fee reductions and waivers for our community center and our special events. Just a little background, we will be working towards -- --the applicants have to meet mandatory eligibility requirements, and that is really based for our local nonprofits. Our local nonprofits, they do not have to be a 501(c)(3). They can be a 501(c)(7), (c)(9) depending on what it is. But anything that is nonprofit based and locally based here in Fountain Hills these fees would apply to, these fee reductions would apply to. The reservation times for both use of the community center and our special events must be accounted for in their application process. Classroom space requests would be available after 2 o'clock in our community center and it would be limited more on Fridays and Saturdays so that we can accommodate large groups. Large items, including our staging and dancefloor and what not would not be eligible, and that the approval of the dates and times does not guarantee any future or annual availability. I have to apologize because this is not the presentation that was prepared for today, so I'm going off of some of this information that is a little bit redundant and a little bit dated based on what we've talked about. So based on our last conversation, our community center fees -- --we have nonprofit fees and we have commercial fees. Any nonprofit that is based here in Fountain Hills is proposed to have a reduction of half off the advertised nonprofit rates. That is what the policy proposes so that we can work with our nonprofits locally. We can offer them, again, a discounted rates as to use our facilities. That does come with some parameters, using it in the afternoons on our weekdays. Limiting some of the usage on our weekend so that we can accommodate other rental groups. And it comes with the idea that they would need to -- --we would work with them to identify availability. For instance, if the request is to have a use of space on a Saturday when we have a large wedding or a large other gathering booked, we would need to work with them on what we can do and how that would work. Page 32 of 70 TOWN OF FOUNTAIN HILLS Page 33 of 70 MAY 17, 2022 CITY COUNCIL MEETING But essentially, we would also work to partner with some of our community groups that use our facility for what we've kind of identified as an altruistic larger purpose, i.e., our blood drives. So when we have our community blood drives, there's no -- --there's an altruistic purpose behind that type of event where a full fee waiver seems to be an appropriate offer there. Similarly, our special events, we have a nonprofit rate and we have a commercial rate. We would like to propose our policy, which you guys have in your packet, that identifies half off for nonprofit rates for Fountain Hills based nonprofit groups. Again, we just need to have updated status to make sure that they meet those requirements and we would work with them to reduce those fees by half. All other requirements would apply, so we would still need to have a special event application submitted. We would still need to have all of the proper insurance policies, all of the other requirements as a special event submission would still apply. It would just be the fees that would be reduced. Any other permits, whether it be for alcohol, for road closures, MCSO fees, any other fees incurred would be passed along to the applicants. I do know you guys have a copy of the policy. This is -- -- should be pretty redundant from some of the conversations we've had in the past. What the request is this evening is to review the policy, offer any changes or edits, and potentially pass tonight's policy. I know there are two extenuating groups that we are working with for user agreements, that includes the Chamber of Commerce and FHCCA. Tonight's policy would apply to essentially everyone but those two groups, and we would look to bring back their user agreements for final adoption at our next council meeting. So again, this policy is the blanket policy for 98 percent of our user groups, and we would come back with the two exceptional user agreements at a future meeting. Can I answer any questions? And again, you have my apologizes that this is not the presentation that was prepared for tonight. MAYOR DICKEY: That's okay. Thanks. COUNCILMEMBER MAGAZINE: I think you just about answered the question I was going to ask. Which was I didn't quite understand the user agreement exceptions with regard to the FHCCA. Now we've talked about this before, the FHCCA is an umbrella organization -- -- Page 33 of 70 TOWN OF FOUNTAIN HILLS Page 34 of 70 MAY 17, 2022 CITY COUNCIL MEETING DIRECTOR GOODWIN: It is. COUNCILMEMBER MAGAZINE: -- -- with a lot of nonprofits under it. That's something you'll be addressing? DIRECTOR GOODWIN: It is. What we would like to do -- -- and I've had a few conversations and we've had some internal conversations about what does that look like? Because you're right. It's a very large umbrella group that has a lot of different user groups under it. Whether that's our community garden or our band or our choir, and they do use the community center for a lot of the hub of their operations. So we don't want to see those operations go away or see those programs fold, but we do want to figure out a way that's agreeable to both parties. Kind of a win-win agreement that helps them continue to use the community center while also bringing in some of the cost recovery efforts. So we'll put together a suggested user agreement for your feedback at our next meeting. COUNCILMEMBER MAGAZINE: I'm not asking for an answer to this. Just a concern. You're proposing a 50 percent reduction for nonprofits, but there are a lot of nonprofits under the FHCCA. So therein it seems to me lies a real conundrum that you're going to have to deal with. DIRECTOR GOODWIN: Agreed. Well, at this point they're using it at no cost. So any cost, even if it is 50 percent of the nonprofit rates is still more than they're currently absorbing. So I know that their budget is a concern for them and making sure that we can find, again, hopefully that happy medium between users and the cost recovery aspect. MAYOR DICKEY: Yes, councilman? COUNCILMEMBER SPELICH: Thank you, Madam Mayor. I'm sure everybody here knows where I stand with this. I've been a big proponent of making sure that everybody has skin in the game and free is not an option, or not paying is not an option, at least with me. I know that you're kind of under the gun and have been hamstrung with people waiting to schedule the community center and that. So I will kind of grin and bear it and approve this evening. But I'm very disappointed in the fact that we haven't come to terms with the Chamber of Commerce or FHCCA. And I'm worried about mission creep with organizations that all want to be under this umbrella and it keeps growing and growing Page 34 of 70 TOWN OF FOUNTAIN HILLS Page 35 of 70 MAY 17,2022 CITY COUNCIL MEETING and growing. I think it's imperative that when you do finally sit down,there's got to be some limitation. I mean, you cannot continuously go to the well and expect to bring up a bucket of water. So I believe the majority of town residents believe that everybody should have skin in the game. And I think it's imperative that-- -- I mean, I'll vote for it tonight, but it's imperative that we get moving with these agreements and get something in writing so that we can tell the residents that we spent$800,000 on the community center. If anybody in this room or anybody watching on TV thinks that these rates that you're proposing to be charged is outrageous or that we even hope to recover what we've actually spent, it's ludicrous. So I appreciate what you've done and everything. I'm not minimizing at all the effort that you put forward. I'll vote for it this evening, but I'd really like to get cracking on our agreement with them and with both parties, and make it abundantly clear to them that zero is not an option. DIRECTOR GOODWIN: Appreciate the feedback. Thank you. MAYOR DICKEY: Yes, (indiscernible)? MANAGER MANAGER MILLER: So along those lines, Rachel and I had discussed this and I believe we can at least bring to you by the June 7th council meeting, Councilmember Spelich and the council, the points that would be in the agreement. And then if you authorize us, we can go ahead and either administratively approve that with council direction as to the points that you want in those agreements or we can bring those back, per your direction, at a future meeting. But so I think we're very close to doing that for both of those organizations. MAYOR DICKEY: Thank you. VICE MAYOR FRIEDEL: And Councilmember Spelich, I just want you to know that I think we have something that we're working on with the chamber that hopefully will satisfy everybody, so. MAYOR DICKEY: Do we have any speaker cards? No? I just wanted to mention one thing about the community center. The eight to eight, I don't know if we can revisit anything to do with that. I understand if someone needs to use it earlier,that we might be charging the extra staff salary for that, and I wondered if we could work out some kind of a schedule so that it wouldn't be an extra amount. So let's say for example, I guess if somebody wanted to start at 8,the staff wound have to come in at 7:30, and anything Page 35 of 70 TOWN OF FOUNTAIN HILLS Page 36 of 70 MAY 17,2022 CITY COUNCIL MEETING earlier than that ends up being an extra-- -- in addition to paying for the building. So if there's some way too that Grady or we can help with the staffing that makes it fair for everybody but doesn't have people that might need it earlier paying extra,then maybe we can work something like that out. MANAGER MILLER: Good point, Mayor. And that particular point after you brought it to my attention today, Rachel and I actually discussed that late this afternoon. And so she's going to reach out to one of the potential renters of the facility and see what it is that we can do to kind of reach halfway and try to see what we can do to accommodate them. So anyways, good point and we're going to look at seeing how we can possibly make adjustments. Thank you. MAYOR DICKEY: Thank you very much. Any other questions or a motion? Page 434. COUNCILMEMBER SCHARNOW: I'll move to approve Resolution 2022-24 adopting the fee waiver policy. VICE MAYOR FRIEDEL: Second. MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? Thank you. Thanks very much for all your work. Our next item, Grady, is about professional agreements with Tanner? MANAGER MILLER: Yes. Public Works Director Justin Weldy will be giving the staff report on this and has a little bit of a twist that he's going to talk to you about. DIRECTOR WELDY: Madam Mayor, councilmembers. It goes without saying that obviously grants have benefitted this community over the years, and the wrinkle that we're going to be discussing involves a $2 million grant. If you'll recall, with the direction of the town manager and approval of the mayor council, staff sought a grant application for sidewalk and fill for Saguaro and Palisades Boulevard. We received that grant. Moving forward on that grant, it is approaching the 30 percent role plot. A lot of upfront planning and decisions have to be made. While we are the recipient, the Arizona Department of Transportation is administering this grant and the planning process and the project when it comes to fruition. We met them earlier this week, Monday. During our discussions it was noted that to reduce cost and provide the best product for Page 36 of 70 TOWN OF FOUNTAIN HILLS Page 37 of 70 MAY 17,2022 CITY COUNCIL MEETING the Town of Fountain Hills on Saguaro, between Colony and Fountain Hills Boulevard on both the east and west side of the road there will be areas where there are steep slopes, driveways, other encumbrances,that make it very, very difficult to build a sidewalk. As a result of that, Saguaro will need to be narrowed in these locations to allow for the sidewalk to be constructed on the flat area that is currently the road base. I'm going to take just a moment to explain that we have adequate lane width on Saguaro where there's a raised median. We have unusually wide travel lanes. Those can be reduced slightly to add this meandering, varying width of sidewalk from six to eight feet. It'll also, when we're finished, the bike lane will still be in place. That's not being eliminated. As a result of this, that section of Saguaro, we are strongly recommending that we do not do a preservative seal on that section. The reason is as that project moves forward, and it'll be beginning in earnest in the summer of'24, spring-- -- yeah, '23-'24,there -- --the pavement markings or the striping there will need to be removed and also several other things. As a result of that, the work that we would be doing now would be partially destroyed. Not a good decision to allow that to happen. This has all come together very, very quickly. We come to you tonight and we understand that $1.4 million is a really, really big number, as we struggle to maintain our infrastructure, primarily the roads. It should be noted that while you're approving this contract for that amount tonight, that money will be held for that section per the unit pricing for when that eventually comes back around. On that section, do you have any questions that I might be able to answer? COUNCILMEMBER MAGAZINE: Justin,just a quick question. Do you anticipate any major traffic disruptions? DIRECTOR WELDY: Madam Mayor, councilmember, there will be disruptions. I would not call any of them substantial. We are fortunate enough that all of the areas where the sidewalk will be placed has at least two travel lanes. So the shoulder, historically, and the right-hand lane will be reduced for safety reasons in those areas when construction is underway. Obviously, we will work to minimize that disruption to the best of our ability, but there's truly not a convenient time for construction. If you wait and do it in the winter, you disrupt the busiest season we have. If you postpone it to the Page 37 of 70 TOWN OF FOUNTAIN HILLS Page 38 of 70 MAY 17, 2022 CITY COUNCIL MEETING summer, then you have a negative impact on the few customers or visitors that may be coming. So again, we will work to minimize it to the best of our ability. COUNCILMEMBER SCHARNOW: Thank you, Justin. So with the sidewalk, are you going to cut Saguaro and remove some of it or just lay a new curb on top of the existing pavement? I guess I'm just trying to envision how that-- how that's going to look or where -- DIRECTOR WELDY: Madam Mayor, Councilmember, yes. So the curb where it currently exists on Saguaro will be removed. But a section of the roadway will be removed. And that section will then be constructed per our adopted subdivision standards. So the curb, everything will move out. The other curb will go away. The landscaping will have changes to it. And it'll be cleaned up. In the long run, you would be hard pressed to have noticed -- or to be able to notice that this work has taken place. VICE MAYOR FRIEDEL: Justin, will there be any issue with Shae Boulevard as far as, you've got some work that's going to be going on there to widen it. Are you going to have to disturb anything there once you've completed that sealing-- sealing project? DIRECTOR WELDY: Madam Mayor, Vice Mayor. If that-- and that's an excellent question. There will be a minimal amount of disruption there. There is an existing shoulder eastbound. And about three feet of that will be sawcut and removed to attach the new section to. That area will be minimized. And for that, we'll simply pull the broadcast over slightly. You're welcome. With that, let's get on to the $1.4 million. As described in the staff report. This has been challenging, to say the least, primarily because of the availability of materials. What we did is we put together a request for proposals, and we published that, hoping that we would get a barrage of interest. We had an open meeting, pre-submittal meeting in this chamber here. We had about seven or eight. In the end, only two of them submitted. There was a substantial difference, not only in their proposal in regards to the material but also in regards to the cost. The one that we come asking for permission for tonight is M. R. Tanner. They've done a lot of work for the Town of Fountain Hills through cooperative use and bidding processes in other cities. The other one -- and to note, so their unit pricing put this same work at just over$2 million for a slightly different material that we were not comfortable using at this time. Page 38 of 70 TOWN OF FOUNTAIN HILLS Page 39 of 70 MAY 17, 2022 CITY COUNCIL MEETING With that said,there is a couple of more small little caveats in this. We will work to do our best to get everything done before June 30th. However,there is going to be a little bit of carryover of this into next year, simply because the size and length of the project. With that, if you have any additional questions, I'll do my best to answer them. MAYOR DICKEY: Just again,to reiterate what you said. This is going to be locked in. So even with the delay, as far as the sidewalk goes,this is what it will be for the whole project, correct? DIRECTOR WELDY: Yes, ma'am. MAYOR DICKEY: Thank you. Any other questions? Yes. COUNCILMEMBER MAGAZINE: Justin, 1.4 million coming from where? DIRECTOR WELDY: This comes from the street fund, Councilmember. COUNCILMEMBER MAGAZINE: And does this have any impact on that total fund in terms of other uses? DIRECTOR WELDY: For this year, absolutely, sir. For next year, it'll have a minimal amount of impact. COUNCILMEMBER MAGAZINE: When you said this year, absolutely, what do you mean? DIRECTOR WELDY: Well,the majority of this project is in this year, which ends on June 30th. So two-thirds of it will have an impact on this year's budget. And we did budget for it this year. You're welcome. COUNCILMEMBER SCHARNOW: Justin, so what are we-- is it going to totally obliterate all the current striping? Have to restripe or is it just--how is that going to work? DIRECTOR WELDY: All of the current pavement markings will be obliterated and/or covered up with this material. So there will be new pavement markings and raised pavement markers as part of this process. COUNCILMEMBER SCHARNOW: And then is that part of the 1.4 or is that separate? DIRECTOR WELDY: It's part-- it's all inclusive,part of the 1.4. MAYOR DICKEY: Thank you. Can I please get a motion? VICE MAYOR FRIEDEL: I move to approve Professional Services agreement 2022- 075 with M. R. Tanner Development and Construction, LLC for pavement preservation NM IL. _. Page 39 of 70 TOWN OF FOUNTAIN HILLS Page 40 of 70 MAY 17, 2022 CITY COUNCIL MEETING treatments in the amount of 1.4 million. MAYOR DICKEY: Thank you. COUNCILMEMBER SCHARNOW: Seconded MAYOR DICKEY: All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? CLERK KLEIN: Unanimous. Thank you, Peggy. Thank you, Justin. DIRECTOR WELDY: You're welcome. MAYOR DICKEY: Our next item, Grady, Maricopa County Flood Control District. MANAGER MILLER: Yes, I want to go ahead and have the public works director present this. He and the town engineer mutually worked on this, so I'll turn it over to Mr. Weldy. DIRECTOR WELDY: Thank you. Madam Mayor, Councilmembers, last year-- and the past few years in fact, the intensity of the storms that we do have are certainly increased. And we've noted deficiencies and challenges that we face. A few weeks ago the town engineer and myself met with the director of the Maricopa County Flood Control District. We spent a couple of hours out in the field with him, showing him some of the challenges that we face. Based on our conversation with him and our reading of their applications, we strongly believe there are two projects within the Town that meet the criteria for grant. This is an area map here. Both of these projects are in the northeast quadrant. One of them is off of Deuce Court, which is on the northern portion of Saguaro,just-- of Saguaro,just east of the roadway. This is a picture of Deuce Court during normal dry conditions. This is a picture during and after a storm event. I think it's important-- I'm going to back one slide. The slide on the right is one home. The slide on the left is a second. The slide the --this one here, the home on the left is where the water has entered the garage and the remainder of the home for that night. And I was present for these photos about 1 a.m. The home on the left, she was not here. So we were not able to take photos at that time. Again, this is the result of that. This is what we are proposing. And I'm going to give Page 40 of 70 TOWN OF FOUNTAIN HILLS Page 41 of 70 MAY 17,2022 CITY COUNCIL MEETING you a quick backstory. This community predates incorporation at the time it was constructed. On the right-hand side, in this area here,there was a catch basin constructed and in the as-built plans, it describes a catch basin with 16-inch pipe draining the cul-de- sac. However, it's actually supposed to be right there. But when it was constructed, it was constructed between these two homes. And that 16-inch pipe is in fact a 4-inch pipe. As a result of that, obviously, there was no way to get rid of the water. This area right here is not the town's property, and we do not have a drainage easement there. And because of the improvements, it would be very, very difficult to achieve any drainage improvements there. This area here is a drainage easement that was granted to -- well, then,the special road district by default, now the Town. The plan is to remove this undersized catch basin. Add a correct one with a lateral pipe that comes to a new catch basin here that will drain through this drainage easement into a pipe and tie into a system back here that eventually leads out this direction. The next project, this one is actually on Grande, on the north side of the road. The home on the right is inundated with floodwater, even during relatively small events. There is a channel between the two homes there that, while we have a drainage easement there, because of the way it was written,the responsibility primarily falls on the homeowners. Knowing these challenges that are faced, I met with the town manager and we made a decision to include this in our grant application. My argument for this, the water that enters this drainage channel comes from the town's streets and adjoining streets, and the outlet is onto one of the town's streets. I think it's an excellent candidate for not only this improvement but for the town to do the maintenance on. This is during normal, dry conditions. This is after a rain event. The photo on the right is actually taken by the homeowner. And the eve is that you're seeing there up top, the water is actually lapping at their garage door. And oftentimes, especially if larger vehicles pass through this area, enter their home as a result of this. And tonight,this homeowner is here and she would like to speak in regards to this grant application. Again, typical dry conditions. After a typical storm event. Our proposal for this is to increase the size and depth where appropriate in that channel and either concrete line it or line it with riprap. Lastly, and I think this is very important in regards to these grants. These grants not only Page 41 of 70 TOWN OF FOUNTAIN HILLS Page 42 of 70 MAY 17, 2022 CITY COUNCIL MEETING pay for construction, they also pay for design, which is an incredible benefit. With that, if you have any questions, I will certainly answer them. COUNCILMEMBER SCHARNOW: Yeah, Justin, go back a slide. So once the water hits Rosita, does it go in the cul-de-sac and then turn left or where does it go? (laughter) I mean, I don't see a drainage from there. DIRECTOR WELDY: Madam Mayor, Councilmember, correct. So the water enters Rosita and looking at this slide, to the right and then it makes a left and then it heads towards Ashbrook wash. Not uncommon in this community that the majority of the drainage is directed onto streets that eventually make it to one of our washes. COUNCILMEMBER SCHARNOW: So there's no issue on Rosita then, as far as once it hits there and with other water, it's -- DIRECTOR WELDY: Councilmember, for me to say there --there are no issues, I would think would be a nonfactual statement. We are certainly facing challenges on that street and in that area. But they're nowhere near as severe as what we're facing on Grande. And the reason is, several of the homes on Rosita, the finish floor foundation is slightly higher than the road area for the majority. COUNCILMEMBER SPELICH: Thank you, Madam Mayor. The couple that live on Grande, I had the pleasure of meeting eight years ago at the American Legion, Don, and Sue Anderson, who are just absolutely phenomenal people. I have passed their home during an event, a rain event. And to say that the water literally goes up to the front door of their home is an understatement. And that's when no cars are driving down Grande. For some reason, some people think it's absolutely hilarious when we have a rain event like this, especially people that happen to own high-sport utility vehicles, to fly as fast as they can down Grande, which creates the Poseidon Adventure on Don and Sue Anderson's home, in which then water does get into their residence. You'll hear briefly in a matter of moments from Sue,the homeowner. And I will tell you, to live what they live every single time it rains, if any of us in this audience or anything had to just sit on pin and needles wondering if our homes are going to be flooded every time it rains, I just-- I really am for this project. They've been putting up with this, she'll tell you, for years, with no one even remotely trying to help them. So I appreciate the town manager and you, Justin, making this a priority. And I just think it's a no brainer. Page 42 of 70 TOWN OF FOUNTAIN HILLS Page 43 of 70 MAY 17, 2022 CITY COUNCIL MEETING COUNCILMEMBER GRZYBOWSKI: This is the kind of reason why I left Key West because we dealt with this every single day. So I completely support the fact that we're doing something about this. And I love that you found a grant for this. Every time we talk about a wash or something of this nature, I like to remind us that if we still had an environmental fee, I think that this is probably something we could have put it towards. But thanks to, what is it, Bill 1487, we still haven't heard from the Attorney General's office. And we're still not charging that environmental fee. I don't expect an answer. I'd just like to make sure that our thousands of fans watching us at home on TV know that this is missing money. Would you say 20 people? No, it's thousands. I know it is. MAYOR DICKEY: Thank you. Did we have any speaker cards on this item? CLERK KLEIN: Yes, Susan Anderson. ANDERSON: Thank you very much, Mayor Dickey and the councilmembers, for allowing me to speak. My name is Susan Anderson and I live at 17306 East Grande Boulevard. My husband and I have owned our home there since the year 2000. There are pictures to show you what our house looked like when we bought it and what we've done to it--what it looks like now. We have done extensive work on or property. And we do our best to keep our front yard and home looking really good. Just two years ago we added $8,000 worth of pavers to our side yard. The flooding that occurs on our side yards -- side yard has started to shift the pavers. And we've had to add more sand many times as it is being swept away by the flooding. For the first five years of living in Fountain Hills, the Town actually took care of that easement. They clean it out, sort of. But there were trees all the way from our--the beginning of our driveway to Rosita. Those trees have all been taken out now by the -- by the homeowners. Sorry-- oh, and so they stopped doing it and they were --we were told it was our responsibility. For years we took care of it. All the trees have been removed and the weeds are cut down every time we have our yard landscaped. Over the years, the easement has filled in. Rainwater does not flow through it like it used to. For the last 15 years -- 15 years, we have dealt with flooding. Every time it rains, our driveway, garage, walkway, and front yard floods. You can see it in the pictures. Page 43 of 70 TOWN OF FOUNTAIN HILLS Page 44 of 70 MAY 17, 2022 CITY COUNCIL MEETING We have had rain 12 feet into our garage. Our driveway disappears completely. You can't even see my driveway. And our front yard becomes a dumpster for all of the debris that's on the road. A huge black line of what looks like black seaweed lays across the width of our front yard. Four inches of mud and rock sit at the of our driveway and has to be bulldozed and sucked out. And you have pictures to show you what the -- I don't know what that's costing the town. Then, it's our time to clean up. We have to clean the inside of the garage, our walkway, all -- everything on the driveway and the pavers. We keep spending money, more and more money to do this every time. It's just unacceptable. Because our home sits at the very lowest point on Grande, our home takes the beating from the rain. The easement cannot absorb or move the water north to Rosita fast enough. Cars going 30 or 40 miles an hour coming from El Pueblo and the Reservation hit the standing water in front of our home, which goes all the way to the middle of Grande, and the spray will be as high at 40 to 50 feet. Then the water is pushed on to our property like a wave, which then goes all the way up our driveway and into our garage. Our garbage can -- and there are pictures of that-- full, was carried away from the street, all the way to Rosita, which is the street in back of where I live. A streets and sanitation worker stopped the truck, went through the wash, got my garbage can, and brought it back. And on the way back, at some point a year ago or two years ago, they had trenched six feet into the easement and about four feet. And this man fell into that hole because he couldn't see it. And he was in water up to his waist. And I thanked him very much for doing it, by the way. A woman drove her car through the standing water at 30 or 40 miles an hour. The car stalled. My husband went out to help her only to find out she had a baby with her. We called the police to assist her, fearing that someone else driving through the lake in front of our house would hit her. There are pictures of that stalled car and the police presence that one day. Someone at some point is going to get hurt. Someone else driving through all of that water won't be able to stop. Why is our easement responsible for all of the rainwater that runs down east on Grande and north from Arrowweed, which is across the street from us? It's a very sloped street and all that water comes right to my house. There's a "Y" at the -- at the beginning of our P%- +;'.-..�4#%�`w'W.`.4Y:�A:�Y: '}#a'2�Y.a?^„'�y'w.Kseh'Y e.;.`Y "'�.s&b2'+'sSoz.?�+6#3SY'a45i: ,�:.Y,tAS"x+✓X1Y .�,'`.. exa$y':::Y .:»3#�:ti".::Ni-.a..Y:i�'-;.: .:: ^.X.x,;:2�a*Y'ii^�i+d¢?=?�w:: A Page 44 of 70 TOWN OF FOUNTAIN HILLS Page 45 of 70 MAY 17, 2022 CITY COUNCIL MEETING easement, a curbed "Y" that directs all of the rainwater into my easement. There is not another storm drain on the northside of Grande. There is nowhere else for the water to go but through the easement attached to my property. I would like to know who put the "Y" there because we didn't. And why isn't there a storm drain on that side of the street? Something, please, needs to be done about this. We've spent more than enough money. Our home is being damaged. We --we're doing the best we can but it's time for the Town of Fountain Hills to help us with this. I would appreciate anything and all that you could do. Thank you very much. MAYOR DICKEY: Of course. VICE MAYOR FRIEDEL: Susan, thanks for your patience in getting this done. Justin, Grady, thanks. We need to get it fixed; we realize that. So -- sorry about that. ANDERSON: Thank you all for hearing me. VICE MAYOR FRIEDEL: You're welcome. DIRECTOR WELDY: Madam Mayor, in closing, so each of these projects, and these two are just the first two of many that we will be proposing as time moved forward. The funding is up to $500,000 per project. 75 percent of that is the grant. And obviously, the remaining 25 percent would come from the Town to pay our portion. COUNCILMEMBER SCHARNOW: So the ownership of the land, is that going to be an issue for the grant or we just going to keep it, like, as it is or? DIRECTOR WELDY: Historically, if the land does not already have a drainage easement, we will be required to get it. In this case,there is a grant of easement on that property. COUNCILMEMBER SCHARNOW: Okay. MANAGER MILLER: I just want to point out, we've mentioned in the past,the Council, particularly at the retreat, the three top issues. And this is definitely--this and streets are the top two. We definitely are going to be addressing these. And we're going to be trying to address these individual property owners and trying to assist them. But this is just one piece of the overall puzzle. The bigger piece generally, in addition to helping the residents here, which is very important, is basically a masterplan. We really need to do a flood masterplan, which we're also going to be seeking additional money for and working through Flood Control District. Because, in my opinion, we have seen with some of Page 45 of 70 TOWN OF FOUNTAIN HILLS Page 46 of 70 MAY 17, 2022 CITY COUNCIL MEETING these storm events major erosion we've never seen in our lifetimes to Ashbrook wash and the other washes here in town where chunks of-- of dirt have eroded away, coming very close to people's backyards and properties. And so in my mind, we need to channelize these --these washes and reinforce them. But what we need to do is we need to have basically, I hate to use the word study, but we really need to have a masterplan as developed by civil engineers that have drainage backgrounds and -- and we are going to be doing that but we're seeking funding for that as well. So this is --this is great but what I'm just trying to say is this is awesome that we're trying to help the residents. And we do apologize in the past that you've had to deal with this. But in the end, this is something that if we don't address holistically as a whole community, we're going to start seeing more of these types of situations in the town. So I just wanted to let you know, we talked about it and you'll be seeing more of these types of things coming before you. DIRECTOR WELDY: Madam Mayor, if I may, in regards to the town manager's comments,the Maricopa County Flood Control still has their area drainage master study that they're paying for underway that covers the entire town. From that, there will be an incredible amount of information, including strong recommendations for projects. That finalized document, which will be utilized for many years to come, while applying for grants, not only from the Flood Control District, from -- but from any other governmental agency that we may have an opportunity to do so. MAYOR DICKEY: Yeah. Timing of this -- so you understand then, I know Grady, I talked a billion times about the infrastructure bill and the deadlines involved. And this seems, you know, all of these district --these water-- sorry, drainage items seems like they would be very appropriate for applying there. Do we have any chance of doing that in time? MANAGER MILLER: I would say, the issue is that we have to basically have designs in place to be able to apply at that time. So while the masterplan can identify the overall strategies of trying to deal with drainage for our community,they're going to recommend some things I believe that in the end, it's not going to be a deep enough dive. And I think that's where we're going to have to spend some, maybe additional money or getting grant Page 46 of 70 TOWN OF FOUNTAIN HILLS Page 47 of 70 MAY 17, 2022 CITY COUNCIL MEETING money to do those deeper dives and have design. I don't believe that they're going to pay for, you know, the design part of it. I think we're going to have to have that done and ready. But we'll definitely take a look at it. We've talked already about a number of other projects, such as the --the wastewater reservoir at Fountain Park for the liner there. So we definitely are going to go after and see what we can do. And we have a town engineer and public works director and staff that are committed to trying to seek funding for these types of projects. MAYOR DICKEY: That's good because that-- you know, whether it's this project or Golden Eagle or the pipe or whatever, if we can get some infrastructure money, then it's just less that we --then we have more to go for this. Yes, Vice Mayor? VICE MAYOR FRIEDEL: You had mentioned two solutions for that issue, riprap, or concrete. What's the better choice? DIRECTOR WELDY: Madam Mayor, Vice Mayor, we are going to depend on an engineer to provide that guidance. There are --they're benefits and challenges to both. Concrete historically is easy to maintain and the sediment just gets swept out of it by staff. It also increases the speed of the water substantially. And we don't want to do more harm downstream or across the street. So we already have an excellent firm that does these types of small projects and is very familiar, identified. Once we get the permission we will move forward. MANAGER MILLER: Justin is correct about that. You'll also notice most of the communities in the valley that were done primarily by Flood Control District working with the Army Corps of Engineers years ago did the shock creep --that's what you, like, line pools with. And they got away from it because -- not because of the lack of durability but it just looks really ugly. And so the latest things that's been going on for, like,the last 15 years or 20 years is the gabions. And so again, we're going to see what they have to offer. Because if you do the shock creep and maybe there might be some areas that are more at risk, you might do a combination of both. I don't think there's really one silver bullet for this. But if you do --to Justin's point, the shock creep, you would have to have some other things in the structure that slows down the speed of the water. You have what's called drop structures and other things that slow down and catch the sediment. But that's all going to be part of the design. We'll rely on the drainage Page 47 of 70 TOWN OF FOUNTAIN HILLS Page 48 of 70 MAY 17,2022 CITY COUNCIL MEETING engineers to help provide guidance and direction to the Town. MAYOR DICKEY: I'm sorry if I missed it, but what's the timing on this? Yeah, for-- for getting it done, like, before monsoon season or whatever. MANAGER MILLER: Well, this is a grant application process. But my understanding is, isn't this open year-round to apply? So they don't have just a grant cycle, correct? DIRECTOR WELDY: Correct. It's open -- it's currently --they're changing that policy. So historically all of the grants had to be received in September or October. But the new director is opening it up to year around as a result of some of the flooding that's happened in Maricopa County. MANAGER MILLER: So timing-wise -- I don't think we answered your question. I don't think that this will be designed and constructed in time for the monsoon season. MAYOR DICKEY: So in the meantime, is there anything we can do to mitigate what might happen, you know, in the immediate future? DIRECTOR WELDY: Absolutely, we've -- we've already been working not only -- so you're seeing two locations. We have other locations that we have already taken care of these channel issues. Between Court Scorpion and Kim, we had a home very badly damaged up there. So we addressed that one. And we will likely go in and do a minimal amount of grading here to increase the width. The challenge we face with the location on Grande is there is a sewer main traveling from south to north halfway through this. And it turns left and heads east between homes at 17315 Rosita and 17214 Grande. So we're going to have to work around that sewer main for that area, which is one of the minor obstacles in this area. You're welcome. MAYOR DICKEY: Does anybody --would like to give a motion, please? COUNCILMEMBER MAGAZINE: I'll move -- move to approve staff to seek and apply for grants for the Maricopa County Flood Control District. COUNCILMEMBER SPELICH: Second. MAYOR DICKEY: Thank you. All in favor, please say, aye. Councilmembers: Aye. MAYOR DICKEY: Any opposed? CLERK KLEIN: Unanimous. MAYOR DICKEY: Thank you. Thanks, Justin. Page 48 of 70 TOWN OF FOUNTAIN HILLS Page 49 of 70 MAY 17, 2022 CITY COUNCIL MEETING DIRECTOR WELDY: Thank you. MAYOR DICKEY: Our next item is the Shums Coda third party plan review, Grady? MANAGER MILLER: Yes. I'm going to go ahead and have John Wesley, the Development Services Director, give a report on this item before you. DIRECTOR WESLEY: Mayor and council, I'll be keeping it brief this evening. You are aware that our town building permit staff is rather limited. So when we get in big projects or complicated projects such as the previous phases of Park Place, the hospital, the Daryl Project, we hired a third-party contractor to help do that plan review and some of the inspection services. With the approval of the next phases of Park Place site plan, we found it important to move forward also with a consultant to help with that. So back in December, we issued an RFP to get-- solicit consultants that could do this work. We received four bids on that. And we interviewed those. We selected one of those, Shums Coda, a company that's been in business for I believe about 16 years who works exclusively with local governments to help them with plan review and inspection services and prepare to contract for that. The DA for Park Place specifies that the developer will pay 100 percent of the cost of hiring the third party. So it's no ultimate cost to the Town for this. We had prepared a contract that we put into your staff report. We did,though, have opportunity to meet on Monday with the applicant and review that contract with a little bit more detail. We found some areas that needed some clarifying and some modification. So you'll find a revised contract addressing those items that we identified in front of you this evening. So that is my report on that. MAYOR DICKEY: Thank you. Any questions for comments from Council? So you said you'd -- so the one that we were going to do previous --at a previous meeting has been changed satisfactorily and now it's on this one? DIRECTOR WESLEY: Mayor, I did miss one item. So there's one item -- one minor item in that. There was still a need to work with Shums Coda on and the developer. The developer's going to pay a certain amount up front, right after they make their initial -- make sure we have the funds to pay Shums Coda until they make their full permit payment when that would be issued. And we're not exact what that percentage is; we're still negotiating that. So that'd be one item at least that we'll still, with Council's Page 49 of 70 TOWN OF FOUNTAIN HILLS Page 50 of 70 MAY 17, 2022 CITY COUNCIL MEETING approval, modify in the -- in the agreement that we can think of. Council go ahead and give us that approval, we can finalize that administratively. MAYOR DICKEY: (Indiscernible). TOWN ATTORNEY ARNSON: Thank you. Yeah, Mayor and Council, I think to Wesley's--to address Mr. Wesley's point, I would recommend approval of the Professional Service Agreement as stated in -- as stated in the agenda item with the added part of--to the motion, with direction to staff to make any administrative changes necessary to finalize the contract. Then we'll be able to have that flexibility, if that works for you, whoever makes the motion. MAYOR DICKEY: See if we have any speaker cards and then, that'd be great. Speaker cards? No. Okay. Go for it, Vice Mayor. VICE MAYOR FRIEDEL: So moved, what Aaron said. MAYOR DICKEY: What you said. COUNCILMEMBER GRZYBOWSKI: Second. MAYOR DICKEY: Thank you. All in favor, please say, aye. ALL: Aye. MAYOR DICKEY: Any opposed? Thank you. (Unanimous) MAYOR DICKEY: All right, our next item is along the same lines, Grady? MANAGER MILLER: Yes, the next item is before you at the request of the applicant. I'm going to have Development Services John -- excuse me, Development Services Director John Wesley go ahead and give the report on this, John. DIRECTOR WESLEY: Again, Mayor and Council, I'll keep this fairly brief. The original development agreement for Park Place was entered into in June of 2016. It included several phases and timelines for the project, the last of which was for Phase II to be completed by the end of six years. And Phase III to be -- permits issued by that time. An overall statement in there that all permits needed to be issued within that six-year timeframe. With the recent approval of the site plan, the applicant is finalizing their construction documents but we're coming up to the end of that six-year timeframe. So they have requested an extension of that for one year. And that's the amendment that's before you this evening, is to extend that DA for one year. Page 50 of 70 1 TOWN OF FOUNTAIN HILLS Page 51 of 70 MAY 17, 2022 CITY COUNCIL MEETING MAYOR DICKEY: Thank you, John. Do we have any comments or questions from Council? At this point, do we have any speaker cards? No. Okay. So the --what's before us is to extend. Do we have any discussion on this or any presentation? No. Okay, yes, Councilwoman. COUNCILMEMBER GRZYBOWSKI: I have a question about the 12 months. Before I even question the 12 months, you and I actually had a conversation about how important it was to me that we follow the direction of the development agreement. And I explained to you that the reason why is because your partner's got a reputation that precedes him. So it was very important to me that we follow in line with the development agreement. So I'm a little curious as to where the 12 months came from. And I -- I agree. I understand the COVID and the --the supply chain issue. I don't recall that coming up in April or March or whenever it was that we discussed it. So that's why I'm a little confused about the 12 months, where technically I think, really, you'd probably only need what-- what was it, 16 weeks plus 4 weeks I saw written somewhere else? OKAMOTO: That's probably the case, but the reason we asked for a year is simply administrative. Because what we need to do is we need to get bank financing. And the bank needs to be certain --they don't know how long this process takes. And a lot of this -- of communities, for example, in California sometimes it takes six months, sometimes it takes a year. So in order for the bank to proceed, to have the comfort that we're going to be able to get the permit, we just put a year in. Now, Councilmember, what I told you was that, we're actually proceeding with all due speed. And we have spent literally millions of dollars on this. And we've come up with a site plan that, you know, that all of you have --have voted on and agreed with. This is a project that we want to proceed with ASAP. For example, the reality is, probably within the next quarter, we're going to have another interest rate hike. Each interest rate hike literally costs us a million dollars. This past one cost us over a million dollars in our budget. So we want to get this thing done as soon as humanly possible. However,there were some delays in terms of, for example, this contract that you're --that you just approved, that was -- that's been a fairly lengthy process, as Mr. Miller will confirm. It was supposed to be up for-- for consideration, what was it, last time or the time before, I believe. ta3k%3«}Y#:9�vC3.X`s..�T.ti.k rs.cJ«� ,i.A>iH�.*S.sa..•. .. •• s••..: * >._#_.?:! .mw-"P.n.3t +'.. .,3,: P.=, .x=.;.; x?•., 'r=d�-,:' ...,A=..-:.:.. Page 51 of 70 TOWN OF FOUNTAIN HILLS Page 52 of 70 MAY 17, 2022 CITY COUNCIL MEETING MANAGER MILLER: It was on the last agenda. And then there was -- your team had some concerns with the scope of services. And then we figured that out Monday. But then we also had it on the agenda, I believe in April at some point. SHEA: Right. Exactly, so it--there had been a lot of delays. And, you know, we're doing the best we can to surmount -- you know, to overcome all those delays. And at this point, our plans are virtually almost all done with respect to the phase that goes behind. That is virtually ready for submission. The other one is just about two weeks behind. And that's because of the tremendous number of engineering changes that had to take place. Because we put in the retail, as you asked, and everything. We had to reengineer the whole structure. So that--that took a lot of time. And we've been putting a lot of pressure on our consultants to do that. But, you know, they're only human. And we don't want them to make a mistake here. So you know, for example, before there was one post-tensioned slab. Now, it's basically connecting three different post-tensioned slabs. All the slopes have been changed. We had to rearrange everything. It was almost like a new project. So I don't think what we're asking for is anything unreasonable. This project is still designed to serve the community. I think something that several different presenters' product beforehand was the need for workforce housing. Especially with respect to the phase that's right behind Park Place. That's going to be less expensive. We're -- $4,000 a month, I mean, we're not going to be anywhere close -- we don't charge for parking. If you went to Park Place, the only place --think that you'd get charged for is your-- your room and if you want, you know, cable, all those sorts of things. But the bottom line is, you know, I invite you to go to our management office. We are providing, probably about 400 additional people that would be able to live in this area. Also, bring critical mass, finishing out the downtown, which will be, I think fantastic for everybody. I don't think anyone's opposed to doing this as long as we do it the right way. As long as we do it in a way that's consistent with --with what the community wants. And I think, you know, the community has spoken. You guys have spoken on behalf of the community by approving the project. So the purpose of us getting extended is not so much to --we don't want the year, you know, regardless of what you may think about our partners or anything like that, you Page 52 of 70 TOWN OF FOUNTAIN HILLS Page 53 of 70 MAY 17, 2022 CITY COUNCIL MEETING INUNIIMISD know,just to go back to COVID for example, we actually were engaged with BART before, when we first purchased the project. This was two years ago. We have -- are in the habit of developing at least one or two projects every year. But since COVID happened, we haven't developed a thing. This is the first one that we've engaged in because our investors, they're, like everybody, we were all caught up in the pandemic and, you know, pretty fearful for doing something, and with the supply chain issues and everything, we had to allow additional time and additional money. Lumber prices went through the roof. So you know, what we -- what we're trying to do is trying to meet the needs of the community, at the same time meet the needs of our bank. And they just want adequate assurances that we were -- we will proceed, you know, and get this permit done. Now, what-- if you'd like, what we can do is we can modify the year to say, look, we have to -- as your Counsel will say, you know, if it diligently prosecuted to completion. Now, because you've engaged Shums Coda to do this, you have the ability to determine whether or not we're just dragging our feet or we're actually working at it. And I think what you'll find is that not only are we working at it, we're working as hard as we possibly can because we -- we have the ticking bomb of another rising interest rate that we really need to meet. So -- MAYOR DICKEY: Yeah, go ahead, Councilwoman. COUNCILMEMBER MCMAHON: You know, I can hear what you're saying. I understand what you're saying. But I'm also looking at the contract and the terms and the time parameters. And it's, you know, it's a six-year contract. And it's my understanding that the first phase was finished in 2019. And from that -- and during 2019 and 2020, it's my understanding that there was no communication between BART SHEA, you, with the Town. That, you know, there was no communication about any difficulties or obstacles that you were facing moving forward or that -- any communication that you had an intent to be in compliance with the contract terms and develop on schedule. I mean, it's -- in fact, it's my understanding that the first time you guys even spoke about anything again about the development, the next phase was in January of 2021 when you spoke with John Wesley and Grady Miller that -- and you said that you were moving forward with the mission of the site plans. Well, 9, 10, 11 months go by and all of a Page 53 of 70 TOWN OF FOUNTAIN HILLS Page 54 of 70 MAY 17,2022 CITY COUNCIL MEETING sudden, you know, there's -- you submitted, you met again and said you were submitting plans. And the next set of plans that were submitted were all in noncompliance of the contractual agreement. And then, you know-- you know, different things happened, but here we are, you know, sitting here and you're asking for an extension of time based on your failure -- your developer's failure to be proactive and stay within the contract terms -- didn't communicate any problems with us. And now you're saying there was some type of ambiguous and vague global reason for your delay. When approximately nothing-- OKAMOTO: I -- COUNCILMEMBER MCMAHON: --was communicated until now. So therefore, you know, I don't understand -- I don't-- I don't think personally to put this right now, a month before contract deadline and stand there and say how much you've spent and everything and asking for 12 months and then say you don't need it and then, you know, et cetera. I'm just -- I don't think that's fair and appropriate. OKAMOTO: Councilman McMahon, with all due respect, you didn't attend any of the meetings that we had. You have not been in communication with us -- COUNCILMEMBER MCMAHON: Excuse me, it's not a problem -- OKAMOTO: I understand -- COUNCILMEMBER MCMAHON: --of me coming to your meetings or anything. It's about you (indiscernible) -- OKAMOTO -- all right. Excuse me, I'm talking right now. You had your say. MAYOR DICKEY: Excuse me. Councilman Spelich has something to say. Thank you. COUNCILMEMBER SPELICH: Well, my dad always had a saying and his saying was, poor planning on your part doesn't constitute an emergency on mine. So I will sum this up with, I will not approve a one-year extension. John, when was Mr. Shea in front of Planning and Zoning and Planning and Zoning approved it with the stipulations? What month was that? DIRECTOR WESLEY: Mayor and Councilmembers, that was back in January. COUNCILMEMBER SPELICH: January. And then when did Mr. Shea come before this council and present his plans that had retail in a basement? DIRECTOR WESLEY: Mayor, Councilmember, I want to have the dates exactly right. Page 54 of 70 TOWN OF FOUNTAIN HILLS Page 55 of 70 MAY 17, 2022 CITY COUNCIL MEETING I believe in February is when they came with the first version and I think that did start to show the possibility in addressing what P&Z had said by showing the commercial that faced on Saguaro and out of the basement or under the other piece. And from there they redesigned to come to the full DA terms. And that was in April when that came back. COUNCILMEMBER SPELICH: So we wasted basically almost 4 1/2 months? UNIDENTIFIED SPEAKER: No, no. COUNCILMEMBER SPELICH: I'm saying that 4 1/2 months were wasted by not listening to what Planning and Zoning said and the stipulations that Planning and Zoning said, correct? DIRECTOR WESLEY: Mayor, Councilmember,yes, if the original site plan would have had the 8,000 square feet of retail as in the DA,this would have been a lot faster. COUNCILMEMBER SPELICH: And I believe that if it was brought before this council, it was unanimous vote approve it when it was finally brought to us the way that Planning and Zoning suggested that it was brought to us. So I -- I think that to come now with those delays and everything and then ask for a year to me is rather fresh. MAYOR DICKEY: Vice Mayor. VICE MAYOR FRIEDEL: I'm just wondering, John, maybe Aaron, you could weigh in on this,how quickly could we get a new development agreement done? ATTORNEY ARNSON: I mean, you could, Mayor and Councilmen, you can move pretty quickly to get a new development agreement in theory. The devil is in the details. And it depends on what we're trying to accomplish with a new development agreement. VICE MAYOR FRIEDEL: So I wonder if that wouldn't be a solution to this --get a development agreement done. When is this one up? The middle of June? A month? Can we get one done in 30 days? COUNCILMEMBER MCMAHON: Can I speak? MAYOR DICKEY: Yes, Councilwoman. COUNCILMEMBER MCMAHON: There's nothing. MAYOR DICKEY: So I thought maybe you were asking if this expires then how soon could we get another one done, but you were trying--you were saying to change this one completely or-- VICE MAYOR FRIEDEL: Yeah. Can we get a new one done before this other one MOW Page 55 of 70 TOWN OF FOUNTAIN HILLS Page 56 of 70 MAY 17, 2022 CITY COUNCIL MEETING expires -- MAYOR DICKEY: That I-- VICE MAYOR FRIEDEL: -- and maybe everybody would be happy then? MAYOR DICKEY: Aaron, so when you were answering it was--did you have that understanding that I did? That it was, like,this would expire then how long would it take to get a new on up and running or--because -- ATTORNEY ARNSON: I'm-- I'm -- MAYOR DICKEY: Because we don't need a new one, we have one that we agreed with, right-- VICE MAYOR FRIEDEL: Yeah, but there might be some things that we want in the new one, such as that--that's not in writing, you know, like the paint color on the original building and other things like that, is what I was thinking-- ATTORNEY ARNSON -- I see. VICE MAYOR FRIEDEL: So it would be easier to it all done with a-- ATTORNEY ARNSON: In my view, I think the developer stipulated to those things in the last meeting. SHEA: Already stipulated to --just momentarily, speaking to Mr. Spelich— Councilmember Spelich, I apologize. Councilman Spelich,thank you. The entire world got COVID for two years. January of '21, we came in to submit a site plan and by March of'21,the whole world shut down. I don't think the town was open for most of '21 --2020. In 2021,we worked in a pandemic, in January--the banks were. MAYOR DICKEY: I think what our point is that you had January of 2022 was when you started. SHEA: So -- MAYOR DICKEY: When you brought something forward to us. SHEA: --that might have been when it was done, but the entire world gets the pandemic bump, but we don't. And that's kind of where we're standing on it. And it's just literally a curiosity question. MAYOR DICKEY: I don't think so because -- excuse me, because 2022, January of 2022 is when you first started to get the ball rolling again. And as Councilman was pointing out,we had February,we had March,April --we had a lot of opportunities to Page 56 of 70 TOWN OF FOUNTAIN HILLS Page 57 of 70 MAY 17,2022 CITY COUNCIL MEETING not be to this position of being only a month away. And -- SHEA: Right, which I -- which, you know, we can -- we still didn't-- even if I had plans done in January, I couldn't submit them. We didn't have a contract, you know, we were split in two. All of that being said, if-- if it's just a point to timeout the contract and move forward on it, so be it. I get it. I understand. We granted --the Town of Fountain Hill granted the extension to a development agreement was it two weeks or four weeks ago, a very similar thing, for COVID. But this particular development agreement is not going to get any grants for any -- COUNCILMEMBER GRZYBOWSKI: Actually, I would like to say that we approved a development agreement extension on another one that you're talking about one year in advance. You came, from what I understand, in January 2021 to our staff members -- and when I say you, I mean you all. I don't necessarily mean you, you. I mean you all. You all came to our staff members in January 2021 and said you were ready. You were ready to present. Then we don't see anything until January 2022. I think that's what my cohorts and I are trying to get at. SHEA: Because we couldn't get a bank to come to terms on financing because of COVID. But I understand. I get it. OKAMOTO: And not only that. We couldn't come to the table because of COVID either. MAYOR DICKEY: I think we're going to fast forward to January of 2022. We're -- SHEA: So, again -- MAYOR DICKEY: Excuse me -- we are going to fast forward to January of 2022 when you came to us with something that was not compliant with the development agreement as it existed. And you were told that pretty quickly by Planning and Zoning. So there was no COVID talk, nothing like that. Then, we fast forward to now where we -- well, actually, let's go back to the meeting where we approved the site plan. Okay, because it--that site plan could have been before us in February but it wasn't. And it was never brought forward in a way that was approved because you kept not complying with what Planning and Zoning stipulation asked for. Then you brought it back to us. We said, okay. Now you're trying to say that this third- party guy had something to do with the -- party had something to do with the delay -- PageF�'*'X;�° .z.., �� t..a,.53 =*1F.C.,f.,+v s'�W:i3-.'.k".h vt.e a9 .....,,a_ _,3'.,{ ,. . .,..�&1>` .. L.,+r •[k"tom-1kCd N. i 57 of 70 TOWN OF FOUNTAIN HILLS Page 58 of 70 MAY 17,2022 CITY COUNCIL MEETING absolutely not. We were told at the time when we put it on our agenda that even if we had to wait until now, it wasn't going to affect this aspect of it. And, of course, you came, I believe the day before or the day of our last meeting to say that that third party. So I don't even really want to talk about the third-party agreement having anything to do with delaying this. Then we go back to the agreement for Adero, which is a vacation resort, which had been totally affected by COV1D. They're not asking to change one dot of their development agreement. They're asking for more time. I don't see the similarity even a little. SHEA: Okay. So literally, Planning and Zoning approved my plan, unless I'm mistaken, 100 percent with one stipulation to explore having commercial on the corner? MAYOR DICKEY: (Indiscernible). SHEA: I -- I do. It was when they wanted to explore having commercial on the corner. But they approved my plan as it was. The Council decided that it didn't meet the --the intent. So -- okay? You want to do four months, do you want to do -- it's just going to be no, I guess is the question. So January -- OKAMOTO: The point is, we did have an approved site plan through P & Z but you guys did not approve -- in fact, you did not even give us a reason at the meeting. Because we did ask, you simply voted on it and you voted it down. That's the fact of the matter-- MAYOR DICKEY: The reason was that the commercial was not -- OKAMOTO: I don't care about the reason right now -- MAYOR DICKEY: Excuse me, you said we didn't give you a reason. We gave you a reason on that initial one. OKAMOTO: (Indiscernible). MAYOR DICKEY: Absolutely. OKAMOTO: (Indiscernible). MAYOR DICKEY: And if you'd brought forward -- Yes, Councilwoman. COUNCILMEMBER MCMAHON: They were given a reason every single time. It wasn't in compliance with the development agreement. And in addition, during the period of this global event, COVID, the Town was open, people were working remotely, the hotel at Adero functioned, other people functioned, other people did their job from Page 58 of 70 TOWN OF FOUNTAIN HILLS Page 59 of 70 MAY 17, 2022 CITY COUNCIL MEETING home, et cetera. OKAMOTO: That has nothing to do with development -- COUNCILMEMBER MCMAHON: You never-- excuse me, you never communicated to the Town that you were --that you were having financial problems trying to fund it. And you -- at that time that was happening, there was no communication that you needed an extension of time. So but for your action -- lack of action, you're standing here now asking for an -- what I think is an impossible extension. SHEA: You think it's impossible? Really? COUNCILMEMBER MCMAHON: (Indiscernible). MAYOR DICKEY: Any further comments? OKAMOTO: Adding-- adding three months to a six-year loan contract is impossible? That--that seems remarkably unreasonable and illogical. COUNCILMEMBER MCMAHON: You misunderstood -- SHEA: Can we go to a-- MAYOR DICKEY: Let's do one at a time, please. Does Council have any further comments right now? Would you like to hear if we have any comment cards? Do we? No? We have no comment cards. Does Council have any further comments? Vice Mayor. VICE MAYOR FRIEDEL: Well, I was still wondering if we could get a new development agreement done in the next 30 days. ATTORNEY ARNSON: Well, again, the --the theoretical answer is yes, but I'm trying to look and see the situation that we're in. Right? The situation that we're in is, we're at the point past approval where we have an existing development agreement and where Council is saying one thing, developer is saying the other. I don't' know what purpose another development agreement would accomplish even if it was theoretically possible. And I see the developer is shaking his head that no, it wouldn't be possible -- SHEA: The last one took over two years to -- with the Town of Fountain Hills -- ATTORNEY ARNSON: So I mean, I -- I think I probably have to agree. MAYOR DICKEY: Well, and Jerry, so we have an -- we have an approved development agreement in front of us right now. And I think the timing is the issue. OKAMOTO: To us, Planning and Zoning said that we were in compliance with Page 59 of 70 TOWN OF FOUNTAIN HILLS Page 60 of 70 MAY 17, 2022 CITY COUNCIL MEETING development sometime in either January or February. Everything else after that is a result of this Council's decision to not go with what Planning and Zoning said. And we had been -- we did not stop working. If any of you is familiar with the way architects and -- and engineers do things, is not an overnight process. Having to redesign completely a building is not something that just happens overnight. So it's not something that we just simply were doddling on or anything like that. The reason we didn't ask for an extension is because we really thought that this --this, that back in --when we were done with P & Z and we got approved, that we would proceed accordingly at that point. That did not, however, happen. And as soon as I realized, personally that it didn't-- it wouldn't happen, this is exactly when I called for the meeting, which Grady arranged with -- with four of you. And I did bring up, in fact, at that particular point an extension. So this is not something that just happened recently. MAYOR DICKEY: I'm sorry, sir, but at that meeting, we literally did a timeline because I told you that my feeling was that you were not going to get an extension from this Council. And so we tried to figure out a way to make it work in time. OKAMOTO: Grady, I defer to you because that is something that we brought up with you months, more than a month before we spoke with the Mayor. Is that not correct, sir? MANAGER MILLER: Well, I -- I do remember we were trying to amend the development agreement and I remember you guys did not want the amendments. We were trying to -- all these different aspects to the development agreement. And we were being told, no, we really don't feel like we need to do that. Now, I'm not getting into your question about the extension of time. OKAMOTO: Answer my question, sir. MANAGER MILLER: Well, I've -- I'm telling you the best I can, so -- so I do not specifically remember that. I do know -- no, no, listen. When we had our meeting with you and we had individual councilmembers, and I remember you, Ken, saying specifically that you were not a fan of necessarily doing an extension of time. And I -- I believe individually you were in that meeting, the ones that are here, heard that. And you were saying that that was something that you weren't interested in. So the staff-- OKAMOTO: I'm not a fan of extending it -- MANAGER MILLER: Well, and so let -- let me continue, Ken. So when we had the -- µ, .4 u. Page 60 of 70 I TOWN OF FOUNTAIN HILLS Page 61 of 70 MAY 17,2022 CITY COUNCIL MEETING the site plan coming back before Council, we actually added all this additional time, which would have effectively done exactly what an extension -- not 12 months, but it was giving you, I believe it was close to 16 weeks. And we did that because we were trying to find some middle ground to hopefully maybe the Council may have decided to go along with. That night, when it came before Council, the Council went ahead and approved it without the additional time. They approved the site plan as is. The majority approved it. So that's my recollection. MAYOR DICKEY: Councilwoman. COUNCILMEMBER GRZYBOWSKI: I did not go back and watch the March 1st meeting. But I did go back and watch the April 19th meeting. Okay. Well, some of the April 19th meeting, I will admit. I'm looking at the notes of the March 1st meeting where you're saying that Planning and Zoning approved the commercial area as it was. But according to the notes, it says, "explore options to bring the use" -- "commercial use out to the sidewalk to make it visible from the street and consider adding commercial use to Building F." That is on the agenda for the March 1st meeting. We did have a conversation about how creepy it was that you had to go into the basement to get to these businesses. And I also remember part of the conversation -- again, this is memory, I didn't actually watch this particular video -- but part of the conversation was trying to compare it to Georgies. And I said that that was not a fair comparison, that Georgies was not accessed from a basement point like these were obviously done with the March 1st drawing. I feel like saying Planning and Zoning approved it is wrong, that they wanted it higher. And I had had a conversation with a Planning and Zoning person since then, and they agreed with what our conversation was on March 1st, that the commercial was too basement-like. OKAMOTO: Councilmember, with all due respect, what we tried to do, because we could have argued the very point about compliance with the development agreement. But instead, what we chose to do was that we chose to take the high road and say, all right, we understand what you're saying, and let's give it our best shot to change it. And we did so. And basically, we came up with a plan that you approved. And now Page 61 of 70 TOWN OF FOUNTAIN HILLS Page 62 of 70 MAY 17, 2022 CITY COUNCIL MEETING you're saying that, it seemed almost arbitrary to me that you're not going to give us a little bit extra time to get the plans approved. That just--that seems --that does not seem right to me. MAYOR DICKEY: Vice Mayor. VICE MAYOR FRIEDEL: Would anybody consider a 60-or a 90-day extension on this-- up there? Would anybody have any thoughts on that? COUNCILMEMBER GRZYBOWSKI: I'd be willing to go up to three months. They tossed out three months. I'd be totally willing to do that. I think that's a great compromise. Had this come through in-- on March 1st as Planning and Zoning had actually recommended it. And as the development agreement said,they would have had that kind of timeline. So I'm totally down with three months. COUNCILMEMBER SCHARNOW: Well,unless there's more discussion, you know, I'll make a motion to adopt Resolution 2022-29 with an extension for three months. COUNCILMEMBER GRZYBOWSKI: Second. MAYOR DICKEY: Is there any discussion on a three-month extension? Peggy, did you--did you say something? COUNCILMEMBER MCMAHON: I think that given their past performance, I since-- and even the process,there's not--they're not even ready with the third-party agreement. They're still wondering about how much money to pay upfront, et cetera. I just-- I don't think they're even going to be capable of meeting those terms as well. MAYOR DICKEY: Thank you. Any further discussion? Okay. Well, let's do a rollcall. All in favor of the motion,which was for a 3-month extension. Do a roll call. CLERK KLEIN: Councilmember Grzybowski: COUNCILMEMBER GRZYBOWSKI: Yes. CLERK KLEIN: Councilman Schamow. COUNCILMEMBER SCHARNOW: Aye. CLERK KLEIN: Mayor Dickey. MAYOR DICKEY: No. CLERK KLEIN: Vice Mayor Friedel. VICE MAYOR FRIEDEL: Aye. CLERK KLEIN: Councilmember McMahon. Page 62 of 70 TOWN OF FOUNTAIN HILLS Page 63 of 70 MAY 17,2022 CITY COUNCIL MEETING COUNCILMEMBER MCMAHON: No. CLERK KLEIN: Councilmember Magazine. COUNCILMEMBER MAGAZINE: No. CLERK KLEIN: Councilmember Spelich. COUNCILMEMBER SPELICH: Nay. CLERK KLEIN: Motion fails 3 to 4. MAYOR DICKEY: Thank you. Our next item, yeah, is discussion of extension of our MCSO contract for a year. Grady. MANAGER MILLER: Yes. Mayor and Council, as you recall we're -- we're in the ending stages of a multiyear intergovernmental agreement with Maricopa County Sheriffs Office. We are recommending-- we talked about this in past meetings about doing an extension of time. I'm going to turn it over to finance director who has the details on this. I do want to make a point though, that does not mean that if we don't have a new IGA completed, say in the next 3 to 6 months, that would override this. So I know a number of you are looking forward to the public service --excuse me, the public safety evaluation that's underway. And also, we have the financial review currently that we're in the process of trying to finalize. But this is at least so that we can have a stopgap to ensure that we have public safety service or law enforcement services after July 1st. With that, I'll turn it over to Mr. Pock. DIRECTOR POCK: Good evening, Mayor, and Council. A lot of things have changed in the last two years. However this contract,the original contract goes back for ten years. We started the first year with the Sheriffs Department with this contract with fiscal year '13. It was for an initial term of five years with five one-year renewals. That last five- year renewal ends in -- next month in June. As the town manager had mentioned, we did start with our contract review where our contract auditor stated looking at the past prior performance of this contract. That was -- now I'm really kind of nervous to mention years, but I believe that that was around November 2020 when that contract review -- when we had our first meeting with MCSO. It obviously took a lot longer than we had anticipated. We did get the final results from the auditors late last year, 2021. We had our first meeting with MCSO in February of 2022, this past February. That's where we took the auditor's results. I made assumptions Page 63 of 70 TOWN OF FOUNTAIN HILLS Page 64 of 70 MAY 17, 2022 CITY COUNCIL MEETING based on those results, based on their contracts. Gave them those --that information,we passed that along. They went back to their offices, reviewed it, they made their own suggestions, we had a follow-up meeting in March, mid-March for that. And at that point is where I need to apologize to the Council because it sat on my desk since mid-March and I have not responded with kind of updated assumptions. COUNCILMEMBER SPELICH: Do you need an extension? (Laughter) DIRECTOR POCK: Do I need an extension -- but yes. So in any event -- so yes, we do need to get those numbers back to them. That's one of my priorities at this point. But in the meantime, we've also got our law enforcement study that's been underway. That one's been delayed for various reasons. Now it's picked back up in the last couple weeks. And data is starting to flow into Matrix Consulting. So we'll have that information as well. All of that information and things that we've learned through the contract review and the study will all go into renegotiating the contract with the Sheriffs Department for, again, five-year term, maybe -- all that would be up for negotiations as far as the initial term and renewals. But increased reporting and ways to evaluate staffing and that sort of thing on an ongoing basis. In the meantime, we are here in -- at the end of fiscal year '22 and we do need to ensure that we have some sort of an agreement with MCSO. This extends the contract for another year for an amount$5.4 million, increased from this current fiscal year of 302,000. And it would, as Grady said, extend it until it's either renegotiated or it would ultimately expire in June 2023 if nothing was done. But that's not the anticipation. So any questions? MAYOR DICKEY: Any questions? Councilman. COUNCILMEMBER SPELICH: I sit here and I guess I would say that I'm like a pressure cooker. I went back and I looked and my very first meeting with the town manager in the first year that I was elected, I would come to meetings with Grady, so prepared with a nice legal pad and all my thoughts and great ideas written down on this legal pad, and Grady and I would one-by-one go through these. And as a-- my time on the Council progressed, it went from a legal pad to maybe one of these pads, and then it went to Post-it note, and then it went to the back of my hand. Day Page 64 of 70 TOWN OF FOUNTAIN HILLS Page 65 of 70 MAY 17, 2022 CITY COUNCIL MEETING 1, I told everybody, and when I ran for election, I said that MCSO was not fulfilling their contract to this town. What a time for this to be on the agenda. This is a time for this to be on the agenda during police week when the Mayor was so kind to honor law enforcement. So the comments that I make this evening are in no way against Captain Kratzer, Lieutenant Halverson, or the men and women who serve this town in Fountain Hills. They do a great job and I love and respect them, and I would do anything for them. But I am aggravated. Dave, I'm not mad at you. You're one person. You had to prepare the budget, you know, all the things that were related to the budget and everything. So I don't hold you responsible for this, you know. When you say it sat on your desk, nothing sits on your desk. There's no dust on your desk. And I've talked to you about it. So I will reluctantly hold my nose and vote for this extension of this contract. But I am telling the citizens of Fountain Hills with 100 percent assurity, 24 years of law enforcement experience, MCSO has not fulfilled their contract to these residents. They are not getting what they paid for. So I absolutely, positively will do it for the safety of the town and everything, but this needs to be put to bed. I've got 7 months to go until I'm off this council, and I want this done before I leave because it will prove what I have been saying for over five years about them not fulfilling all their obligations to these residents and us not getting what we paid for. And the contract before this, when they slapped on that resort fee and called it an administrative fee and everything, it's just outrageous. I would use terminology to say that they have big something, continuously raising this contract, continuously asking this town and its residents for more money when they don't even fulfill what they're supposed to fulfill. And this is not political. Let me stress this. This is not political. This audit goes back when Sheriff Apio was a sheriff. This has nothing to do with a republican sheriff or a democratic sheriff. It has to do with us getting what we paid for. And I'm telling you, folks, we're not getting what we paid for. And it's outrageous. And the gall of them to come to us and continue to raise their fees and everything and then give you a hard time when you question them about it and act with righteous indignation that everything is legit. Everything's not legit. Page 65 of 70 TOWN OF FOUNTAIN HILLS Page 66 of 70 MAY 17, 2022 CITY COUNCIL MEETING So once again, I'll hold my nose,just like I did with the other thing, and vote for this. But in the next seven months before I leave this Council, I want to prove to every member here and the previous council that what I've been saying is true: We're not getting what we paid for. MAYOR DICKEY: Yes, Vice Mayor. VICE MAYOR FRIEDEL: I couldn't agree more. And if there was a way that--we certainly don't want to sacrifice public safety for our residents. And if there was a way we could do this on a month-to-month basis to light a fire under them, I'd vote for that in a heartbeat. But obviously, we can't do that. So I will also hold my nose and vote yes. MAYOR DICKEY: So just to confirm, when will we get, not the audit, that's a separate thing, but the assessment, that's really what this issue is about, the assessment of-- and then the fire one, too. I mean, when can we expect to get this? It's been really a while. MANAGER MILLER: So Mayor, I believe you and I talked about that today. And we're trying to get the fire one; that one is nearing completion. So we're going to try to get that scheduled for the Council work session sometime in June. As far as the --the law enforcement assessment, we believe that that one is not quite ready for primetime. We haven't seen any kind of preliminary draft report or anything at this point. So, David, what do you think on that? DIRECTOR POCK: As far as the law enforcement study, I do believe that it would be -- it was delayed about two months as far as when we got a data request to MCSO. They didn't have any movement on that -- kind of filtered through the --the many offices maybe at MCSO. So the original timeline was that it was going to be finished around June, so I'm guessing August; you'd probably see it in September. The fire study, we do have a draft report. We made some revisions to that. That can be presented to Council, hopefully if the consultant, you know, can make the time to be here for Council in June, we can make that happen, so -- MAYOR DICKEY: So we hired these two companies to do these assessments. And so did we have a timeline in that? DIRECTOR POCK: Both projects were estimated to be finished in May and June. There was one small delay in the fire department study when we were trying to kind of coordinate a public outreach at the same time for both studies. That got held up because Page 66 of 70 TOWN OF FOUNTAIN HILLS Page 67 of 70 MAY 17,2022 CITY COUNCIL MEETING of the --the law enforcement got held up. And that still would probably -- it-- it's really fluid now as far as the fire department if we can get the public outreach done before the presentation to the Council, that's really optimistic. We might have -- might have the opportunity to present to Council and then do the public outreach after the fact and make it kind of a supplement to that final report. MANAGER MILLER: So if I may, Mayor, so we --we talked today, actually this afternoon we met with the consultants today. And then during general review, we were throwing out different dates. We are going to try to see if we can get them come out to do the --the public involvement process, which would just be one afternoon, probably-- I don't know if you found out yet if June 14th -- they're three hours ahead of us, or two hours ahead of us -- but we're looking at that being June 14th. And then possibly June 28th or June 21st. Now, we have a joint meeting with the school board on June 21st. And we're thinking we can have the work session completely after that. We've been purposely keeping that meeting light. So if we're going to try to do that, or try to schedule it, we're going to try to see if they can do the 21st. DIRECTOR POCK: Right. So right now we've got the 14th available for the public outreach,the 21st for the meeting. He's unavailable on the 28th. I'm still waiting to hear back on the, on -- MANAGER MILLER: And then,just to be clear,there was no delay on our part. We were staying up on top of these consultants. The data collection was --their data collection and what they needed to do --they were not getting the response that they were needing. And so that's what's held up Matrix, which is doing the law enforcement study. MAYOR DICKEY: Okay. But basically, you say May or June, so we probably would have had to take this step anyway. Okay. COUNCILMEMBER SPELICH: Mayor, let me make this clear. I -- I don't have a problem with staff. I don't have a problem with Director Pock and his finances. Let -- let's --he's overwhelmed, especially this time of year. So I'm not angry with him. Please don't take my -- me being vociferous and -- and -- I just -- I don't want anybody to feel that I'm ripping our staff. I'm not ripping our staff. I'm not ripping MCSO, the men and women here. This is way above Captain Kratzer's paygrade. These are chiefs, deputy chiefs,the sheriff himself who sit and write these edicts and hand them down. So Page 67 of 70 TOWN OF FOUNTAIN HILLS Page 68 of 70 MAY 17,2022 CITY COUNCIL MEETING Captain Kratzer can only staff what he's given. So I want to make that clear. We put together a group of citizens who have very depth -- in-depth knowledge of streets, because streets are really important. Right? We all agree that streets are probably our number one asset. Councilman Magazine is a real big streets guy. And I think streets are important. I don't think that the streets, you know, I come from Chicago, so you -- you can park a car in a pothole. So when I come here and people are like, oh, my God,the streets are crap. I'm, like, go to Chicago and then you'll see what crap is. So, yeah, the streets need repair. So we put together a group or a committee and everything. I would like to see -- we have a huge amount of retired law enforcement in this community. Chiefs of the Chicago Police Department, captains from New York. We have a lot of police officers that are retired and who are in command staff. Before you guys sit down -- and this isn't a slight against our town attorney, but before you guys sit down and enter into a contract, instead of you and the town attorney coming up with what the contract is, why don't we get a group of people together who've wrote contracts and know law enforcement contracts and get their input? Because I have to be honest with you, I read the MCSO contract. I've read it 20 times. I can quote it. It was not written well. And that's wholly before your time so it's not a slap on you. Way before your time. Way before my time. So -- so I, you know, I was still in Chicago. So you know, I'm just saying that it's absolutely imperative. If you want an ironclad contract that we can hold MCSO accountable to, why don't we include people in law enforcement that actually have written contracts? And they would do it for free. They've come up to me and said, hey, we'll come and help you guys. So let's utilize the people that we have in town that are knowledgeable about this. Let's come up with a contact that we can hold them accountable for. And then, the next councilmember that sits in this seat won't have to lose their mind about it not being followed. MAYOR DICKEY: Do we have any speaker cards on this? Any further comments? Can I get a motion, please? COUNCILMEMBER GRZYBOWSKI: Move to adopt Resolution 2022-25. COUNCILMEMBER SCHARNOW: Second. Page 68 of 70 TOWN OF FOUNTAIN HILLS Page 69 of 70 MAY 17, 2022 CITY COUNCIL MEETING MAYOR DICKEY: Thank you. All in favor, please say aye. ALL: Aye. MAYOR DICKEY: Any opposed? Unanimous. Thank you. Thanks, David. Our next is our legislative update which, since they're not working at all, I don't think there's much to say. Anything else? All right. Any other comments or motion to adjourn? UNIDENTIFIED SPEAKER: So move. VICE MAYOR FRIEDEL: Hang on. I -- I have a couple things on my list for--that I need to question. Is it-- so I asked for a report on the Cottonwoods District, I don't -- of our know how many months ago that report wasn't just forme. It was for all councilmembers so that we can make an intelligent decision on whether we continue servicing that district. I think that district originally started out as a maintenance district with a wall. And now it's morphed into a landscape maintenance district for the Town. And I -- I just have a hard time. I want to know what we're spending in the way of dollars and cents, employee time, and what the cost is to this Town for that. I know we added ten percent to that. And I just have a strong feeling that that's not enough. And it's costing us a lot of time and energy. And I'd like a report so that we can all take a look at that and make an informed decision on whether we need to be babysitting landscaping for a subdivision rather than have them get an HOA of their own or join an existing HOA. I just think that that's really important because this thing has --just because we've done it for, I don t know how many years, 10, 15, 20 years, it doesn't mean we need to continue doing that. So if we could take a look at that, I would certainly appreciate that. MANAGER MILLER: We will. VICE MAYOR FRIEDEL: Thank you. MANAGER MILLER: We will report back to the Council. VICE MAYOR FRIEDEL: All right. Thank you. And then I have a question as to whether-- you know, we've talked about sober homes at the last meeting. I was wondering if there's been any progress on check out an IGA with the state to see if we can do inspections on those homes if they're going to outsource that to anybody. Is that Page 69 of 70 TOWN OF FOUNTAIN HILLS Page 70 of 70 MAY 17, 2022 CITY COUNCIL MEETING something we can look into? ATTORNEY ARNSON: It is something we can look into, Mayor and Council. Representative Cavanaugh kindly offered his services, and we have not connected. But that-- yes. We do have that in the works. VICE MAYOR FRIEDEL: Okay. And then one last other thing. I've been getting a lot of calls from my neighbors and residents, emails and calls about this election sign thing. I don't know where we're at on that. I don't know if people know whether they can put a sign in their yard or two signs in their yard or five or eight. We need direction on that from this town. So I'm getting a lot of people that just don't know. And so if we can look into that and come up with a resolution. If we have to have a retraction or something said somewhere to let the residents of this town, I think we need to -- we owe them at least that. Thank you. That's all I have. COUNCILMEMBER SPELICH: Motion to adjourn. COUNCILMEMBER GRZYBOWSKI: Seconded MAYOR DICKEY: All in favor-- ALL: Aye. MAYOR DICKEY: Unanimous. Adjourned. Page 70 of 70