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HomeMy WebLinkAboutAGENDApacket__05-16-23_0133_478       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Peggy McMahon Councilmember Sharron Grzybowski Councilmember Hannah Toth Councilmember Gerry Friedel Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, MAY 16, 2023 WHERE:   FOUNTAIN HILLS COUNCIL CHAMBERS 16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance at the Council meeting.   Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory exceptions, parents have a right to consent before the State or any of its political subdivisions make a video or audio recording of a minor child. Meetings of the Town Council are audio and/or video recorded and, as a result, proceedings in which children are present may be subject to such recording. Parents, in order to exercise their rights may either file written consent with the Town Clerk to such recording, or take personal action to ensure that their child or children are not present when a recording may be made. If a child is present at the time a recording is made, the Town will assume that the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.    REQUEST TO COMMENT The public is welcome to participate in Council meetings. TO SPEAK TO AN AGENDA ITEM, please complete a Request to Comment card, located in the back of the Council Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments should be directed through the Presiding Officer and not to individual Councilmembers. TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town Clerk prior to discussion, if possible. TO COMMENT IN WRITING ONLINE: Please feel free to provide your comments by visiting  https://www.fountainhillsaz.gov/publiccomment and SUBMIT a Public Comment Card by 3:00 PM on the day of the meeting . These comments will be shared with the Town Council.      Town Council Regular Meeting of May 16, 2023 2     NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S. §38-431.03(A)(3).        1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey     2.INVOCATION - Pastor Rod Warembourg, Desert Creek Fellowship     3.ROLL CALL – Mayor Dickey     4.STATEMENT OF PARTICIPATION     5.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.RECOGNITION: Stellar Students for the month of May     6.PRESENTATIONS     A.Presentation and Update by President/CEO Dr. Meka Ezeume of Fountain Hills Medical Center     B.Mayor's Youth Council     C.Economic Development Third Quarter Update     D.Update on Capital Improvement Projects     7.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 16, 2023 3   8.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.     A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Regular Meeting of April 4, 2023; the Work Session - Budget Workshop of April 11, 2023.     B.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-17, abandoning the 10' Public Utility and Drainage Easement along the south side of 15509 E El Lago Boulevard (Application A23-000007)     C.CONSIDERATION AND POSSIBLE ACTION: Request to apply and take receipt of Prop 302 Grant Funding     D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-18 approving the Second Amendment to the Intergovernmental Agreement with the Flood Control District of Maricopa County for the Golden Eagle Park Dam-Debris Mitigation Improvement Project.     9.REGULAR AGENDA     A.HOLD A PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-07 declaring the document "Site Plan Review Ordinance" as a public document and Ordinance 23-06 repealing and replacing Zoning Ordinance Section 2.04, Site Plan Review Regulations.     B.CONSIDERATION AND POSSIBLE ACTION: Request to amend the Final Settlement Agreement, Amended and Restated, with MCO Realty to allow a total of 40 single-family lots in Eagles Nest Parcel 2.     C.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-21 extending the contract with Maricopa County Sheriff's Office (MCSO) for law enforcement services until December 31, 2023.     D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-022, approving the Second Amendment to the Intergovernmental Agreement with the State of Arizona for design and construction of sidewalk gap elimination along Saguaro Boulevard and Palisades Boulevard.     Town Council Regular Meeting of May 16, 2023 4   E.CONSIDERATION AND POSSIBLE ACTION: Awarding Professional Services Agreement 2023-087 with Pipeliners USA, LLC for Sewer line repairs      F.CONSIDERATION AND POSSIBLE ACTION: 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.      10.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.     11.FUTURE AGENDA ITEMS     12.ADJOURNMENT         CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this ______ day of ____________________, 2023. _____________________________________________  Linda G. Mendenhall, MMC, Town Clerk   The Town of Fountain Hills endeavors to make all public meetings accessible to persons with disabilities. Please call 480-816-5199 (voice) or 1-800-367-8939 (TDD) 48 hours prior to the meeting to request a reasonable accommodation to participate in the meeting or to obtain agenda information in large print format. Supporting documentation and staff reports furnished by the Council with this agenda are available for review in the Clerk's Office. On the day of the Council Meeting, the Council Chamber doors open at 5:15 p.m. for public seating. Town Council Regular Meeting of May 16, 2023 5   ITEM 6. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Request to Town Council Regular Meeting (Agenda Language):  Presentation and Update by President/CEO Dr. Meka Ezeume of Fountain Hills Medical Center Staff Summary (Background) The Fountain Hills Medical Center celebrated two years of business last month. The purpose of tonight's presentation is for President/CEO Dr. Ezeume to provide a brief update and announce new services for residents and visitors. Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 04/21/2023 08:43 AM Finance Director David Pock 04/21/2023 09:27 AM Finance Director David Pock 04/21/2023 09:28 AM Town Attorney Aaron D. Arnson 04/21/2023 10:50 AM Interim Town Manager Rachael Goodwin 04/24/2023 12:00 PM Form Started By: Amanda Jacobs Started On: 04/17/2023 03:08 PM Final Approval Date: 04/24/2023  ITEM 6. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Amanda Jacobs, Economic Development Director Request to Town Council Regular Meeting (Agenda Language):  Economic Development Third Quarter Update Staff Summary (Background) Economic Development Director Amanda Jacobs will be presenting a third quarter (January 1, 2023 - March 31, 2023) Economic Development Update to the Town Council at its meeting on May 16, 2023.  The presentation will include town efforts to date on business attraction, business retention and expansion, marketing, advertising, tourism and strategic partnerships.   Attachments EcDev 3rd Quarter Update  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/01/2023 07:51 PM Finance Director David Pock 05/02/2023 02:13 PM Finance Director David Pock 05/02/2023 02:13 PM Town Attorney Aaron D. Arnson 05/03/2023 04:08 PM Interim Town Manager Rachael Goodwin 05/08/2023 08:05 AM Form Started By: Amanda Jacobs Started On: 04/17/2023 03:03 PM Final Approval Date: 05/08/2023  TOWN OF FOUNTAIN HILLS WWW.FOUNTAINHILLSAZ.GOV Economic Development Third Quarter Update Presented by: Amanda Jacobs, Economic Development Director WWW.FOUNTAINHILLSAZ.GOV Business Attraction Lead Generations Developers Restaurant/Retail Industrial 3 6 4 WWW.FOUNTAINHILLSAZ.GOV Business Retention and Expansion •Business Retention and Expansion Program •Communication/Events •Signage •Workforce •The Avenue Merchant Association (TAMA) WWW.FOUNTAINHILLSAZ.GOV Apartment Occupancy Rate Apartment Occupancy Rate Gunsight 92% Casa Del Lago 91% Four Peaks Vista Condos 80% Pillar at Fountain Hills 92.52% occupied/93.88% leased Luna at Fountain Hills 94% Park Place at Fountain Hills 92% WWW.FOUNTAINHILLSAZ.GOV Vacancy Rate –Existing Buildings Category Vacancy Rate Vacancy Rate Office 13.3%49.3% Industrial 1.8%18.1% Retail 5.7%20.0% Source: CoStar Source: CoStar/Staff WWW.FOUNTAINHILLSAZ.GOV Economic Workshop •Community Engagement •Two Workshops •Creation of Community Economic Development Strategy WWW.FOUNTAINHILLSAZ.GOV AOT VAI Grants -Marketing •Billboards •Broadcast and Digital Marketing •PBS •NPR •Public Relations •Event Promos •Tourism and Event Impact Study WWW.FOUNTAINHILLSAZ.GOV AOT VAI Grants –MarketingFountain Hills Festival •Investment: $30,000 •Photography WWW.FOUNTAINHILLSAZ.GOV AOT VAI Grants –MarketingDark Sky Festival •Investment: $25,000 •2,500 participants •Speaker •Family-friendly WWW.FOUNTAINHILLSAZ.GOV AOT and Fort McDowell YavapaiNation Prop 202 Grant •Experience FH Website Redesign •Blogs •Events •Itineraries •Social Media Feed WWW.FOUNTAINHILLSAZ.GOV Salt River Pima Maricopa IndianCommunityProp 202 Grant •Irish Fest •8,000 attendees WWW.FOUNTAINHILLSAZ.GOV Partnerships •Fort McDowell Yavapai Nation •Fountain Hills Chamber of Commerce •Greater Phoenix Economic Council •Salt River Pima –Maricopa Indian Community •Discover Salt River WWW.FOUNTAINHILLSAZ.GOV Tourism •Hotel Occupancy: 67.2% •Social Media: 7% increase •Experience Fountain Hills Website •24,083 unique visits (15% increase) •Top 5 Cities •Phoenix •Scottsdale •Mesa •Los Angeles •Chandler TOWN OF FOUNTAIN HILLS WWW.FOUNTAINHILLSAZ.GOV Questions? ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Regular Meeting of April 4, 2023; the Work Session - Budget Workshop of April 11, 2023. Staff Summary (Background) The intent of approving meeting minutes is to ensure an accurate account of the discussion and action that took place at the meeting for archival purposes. Approved minutes are placed on the town's website and maintained as permanent records in compliance with state law. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approving the minutes of the Regular Meeting of  April 4, 2023, and the Work Session - Budget Workshop of April 11, 2023. SUGGESTED MOTION MOVE to approve the minutes of the Regular Meeting of April 4, 2023, and the Work Session - Budget Workshop of April 11, 2023, as presented.   Attachments Verbatim Transcript  Verbatim Transcript  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/08/2023 11:06 AM Finance Director David Pock 05/08/2023 11:08 AM Finance Director David Pock 05/08/2023 11:08 AM Town Attorney Aaron D. Arnson 05/08/2023 11:10 AM Interim Town Manager Rachael Goodwin 05/09/2023 11:10 AM Form Started By: Linda Mendenhall Started On: 05/08/2023 10:58 AM Final Approval Date: 05/09/2023  TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL April 4, 2023 A Regular Meeting of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 5:33 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Peggy McMahon; Councilmember Gerry Friedel; Councilmember Sharron; Grzybowski; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth; Councilmember Allen Skillicorn Staff Present: Interim Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately Seventy-two members of the public were present. TOWN OF FOUNTAIN HILLS Page 1 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 1 of 73 Post-Production File Town of Fountain Hills Town Council Meeting Minutes April 4, 2023 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. * * * * * TOWN OF FOUNTAIN HILLS Page 2 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 2 of 73 MAYOR DICKEY: Good evening, everyone. If you choose to do so, please stand for the pledge and remain standing for the invocation. ALL: [Audio interference] 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. MAYOR DICKEY: Thank you. Pastor Cathy Northrup from Community Church of the Verdes. Hi. NORTHRUP: Thank you. Please bow your heads with me. Almighty God, we give you thanks and praise for all of your mighty works. You are loving, good, and gracious. Thank you for creating us and sustaining us day by day. Thank you for making us in your image to exist in community with other people. We thank you for this Town of Fountain Hills, thank you for the elected officials, the businesses, the churches, the families, and the individuals that make this town the great place that it is. But Lord, we acknowledge that we do not deserve these good gifts. We are not worthy of your favor, for we have sinned against you in thought, word, and deed. We do things that we should not do and we don't do the things that we should do. We have not loved you with our whole heart and we have not loved our neighbors as ourselves. We appeal to Jesus Christ, who died for our sins, forgive us and give us hearts of obedience to your holy scriptures. On this Easter week, we thank you that Jesus rose from the dead and now reigns as king over heaven and earth. Grant that this town will be known as a righteous city. A city that confesses Jesus as lord. A city of peace and hope. A city with happy and healthy homes. A city that welcomes the stranger. A city that cares for the needy. A city that defends the innocent from evildoers. Lord, thank you for civil government. Those who bear the sword do so as your ministers to be a terror to crime. We pray that our civil servants would acknowledge this calling and perform it faithfully. Be with our judges, attorneys, and law enforcement. Grant that they would never neglect or abuse their authority, but they would stand firm for truth and justice. Keep them safe from harm as they serve our community. TOWN OF FOUNTAIN HILLS Page 3 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 3 of 73 I pray for this council meeting tonight. Give the councilmembers wisdom and guidance as they deliberate on the items before them. May every decision be righteous in your sight, for your benefit and for your glory. In the name of the Father, and of the Son, and of the Holy Spirit, amen. ALL: Amen. NORTHRUP: Thank you. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Thank you, Mayor. Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor McMahon? MCMAHON: Here. MENDENHALL: Councilmember Friedel? FRIEDEL: Present. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Toth? TOTH: Present. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Here. DICKEY: Thank you. I forgot to ask you. Are you going to read the statement? Okay. There you go. MENDENHALL: Anyone wishing to address the council regarding items listed on the agenda or under Call to the Public should fill out a request to comment card, located in the back of the council chambers and hand it to the town clerk prior to consideration of that item. When your name is called, please approach the podium, speak into the microphone, and state your name for the public record. Please limit your comments to TOWN OF FOUNTAIN HILLS Page 4 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 4 of 73 three minutes. It is the policy of the Mayor and council to not comment on items brought forth under Call to the Public. However, staff can be directed to report back to the council at a future date, or to schedule items raised for a future council agenda. MAYOR DICKEY: Thank you. This is our first meeting with our new -- well, I was -- that's coming. I was going to say with our new rules and procedures, so we're kind of struggling through and also we're welcoming our Interim Town Manager, Rachael, up here and appreciate all your help and it's been an exciting two days so far. So thank you so much. Our first items as always are our reports by Mayor, Councilmembers, and Town Manager. Rachael? GOODWIN: I have no update. It's an exciting two days. MAYOR DICKEY: Thank you. TOTH: Well, of course, I've got to go over the different events the past couple weeks. We had the Dark Sky Festival, which was incredible. Such a great turnout. I really enjoyed working that event, so thanks for letting me be a part of it. And then we also had our volunteer reception dinner. I think I have that title correct. But it was absolutely lovely. Shout-out to the people who set that up and just -- what a wonderful way to thank all of the people and they're so many of you that volunteer for the town in different capacities. And then lastly, of course, Music Fest was April 1st. And that was really fun, too. I enjoyed watching everybody seeming like they had a good time listening to music and it's been a good couple weeks for Fountain Hills. GRZYBOWSKI: Regarding the Dark Sky event, I swear that was the most people I have ever seen at that event. It was really very exciting, so many people from out of town. We had two League state legislative update calls. One of the things I want to make sure I mention and we'll talk about it later, I'm sure, that the SB 1117 may have disappeared but it's back in three different bills, and these bills include things like preemption of existing zoning restrictions and parking requirements and I know we'll talk about it a little bit more later. TOWN OF FOUNTAIN HILLS Page 5 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 5 of 73 I had a GPEC board meeting and of course, the Hall of Fame dinner where there were eight really worthy inductees this year. The volunteer reception was definitely one of the best we've had yet, kudos to Community Services and Kim Wickland. And then on Friday, I was invited to attend the Arizona Bicycling Summit, which was my first and that was really kind of neat. Thank you. FRIEDEL: Mayor, I was out of town for the last week and a half, so I missed a lot of these events. But I did make it to the Music Fest and I have to say that it was packed, so very well-received. A lot of people, too, that I talked to were from out of town, so that was a big attraction for our town. And I did hear about the volunteer reception. I'm sorry I missed that, but I heard it was spectacular, so again, kudos, well done. MAYOR DICKEY: Thank you. MCMAHON: Good evening, everybody. I was fortunate enough to be able to attend MorningStar celebration, where within their company there's 20 different national MorningStar facilities and the one in Fountain Hills happened to win the annual Community Service award. So it was really great to be able to celebrate with them because they are a fantastic memory care center. And on that note, I would like to announce that Fountain Hills has become a Dementia Friendly town. We are nationally recognized right now. They accepted our application and it's really, really great to have that designation because it just opens up a whole breadth of additional information, education, services, and knowledge for our community and the people who have dementia and also their caretakers. So it is really an honor to have that designation. Also, I attended the ribbon cutting for LizardPools. They have been in business in town for about ten years. They are really happy here and it was a great celebration to celebrate that. Also, I volunteered at the Dark Sky Festival and that was an exceptional event. And like Sharron said, it was very crowded. Everybody had a great time. It just is a fantastic showing of our community and how they come together and celebrate our Dark Sky designation. TOWN OF FOUNTAIN HILLS Page 6 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 6 of 73 Also, the volunteer reception was exceptional as well. Thank you to Rachael and her staff for putting on such a great dinner honoring all of our volunteers. And the Movie and Music chorus event on Sunday was fantastic, very well- attended. And today, I attended MAG Economic council. We were updated on the bioscience industry that is in our Phoenix community and how it's growing, and also updated on Proposition 400 and there are two people speaking tonight from MAG that are going address that further. And also, we are having a Cares forum event on April 20th at the Community Center at 6:30. It's free. We hope everybody attends. It is about social media and the consequences of it to our teens and our families, et cetera. And the local drug coalition has their annual essay contest and the three winners of that contest are going to be sharing their fantastic essays. So I hope everybody can attend. Thank you. MAYOR DICKEY: Thank you. KALIVIANAKIS: Thank you, Ms. Mayor. Hello, everybody. Thank you for attending tonight's meeting in person, on Cox Channel 11, and livestreaming it on YouTube. We appreciate your participation. This is great to see so many people engaged in their community. I was also at the March 30th volunteer reception. It was just a wonderful event honoring our volunteers for the year. I happen to actually have the program here. The 2022 outstanding volunteers for Crisis Response Team was Vareen Burn (ph.); home delivered meals, Gary and Bonnie Spettle (ph.); Give-A-Lift, Larry Hessie (ph.); Sonoran Conservancy, Judy Dragonowitz (ph.); community involvement, Rory Wilson (ph.); development services, Kathy Delaferria (ph.); community services, Patty Houston (ph.); and the 2022 Volunteer of the Year was a gentleman named Bill Craig, an incredible individual. I was honored because during the ceremony they did give a mention of myself and Mr. Friedel, Councilman Friedel. They said not only do we serve the town on our town council, but we also are a part of the home-delivered meals program, so we do volunteer. We do volunteer for our community and they recognized us and that was very TOWN OF FOUNTAIN HILLS Page 7 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 7 of 73 nice because everybody here on the dais does a lot of volunteer work. We do a lot of things nobody knows about and it was nice to get just a small recognition. So it was very appreciated. I played the Phoenix Heart Walk with my saxophone -- I'll give you a saxophone update -- with the Desert Valley Winds Band (ph.). The Phoenix Heart Walk supports the American Heart Association. This year our goal was to raise $650,000 to improve and extend lives of the millions born with heart defects through education, advocacy, and research. Their saying is, we can't do it without you, very appropriately put. We had over 10,000 walkers participated and everybody enjoyed the event greatly and we raised a lot of money for that charity, so that's really good. Also, I attended the Leadership Academy. We had a meeting. I am an alumni of the Leadership Academy. I was in that program last year. And so the Leadership Academy is an entryway of being involved in town government through potential community leaders. They can be a part of boards, commissions, and other important positions. We educate and inform our town's future leaders and hopefully, they will take that information and they will join us on the town council or on various commissions and boards. We are currently accepting applications for this year's class, so if you know anybody or if you yourself would like to go to Leadership Academy, please email me at bkalivianakis@fountainhillsaz.gov, or go to ilovefountainhills.org for more information. Lastly, I attended a lawyer's luncheon in Scottsdale where the keynote speaker was Arizona Supreme Court Justice Bill Montgomery. Justice Montgomery is a brilliant jurist and a constitutional scholar. He spoke of originalism, substantive due process, and the concept of a living constitution versus originalism, which is following the plain meaning of the constitution. It was a fascinating lunch. I really enjoyed it. I did earn a continuing legal credit for going to that event, but since my workload has increased so much (indiscernible), I don't anticipate going back into practice of law. Again, just to tie it up, I did attend the Dark Sky Festival. It was absolutely Fountain Hills at its finest. It was just people getting along. There were animal displays. There were speakers. There were food trucks. It was just Fountain Hills, wasn't it? It was amazing. So I'm so proud to live in this community. Also, I'm on the Fountain Hills Cares and we are doing our meeting that the Vice TOWN OF FOUNTAIN HILLS Page 8 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 8 of 73 Mayor mentioned on the 20th, and I hope you can all stop by. And that's about all. I have more, but we'll save that for next time. Thank you very much. MAYOR DICKEY: Councilman? SKILLICORN: Madam Mayor, I'm just going to echo the other comments on all the tremendous events that the town has put on and the volunteers that have made this town special. MAYOR DICKEY: Thank you. Everything was so much fun this past couple weeks. I was happy to welcome the guests to the Dark Sky and also they had the art contest, so that was fun to see the kids and all the parents there. Scottsdale Councilwoman Solange Whitehead and I were able to go to the Phoenix Committee on Foreign Relations International State of the State. Governor Hobbs and a panel from Mexico, Germany, and Israel, where Arizona currently has trade offices and they're going to open one in Taiwan and in South Korea. They said it was the largest gathering of diplomats, elected officials and internationally-minded Arizona community members to date, with close to 600 attendees. So our reach is far. MAG Regional Council, we had that and the Fountain Hills Community Foundation gave out their grant awards reception and that was a nice event. The volunteer, of course, Kimberly Wickland and the whole staff. I mean, it was just -- looked so gorgeous in there, so thank you for that. The Hall of Fame was a wonderful event. I want to mention at this time that one of the awardees, Phil Yin, that many of you probably know passed away like pretty much a day before. So it was very touching and we want to offer his family condolences and they'll be having a service here at the Community Center on the 14th. I was honored to be appointed to the Executive Committee of the League of Cities and Towns at their meeting on March 31st. I wanted to thank that Nominating Committee and the entire Executive Committee for that vote of confidence and the opportunity to represent Fountain Hills in that statewide municipal organization. And last week was First Responders Wellness Week. So I won't read the proclamation now, but I did put it online and it's just a way of reminding everyone that TOWN OF FOUNTAIN HILLS Page 9 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 9 of 73 the risks that First Responders -- they don't stop at the end of the day. There's health issues and sleep issues and other things like that, so please keep them in mind. And thank you, Vice Mayor, for your work on the Dementia Friendly, Part 2 [sic] because, you know, there's -- we do these announcements, but there's always a lot of work behind them. So I really appreciate that. MCMAHON: Thank you. MAYOR DICKEY: You bet. So one of the things that's different now is we're going to do presentations which are going to be basically guests or staff. So we're going to start tonight's presentations with an overview from MAG and I'm going to ask our Town Manager to take it from there. GOODWIN: Great. Thanks, Mayor. Tonight we do have our managing director, Ed Zuercher, and Amy St. Peter, the Deputy Executive Director of Maricopa Association of Governments, and they're going to give us an update on a number of their programs. MAYOR DICKEY: Welcome. ZUERCHER: Thank you, Mayor and members of the council. And I didn't realize that yesterday when I had a meeting with your Town Manager, that was her first day. But I will vouch that she was working hard yesterday, for sure. So it's good to be here with you. My name is Ed Zuercher. I am the incoming Executive Director for the Maricopa Association of Governments, known as MAG. Our Executive Director, Eric Anderson, is retiring and so the council has hired me to take over and to do that. And so it's a privilege to be here with you this evening. And just a personal note, my college roommate from too many years ago to say, he and his family have just decided to move to Fountain Hills, and so in the next week or so they're going to be moving into your great town and I think it speaks well of Fountain Hills. They could have chosen anywhere to live in the Phoenix metro region. They've never lived here before. They like to visit here and in all their searching and looking for what worked for their family, Fountain Hills was the place, so you're doing something really well here. Someone I respect a great deal has chosen your community, so congratulations to you for what you've done to make this place really a beautiful, TOWN OF FOUNTAIN HILLS Page 10 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 10 of 73 welcoming, and inviting town for people to move to. With me this evening is our Deputy Executive Director, Amy St. Peter. She'll be talking in just a minute, has a great deal of experience with Maricopa Association of Governments and you'll see that in her part of her presentation. And also specially with us is a Fountain Hills resident and also a MAG staffer, Audra Koester Thomas, who is one of our leading transportation experts at MAG. So Fountain Hills, you've got some folks at work in there for us. My background is I've been working in local government in Arizona for 30 years and I said, this is my fourth week on the job with MAG. So it's a privilege to be here with you today and this is my first time to do this with a council, so I'm happy to be here for this. Let's see, figure this out. Just use this, yeah. Here we go. There we go. So Maricopa Association of Governments, known as MAG, is really the agencies itself. Now it just so happens on this slide, that Fountain Hills is dead center. I think that's because of alphabetically how it worked on that, but there you see you're right there in the -- right in the dead center of this thing, so congratulations. But just by way of background, MAG is really two things. It is a council of governments, which is all the governments in the Maricopa planning region, which is 27 cities and towns, three Indian nations -- Native nations, and two counties, Maricopa and Pinal, make up MAG -- plus ADOT, make up MAG membership. So it is a council whereby the governments come together to work on what I call problems without borders, things like transportation, air quality, human services, and those sorts of things. MAG is also a metropolitan planning organization, which is a legal construct, primarily designed to deal with transportation funding, federal transportation funding and planning. It also goes into air quality and environmental quality. So MAG is doing both of those things with the agencies. It's a very cooperative organization that really has a positive impact on the region. This is the scope of the area. You can see it says Maricopa County as well as parts of Pinal County in that outline. The boundary covers all of Maricopa and parts of Pinal. It represents two-thirds of the state's population and 70 percent of the sales tax collected in Arizona happens in this region, and if this region geographically were a state, TOWN OF FOUNTAIN HILLS Page 11 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 11 of 73 it's a little bit bigger than the State of Massachusetts and if it were a population state, it would be the 25th largest state by population. So just the scale of our region is pretty remarkable and MAG is the place where those governments come together to make those sorts of decisions in those core emphasis areas. As a metropolitan planning agency, we really focus on the safe and smart travel component, as well as the environment and sustainability, and improving quality of life is also a key part of the MAG emphasis, and that all leads to, as Vice Mayor McMahon noted in her attendance, with the economy and growth. They really all feed together into a whole for the region. And above it all, we work to make MAG an efficient and effective operating agency. In transportation, that's one of the things that is a primary issue right now, as we're working on the transportation plan for the MAG region in Maricopa County. This has to do with the half-cent sales tax that funds transportation in Maricopa County, and so MAG serves as the planning agency for that and Audra is one of our key planners in that effort. It's really a 40-year legacy. In 1985, just a little bit before your town was incorporated, there was an election for transportation. That was a 20-year tax that was renewed in 2004, 2005, called Prop 400, and that was a 20-year, and so here we are now in the 2020s and we're coming to the end of that cycle and looking forward to what's next in transportation. Just to give everybody a little context, before the first tax period of 20 years, in 1986 this was the freeway system in our region. So this is just about the time Fountain Hills was being incorporated. There was I-17, a discontinuous I-10, and the U.S. 60 going out barely into East Mesa. By the time the first 20 years was concluded with the sales tax, this is the region's transportation network. As you can see, the loops are being built, the 51. In this past 20 years that we're now 18 years into, the system has grown in this way, as completing the freeway systems, including light rail, and not shown on here is a significant regional bus transportation network of which Fountain Hills has one of the express buses. The federal funds come through the Maricopa Association of Governments by federal law. It's the place where they get programmed, where cities participate in that TOWN OF FOUNTAIN HILLS Page 12 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 12 of 73 programming. In some cases, there are grants which cities compete for. In other cases, it's formula driven. So you see that we work on all those things in cooperation with ADOT and with Valley Metro RPTA. As for you in Fountain Hills, in terms of transportation, these are some of the projects that came to Fountain Hills as part of the MAG region from the last 20 years of the sales tax. There was the design of Shea Boulevard, as you can see from Palisades to Fountain Hills, and you're going to see that's kind of important because it's going to continue in the proposed next tax extension. Work on Shea Boulevard, Technology segment and then Palisades to Technology. Also the Route 515 express bus is funded by that and there are several other school safety projects, air quality projects, that have come to the town as well from that period. In the regionally supported -- or the projects that are in the proposed extension of the Proposition 400 sales tax which is currently at the legislature, primarily in the arterial street section, the reconstruction of Palisades Boulevard, that's almost at $17,000,000. There's about $7,000,000 for Saguaro Boulevard reconstruction and then widening of Shea at about 12 and a half million. So there are resources coming to your town for transportation as a result of the countywide sales tax and this is a proposal -- should and when the legislature extends that sales tax authorization to go to the voters of Maricopa County, that's the street transportation component. The buses are also part of that. So that's an overview of the transportation end of MAG and what we do. I'd like to turn it over now to Deputy Director, Amy St. Peter, who will talk to you about another important initiative of MAG, which has to do with -- called Pathways Home. Amy? ST. PETER: Thank you very much, Ed. Mayor and members of the town council, it's a pleasure to be with you here tonight. Thank you very much for inviting us. I think I was presenting to you last in November of 2021, so it's been a bit of time and we're very eager to be able to share this update with you today. So MAG has staffed and has been engaged in homelessness since 1999. But back in 2020, we were asked to help strengthen the regional response to homelessness. We've been doing so through very much a data-driven method that relies extensively on research TOWN OF FOUNTAIN HILLS Page 13 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 13 of 73 and community engagement and member agency involvement and to being able to work with you. It's critical for us to understand how homelessness manifests in local communities in order to develop a responsive and relevant regional plan. So I want to thank you for all of your support over these past few years and I'm thankful for your partnership and look forward to continuing to work with you. So as I said, these efforts are very much data-driven. We derive that data from three main sources. One of those is by analyzing what's working well nationally. There's a lot of really good efforts going on and a lot of communities are demonstrating extremely good progress in addressing and reducing homelessness. So we want to learn from what's going on really well nationally. The two other areas are much more locally driven, and so the second source of data is community engagement. As we were developing Pathways Home, we intersected and engaged with more than 1500 people, 1500 people representing very different walks of life from the faith community, the business community, nonprofit agencies, as well as local and tribal governments, and their feedback was instrumental. The third source, then, is that member agency involvement. We met one-on-one with the mayors and with the managers from nearly every single one of our member agencies and those conversations were critical because homelessness manifests very differently in different communities. In some communities, it's a much smaller scale and it's also very personal. I spoke with one town manager who could name the person who is experiencing homelessness in his area and they had grown up together and they were neighborhood friends. And in other communities, massive scale, very complex issue. So it's critical because homelessness manifests differently in different communities, it's imperative then that the solutions are custom tailored to each community. And so being able to hear from you directly was really important to us because then we could provide entrance ramps to this regional plan that were appropriate for each of those member agencies in our communities. And Pathways Home represents really the first time that we've been able to rally together as local and tribal governments to really strengthen the regional response, and it takes every community working towards this goal in a way that aligns with their priorities, their preferences, and their character as a community. TOWN OF FOUNTAIN HILLS Page 14 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 14 of 73 So as a result of all of that data analysis and engagement, we were able to have 14 different strategies adopted for the region and then just after I last saw you, back in November of 2021, our Regional Council unanimously approved Pathways Home, our regional homelessness action plan for local and tribal governments. So we've been implementing the plan for just over a year now. This is a five-year plan and so we're eager to share some of this progress with you tonight. So we've made a lot of progress over the past year, but I just want to highlight a few areas for you right now. There are three main action steps in Pathways Home. One is coordinating regionally; how can we work together better, how can we work together smarter to achieve better tangible results? With all of this, we're wanting to drive towards meaningful measurable outcomes, and so one of those is coordinating together regionally. The second one is increasing housing options. It's very beneficial to have a diverse housing portfolio throughout the region and we can't really address homelessness fully without addressing housing, and so we've been able to add a number of housing units, both temporary housing units as well as permanent housing solutions for people right here in our communities. We've also been able to work with diverse partners, people from the faith community, education, business, and really spanning a number of different sectors, including the criminal justice system. And with all of that, we've been able to develop toolkits and we were able to develop those with support that we received from all of our member agencies and from subject matter experts throughout the region. These are available to you and we hope that you'll avail yourselves of these solutions and these options. We'd like to highlight one particular piece of our progress, and this is one in which Fountain Hills has been very active as a supporter and we thank you for that engagement. As we were developing Pathways Home and realizing even more concretely the strong connection between housing and homelessness, we realized that there is a need to increase acceptance of affordable housing throughout the region. And it's hard to have a conversation about something when even the term affordable housing carries with it a certain amount of baggage that sometimes stops conversations before TOWN OF FOUNTAIN HILLS Page 15 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 15 of 73 they can even start. And so we've been researching this extensively. We've been working with the public information officers from our member agencies. We've been working with our local jurisdiction committee and thank you very much to Vice Mayor McMahon and to Rachael for helping to serve on that committee. Your input has been critical, particularly because we wanted a regional campaign that would resonate with all of our communities, understanding again that there are such different perspectives around housing, around homelessness. So we needed a campaign that would be very inclusive and also very positive and so we're able to develop this campaign on the basis of the research, the engagement and with feedback that we've received from our MAG Management Committee, as well as from our MAG Regional Council. So we just presented our campaign to our Regional Council and we're getting ready to launch this within the month. We do have a website. The name of that is Home Is Where It All Starts, and so the website is homeiswhereitallstarts.org. If you use that QR code, you can go directly to our campaign website. We have developed a toolkit that you can use that includes a sample -- different kinds of samples. So a sample digital ad, for example. A sample web copy that you can put online. And we invite you because while this is a regional campaign, we're hoping that our local partners will really support this as well and that you'll be able to reach out to your constituents, to your residents, to be able to talk about this topic. And we're providing some language that we've tested and it's been proven to help open those conversations in a more positive and constructive way, so instead referring to affordable rents and mortgages, homes within reach, homes that meet our needs, and being able to increase acceptance of affordable rents and mortgages in each of our communities in ways that really fit the nature of that community because again, this will be different in every community. But we need to be able to talk about it as a region. We want to be good stewards of the funding that's been contributed to this campaign and thank you very much for your contribution of $10,000. We're also able to raise funds from the city of Avondale, the town of Paradise Valley, and the Virginia G. Piper Charitable Trust. We raised a total of $105,000 to support those regional media TOWN OF FOUNTAIN HILLS Page 16 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 16 of 73 buys, but we wanted to further that investment and so we're able to engage in a partnership with Cox Communications and we will at least double the investment that we're making on behalf of the region. So we're contributing in total -- actually statewide, because this was developed in partnership with Home Matters to Arizona -- we're going to pay Cox $150,000. They will at least double that to provide $300,000 worth of media buys and product and creative collateral that all of our local member agencies can use. So real excited about that. It's a good investment and one that will be used to reach different stakeholders statewide. These are some of the resources that we've developed to address homelessness. All of these are free and available to you 24/7. Please do make sure that you're leveraging these. These are available on the MAG website right now. We do have a Homelessness Assets and Needs Data for Unified Planning, or HANDUP tool. This is an interactive tool that's available to you online, so that you can see both the demand and the supply. So in terms of the demand, you can see where are people experiencing homelessness right now and then the supply, what are the services that we can use to address their homelessness and to help them stabilize and be able to give back to the community in a really positive way? And so if you're interested in that, please do let us know. We'd love to provide that access to you. The rest of the materials are all open to the public and available right now on the MAG website and we'll have different ongoing training sessions and different materials that we'll be adding to the website as this work continues to unfold. And we'll continue to work with the local jurisdiction committee to receive input and also to share information and that two-way dialogue is critical. These are the next steps that we're looking at then. We have just over one year completed in our five-year plan. We have four more years to go and I imagine the work will extend beyond that and so these are the next steps. We are updating our housing targets now on a quarterly basis. We were doing that at first annually, but we realized the situation is just too dynamic to be able to just update those numbers. And the housing targets are, what will it take to reduce homelessness right now by 25 percent? And so we've been able to add a lot of housing units. You saw it was over, I think, 2400 housing units just within the first year of TOWN OF FOUNTAIN HILLS Page 17 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 17 of 73 Pathways Home, which is fantastic and we need to celebrate that progress. We need to keep two things in mind; one, we need a lot more housing options. That target was reached, but that's just reducing homelessness by 25 percent. We still have 75 percent to go. The other thing to keep in mind is that second bullet point. Half of the temporary housing beds that we have right now are funded with COVID dollars. That's good because we're able to make those beds available during a really critical time during the pandemic, but it's a challenge because we need to find an ongoing operational funding source for those temporary housing beds. So we are proactively working with funders right now, a variety of funders, both public, private, and those local foundations to be able to develop a strong strategy for keeping those beds open and for making them even more effective. We want to be able to learn from our experiences and then to be able to apply those lessons learned moving into the future. We will be launching Home Is Where It All Starts. We hope that you'll join us in spreading the word about this campaign, and again it's about starting conversations. It's about reshaping the narrative, so that we can talk really constructively and meaningfully about those affordable rents and mortgages and what it takes to help everyone to be able to acquire an affordable rent and mortgage and to sustain that on their own long-term. We want to thank you as well for all of your support with the Point-in-Time Count that was conducted on the last Tuesday in January. This is a federally required activity in order to receive the federal funding from the U.S. Department of Housing and Urban Development. Thank you for your participation in that count and we'll have the results to you in April and we'll be excited to be able to share those results with you and then to be able to plan what we need to do moving forward. We know that you have a packed agenda tonight and we're thankful for the time that you've given us. I would like to pause right now and see if you have any questions, comments, or feedback, and please know that you can always reach us after this meeting and engage with us at any time. Thank you very much, Madam Mayor -- MAYOR DICKEY: Thank you. TOWN OF FOUNTAIN HILLS Page 18 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 18 of 73 ST. PETER: -- and the council. MAYOR DICKEY: Any questions, comments? No? MCMAHON: Thank you for all that you do. We really appreciate it. You really have a large impact and it's really making a difference. So thank you. ST. PETER: Thank you very much. MAYOR DICKEY: I do have a couple things. One, I want -- obviously, you probably are aware now that we just heard that Maricopa County was the fastest-growing county and not just growing, but the delta between people leaving and coming is not much. So we're definitely growing and it kind of makes it more important to talk about planning and I know that that's something that can be a frustrating concept because, you know, you're looking at a road or you're looking, I don't know, an empty lot and you're thinking, well, why do we need that? Nothing's happening and you also said data-driven and that's probably one of the greatest things that MAG does in so many ways. You have those interactive maps and just so many ways for people to get the information that they need. But modeling and planning is so hugely important and you saw the way that even just the highways and the changes that have been here since I've lived in Arizona. I also wanted to mention something that the Vice Mayor saw in an article and now I think I just got it from MAG, but it was about a semiconductor and I didn't know if you had had a chance to take a look at it, but that the -- kind of the threat to this huge project if we don't get our Prop 400 continued. So I don't know if you were able to address that. And then one last thing. We had an Economic Development Summit here and I think we had like eight tables and the idea of affordable housing came up, along with the reluctance to say it. So I think that's what we're facing just generally in the region and we appreciate all of your efforts on that. But just a little Prop 400. I know you don't want to get into all of the legislation and stuff, but there is a bill that purports to have some of our Prop 400 items on it, but it also has other items on it that force us to oppose it. And also a little bit of the background on how Prop 400 came to be, how it was unanimously passed by all the mayors and what happened and why we're where we're at right now. Thanks. TOWN OF FOUNTAIN HILLS Page 19 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 19 of 73 ZUERCHER: Sure, Mayor, just real briefly. So yes, the Wall Street Journal today did have an article about the region, about the Maricopa County region and the growth and the impacts of transportation and that growth, and really talking about the importance of the continuation of the existing sales tax for transportation 20 more years in the future. It expires at the end of 2025 and as you stated, the MAG planning process has gone on for about four years, four years of Audra's life and the staff's life into that. But it's a labor of love because it's really bringing people together to find out what is needed in the region for transportation and within the constraints of the existing sales tax. So there was a commitment not to raise the sales tax, but to continue that half-cent that we all pay in Maricopa County for transportation. What could we -- what do we need and what could we afford in that? The plan that came out of the region, it was both the council governments, those 32 member agencies that I said, the elected members of that group approved it and then something called a Transportation Policy Committee, which was established by the legislature in 2004. It includes MAG members and prior sector business leaders who are appointed by the Speaker and the President of the Senate. They also unanimously approved that plan going forward to the legislature. It went last year, vetoed by the Governor, and so we have to come -- but we had to come back this year for an effort to get that extended because the legislature has to authorize us to put it to the ballot. So we're currently working through the legislative process, which is a whole new experience for me. But there are currently two bills that are in the House of Representatives that are aiming to put something on the ballot. As you noted, neither one of those fully reflects the plan that was put forward by the MAG members and by the Transportation Policy Committee. So we're working through the questions about that and the issues there to try and resolve them with members of the House and members of the Senate, so that we can get a bill successfully through that reflects the will of the regional planning group of the TPC and brings forward what we think is a plan that will advance transportation. And to circle back to the Wall Street Journal, by advancing transportation, we continue the growth of the region in terms of air quality, but also the connectivity that things like TSMC and Intel and other myriad numbers of businesses need to get people TOWN OF FOUNTAIN HILLS Page 20 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 20 of 73 and products to and from their, you know, factories or whatever. So that sort of wraps it all into one thing. But I would encourage folks to take a look at the Wall Street Journal article today. MAYOR DICKEY: I appreciate that. You mentioned air quality and you know, whether you're mad about the requirements or you love them, they're there. So without having the transit and the public transportation parts of Prop 400, we are threatening these businesses. We're threatening really the successful future of Maricopa County. And so for another day we can fight on whether we think we agree with the guidelines, but these guidelines are there now and we're right on the edge. And so I appreciate all the work that you've done and Audra, our own homegrown expert there. But seriously, so much is behind all of this. Does anybody have anything to add after hearing the other information? No? All right. Thank you very much. Appreciate you. ZUERCHER: We appreciate it. MAYOR DICKEY: Our next presentation is going to be by our Captain Kratzer. You don't have to say anything, Rachael. Welcome, Captain. KRATZER: Good evening, Madam Mayor, Vice Mayor, and members of the council. I'm just going to briefly go over a couple of incidents that we've had in the last month since the last update. Probably some of the incidents are already known to some of the members of the public, if you read the Fountain Hills Times or some of the social media posts that have gone out. But I wanted to talk about an armed robbery that we had at the Fry's grocery store on Shea. It occurred on a Monday night, March 27th, and it occurred about 9:21 p.m., and the investigation is still ongoing. Our persons crimes -- or I'm sorry, our property crimes detectives are still actively working the case and working any potential leads. So there is some information that I may not be able to provide if there are questions, but I'll do what I can or present the information I can and then if there are any follow-up questions, I'll answer them if I'm able to. But basically a summary of the incident was a male subject had gone into the store and went into the bathroom and remained in the bathroom until after the store TOWN OF FOUNTAIN HILLS Page 21 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 21 of 73 closed. Once the store closed and all the customers were out and all of the employees, with the exception of the manager who was present, the suspect exited the bathroom and took the manager at gunpoint and had him open the safe in the office. The suspect was able to get away with -- it's still being determined, but anywhere from $50,000 to $80,000 in cash from the safe. There was some video surveillance from the store, obviously, but the subject had a hoodie on, a face mask on and gloves on the entire time, so there was no real good video of his face or a description of the subject. The subject that the -- the description the manager was able to provide was probably the most helpful, that it appeared to be a white male subject, and that was pretty much the extent of the description. Surveillance footage from nearby businesses and the Fry's from the parking lot doesn't even show a vehicle in the parking lot. There's an oddly placed vehicle that's kind of far out. There's no good descriptors of the vehicle. You can't even tell the make and model of that vehicle, but it looks like that may have been the vehicle that the suspect showed up in. So currently, the detectives are working the case. Limited evidence that was left on-scene, in terms of fingerprints or things of that nature, especially with the items the suspect was wearing. But our detectives are working with other local law enforcement agencies in the state of Arizona and with Fry's loss prevention to see if there -- you know, if it could have been an ex-employee who knew the store, could it have been -- have they had any other armed robberies or burglaries of their stores of similar nature, or any other businesses in the state. And they have a couple of small things like that that they're following up on, that there were some similarities in at least another case out of Tucson. So they're actively working that and that's pretty much the extent of updates that I have on the case or that I can provide. Obviously, if there's any questions by the council, feel free to ask them, but just understand the information we have at this point is kind of limited, or some of it is protected just so that it doesn't jeopardize the investigation. And I'll just move on to the next thing I wanted to talk about, unless someone had questions in the meantime. We've had a string of vehicle burglaries over the last three weeks. It was a period of about two weeks where we had nine incidents of reported vehicle burglaries and in those nine incidents, there were 11 vehicles that were entered TOWN OF FOUNTAIN HILLS Page 22 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 22 of 73 and items either rummaged through or stolen. And all of those vehicles, all 11 of them, most of them were presumed -- were either admitted to be unlocked or presumed to be unlocked. There was no forced entry on any of them, no broken glass. Doors left open, gloveboxes left open with documents and paperwork rummaged through. Unfortunately, there were two stolen firearms in those nine vehicles. There was cash that was taken out of those nine vehicles, I think a total of probably about $200 in cash. Credit cards were stolen. The best lead we have is one of the victims had their purse -- two purses stolen out of the vehicle and it looked like somebody was probably watching them. They parked at a local business, walked away from the vehicle for 30 minutes, didn't lock the car, left two purses in the car. Both of those purses got -- were stolen in that 30-minute timeframe. One of the victims was able to determine that their credit card was attempted to be used at the 4 Sons in town, so they went there trying to see if there were any contents left or maybe the suspect was still there. They were able to find some of the remnants of the contents of the purse in the trashcan at one of the gas pumps, so we do have some video surveillance from that being discarded. The victims were able to -- a couple days later, someone reached out to them on Facebook, saying that they had located a wallet with their information on Saguaro, so it looked like maybe someone had discarded it, obviously. Their car keys had been taken also out of the purse, so the car keys were found with the wallets on the side of the road as well, so -- But what we found -- when we have a rash of burglaries like that? So this happened over a two-week period, nine incidents with 11 vehicles. One of those happened on the Sunday, March 19th, three of them happened on Friday the 24th of March, four of them on Monday the 27th of March, and then one more on Wednesday the 29th of March. Most of them, like the three that happened on the one day and the four on the next day were all within a very close proximity of each other. The one that happened on Sunday was a little off the beaten path. It wasn't in the same vicinity as the others, so it's not -- it's unsure if it was the same suspect, same people or not. But what we're definitely seeing on this and we're working with the PIO, Bo, with the town and with Bob Burns with the Fountain Hills Times, is just continuing to try to TOWN OF FOUNTAIN HILLS Page 23 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 23 of 73 get the message out there to lock your vehicles, don't leave property inside the vehicle. I think an important note was one of the incidents had surveillance footage and one of the victims had one vehicle that was entered and then another vehicle in a driveway wasn't entered into, and the video shows the suspect trying the door on one of the cars. It was locked. He then shines a flashlight in the car to see if there was anything of value, doesn't see anything, so moves along to the car next door to it, which was unlocked and then they rummage through that and take property out of that. So most of the time, what we're seeing when we do see these is these suspects are just looking for easy access, going car to car, driveway to driveway, checking doors, seeing if cars are unlocked and if so, then they'll rummage through it. But if they do look inside the vehicle with a flashlight and they see something of value, laptop, purse, something like that, they'll have the propensity to break the window and get that property. And a lot of these crimes are happening overnight, so the victim knew they left their car parked and intact by 9, 10 o'clock at night, and then when they come out before work the next morning, anywhere from 5 to 6 a.m., the car's been rummaged through. So the ones that they had on video were about 2 in the morning. And one of the suspects -- just for people if they see anything, you know, at 2 in the morning. It's not illegal to be walking around at 2 in the morning. It might be a little odd. But the suspect had on a traffic vest, a reflective traffic vest, which is a little odd because it kind of draws attention to him. But they did have that on. So again, we're asking for people to be aware, lock your vehicle. If you see something that seems odd, call us and we'll check it out. It's not illegal, but we could definitely check on someone walking around the neighborhood at 2 in the morning and so our -- we've activated our Squad 5 deputies to work overnights during these times, trying to deter or hopefully catch suspects in the act. And then we're also just working again with the newspaper and local Facebook and social media just to get the word out. So that's really all I have for this month's update. I was going to talk -- I think I'll save it for the next update just for the sake of time -- about a co-responder program we're having with the mental health providers. But I'll speak to that on the next one that I do. If there's any questions or comments, I'd be happy to answer them. FRIEDEL: We have to be such a trusting community. We have to be better and more TOWN OF FOUNTAIN HILLS Page 24 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 24 of 73 vigilant with our property and our cars, and especially our firearms in vehicles. So we can't be that way anymore, apparently. This is shocking information. KRATZER: Yes, Councilmember Friedel, I do agree with that. I think we have a community of people who are definitely very trusting and probably for a long time have never had to worry about their vehicles being entered into overnight or broken into. So I think what we're starting to see is, you know, we get these trends where we'll see a spike in vehicle burglaries for a week or two-week period or a weekend even, and then it kind of lays low for a while. And then someone will do it again, so it is just being -- you know, it's a different time. It's hard to be trusting. We're just encouraging people to lock their cars, not leave property in them. Maybe you've done it before. But especially firearms, once those are stolen, you know, if you have the serial number we can enter them into OIC and most people have that information. But again, putting just an additional stolen firearm on the street is never a good thing, so -- MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Yeah, thank you, Ms. Mayor. Yeah, I'm with Councilman Friedel. This is very disturbing, very shocking for me, as a community that's known for it's safety. You know, I've told this before in this forum that if you see a crime or you've been a victim of a crime, make sure you report it to Maricopa County Sheriff's Office. For some reason, they keep sending me their door videos and their Ring videos, and I've seen the guy with the vest going in the car and it's very brazen. It's shocking. I think we -- I think it's official, we do have an uptick in crime. You mentioned that you assigned the Squad 5 for the evenings. Are they walking? Are they doing side streets? Are they in marked vehicles? Could you just flesh it out a little bit for me? KRATZER: They do a little bit of all that. They'll do added patrols just for the added visibility in the marked patrol cars. But they'll also using the bikes to do bicycle patrols which are a little bit more covert. And you know, just a lot of times when people are in the neighborhood, especially if criminals are going 2 in the morning, you can hear a car coming here in Fountain Hills a couple blocks away. So we're having them on bicycles quite a bit, too, in the early morning hours, late night hours as well to do that. And then TOWN OF FOUNTAIN HILLS Page 25 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 25 of 73 to put patrol beats, I mean, it's a big area to cover, especially just with -- it's not to one certain neighborhood. It's kind of spread out, so bikes and patrol vehicles are the tactics we're employing. KALIVIANAKIS: Yeah, I'm glad you're reaching out to the Fountain Hills Times and this does seem to be like a communications problem with our residents. You have to implore the residents of Fountain Hills, don't leave things in your car, you know? And particularly things like firearms and purses and things that are just obviously easy prey for people that are out there looking for an easy mark. And so I would implore people to do that. I've now taken your advice. I leave my car doors unlocked and I make sure I don't leave anything in there because I've been a victim where I come home and the window's broken and there was nothing in there to steal. But anyway, so -- but thank you for what you're doing and for letting us know what's going on. KRATZER: Thank you, Councilmember Kalivianakis. The only other thing I want to add to that, which your comment brought that to the forefront, was I'm certain there's probably a number of people who've had their vehicle rummaged through but maybe nothing stolen, or maybe even had some things stolen and they don't report it to MCSO. I mean, obviously, they have the right not to if they don't want to. I don't know if they feel like they're bothering us. We've had people say, well, I don't want to bother you, nothing was taken. But we just encourage people to report it. It's a quick report on our end. It helps us with our stats and understanding where those crimes are occurring or where the suspects are hitting, so we can track that and deploy our deputies where we need to, so I would encourage people to at least just make the phone call. We can take a report. You don't even have to be listed as the victim. We can just document the fact that in that area, at that address, there was a vehicle that had been broken into. KALIVIANAKIS: Yeah, that's a very selling point, and thanks for bringing it up, because crime is all about statistics and where the crime's occurring, and you guys have to have that information so you can make the best use of Squad 5 and the deputies, make sure they're in the right places. So that's a very good point. Thank you. SKILLICORN: Madam Mayor, Captain. And I thank you also for bringing that back up about reporting it. I know three TOWN OF FOUNTAIN HILLS Page 26 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 26 of 73 years ago, someone went in one of my cars and made a tiny bit of damage, but nothing of note. Nothing stolen. And frankly, I didn't -- you know, I didn't report it and I probably should've, because like maybe there is some sort of pattern that would've been very helpful. So it's a great encouragement. I'm also curious. Were some of these break-ins in parking lots, it sounds like, also? Not just homes? KRATZER: There was only one. SKILLICORN: Okay. KRATZER: The rest of them were all at home, in driveways. One was off of Saguaro and Panorama at a local business there at 9:30 at night. That was the two ladies who left the purses in the car and -- SKILLICORN: That's what that sounded like, yeah. And my only thought is, I don't know if this is something council direction, you know, I don't know if we have ability to have more, you know, more deputies patrol neighborhoods, drive through parking lots, and maybe just -- if someone had driven through that parking lot when that person was going to do the robbery, you know, right before, maybe that would've been a deterrent by itself. And the deterrent factor is real and we'd rather deter crime than solve crime, honestly. And I just wonder, you know, instead of some of the, you know, traffic enforcement, you know, neighborhoods, I think, are a priority for me and probably a council decision, but that's something. But also another question I've been getting, because I've been getting some of the same videos, but also lots of pictures of homelessness and such, and I know there's a court decision in Phoenix that they have to clean up that area there. Frankly, these people are doing the same thing here. They're, you know, using our public parks and stuff for, you know, toilet facilities and such and -- so that is going on. But I also think that, you know, if there's someone pushing a stolen shopping cart down Avenue of the Fountains here, we're not doing them any favors by not encouraging them to find help and you know, there is a crime being committed there, or possession is a crime and just your thoughts on that. KRATZER: Councilmember Skillicorn, thank you for the comments. That is a topic that we've not typically addressed, you know, a shopping cart. TOWN OF FOUNTAIN HILLS Page 27 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 27 of 73 Deputies typically need to -- they have to have some level of maybe reasonable suspicion that the cart is stolen. And to your point, if someone's walking down with a cart that says Fry's on it, maybe that would be the, you know, potential to contact them. What we have found, typically, and we haven't talked to every store here in town, Fry's and Bashas' and Safeway, as if, you know, they did have a shopping cart that was removed from their property, is that an offense that they are interested in pursuing? We have to have the victim of the crime. So Bashas', Safeway, Fry's, wherever that shopping cart would be from, that they'd want to end the prosecution for us to then, you know, proceed with that. But yeah, I mean, if it is a crime, we have a duty to investigate it. It's just not a -- it's not anything that we've done to this point. And personally, that -- I don't know how many of the individuals in town in that community utilize the shopping carts. I'm sure we've all seen a time or two -- I don't know. I know over near Gilbert Road and like the 202 area, there's a subject who lives in that area and they have a shopping cart and you know, I don't know who it belonged to. But to your point, I know that they usually do use some shopping carts or mechanisms like that to store their belongings or transport their belongings. So it's one of those subjects that, you know, we can definitely make sure if the stores in town are reporting thefts of shopping carts and they want that to be a prosecutable offense, or proceed with that or pursue it, MCSO would pursue that just like any other crime. MAYOR DICKEY: Any other questions? Thank you, Captain. The statistics that we were talking about, they're important because, you know, before we would say there's any trends or anything, because I've lived here long enough to know that these things come and go, and so it's important. You know, maybe sometime down the future, we can look at some more long-term -- and then also, from what you were saying, you know, we're going to be looking at the contract, right? We did a big assessment last -- the end of last year and I think there was some room for localizing it a little bit or you know, seeing what's important, what our priorities might be. So that's definitely coming down the pike. KRATZER: And Madam Mayor, if I could just go back to your comment, Councilmember Skillicorn, I have heard from the council in the timeframe since January TOWN OF FOUNTAIN HILLS Page 28 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 28 of 73 about a desire for more community patrols and you know, maybe not as much traffic enforcement. And we have been trying to impart that upon our deputies to, you know, find a good balance of active traffic enforcement, but also being in the community, especially overnight. I mean, we've got three, four deputies on every night. They can't be everywhere all at once and I don't think that anyone expects that, but the requirement for them to be involved and more into the neighborhoods, even looking for open garage doors, notifying neighbors, residents of -- even if it's 2, 3 in the morning, you know, a polite notification to them that hey, your garage door's open. I don't think that you probably intended it to be open, so -- and the deputies are tracking their stats when they do that. They're putting themselves out on a community patrol on their beat in their neighborhood so that we, the command staff, can make sure that those activities are increasing and that they are occurring. So that's all I have. Thank you. MAYOR DICKEY: Thank you, Captain. Appreciate it. Our next presentation is going to be about the Sunridge Natural Preserve. Do you want to introduce that, please? GOODWIN: Sure. Thanks, Mayor. I'd like to ask Kevin Snipes to come up. Kevin might be the only person newer to his role -- or newer than me to the role. Kevin has today accepted the special assignment of serving as our Interim Community Services Director, so he is going to lead us through this presentation this evening. MAYOR DICKEY: Thank you. SNIPES: Good evening, Mayor and council. So today we're talking about Sunridge Park, which we've talked about several different times. Let's see here, if I can get this thing to -- there we go. So we've had many talks about this property and the potential of putting in some assets into this location. They've been met both positively and negatively from people in the community, as well as people throughout the town. Some of the comments had been that they didn't want to see a parking lot go in. They didn't want to see it be as much like the trailhead where we have shade structures and places to sit down. TOWN OF FOUNTAIN HILLS Page 29 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 29 of 73 So we listened to that and so we've reduced the cost expenditure on this substantially, as you can see, down to $100,000 and we don't think that we'll be anywhere in that range, but we wanted to have that cushioning, depending on how everything ends up coming out. We're planning on utilizing the trail builders to help us out with building the trails. They've been out looking at the area, trying to find ways that they can do it both economically and as easily as possible, providing some good views and around the landscaping that's out there. So we're looking to have it be a preserve to where -- that we can put in our ordinances and help protect the area. Help keep the ordinances involved with the town for all of our preserve areas will then be appliable to this location. It'll only be a sunrise to sunset open and close. We won't have any more of the shade ramadas, no parking lot, having it just be a pedestrian walking area. To do that coming in off of Desert Canyon will require a pedestrian bridge to come across the wash area that's there. We don't want to have people walking through an area that we know is a natural wash area. That just doesn't go well anytime it rains and you run more liability with that. So that's why we're looking at doing a pedestrian bridge across there, if needed, for that area. With that, I'll take any questions. MAYOR DICKEY: Thank you. Any questions from anyone? Councilman? SKILLICORN: Madam Mayor. When I asked to put this on the agenda, I specifically asked about, you know, not doing anything or selling this property. So I'm curious of what the -- and maybe staff can help out with what the legalities of -- I mean, you know, the getting bids and how we would sell it, something like that. GOODWIN: Sure. I can jump in there. We actually are under contract right now to have the parcel assessed, so that we can get a true market value of what it is. So that's underway right now. And then pending direction, if the council would want to move in that direction, we would need to move through the process for sale. I know Aaron can jump in here, but it would be for open bid. We would have to go through a -- you know, posting a receipt of open window TOWN OF FOUNTAIN HILLS Page 30 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 30 of 73 time and then we would have to review those bids and then take action from there. What am I missing, Aaron? ARNSON: Not much, other than the process. GOODWIN: Yeah. ARNSON: Which I can advise the council of separately. But for the public purposes, yeah, it's statutorily laid out. It's a pretty straightforward process and we have sold property pursuant to that process before. You put it out. As long as it's appraised below a certain threshold, you just put it out for equal bids and once the bids ultimately come in, we select the appropriate, you know, bid, usually based on highest bidder, and that's the process. It's fairly straightforward. SKILLICORN: And Madam Mayor, staff, we've already started that process of having bid it [sic]? ARNSON: No. I think what Manager Goodwin was saying was that we are getting an appraisal -- GOODWIN: Um-hum. ARNSON: And would get direction from council, of course, before we proceeded with any bid process. SKILLICORN: And Madam Mayor, what's the cost of the appraisal? GOODWIN: Justin actually initiated that for us. I don't know if he's on the floor right now. SKILLICORN: He just walked out. GOODWIN: Oh, sorry. Perfect timing. SNIPES: It was about 2,000. GOODWIN: Yeah. We have someone on retainer to do that. SNIPES: Okay. (Indiscernible). GOODWIN: Um-hum. SKILLICORN: Okay. That's all. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I know this went from a million-dollar project, now it's pretty skinny at $100,000. I'm just wondering, I know you said even the $100,000 is probably a lot more TOWN OF FOUNTAIN HILLS Page 31 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 31 of 73 than you need. What do we need since the Trailblazers are doing this voluntarily? What do we need? And where would that -- part of that $100,000 go toward? SNIPES: The biggest thing will be accessibility and helping out with the layout of the design to make sure that we're going through and if they do need equipment, that we can get something in there to help them out with it. KALIVIANAKIS: Last time we were here, we talked about a drainage culvert and the bridge to enter. SNIPES: Um-hum. KALIVIANAKIS: Have we looked into whether there's any other access or egress points that the trail builders could use that we wouldn't require that sort of heavy lifting? SNIPES: Not and stay on Eagle Ridge -- on Desert Canyon Drive like we'd said we would. Go anywhere along that side, there's a water drainageway that runs all the way down through there. KALIVIANAKIS: And what -- why can't we develop the other street, just to inform me? SNIPES: It was one of the things that we had said we wouldn't do, is we wouldn't come in from that side into the park and so we're trying to stay true to that. KALIVIANAKIS: Is that flexible? Could we look into that? SNIPES: We could, yeah. KALIVIANAKIS: Yeah, because I think from what I've heard from the Homeowners Association and the residents, they just really don't want any construction. They don't want any bridges. And I think, you know, and again we're just talking about this tonight, but again I could reach out to that community and say if we access the other street and we didn't have to do all the work, would they be amenable to that? Because from the feedback I've received, they're okay with the trails. You know, of course, they don't like the parking lots. But they also didn't like the drainage culverts and they didn't like the bridges and like bringing industrial bulldozers and stuff. So I think that's something we should be looking into. SNIPES: Absolutely, and the reason that we did that was because of the meeting that we had with the homeowners that are directly across the street from there and that was their main request, was they didn't want access coming in from that side. And so by going in on the other side, there aren't any houses over there and so it made it to where that the TOWN OF FOUNTAIN HILLS Page 32 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 32 of 73 entrance and exit point was on a street that didn't have houses. KALIVIANAKIS: Yeah. It's just -- it's so skinny right now, that they might not object anymore, since there's really going to be very little there that's not really natural. So thank you. SNIPES: Uh-huh. MAYOR DICKEY: Thank you. I've been asked to ask you to speak up a little bit, please. SNIPES: Sure. MAYOR DICKEY: Councilwoman? TOTH: Hi. I can only imagine how many staff hours have been put into all of the versions of this project and before I say anything, I want to say I appreciate everybody involved in that. When this project was first proposed, the feedback I received and I think everyone else as well was a resounding no, and then the second version, a resounding no and a couple maybes. And now we have a negotiation taking place, right? The residents have kind of understood, okay, we seem a little determined to put something here, so they give us this idea of well, if you only do the trails; well, I guess you can do a bridge. I really don't like the idea of building a park when no one is excited about it, as far as I can tell. Maybe no one is too harsh of a term, but I have yet to meet anyone who's excited about the park. The yeses that I do hear are people going well, I guess it's okay. I would honestly -- and thank you so much for your work in getting the budget lower on it -- I just over months and months of talking to a lot of people about this, over and over and over again, you finally convinced me that you don't want it. And I think we should just kill this. The park development fees we discussed earlier could be used somewhere else and I just think that maybe this is one to let go. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: Okay, let's say we go through the motion of potentially selling it. So these questions are probably for Aaron. One, does it require a town vote because it is town-owned property? Two, if this is something that comes to fruition, what can this lot be used for? Is it zoned for housing? Is it zoned for -- because that's going to be a part of -- if somebody TOWN OF FOUNTAIN HILLS Page 33 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 33 of 73 wants to come in and buy the lot from us at market value. Ten lots? What are we talking here? ARNSON: So I can answer the first question and Director Wesley, I may have to turn to him to answer the second question of what the current zoning for the property is. The statutes lay out that if property is valued at $1.5 million or less, then it does not have to go to a town vote. It doesn't go to a vote. If it's valued higher than 1.5 million, then that's the point at which voters have to preauthorize putting it out for bid. So that maybe answers that question. So your A.R.S. 9-402 and 403 are your references for that. GRZYBOWSKI: Okay. Thank you for the numbers. ARNSON: You're welcome, yeah. And then, I may have to -- yeah, I don't know the answer to your second question, Councilwoman. MAYOR DICKEY: Thank you. WESLEY: Councilmember, without going up and looking at the map to remember exactly -- I know it's a single family residential zone. I think it's R1-10. But it may be -- GRZYBOWSKI: For all of us that don't have those zoning numbers memorized, what does that mean? I'm sorry, but I'm pretty sure there's a couple of people that have the same question. WESLEY: That's a single family residence lot, a minimum of 10,000 square feet. GRZYBOWSKI: Thank you. MAYOR DICKEY: So I know this is like -- doing all this guesswork, but how many acres is it? And 1.5 million for a lot of acres in Fountain Hills is not unreasonable. Do you have any idea at all? SNIPES: It is five acres. I can speak to that. And as far as the value, I don't know if we have it. MAYOR DICKEY: So we find out how much, once it's appraised. We may have to have a vote, which we -- you know, we could hook on with another election, I guess. But otherwise, that's an expense. And then whoever -- if we do sell it, then whoever pays the most would get it and then, even though it's zoned single family, I mean, they could request -- I know it probably wouldn't get anywhere, but they could request a different TOWN OF FOUNTAIN HILLS Page 34 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 34 of 73 zoning. So just trying to follow that down the line and see where it could go, so just so you're aware if we do go down that way, that that's the possibility. Councilwoman? TOTH: Thank you, Madam Mayor. I guess I wanted to pose the question of, if we get the appraisal and we wait until a time that we're already having an election, does it still cost us to get those words on the ballot if the ballot's already going to exist? Okay. So if we wait a few months to make it serious -- I'm just -- this is completely me talking for the sake of theory, but would it hurt anything to let the land sit there a little bit longer? Okay. MAYOR DICKEY: I think if you're talking about will we lose the development fee money, I think we still have a few years on that, right? Because if we don't use a park development fee on growth-related park expenses, then we have to give it up. But I think -- Aaron, do you know how long we have? ARNSON: I do not know how long we have with respect to that. But to Councilwoman Toth's point, yes, obviously, we could hold onto it and then tie it in with another election. I don't know if the cost -- maybe Linda would know better. I don't know if the cost is zero, but it would be quite a bit less than calling a special election. I mean, that would be a significant savings. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. At this point, I can't speak on behalf of the citizens, the residents or the Homeowners' Association for Sunridge, but my common sense tells me that the residents would probably rather have the access/egress on the other road with the houses than having us sell the land and build a bunch of homes there. So I think at this point, I'd just really like to reach back out to the community and just ask them, would you rather have just the natural trails on the different access/egress, or would like us to sell the land and develop it? And I think that's something we could do probably pretty quickly. Get info from the HOA and maybe even do a public notice and I think the residents would probably be happy with that. And we have been looking at this for a park for a long time TOWN OF FOUNTAIN HILLS Page 35 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 35 of 73 and again, it might be a skinny park, but I think the residents would be -- I think that's a nice option for the residents. I think they would agree with that. MAYOR DICKEY: Go ahead. GOODWIN: Yep. We can follow through with that and do a little more outreach. KALIVIANAKIS: Thank you. That's important. MAYOR DICKEY: Thanks. Just I know that many of the people that are interested in this, Rachael already sent them this, but there are several regulations that go with a preserve. So if this was a preserve, as we were saying it would be designated as a preserve, that would allow all town ordinances to be enforced. So there are a lot of restrictions there and so I would like to go ahead with it, too, to be a park that's acceptable to everybody and if that ends up being -- coming in in a different direction or if it doesn't for some reason, but you said it would be okay. But if for some reason it wasn't, then maybe a little more of a clearer picture of what a culvert would like. But again, that was looked at, I think, because folks didn't want -- UNIDENTIFIED SPEAKER: Yeah. MAYOR DICKEY: -- it there, but now if they do, then maybe we could look at it that way. UNIDENTIFIED SPEAKER: Sure. MAYOR DICKEY: All right. Oh, yes, Linda? MENDENHALL: I just wanted to -- thank you, Mayor. And just wanted to answer Councilmember Toth's question. Yes, the cost for an election is significantly higher if it's not during an election year. So if we were to do this in 2023, let's just say, we would pay about $2.10 per registered voter, as opposed to 51 cents per registered voter. MAYOR DICKEY: Would you -- we pay the bill there. UNIDENTIFIED SPEAKERS: (Indiscernible) money today. MAYOR DICKEY: Thank you. FRIEDEL: Tell them to sell that property. We need the money. MAYOR DICKEY: So do you understand, Rachael and Kevin, where we're going, then? SNIPES: Yes. MAYOR DICKEY: All right. Thank you very much. Appreciate it. TOWN OF FOUNTAIN HILLS Page 36 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 36 of 73 Next we have Call to the Public and again I'll remind everybody, speak into the mic because we're hearing from folks at home that aren't hearing. Do we have speaker cards? MENDENHALL: Yes, Mayor. We do. There are some people who put that they wanted to speak under the Sunridge item. I'm putting you at Call to the Public because a presentation doesn't allow for public comment, but we'll allow you your opportunity to speak. First, we're going to just go through the two comments that were made, which is at your dais, and the first one is Bobbie Kennamer. She couldn't be here, so she just wanted to let you know that she's for the Sunridge Canyon preserve, but you have to read her comments because she has some other additional verbiage for that. And then Robert James, who also says he's for the Sunridge National Preserve [sic], but also has some stipulations in his comments. And now we'll go to the people who are here. The first is Gary Clark. Are you here, Gary? CLARK: Thank you. I wanted to speak on the noise pollution that's coming along, specifically, North Saguaro. I've been a resident for eight years. In the past three or four years, it's been getting increasingly loud and for extended periods of time. And there are times when it's unbearable. I mean, my condo literally -- I live in El Lago Village, at the corner of North Saguaro and El Lago. And there are times when, I mean, you can't even hear the TV set playing, it's so loud. And I think there are some other folks here that wanted to speak on the same thing. The town has a wonderful noise ordinance, right? I mean, if we would enforce this ordinance, you're not going to have a problem. I guess the question is, is how would one go about doing that? Do you do it in an enforcement manner with -- this actually says you could appoint someone, not even have a law enforcement officer do it, if I read the rule right. Or do you try to divert the traffic in one way or another? MAYOR DICKEY: Hey, sir, can councilman ask you a question? CLARK: Oh, yes, sir. FRIEDEL: What kind of noises are you experiencing? Is it drag racing? Is it lawn TOWN OF FOUNTAIN HILLS Page 37 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 37 of 73 mowers? CLARK: Well, sometimes it sounds like it. There are two primary categories, in my opinion. One is motorcycles, okay? And that's almost the most irritating, you know, when you get a herd of motorcycles coming through. And the other are cars. And I could have my SUV out and floor it and you're not going to hear a thing. But there are a lot of cars and souped-up cars and sports cars that -- it appears when folks are coming out of that stoplight, going towards Shea, they speed up very quickly. And when they do that speed up, it is very, very loud. So it -- you know, I think if we could figure out a way to enforce the code, we're in good shape. But that's probably easier said than done. And I don't know, there's been some folks talking about maybe putting in speed bumps. I hate speed bumps, but that -- an option may be redirecting traffic for motorcycles away from North Saguaro. There are actually -- it's technology out there today that you can put up a camera and an audiovisual unit and when the sound goes above a certain decibel, it snaps a picture of the license plate. So I mean, there's a lot of -- MAYOR DICKEY: That's okay. CLARK: -- that there's a lot of things that could be looked at. MAYOR DICKEY: Thank you very much. We appreciate that. FRIEDEL: I have another question for you, if you don't mind. Is this something that happens every day? Is it on weekends? Is there a particular time of the day that this happens? CLARK: It's been getting -- over the past three years, it's been getting significantly worse, right? And no -- really, every day. The weekends it's constant. Mornings and afternoons are particularly bad during the week. The policy, if I read it again correctly, said that there could be exceptions when we have fests and stuff like that, because you can't -- you don't want to keep the people away, but -- GRZYBOWSKI: I do think we have more people that want to speak on this particular topic, so we'll probably be able to learn more from all the different speakers. MAYOR DICKEY: Okay. MENDENHALL: Yes. TOWN OF FOUNTAIN HILLS Page 38 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 38 of 73 MAYOR DICKEY: Thank you. CLARK: Thank you. MENDENHALL: Next, we have Crystal Cavanaugh. CAVANAUGH: Good evening. Crystal Cavanaugh, Fountain Hills resident. I spoke at the CTP for P&Z on March 13th, warning that if behavioral health business, Angel Heart Health Services, was issued a business license that it would not be conforming to the C-O zoning. I spoke again at the town council on March 21st, warning that any business license application for Angel Heart Health Services at 16927 East Saguaro should be denied since behavioral health is not allowed in our C-O zoning. It seemed almost unnecessary for us to be bringing this to the town's attention. It's a slam dunk decision to deny it. But we'd heard rumbling that Grady had said John Wesley may actually have the authority to expand the ordinance, so we spoke up, loudly. Next, we hear that a private executive session was scheduled tonight to discuss the legal aspects. What possible legal aspects? Why are you worried about getting sued? We have had a clearly defined C-O commercial office ordinance that has been in existence for quite some time and it says the only counseling allowed in this zone near this residential area is for marital counseling. So why does it seem some of you are bending over backwards? I FOIA'd (indiscernible) and received the Angel Heart business license application. The email should also be coming any day now. So here it is, right here. Ironically, it was filled out on March 13th, the day I spoke at P&Z and at which time was told that there had been no such application. It shows this business was well aware the property was zoned C-O. It also clearly lists their services as behavioral health services, outpatient services, counseling services, and peer support services. It is an inappropriate land use issue and should be denied. Why is this so hard? Why are citizens once again having to bring you evidence that it should be an automatic denial? But some on this dais go out of their way to import more substance abuse problems and loitering. Is this a way to justify a homeless shelter next? Will it be okay for imported clientele to just mill about the parking lot, smoking, waiting for their treatments? Similar outpatient substance abuse clinics are in multiple locations in Phoenix, TOWN OF FOUNTAIN HILLS Page 39 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 39 of 73 ruining the surrounding businesses and neighborhoods as they wait for their substance abuse treatments. And guess what? This does not need to happen here. It's a no-brainer. It already doesn't fit into our zoning ordinance and it is a non-conforming business. Just say no. Residents may seek all available legal recourse if necessary and if needed your vote should be public, so the Fountain Hills residents can clearly see who up there does not want to follow our own zoning codes. What other codes do you plan to ignore? Thank you. MENDENHALL: Next, we have Larry Meyers. MEYERS: Mayor, Council, Town Manager. First, I'd like to apologize to the new Town Manager for giving her such a wonderful first couple days on the job. Hopefully, it'll be the last time we talk about stuff like this because there is a litany of ordinances. We got a noise ordinance. I didn't know about that. So I say, and as I have said, and I will continue to say about anything that is written down in the town's ordinances and codes, read them, follow them. No town staff gets to expand them because we didn't elect that person. You're all up there to serve us and this one just went through two years of creating ordinances saying where behavioral health can be. You just voted it in, in February. We know where it belongs and it doesn't belong in the least intensive commercial space in town. It says so right in our ordinances. And so to me, I echo Crystal's comment, why are we even here? Why are we discussing this? This stuff is written down. Somebody made it. Some of it's a long time ago. Some of it's been amended and updated. I can read it, and I don't need to be sitting in my desk at my computer eight hour a day for forty hours a week for multiple weeks reading things that are known to y'all. That's the bottom line in all of this. We'd like to sit and enjoy our town. We don't need to be working for free. I don't mind doing it, but our research is so deep, it's undeniable. But on the surface, it's right there in a couple of paragraphs in the town ordinance under C-O. And it doesn't take more than five minutes to get through the entire commercial section. So I would implore you, Rachael, stay away from any more troubling days. Read TOWN OF FOUNTAIN HILLS Page 40 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 40 of 73 the ordinances, tell the staff to do their job, and then we're all done. And then you won't have to listen to me anymore. Thank you. MAYOR DICKEY: We're not going to applaud because there's some things that are said there that are just assumptions. There's been no action. The comments about staff are unwarranted and inappropriate. Linda? MENDENHALL: Next, we have Kim Wolborsky. K. WOLBORSKY: Hello, Madam Mayor, council. I'm Kim Wolborsky. I'm a resident of Fountain Hills and I'm a resident of Sunridge Canyon, and I'm here to talk about the park/preserve -- hopefully preserve and not so much park. I'm the one who wanted no trails, nothing. I would like to have this be an opportunity for our town to protect our local environment, to do something for the environment, for the wildlife, to just make a space that is natural. But it looks like that's not going to happen. And like many of the residents of Sunridge Canyon -- I've talked to a lot of my neighbors, no one has wanted the park. People have said, okay, we'll take trails because we don't want more than that. And we don't need the park, but we've been through that. I think we're kind of past that. It's going to happen. I would like to say, at one point I think the board had asked if they could look at, you know, purchasing the parcel for a very nominal fee. No one, I don't think -- well, no one I've talked to would want to have that built up. We really like it the way it is. We like our wildlife. We like, you know, having a place that isn't built. But one of the things that I saw in the last plan -- I didn't see it here, and I just want to say I really hope it's gone -- is that there was a little caveat at the end. It said it's just trails with possibility of future improvements. And I'd really like the possibility of future improvements to come out. We don't want a parking lot. We don't -- you know, there's concern. We've had a homeless person living behind the monument at Desert Canyon and Golden Eagle. So there are people in the neighborhood, you know, that once the trail is there, it's going to be an opportunity for people to come in and live there. You know, I'd like to know who's going to enforce that, how on earth that's going to be TOWN OF FOUNTAIN HILLS Page 41 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 41 of 73 enforced when it's just a trail with an entrance. The other thing is, the whole thing with dogs and dog cleanup. People just don't clean up after their dogs. We put out the nice little plastic bags and you know, most people use them. Most people are great. But there are lots of people and I actually am seeing more and more of this, maybe it's the time of year, who are just letting their dogs off leash in the parks or on those leashes that are like 20 feet long. And you know, if your dog's off 20 feet away, you're probably not going to go out in the bush and clean up after it. I don't know. I sound like I'm just whining at this point. So I am very grateful that the plan has come down to what it is. I appreciate all the work that's been done to make that happen and I hope we can just leave this area as natural as possible. Thank you. MENDENHALL: Next, we have Barry Wolborsky, and Barry also provided you with a written comment, but is here to speak in person as well. B. WOLBORSKY: I'm her husband and I live here, too. So the Sunridge Canyon Community Association and community residents have made it very clear to the town they neither want nor need a community park. The town, however, for reasons unknown to almost anyone, has insisted on placing this unwanted and unneeded park in our community. So the Sunridge Canyon Community Association has decided they will not oppose the Sunridge Community trail or park, if the town agrees to the following conditions. 1, there will never be a walking bridge. By the way, the reason we didn't want the entrance on Sunridge was because there was going be a parking lot there. We have no objection if there's just a trail, so go for it. 2, there will never be a parking lot. 3, there will never be a ramada or similar structures. 4, there will never be lights. 5, there will never be benches, tables, or other seating. 6, the trail system will never connect to any other trail system. 7, there will never be a bathroom. 8, there will be no major earthmoving. Minor earthmoving for trail cleaning is accepted. 9, the area will be left in its natural state as a preserve, except for trails with floral labeling signs acceptable. 10, drones will not be allowed to fly in the area. 11, motorized vehicles will not be permitted in the area. Maintenance vehicles are accepted. We recognize that a future council could alter these terms at some point, but we're TOWN OF FOUNTAIN HILLS Page 42 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 42 of 73 willing to trust the staff and the council to not renege on this agreement if they decide to make it. That's all I've got. Anybody have any questions for me? MENDENHALL: Next, we have Matthew Corrigan. SKILLICORN: Can I (indiscernible)? MENDENHALL: Yeah. CORRIGAN: Madam Mayor, councilmembers. Matthew Corrigan, homeowner and full-time resident of -- sorry, Fountain Hills. Please reject the homeless housing component of the MAG Investment Plan. You'll find it under human services, bullet points 2 and 3, if you'll read those. So the bottom line is, don't bring The Zone to Fountain Hills. What's The Zone? Ed Zuercher could tell you, if he was here, because he was city manager for eight years in Phoenix while all this was going on. And so what is it? It's a city-sponsored transient slum of 1,000 residents that encompasses blocks and blocks of prime real estate downtown. But I can't describe it adequately, so I'm relying on a reporter from the AZ Free News to tell you the story. Her name? Corinne Murdock. The date? March 28th, 2023. She reads as follows. On Monday, the Maricopa County Superior Court ruled that the city of Phoenix was at fault for the homeless crisis most evident in the massive encampment downtown known as The Zone. Judge Scott Blaney ruled that the city officials had done nothing to improve The Zone, declaring it a public nuisance. Rather, Blaney declared that the city had created and maintained The Zone. Blaney added the actions taken by the city alleged to address the homeless crisis had served only to grow its bureaucracy and throw money into the government and nonprofit programs that haven't yielded any discernible results. With exceptions, the action items which your city representatives testified centered around the creation of more bureaucracy, additional staff positions, and obtaining additional funding for programs to vaguely address homelessness in general, stated Blaney. The Court received very little evidence, if any, that the city intends to take immediate, meaningful action to protect its constituent businessowners, their employees, and residents, from the lawlessness and chaos of The Zone. TOWN OF FOUNTAIN HILLS Page 43 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 43 of 73 Blaney ordered the city to abate The Zone by permanently removing the encampments by public rights of way; cleaning up the biohazard materials, human feces, urine, drug paraphernalia, and other trash; removing individuals committing offenses against the public order. Effectively, the judge ordered the city to enforce existing laws. The city has until July 10th to achieve material results toward compliance with the court's ruling. In the 23-page ruling, Blaney agreed with arguments proposed by plaintiffs, made up of residents and businessowners in The Zone, that the city stopped enforcing laws within The Zone, resulting in increased crime and violence. My bottom line is, don't bring The Zone to Fountain Hills, and reject the housing homeless component of MAG. Thank you. MENDENHALL: Next, we have Melissa Graves. GRAVES: Good evening. My name is Melissa Graves and I reside at North Saguaro Boulevard -- MAYOR DICKEY: Ma'am? Excuse me. GRAVES: -- at the corner of El Lago and Saguaro. MAYOR DICKEY: Could you talk into the microphone? I'm sorry. GRAVES: Oh, I'm sorry. At the corner of Saguaro and El Lago, and I just wanted to address the traffic noise that has grown to like an overwhelming level along Saguaro, affecting my quality of life and the quality of life of my neighbors. It is all we talk about anymore. Starting at 5 a.m. with work trucks and semis that literally rattle my bedroom windows, people accelerating off the light at Saguaro and El Lago. The weekend sounds like Bike Week at Daytona anymore. People going over the 35 miles per hour limit. Directly across from our building is a posted sign that reads Safety Corridor, a segment of the roadway with heightened law enforcement. This is not happening. Saguaro from El Lago to Palisades is very heavy with foot traffic, all going to and from the park. This area of our town is the crown jewel and a focal point of our town, yet it's loud, it's congested with excessive traffic noise, and it's not safe. People are flying through that intersection. TOWN OF FOUNTAIN HILLS Page 44 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 44 of 73 The area should not be a designated truck route, which it is at the moment. Fountain Hills Boulevard and Palisades are both wider, they have frontage road, and the houses are set back much further from the roadway. This area of town along Saguaro needs your immediate attention, whether its rerouting the truck route to another place, putting in speed bumps or a roundabout to deter heavy traffic, reducing the speed along this safety corridor, or simply enforcing the law and ordinances that are already in place. I urge the town to please address this excessive noise and nuisance to myself and the neighbors. Thank you so much. MENDENHALL: Next, we have Bruce Boyce. BOYCE: I had originally planned to ask a couple questions about the convergence of what is now called the Sunridge Reserve and I got the message in the last half hour that we're nowhere near a convergence and -- which would ask, you know, what's the plan to complete from here? And I'm disappointed to hear this. You know, people change. People come in at different positions and they have to learn that that's the reality of it. But I just -- I'm once again concerned about the convergence of this thing and I would like to make sure that the HOA is involved in continuing discussions, so that we know what's going on and perhaps we can offer some help to the town to make a decision because we have the fingers on the pulse of our residents. And so that point, Rachael, I'd like to -- someone -- maybe a monthly meeting or an every two months meeting, just to review what's going on, would be a worthwhile thing to do. I think it would be because it's, you know, we've been -- you know, you look back two years, there's a lot of progress that's been made compared to what the plan was originally and the idea of the reserve is a lot better. But I'm still concerned about converging on something that meets the town's needs and the residents' needs. Okay. Thank you. MENDENHALL: Next, we have Bill Smith. SMITH: Hi. This is my first time doing this, so bear with me here. I'm here to talk about the proposed reserve. I oppose it. I want to kill it, or I'd like to see it killed. When I looked into this I said, why do we need to have this? What's the town position? So based on everything I looked at, from meetings here and what came out TOWN OF FOUNTAIN HILLS Page 45 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 45 of 73 from the Community Services Master Plan, they said we need it, a new park, because we don't meet national parks and recs standards. Since when does the rest of the country dictate what the standard is to us? -- number one. Parks are a primary factor for resident and business attraction and retention. Last I checked, it's not hard to sell a house around here. It's not hard to buy one, either. Businesses come here. I haven't heard anybody complain that -- I'm not going to buy in Sunridge Canyon because there's no park up there. Let's see. 80 percent of Fountain Hills residents indicated they wanted parks within easy access. Okay. Why does it have to be -- why does Sunridge Canyon have to be the place where that easy access is? I mean, how hard is it to go down to Golden Eagle or any of the other parks? And what kind of park amenities are we going to have with this -- and I'm quoting some of the words here -- slimmed down version of a park. All you're going to have there are trails and wouldn't we be better off at another location that's more centrally located? Where people could play ball, run, jog, play frisbee or whatever? Whatever the park would be able to hold, besides just hiking. Do we have to have one park for every 2,281 residents? We're at 5,000. Oh my god, you would think that that's not really a big deal. Have a lot of people come to you and said, hey, we need a ton more parks? Because they probably want more services, not more parks. Let's see. So as I mentioned earlier, 80 percent of the Fountain Hills residents desire to have parks within easy access. However, in the original, first survey we had, 60 percent of the Sunridge Canyon residents that responded said they wouldn't use the park, if it came to be. So it doesn't make good sense to build it if 60 percent of the people that live there wouldn't use it. Also, at a previous meeting here, some of the people that pitched before I did, I recognize the names, they had some of the same concerns that I have -- is that me already? So I oppose it. And let's leave it as is, a natural -- it's more beautiful than anything else a man can do, and let's not harm the habitat by pulling them all up so we TOWN OF FOUNTAIN HILLS Page 46 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 46 of 73 can have an extra place to walk. Thanks. MENDENHALL: Next, we have Liz Gildersleeve. GILDERSLEEVE: Oh, he was tall. Good evening, and welcome Rachael Goodwin. Happy first meeting. I have a feel you're going to do a fabulous job. I'm also concerned that there was an executive session prior to this meeting concerning the business license application for an applicant who recently purchased a building on Saguaro, just south of Shea and Saguaro, and that application clearly does not meet the zoning requirements for C-O, commercial office. The applicant owns a behavioral health services business. Behavioral health as has been stated is not allowed in the C-O, as you all, I hope, know, and the zoning ordinance is pretty clear. But an even bigger concern for me is that the business license application should've been an easy denial by our town staff. Hopefully, the executive session prior to this meeting was simply a formality to discuss the denial based on our zoning. If not, it needs to be discussed out in the open and voted on by everyone on this council. We need to know who on this council is trying to skirt our zoning ordinances in favor of a noncompliant business, if at all. An approval of this business license would be setting a dangerous precedent, one that does not protect homeowners, especially those in the FireRock communities and nearby businesses and frankly, contradicts the oath you all took when you were sworn into office. Slightly off-topic, since there seems to be a consideration lately to disregard zoning ordinances that residents have depended on, does that mean we can expect you to ignore the zoning for a single-family parcel at Palisades and Mountainside that's been in place for decades? I sure hope not. That discussion will be coming before you in a few weeks, so I hear, and I suppose we'll find out then. As I've said before, if residents, homeowners, and small businesses can't rely on the routine enforcement of zoning ordinances, especially ones that have been in place for decades, what good are they? Thank you. TOWN OF FOUNTAIN HILLS Page 47 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 47 of 73 MENDENHALL: Diane Price put down that she wanted to speak, but had to leave and just wanted to let you know she'll send her comments through email. Next, we have Michael Scott. SCOTT: Mayor and the rest of the council, thank you for the opportunity to speak. I'm Michael Scott. I've been here since 1992. And I'd like to bring up something that I think is essential. We need a primary property tax. We need bonds for roads. We need bonds for our kids at school and overrides. It's a necessity. We're living off a sales tax that is not sustainable for this town and we have to get there one way or another. I am looking at the state and what they have done and what they're not doing. We are in the bottom six in the nation, the bottom six states in spending for public education. We are in the bottom six states in spending per capita. Since 2010, that's 12 years, our education system has suffered dramatically, down ten percent in funding. I guess those are some of the reasons that we have to do this by ourselves. And by the way, corporations get a big tax break in this state. It's below seven percent tax. They say it's for expansion, but I've heard that for the last twenty years. I think it's time for us to get ours and that's a big chunk out of income when you're giving a seven percent tax break to corporations. And also, in this county, we're really an exception as far as a primary property tax. Most all small towns have a primary property tax. Also, they have bonds for schools and overrides, and bonds for roads and everything else. On the 21st of February, Councilman Skillicorn, you mentioned a Streets First program, and you said something about $6 million a year for the next ten years, and that's the last I heard of the program. Where is it? I haven't seen anything. MAYOR DICKEY: Sir, please speak through the Chair. I appreciate it. SCOTT: I beg your pardon? MAYOR DICKEY: Please speak through the Chair. SCOTT: Okay. MAYOR DICKEY: Thank you. SCOTT: Also, on the 28th of February, Councilman Skillicorn, you mentioned that you would not advocate for taxes for -- excuse me, bonds for roads. TOWN OF FOUNTAIN HILLS Page 48 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 48 of 73 I don't know why not. Something has to change here because this is simply not sustainable. MAYOR DICKEY: Thank you. SCOTT: Thank you for your time. MENDENHALL: Next, JoAnn Gerardo. Okay. Hopefully, I said that right. If not, let me know. GERARDO: Good evening, Mayor, council. I'm JoAnn Gerardo, a resident of Fountain Hills. As someone who has lived in New York City, downtown Phoenix, and downtown Fountain Hills, I fully understand that along with the benefits of city life comes the downside of traffic noise. However, the proximity of traffic noise to residential dwellings has become unbearable. The noise level on Saguaro Boulevard has dramatically increased in the past few years. It used to be that when I heard a horn honk, I would jokingly say, don't they know we're in Fountain Hills? Now, persistent horn blowing, revving of car and motorcycle engines, trucks, speeding cars, loud music often starts at 5:30 a.m. on weekdays. Weekends, noise levels are distressing from morning until night. Noise pollution adversely affects our lives. Problems related to noise include stress-related illness, high blood pressure, speech interference, hearing loss, sleep disruption, and lost productivity. As an International Dark Sky Community with a project commitment to protect human health, it is our obligation to keep safe the sound as well as the sight of our town. Together, let's find a solution for our town's noise pollution. Thank you. MENDENHALL: Next, we have Tim Taylor. TAYLOR: Mayor, councilmembers. I'm against the Sunridge Canyon Preserve. Sunridge Canyon is -- the community there has a golf course, Golden Eagle Park with baseball, softball, tennis, basketball and adjacent on the school grounds, pickleball facilities. The other thing Sunridge Canyon has are sidewalks which are used all the time. So I don't think a walking path is all that critical for the area, or for Fountain Hills TOWN OF FOUNTAIN HILLS Page 49 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 49 of 73 community. I've heard discussions about fitness stations being put on -- in a park where the walkway goes around. I think that $100,000 could go a long way to serving the whole community of Fountain Hills, rather than just a small area there in Sunridge Canyon. The papers had articles on the significant cost of replacing the fountain lake liner. Maybe that $100,000 could be put into a capital reserve to start allocating money for the replacement of that in a few years. Thank you. MENDENHALL: Next, we have Ray Serres. Hopefully, I said your last name correctly. SERRES: Thank you for letting me speak. My name is Ray Serres. I live on Saguaro Boulevard between El Lago and Gunsight. I believe it's well-established now that there's a noise problem on Saguaro Boulevard and it's caused by fast traffic and loud vehicle mufflers, so I won't talk long on this. I'd like offer a suggestion for a solution to this problem. I spent 32 years working in law enforcement, police traffic patrols and supervising police patrols. I've seen various traffic calming techniques, from speed bumps, speed humps, speed cables, corner bumpouts, roundabouts, signage, and other environmental designs. All of these calming techniques have a common theme. They're designed to slow traffic down. I would suggest that the simplest and least expensive strategy would be just to lower the speed limit. The cause of the problem in front of my residence is vehicles accelerating rapidly from the stoplight at El Lago. You go from zero to 35 miles an hour and it seems like some cars want to do that as quick as they can, which causes the noise. Also, going the opposite direction, from 35 miles an hour to zero at the stoplight, you have a lot of people engine braking, downshifting, and you get the vroom, vroom, vroom, vroom, vroom, you know, noise which drives you nuts at 4 in the morning. So what I would suggest is lowering the speed limit and using a graduated lowering of the speed limit. As you're coming into the downtown area, rather than keeping it at 35, maybe move it down to 25 at the wash, just what'd be south of the Peaks fitness center, that wash there. Move it down to 25 so that vehicles have a chance to slow down a little bit before they get to the stoplight and that would reduce that deceleration TOWN OF FOUNTAIN HILLS Page 51 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 51 of 73 Air Force Base, or on average exceeding 65 decibels. The World Health Organization defines noise above 65 decibels as noise pollution. Noise becomes harmful at higher levels, as well as at longer duration. Close to a busy road or highway, the traffic noise is probably around 85 decibels. Recently, I ran a quick, informal survey of traffic. That morning, I counted 85 motorcycles passing our complex between 10 and 11 a.m. A typical motorcycle is approximately 80 decibels at 50 feet. The exterior wall of our living room is approximately 35 and a half feet from the curb along Saguaro and our covered patio is approximately 26 and a half feet from the curb. We urge the council to 1) ensure that sidewalk improvements do not add to the already untenable and unhealthy traffic noise problem and perhaps even incorporate sound-reducing measures and 2) begin a serious study of the noise pollution problems for realistic and sustainable solutions. We commend the town for its efforts and success at getting the town certified as a Dark Sky Community. We urge the council to also place its focus on noise pollution, so as not to be designated as the noisiest, most unlivable Dark Sky Community. Thank you. MENDENHALL: Next, we have David Matzke. MATZKE: Matzke. Thank you. I had stuff all written up for you -- oh, by the way, Mayor and councilmembers. But everybody got to it before me, even the vroom, vroom, vroom, vroom, vroom. But my wife, Karen (ph.), and I moved here in 2003. We're right on Saguaro and what I've really noticed is the souped-up bikes and these sports cars that -- they'll start and come down. They'll go up Gunsight, and then turn back down Gunsight and come around and go up El Lago. They think they're hot. You know, I'm 74 years old; I can be 16 again, you know? I mean, vroom. And the motorcycles -- the nice motorcycles come through, they're nice and mellow. No problem. And then the guy comes in with his stereo cranked up so I can go in my courtyard and dance, if I could dance. But this is the problem where we're getting. Those people have to be addressed, especially these damn sports cars. They are nuts. I mean, I was sitting -- he's sitting out at the stoplight on the east side on Saguaro. I'm in a back bedroom and I can hear him TOWN OF FOUNTAIN HILLS Page 52 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 52 of 73 and all of a sudden, I hear -- my shades were vibrating against the wood frame. That's how loud it was. Nobody around to give him a ticket. You give him a ticket and charge him 150 bucks, hey, it's going to go away. They'll go around town. Go out in the country and blow away the deer or something or whatever you can do. But it's unhealthy for us and I do have a thing here from the American Journal -- the Journal of American College of Cardiology. And they talk about the noise pollution from vehicles causing hypertension that can lead to cardiac as well as strokes happening. So I understand, my wife and I both understand the city is growing, the traffic is going to grow on Saguaro. But get the noisy traffic off, the trucks and the -- I mean, even the guys coming through doing yardwork, their vehicles are very, very loud, too. I mean, so -- everybody else had said it. I can't -- Ray said it. He knows how to do it. Take it down to 25 miles an hour and slowly take it up to 35 and really enforce it. I thank you for your time. Vroom. MENDENHALL: Next, we have Cellena Alvarado. Cellena, I have a question for you. ALVARADO: Yes, ma'am. MENDENHALL: Hopefully, I'm saying your name right. Is Jason speaking as well, or just -- are you together? Okay. ALVARADO: So -- CARTHEN: Thank you. ALVARADO: Hi, everyone. I just wanted to say that I'm here on behalf of Angel Heart Health Services. I just wanted to explain the services that we provide, which are just counseling, peer support services, and skills training and development. And that's for general mental health as well as substance abuse, so it's not just for substance. It's for people with general mental health. It's open to anybody, you know. So it's really a passionate job and we care for our clients. We're here to help everyone in recovery and just to get back and even learn the skills to be able to function in their day-to-day. We provide counseling for individuals, marriage, just, you know, mentoring. Just to help our clients again learn how to function in a day-to-day and come back into the community. TOWN OF FOUNTAIN HILLS Page 53 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 53 of 73 We opened this meeting with a prayer -- I'm sorry, I'm so nervous. We opened this meeting with a prayer and it was basically, you know, it kind of made me think about that when I went in to talk about the services that we provide. Everybody should be given a second chance and also to live a life that they -- you know, we all deserve. We have some -- we make mistakes. We are not perfect. But when you realize, you know, the things that you want to fix in your life, you need help and we're here to help as a -- not just a company, but as a community and we just -- you know, we want to be able to help our clients and our community, to be able to provide those resources and the services to them. Also -- no, go ahead, sorry. CARTHEN: Hi, my name is Jason Carthen. I'm actually one of the brokers that were on that on that deal. I helped the transaction, helping them acquire the property. I did do some extensive research prior to selling them the property. I was not prepared for this meeting. I came down here to advocate for my client and I'm willing to go as far as I have to, to make sure that their money is not wasted. They have spent an ungodly amount of money getting the property ready. For which you see, sitting right here -- these are Native American children, okay? I have adopted all five of these children. As you can see, it is late. I live in Chandler. I've driven all the way over here for this meeting. They're supposed to be in bed, but yet I'm standing here before you guys, listening to the nonsense about things that a lot of people have no understanding, have no background in, right? And I understand everyone has to have a voice, everyone has an opinion. The services upon which they provide are for children like what you see sitting right here and these services are needed. MAYOR DICKEY: Thank you, sir. CARTHEN: So I just wanted to -- I'm sorry. MAYOR DICKEY: I just didn't know if you were two separate speakers or not. CARTHEN: We are -- MAYOR DICKEY: Because we did the three minutes, so -- CARTHEN: Okay. I am -- I put my name down. I don't know how this stuff goes. So if TOWN OF FOUNTAIN HILLS Page 54 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 54 of 73 I needed to put a separate sheet, I would gladly have filled out one. I actually also have been a formal resident here, owning a business here in Fountain Hills, so -- Thank you. MAYOR DICKEY: Thank you. MENDENHALL: That's it for public comment. MAYOR DICKEY: Thank you all. Our next item is our consent agenda. Could I get a motion, please? Oh, yes, sir? SKILLICORN: Madam Mayor, I would like to pull off one item here. MAYOR DICKEY: Which one? SKILLICORN: And that would be D, 8D. MAYOR DICKEY: 8D? SKILLICORN: Correct. MAYOR DICKEY: Okay. That will become the first regular agenda item. Do I have a motion for the consent agenda A, B, and C? KALIVIANAKIS: I'll make a motion. MAYOR DICKEY: Thank you. FRIEDEL: Second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Okay. No problem. MAYOR DICKEY: Sorry, I know you're scrambling over there. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS Page 55 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 55 of 73 SKILLICORN: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. MENDENHALL: It passes unanimously. MAYOR DICKEY: Thank you. So the first item will be the consideration of the Community Development Block Grant Program with Maricopa County. It looks like David is taking this. Thank you. POCK: Good evening, Mayor and council. Yes, I'm taking this with very little knowledge of the program. I did do some research on it before the meeting. The original agreement was signed back in 2017. That is an IGA with Maricopa County to participate in the CDBG Program, specifically the Urban Counties Program. From what I can tell from the agreement, as well as information from Maricopa County's website, the program is available. CDBG is not something that we had qualified as a town to apply for directly to the federal program. So through Maricopa County, we would be able to apply for funds. However, in the application packet that Maricopa County has I cannot locate our census tract as an eligible applicant, I guess. This current year there is $1.5 million that was up for award. Other than just some anecdotal evidence, I guess, during the pandemic there were some town residents that did benefit from either rent assistance or utility assistance, and that's about all I know. Maybe I can answer questions. MAYOR DICKEY: Thank you. Aaron? I think Aaron has maybe something to add. ARNSON: I'll bail you out. That's okay. MAYOR DICKEY: Thank you. ARNSON: Mayor and council, I'm not CDBG expert, but I do know from our experience with other communities being involved in the program and the cooperative agreement with Maricopa County is necessary to be eligible in the first place to receive any funding. CDBG programs can go towards a variety of initiatives. One of the things that TOWN OF FOUNTAIN HILLS Page 56 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 56 of 73 one of the other municipalities that I represent which happens to have an eligible population -- they're an eligible census tract -- is they use it for demolition and rehabilitation of unsafe, dilapidated structures. It can be used for certain economic and job creation and job retention activities. Other than that, I know it has a variety of uses. I think the idea, at least if I can cast my mind back to when we kind of first entered into this, was should their eligibility become available to us, we'd be in a spot to receive that funding. It's not so much that any funding will be forthcoming right now. We kind of need to stay on top of our eligibility. MAYOR DICKEY: I'll go to councilman -- but I wanted to ask why you took -- why you pulled it off? Did you have a specific question about it? SKILLICORN: Sure, Madam Mayor. When I first saw the -- I was just a little concerned. I read it again. I actually read through the, you know, agreement word for word. And there's some components in there that seem attractive, but there's nothing concrete. It's kind of like we hope that we become eligible or something. So there isn't anything concrete to it and I just -- I see what has happened in Maricopa County since this program has become and these issues have got worse and worse and worse, and I really want to -- I'm sure the board's going to accept us tonight, but I want to signal to MAG and the other people involved that what they're doing is not working and this placating -- this is just not working and we need to have different steps and real solutions, so people get help. Instead of focusing on housing -- it's a mental health crisis, not housing crisis. And I think that the longer we continue doing this, it's going to get worse and worse and I just see the results over the past 20 years here. MAYOR DICKEY: Councilwoman Toth? TOTH: I had two main questions and I think you technically already answered one of them. But I'm going to make you repeat it anyway. So Fountain Hills, have we received any money since joining this program? As a town? POCK: The Town of Fountain Hills has not, as far as I'm aware. TOTH: Okay. If we were to receive money, how much would that be? Or is that even -- am I misunderstanding the program entirely? POCK: So from what I was able to find, there was 1.5 million available for this year to TOWN OF FOUNTAIN HILLS Page 57 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 57 of 73 be applied for. TOTH: And that's total, not just for us? POCK: For all of the participating communities, correct. TOTH: Okay. I forgot my second question. I'm sorry. I did want to say, though, Allen, something that you said really struck -- I'm saying this through the Mayor, sorry. Mayor? I've appreciated something that you said -- that Allen said. That this is a mental health crisis, not necessarily a housing crisis. I do agree with that. Reading through this, I didn't expect it to be -- I didn't know that this would be pulled off the consent agenda. But reading through it closer, I do kind of wonder, is there -- oh, that's my second question. Is there any cost to us joining this? POCK: No. TOTH: No? What exactly -- so if we were to approve this, what exactly happens from there? POCK: It's good for another three years, and I don't know if anything happens. TOTH: We just sign the paper, or -- MAYOR DICKEY: Aaron? ARNSON: Yeah, Mayor and Councilmember Toth, David's essentially correct that we enter into the agreement and to the extent Fountain Hills ever does -- if there's a grant program for which we become eligible, we could take that to the council and seek approval for application to that grant program. TOTH: So in the moment that we become eligible, could we just sign the paper and send it to them? ARNSON: No. TOTH: Okay. ARNSON: It would -- just like any grant that we apply for, we typically -- unless there's like an emergency basis, which we've done once or twice in the past, we come to council for approval to submit those applications. TOTH: Okay. And how many members are there in this program -- ARNSON: Oh, gosh. TOWN OF FOUNTAIN HILLS Page 58 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 58 of 73 TOTH: -- to share that 1.5? ARNSON: I don't personally know. I know it's -- TOTH: I'll try and Google it. ARNSON: Okay. It's many of the local governments around the Valley. MAYOR DICKEY: (Indiscernible). ARNSON: Yeah. MAYOR DICKEY: Rachael? GOODWIN: Just to clarify it, I don't know -- so any city with populations under 50,000 are not eligible directly, so you have to come under this type of IGA, in order to be eligible. So by definition, a bunch of small cities or towns would come under this type of an IGA and then metropolitans over that are eligible directly. So sort of Maricopa County serves as the distribution point for those of us that don't meet that population size. TOTH: Got it. Okay. I have a follow-up question. I'm so sorry. I promise I'll give it up soon. You had mentioned that you weren't able to find something that showed us as eligible under that. Does that mean they're not doing their part of this agreement? POCK: No. TOTH: Okay. POCK: It just means that our population and the statistics -- our demographics don't fit. TOTH: Right, so what Rachael's explaining is that signing this agreement, right, would make us eligible to apply under -- because we've signed this agreement for the CDBG. But you had mentioned that the form right now is not allowing you to apply? I'm sorry. I'm really trying to follow. POCK: Yeah. As far as their application, it lists out on the table all the census tracts -- TOTH: Um-hum. POCK: -- and what the demographics are and then basically that we can apply. But I don't think it would go very far, because there's a lot of communities, a lot of different census tracts that are a lot more in need of that help than we would be. TOTH: Okay, I understand. POCK: That's I way I understand it and that's why -- TOTH: But we do have the ability to apply? That's where I misunderstood you. Okay. TOWN OF FOUNTAIN HILLS Page 59 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 59 of 73 KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I too was a little confused that this appeared on the consent agenda. There seems to just be a lot of -- you're going to commit to this, commit to that, commit to this, we're going to execute that, and it doesn't seem like there's any idea of what we're committing ourselves to now. I think, unless I misheard, that some of these sums would be direct payable to the people of Fountain Hills? Okay, so I found out that tonight. I also assume that we're going to get some of the money. Do we have a list of the uses for that money? That's what I'd be interested in and I didn't see that in the packet and just in case I missed it. But there's a kneejerk reaction. It's free money, so let's just take it. But we have to be careful what these funds are going to be used for because we don't want them to be used for purposes that we don't agree with. MAYOR DICKEY: Well, I think, just to kind of come in here, there was a time that we weren't members and Grady found out that by being a member we could recommend residents to contact them for help. So we -- I don't know how long ago, but became a member in 2017 or something and then during COVID, for example, when, you know, everybody needed -- like the businesses or the people hadn't gotten their rent checks yet or that kind of thing, we were able to say we belonged to this. I admit I didn't follow up, but that was my understanding, was that it's something we can belong to at no cost, no obligation as a town, but it made us part of something where we could recommend a resource for individuals and I think there was some senior services level in there, too. But I wasn't prepared for it to not be on consent, either, so I apologize if I'm not as prepared. KALIVIANAKIS: Yeah. FRIEDEL: Mayor, let me add, I think this just gets us ready, so if people qualify then we're in the program and then they can apply for it. Is that right? POCK: As far as I understand, from what I'm hearing tonight. ARNSON: That's the bottom line, yes, Mayor and Councilman. MAYOR DICKEY: Thank you. Brenda? TOWN OF FOUNTAIN HILLS Page 60 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 60 of 73 KALIVIANAKIS: Yes, thank you, Ms. Mayor. And I'm assuming this would be applicable for housing, then? Like maybe Section 8 housing or affordable housing? Is that one of the programs that are covered under the auspices of this program? POCK: I'm not prepared -- I mean, I'm not exactly sure what programs other than the ones that have been discussed. ARNSON: No. Typically, what you have with CDBG is it services individuals who fall within moderate income to lower income brackets. It's not for construction of new housing. In fact, that's specifically on the HUD website. It's not for construction of new housing. In can be used for purposes of, like I was saying earlier, demolishing dilapidated buildings or for renovating buildings that qualify. But construction of new buildings and new housing, that's a whole separate deal. MAYOR DICKEY: Vice Mayor? MCMAHON: So basically what this is, is agreeing to partner up with them so that our residents who are in need have access to funds so that they can be helped out. And I understand what Mayor Dickey said and I recall that some of our residents during COVID did apply and get assistance. So if we don't do this, then we're not helping out residents who might fall through the cracks, because not everybody is wealthy in this community. So it just -- like Gerry said, it enables us to give them access to funds that they hopefully would be able to utilize to help them out. And if we don't do this, they don't have that avenue. KALIVIANAKIS: Ms. Mayor? MAYOR DICKEY: Yes? KALIVIANAKIS: Just to address one of the Vice Mayor's concerns, would we be giving this money out? Or would the program? Because she said we would be giving the money out, and I just want to clarify that. Is this going to be another administrative deal where we're going to have to assign -- UNIDENTIFIED SPEAKER: No. KALIVIANAKIS: -- human resources to -- I'm just going with what the Vice Mayor said. I'd just like that fleshed out a little bit. TOWN OF FOUNTAIN HILLS Page 61 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 61 of 73 ARNSON: Right. So when -- so the town is the one that administers the program. In the event that there is a grant that ever comes along, right, the town is the one that administers the program. So if an individual, a nonprofit, or whoever -- whatever the case may be -- wants to apply for that, because Maricopa County is the distributing arm. It's just like when CARES or -- you know, whatever the other acts were during COVID era, those came down and were distributed through the county. And then those assistance grants were further distributed from the town. It operates the same exact way. MAYOR DICKEY: And just to be more confusing, I think when the COVID thing was happening, somehow we partnered up with Tempe or there was some other city that we sent them to. ARNSON: Yeah, and I was more talking about actual like -- what was the first one, other than CARES? I can't remember what the first act was. But then there was subsequently CARES. MAYOR DICKEY: ARPA. ARNSON: Yeah, ARPA. Thank you. There was ARPA and then there was CARES. And so I referencing more those, Mayor, but yeah, there were some special odd things that happened during COVID that are separate processes than what is established here. MAYOR DICKEY: Thank you. Can I get a motion for this, please? GRZYBOWSKI: Move to adopt Resolution 2023-10. MCMAHON: Second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Nay. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS Page 62 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 62 of 73 SKILLICORN: No. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. MENDENHALL: Six to two. It passes. MAYOR DICKEY: Five to two. ARNSON: Five to two, correct. MENDENHALL: Five to two. MAYOR DICKEY: We grew. MENDENHALL: I added another councilmember. MENDENHALL: (Indiscernible) the vote, too. MAYOR DICKEY: Thank you. I think, Justin, you're up for the next two items, correct? WELDY: Yeah. Madam Mayor, councilmembers. Oftentimes, we recognize the employees and the staff that provide services to us and this is an opportunity for not only the Town Manager but myself to do. Our facility staff over the last several years has made incredible discoveries about our facilities that we simply were not aware of, including the challenges we faced with our HVAC system. During that due diligence period, it was discovered -- and I'm not going to mention a vendor here -- that the company that had been providing services over multiple years had become complacent and basically just changed filters. As a result of that, this talented team in Facilities began to dig deeper into our HVAC system. We began to search for a vendor, a contractor with some reputation to speak to other municipal governments. This is a culmination of that. We've reached out to this individual through the cooperative use and entered into a lower threshold dollar agreement and allowed them to come out so we could watch them do some assessments of our facilities. They came back with an incredible list. We TOWN OF FOUNTAIN HILLS Page 63 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 63 of 73 did a little back-checking, spent that money, moved it up a little bit more. As a result of all of this activity, we're now convinced that this firm is best suited for the town for the next several years based on their performance and being able to back- check those performances through the more efficiently operating facilities that are not only the town hall, the library, but also the community centers and most people are not aware of this, but we have three additional buildings down at the Street Department that also require maintenance and service. With that, agreement to this contract will cover the rest of this fiscal year with a little bit of allowance in it and also next fiscal year, and then obviously, we would come back to you for an amendment at the end of -- or before the end of that timeframe and ask you to consider an additional amendment to this or possibly a new contract, depending on the underlying agreement from the issuing agency. With that, if you have any questions that I might be able to answer, I would be glad to do so. MAYOR DICKEY: Councilmember? SKILLICORN: Madam Mayor, Director. Did this go out to bid? WELDY: Yes, it did. SKILLICORN: Okay. And how many bids did it -- come in? WELDY: The underlying agreement agency received three proposals for this work. SKILLICORN: Okay. And you corresponded and you thought this was the best one? WELDY: Councilmember, I did not directly. Our Facilities supervisor did with the underlying agreement and some of their other customers on the cooperative use list. SKILLICORN: Great. Well, thank you very much to everyone. The fact that it went out to bid is something that reassures me that we're getting the best deal for our money and it sounds like we're in very capable hands. Thank you very much. WELDY: You're welcome. MCMAHON: I'll make a motion. MAYOR DICKEY: Oh, yes? MCMAHON: Move to approve amendment number 3 to Cooperative Services TOWN OF FOUNTAIN HILLS Page 64 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 64 of 73 Agreement 2022-062 with Mesa Energy Systems for HVAC maintenance and repair in the amount of $100,000. Thank you. FRIEDEL: Second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you very much. MENDENHALL: It passes unanimously. MAYOR DICKEY: Do we have any more speaker cards anywhere? Because I keep forgetting to ask. MENDENHALL: No, Mayor, I do not. MAYOR DICKEY: Thank you. So the next item is Justin again, and I guess there's no speaker cards. WELDY: Thank you, Madam Mayor. The next one is actually for traffic signal maintenance. Most people that live here and drive through don't actually realize that we have a limited number of traffic signals. We actually have 13 traffic signals. Some of them were inherited from Maricopa County TOWN OF FOUNTAIN HILLS Page 65 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 65 of 73 and when the town was very young and just starting out, the city of Scottsdale actually provided maintenance for our traffic signals until the staffing levels could be brought up. Even when the staffing levels were at optimum -- and let me be clear, that was one person -- the city of Scottsdale provided backup to that individual. It became increasingly difficult to secure that person again, but even more challenging because there are two neighboring municipal governments that agree to provide aid or services to back up our traffic signal technician; one of them the city of Scottsdale, the other one the town or the city of Mesa. When each of them became overwhelmed themselves and were unable to fill their own positions, the town contracted with Phoenix Highway. They eventually were unable to meet that obligation. Before we knew it, our only signal technician was unwell and would be retiring before very long. We initially had a contract agreement that was short and for a dollar threshold under $50,000 that we used to secure this and then came back to the previous Mayor and council and got a new contract to have our traffic signal maintenance addressed. That contract reached its term limit. The Town of Fountain Hills through their procurement officer, Rob Durham, released a request for proposals. It is attached to the staff report for you to read, if you'd like to. We were delighted that we got at least one and it also happened to be the one proposal from the vendor that has been providing support to the town for the last seven years. We are here tonight to ask you to consider approval for this agreement moving forward for the next five years. It's one plus four agreements in regards to renewal. We believe that we have adequate funding based on past performances and challenges. We also believe that based on our ability to recover funds from crashes in regards to traffic signal pole damage and controller damage that there won't be an increase for services related to that. With that, if you have any questions I might be able to answer, I'll be glad to do so. KALIVIANAKIS: I actually do. MAYOR DICKEY: Wait -- sorry, do you have a question? KALIVIANAKIS: Thank you. Yes, Ms. Mayor. I was just wondering, is there any way that we could just bring this in-house and TOWN OF FOUNTAIN HILLS Page 66 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 66 of 73 just put this under the public works department? WELDY: Madam Mayor, Councilmember, that is an excellent question. The challenge with that is it takes more than one person and the equipment necessary to do so. In the past when we reviewed those options, just to replace the vehicle was approximately $170,000. To secure an International Municipal Signal Association certified technician is a relatively high-paying job and also highly sought after because of the unique skill set there. So securing two of them proved to be all but impossible because of the job description and the way it was written and also the offers from the surrounding communities, which were substantially higher. And then the ability to have one or more persons to back that individual up. Now keep in mind, to be fair, traffic signals are not a full-time position here, so that individual would also be asked to perform other duties as assigned. That last little part right there, more often than not excludes several talented individuals. They don't necessarily want to be out putting up signs or digging ditches, or more important to be out with myself and other staff at midnight, cleaning dirt and trees off of the roads. So it's a little bit challenging. KALIVIANAKIS: Okay. Yeah, thank you for your very thoughtful answer. I appreciate that. I'm going to approve this tonight and I guess that gives us five years, but I think you'll probably be here five years from now and maybe in that year four we can start looking to bring this in-house, because I'd love to do that and just have it -- a Fountain Hills employee and you know, if that would be possible, that would be a good thing for me. But anyway, thank you. WELDY: You're welcome. MAYOR DICKEY: Councilman? SKILLICORN: If there's no further questions, I was going to make a motion to approve. So I'd just like to make a motion to approve 9B, the Professional Services Agreement with Power Tech Contracting LLC. TOTH: Second. MAYOR DICKEY: Thank you. Roll call, please? TOWN OF FOUNTAIN HILLS Page 67 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 67 of 73 MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. If we had all roundabouts, we wouldn't even need this, so -- MCMAHON: That's true. SKILLICORN: (Indiscernible). MCMAHON: Good thought. MAYOR DICKEY: Our next item is about the Legislative Bulletin. We'd solve the intersection problem there, too. MCMAHON: I know. MAYOR DICKEY: Anyway, so there's been a lot going on. Does anybody have anything that they want to -- I know that, Sharron, you were on the call and other -- did you want to go into any more of that? I can talk real fast if you want, so. GRZYBOWSKI: Yeah, you're much better at this than I am. MAYOR DICKEY: Okay. Oh, Mr. Skillicorn? SKILLICORN: If you wanted an update, Madam Mayor -- MAYOR DICKEY: Go ahead. SKILLICORN: -- that Prop 400 bill did pass committee yesterday. MAYOR DICKEY: Yeah. TOWN OF FOUNTAIN HILLS Page 68 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 68 of 73 UNIDENTIFIED SPEAKER: (Indiscernible). SKILLICORN: So -- MAYOR DICKEY: It was a different mix of voters this time. Yeah, so just real quick, the food tax elimination bill was vetoed and seemingly staying vetoed. The rental tax elimination bill was vetoed, but it's back into a different bill now, 1131. Again, it's costing cities and towns $230,000,000 statewide and it will cost Fountain Hills about $525,000 a year. So we'll -- we've been contacting the Governor's Office if things are getting that far. I know Brenda won't like this one, but political signs, 1025, it seeks to limit the area that municipalities can set aside for political -- to have political sign-free zones. In 2011, the State mandated that cities have to allow political signs in the rights of way during the campaign seasons, but allowed them to carve out political sign-free zones. Senator Kavanagh stated at the hearing that Fountain Hills had gamed the system and that the scenic designation was a scam. But the political sign-free zones in Fountain Hills were created pretty much in 2012, I think, right after the bill passed. And Mayor Kavanagh, all of -- I was on the council. We all voted. We all supported it unanimously, so -- and then in the meantime with the Supreme Court ruling, it almost seems like that bill has to be -- I mean, that statute needs to be relooked at. But anyway, you know, I'm against it. You're -- I like our political sign-free zones the way they are. And then we've been talking a lot about zoning and we did ask the Governor for a veto of the home business by right bill, which is 1162. It did pass with support from our legislators. It would allow businesses with certain restrictions to operate out of residential homes. But given that the bill prohibits municipalities from requiring business licenses, the regulations -- they're not that many, but the few regulations in place would be difficult to enforce because we wouldn't necessarily know where the businesses were. And we've talked a lot about neighborhoods being changed by state laws, that by right zoning, which is the three separate bills now, that remove local decision-making, diminish kind of the private property rights of people that own their property now, elevates the property rights of those investors and others that don't necessarily have TOWN OF FOUNTAIN HILLS Page 69 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 69 of 73 attachments to our community. So we did send in -- because that one is on her desk, so I think she has today or tomorrow to sign -- I mean, you know, to veto it. So hopefully that'll happen. And -- oh, gosh. Oh, this is just the Prop 400 bill. So you said it passed, right? Yeah. SKILLICORN: Committee. But Madam Mayor, there is a very important update that I forgot to mention, is yesterday the chicken bill made it out of committee. So that would actually -- the way it's worded, it's funny. But it would effectively allow chickens not to be prohibited, I think it's actually below half an acre. But it could be -- there could be a column added on that, so -- MAYOR DICKEY: I thought that was funny that it was a below thing. But it's so funny, when I very first got on the council, that was one of the first questions someone asked me. He was like, could you make it so we can have chickens? SKILLICORN: I have been asked that question in town. MAYOR DICKEY: You have? SKILLICORN: And I don't want to reveal any information, but I would suspect there's a few scofflaws out there. MAYOR DICKEY: Yeah, I think I've heard some of them. Okay. So there we are with that. The next item is our discussion/direction to the Town Manager. We heard some stuff tonight. Gerry? FRIEDEL: I'm wondering if we could take a look at our Traffic Safety Committee? With the uptick in crime in this town, I'm wondering if we can expand the scope and the mission of that committee and I'd like to see if we could put that on a future agenda item to talk about. That's the first request that I have. If we could -- SKILLICORN: I would second that motion. MAYOR DICKEY: Okay, so -- and that could expand into anything else, like -- you mean like public safety? FRIEDEL: Yeah, like the issues with crime prevention. What can we do as a town to TOWN OF FOUNTAIN HILLS Page 70 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 70 of 73 help in those areas? I think the Traffic Safety Committee has done a lot of stuff and has probably come full circle. You know, we've got the blinking stoplights, stop signs, crosswalks, lowered speed limits, a sidewalk infill where needed, and the traffic safety corridors. I'd like to see that expanded to help with dealing with this crime, this uptick in crime. So maybe it's more Traffic Safety and Town Safety Committee type of approach. MAYOR DICKEY: Okay. FRIEDEL: And then the second thing that I have on my list is I was at the school board meeting last night and they talked about selling the Four Peaks property. I'd like to get that on a future agenda item to discuss as to whether the town would have any interest and what the pros and cons might be to doing something like that and taking a look at that and seeing if it's a fit for us. We have an extensive amount of land around that building -- MAYOR DICKEY: Right. FRIEDEL: -- up there right now, so maybe there's some interest on the town's behalf. But I'd like to have that out as an item to discuss. SKILLICORN: If a second is needed, I would second it. MAYOR DICKEY: You don't need to do that. You can just ask me, too, sometimes. But again, something like that, I mean, I don't know about next, or even the other one. You know, depending on how much information we can get -- FRIEDEL: Yeah. MAYOR DICKEY: -- and plus, you know, with the budget and everything our agendas are like -- ah. FRIEDEL: Right. Right. MAYOR DICKEY: But yeah -- SKILLICORN: (Indiscernible) if it's ready. FRIEDEL: Right. MAYOR DICKEY: Yeah, they have to put it on -- FRIEDEL: They have to put -- they have to have that on the ballot. MAYOR DICKEY: -- the ballot and -- FRIEDEL: Yeah. SKILLICORN: An interesting discussion. MAYOR DICKEY: -- they have to get the permission in November and then after that -- TOWN OF FOUNTAIN HILLS Page 71 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 71 of 73 and that's another thing, that they would have to do with the vote, so we got time. FRIEDEL: And then one last thing is I know we're working on 5G, I just don't know where we are on that. Is that something we have on a future agenda coming up, or -- ARNSON: Good question. I'll follow up with our consultant about where he's at with our code review. So I hope to be able to get something to the council before the summer, before we recess for summer. FRIEDEL: And can I ask for a clarification? Somebody had asked before if while we're reworking that ordinance, there's a moratorium on any applications that come through? Can you clarify that for the record? Is that such a thing, or are we all wet with that? ARNSON: So -- and I'd love to pull up the email that I had drafted because that said it better than I'll be able to say it here in person. But the sum and substance of that is that although moratoria are not expressly prohibited under federal and state law, federal regulators and actually by default our state as well have said that moratoria don't toll the shot clocks that we have to comply with -- SKILLICORN: Right. ARNSON: -- for approving wireless facilities. So if we -- could you adopt a moratoria? Theoretically, yes. Would it have any practical effect? No. Because federal law preempts any moratoria that we adopt. Did that succinctly enough answer the question, councilmember? Okay. FRIEDEL: Thank you. That's all I have. MAYOR DICKEY: That's all -- KALIVIANAKIS: No. MAYOR DICKEY: Brenda? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, on the future agenda business, I would like to investigate putting in an ordinance to prevent and/or regulate panhandling, specifically aggressive panhandling. Although some interactions are passive, panhandlers sometimes become aggressive by soliciting in a coercive or a threatening manner. Panhandling is viewed as an indication of social deterioration that can lead to more crime. So I'd like for our council to visit that. TOWN OF FOUNTAIN HILLS Page 72 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 72 of 73 Secondly, I would like to investigate an ordinance to prevent homeless encampments and to prevent camping on right of ways. I think that's bad for property values. I don't think it's a huge problem right now, but I think we should be proactive rather than reactive and be ready for that. Lastly, I'd like to place on the next future agenda the reconsideration of the new Fountain Hills town logo that was first discussed at the February 22nd council retreat. That's all. MAYOR DICKEY: Thank you. The first two are fine. The logo one? You need support for that one, I think. I'd like to hear if anybody would like to revisit. I mean, we spent the money already. Oh, we don't want -- I don't want to debate it, but -- SKILLICORN: I would second that. I don't know if there's a third. KALIVIANAKIS: Do we have a third? MAYOR DICKEY: Gosh. FRIEDEL: I'll be the third. MAYOR DICKEY: So you want to do the logo again? FRIEDEL: No, we are just -- MAYOR DICKEY: Yep. FRIEDEL: -- revisiting. MAYOR DICKEY: Revisit it? SKILLICORN: No discussion. MAYOR DICKEY: It's done. Okay. I wanted to mention that the -- so this was the council discussion/direction to Town Manager item. So on that one, I would like to mention the folks that spoke about Saguaro and El Lago intersection, which is something that we have already put on our next agenda for the Safety Committee -- Public Traffic and Pedestrian Safety Committee. And so we will be following up with that and we'll -- and of course, Captain Kratzer's on that committee, so we'll talk about the speeding and such. But you can see the dilemma when someone is asking us to stop doing so much traffic. So you know, but these are things that we have to continue to balance. So we already did the future agenda items, so -- TOWN OF FOUNTAIN HILLS Page 73 of 73 APRIL 4, 2023, TOWN COUNCIL MEETING MINUTES Page 73 of 73 SKILLICORN: Madam Mayor, there was one thing I wanted on a future agenda and that is a discussion on the -- you know, street -- not so much panhandling, but a solicitation ordinance or regulation. MAYOR DICKEY: Yeah. Yeah, those two are -- SKILLICORN: I know we talked about it during the retreat, but I do want to bring it up as a formal item. MAYOR DICKEY: That's fine. I was fine with both of those. I was just trying to -- KALIVIANAKIS: Yeah. MAYOR DICKEY: -- get rid of the logo one. All right. Any other comments? We are adjourned. Thank you. Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on April 4, 2023, at 8:24 p.m. TOWN OF FOUNTAIN HILLS _______________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk 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 4th day of April 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 16th Day of May 2023. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK SESSION - BUDGET WORKSHOP OF THE FOUNTAIN HILLS TOWN COUNCIL April 11, 2023 A Work Session - Budget Workshop of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 4:38 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Peggy McMahon; Councilmember Gerry Friedel; Councilmember Sharron Grzybowski; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth; Councilmember Allen Skillicorn Staff Present: Interim Town Manager Rachael Goodwin; Town Clerk Linda Mendenhall Staff Absent: Town Attorney Aaron D. Arnson Audience: Approximately four members of the public were present. TOWN OF FOUNTAIN HILLS Page 1 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 1 of 62 Post-Production File Town of Fountain Hills Work Session – Budget Workshop April 11, 2023 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. * * * * * TOWN OF FOUNTAIN HILLS Page 2 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 2 of 62 MAYOR DICKEY: Good evening, everyone. Could we call the meeting to order, and could we get a roll call, please? Thank you. MENDENHALL: Yes, Mayor. Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor McMahon? MCMAHON: Here. FRIEDEL: Councilmember Toth? TOTH: Here. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MENDENHALL: Councilmember Friedel? FRIEDEL: Present. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Here. MAYOR DICKEY: Thank you. Thank you, all. Thanks for coming early, even though we're ten minutes late. Appreciate it. And I will ask Rachael to kick us off and we'll get through the budget. Thank you. GOODWIN: All right. Welcome to the most wonderful time of the year. No, it's not the holiday season. It is budget season. It's been budget season for staff since -- well, since the holidays. But this is the culmination of all those efforts of all of the discussions, the reviews of our budgets, and our chief financial officer will lead us through tonight. All of our Councilmembers have hard copies of our budget, as well as, have online access to the details. The details are available through our website for anyone else watching that may want to take a look. So with that, Mr. Pock, I'll turn it to you. POCK: All right. Hello. Hello again. TOWN OF FOUNTAIN HILLS Page 3 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 3 of 62 Hello Mayor and Councilmembers. So our fiscal year '24 budget workshop, this is basically to present the proposed budget. But nothing gets started until we look at where we think we might be at the end of this fiscal year. So these are just summary -- I make this statement every year, at this time. These numbers are not final. They will change. They may change a lot. They may not change very much, but they will not be these numbers are the end of this fiscal year. But they are our best guesses. So you can see our restricted funds there. I'm not going to go through them individually. If you have any questions, please, let me know. All right. So our total restricted funds -- basically, restricted funds we can't use for anything except for what we're told they're used for. So HURF funds obviously streets, that sort of thing, that service parks development -- or development fees in general. And then Grants funds. Committed funds, we do have a little bit more control over. That's basically, set by policy, by council. So these are all able to be changed based on council direction and changes to town policies. Assigned funds, those are even less restricted. Things that would fall under there -- or just, again, town policies. But it -- we can change those as well. Unassigned funds can be used for any day-to-day type operations, budgeted operations. You will see facilities reserve. I just wanted to point this one out. It's got a fund balance at the end of the year estimated to be about $6.8 million. That includes the $4.2 million from fiscal year '22 that we put in that fund so that it would earn a little bit more interest since we weren't going to need it right then. That will be discussed when we talk about transfers for next year and that 4.2 being moved, like we did this year, into the streets fund. All right. So then a summary total across all funds, all different categories, $30.2 million. The stability metrics we've been doing for a few years and tracking those. You can see quite a bit of decrease from June 2022 to June 2023. That's because we don't have that ARPA money sitting in general fund at the end of the year. The 4.2 that we moved to the streets fund this year, was in that fund balance at June 30th. But we're still meeting our metrics as far as the unassigned fund balance that we have TOWN OF FOUNTAIN HILLS Page 4 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 4 of 62 required at the end of the fiscal year, that's required to be 20 percent per policy and you can see we have 26.5. Any questions on these? This is all for fiscal year '23, then we start the fun stuff. It's all fun stuff. All right. So then starting off with fiscal year '24, I just want to go through a couple points, just to get us all on the same page. The proposed budget book, as you all know, you have printed copies of it, but the electronic version is available on the Town's website: fountainhillsaz.gov/budget, and then the proposed budget book is right there. This year it does include every detail as far as every line item. Last year, I think, we just had it broken down by category -- didn't get into specific object codes but more in groupings. So everything's there. It might take a little while to scroll through all the tables, but it is there. Key point is budget authority is not the same as fund balance or contract authority. Three completely different things. As far as where our financial policies go, fund balance is cash in the bank. Let's call up Chase Bank and say what do we have, that's fund balance, or the treasurer's office, or our investment company. Budget authority is just the permission to use that cash. And then we have procurement policies that set forth procedures when we want to enter into contracts with different vendors. That contract authority is the terms and conditions agreed to by the Town and a vendor after a procurement process has taken place. Either request for proposals, invitation for bids, CPAs or cooperative purchasing agreements, and things like that. So just to keep those in mind, we're just talking about budget authority. MAYOR DICKEY: Dave, is budget authority the spending cap? Or does the cap include capital stuff, or -- POCK: The expenditure limitation is -- yes. That's our budget that we submit. Actually, we submit it to the Auditor General's Office, and they do check to make sure it's consistent with our expenditure limitations. MAYOR DICKEY: Okay. And then this procurement policies are -- you're just laying out the fact that these are the requirements we have to go through? POCK: Right. MAYOR DICKEY: Thanks. TOWN OF FOUNTAIN HILLS Page 5 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 5 of 62 MENDENHALL: Right. Any other questions? Okay. Speaking of expenditure limitations. Our expenditure limitation for fiscal year '24 is $34.4 million. These come from the Department of Revenue, Economics Commission. We are allowed to use some exclusions, so they don't count against that expenditure limitation. Anything that we receive from grants; if we had debt, debt proceeds -- budget mood lighting. All right. So if we had debt, any debt proceeds or debt repayment, we wouldn't have to use or count that against the expenditure limitation. And there is also a special carve-out for HURF monies. If our revenues, since again, you know, we're looking forward to, you know, 18 -- a little less than 18 months into the future trying to decide what we're going to -- you know, what we can expect for a year. If your revenues don't meet that expectation, we have to reduce our expenditures or use fund balance. So if we want to keep our fund balance level or above that 20 percent, we would have to reduce expenditures. We'll talk a little bit more about that when we talk about contingency, because that's the first expenditure that gets cut, is the expenditure that we don't have slotted against a specific task or purpose. All right. So then, tentative budget is the next step after this. That is what will be officially adopted by the town council on May 2nd. That sets the absolute maximum amount of expenditures for the year. At the adoption of the final budget, that number can be reduced, but it can't go above the tentative. Any questions as far as that process? All right. So now, as far as budget goes, we start with the revenues. That's because we need to know what we'd be able to spend. If we're not going to expect a lot in revenues, we can't spend a lot in expenditures. As far as revenues -- we still say this every year as well, we remain conservative. We're not going out and shooting for the moon every year. We used revenues over the last ten years, we use trending and forecasting analysis, go through and actually apply a 98 percent confidence level to it. And then, you'll see for fiscal year '24, I was even more conservative, and I took ten percent off of that. The reason we're just not exactly sure TOWN OF FOUNTAIN HILLS Page 6 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 6 of 62 where the economy is going to be in the near future. So I'd rather be more conservative and go with that. MAYOR DICKEY: Dave, sorry. POCK: Yes. MAYOR DICKEY: I know I already asked you this. But so the fact that the state shared revenue amount for sales tax is going up, is that because they're not being as conservative as far as what they think is coming? Because if you look at it, it looks like they think the state's sales tax will go up but we're going to be careful and not expect ours to go up? POCK: Right. MAYOR DICKEY: Okay. POCK: Obviously, the state collects taxes on anything and everything that is taxable, right? Across the state, somebody's doing something. Unfortunately, in the town we don't have everything. We don't have a lot of car dealerships. We don't have amusement parks or anything like that. So I mean -- so we have to be a little bit -- maybe a little bit more restrained. It's a good sign that they feel that they would -- that we'd have that income, but they're not quite as concerned if they don't hit their numbers, right? It doesn't change their budget all that much. So -- MAYOR DICKEY: Thank you. POCK: Uh-huh. Let's see. As far as another point. We don't include in our revenue projections, anything that's not complete right now; that we're not collecting taxes for already. And when I say taxes, just to make it clear for everybody, it's transaction privilege tax, commonly known as sales tax. That's the only tax that we have in town. Our preliminary state revenue -- state shared revenue, estimates were received from the League last month. Those are developed by Department of Transportation, Department of Revenue. They are fairly good for next year. In fact, there is on the state shared income tax or urban revenue that we receive, is actually a little -- it's quite a bit more. It's about a million dollars more than what we have in this year's budget. There were some changes to some of the laws as far as income tax levels and now, as everybody knows we're on a flat tax type of schedule. Cities and towns are going to not receive as much revenue because we're going to be TOWN OF FOUNTAIN HILLS Page 7 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 7 of 62 receiving less taxes and so our share of those taxes would be lower. So the state, actually, for two years gave us an increase -- or started two years early, I should say, and our percentage went from 15 percent to 18 percent. Now we're getting into the weeds, just saying. For two years we're going to be receiving more state shared income tax revenue that -- yeah, to make up for that. But then we're going to see the collections drop and we'll level out. But -- so we can't expect those -- MAYOR DICKEY: Councilmember Kalivianakis? KALIVIANAKIS: Thank you, Ms. Mayor. Speaking about being in the weeds and I'm going to go there. But the inflation rate for Maricopa County was almost 13 percent and now it's 8 and a half. How does that affect our state shared revenues? Because if prices are going up, it seems like taxes should be going up? POCK: So you're absolutely right. So just like our sales tax revenue has increased from what we were expecting, that's because the tax is figured on the new prices of goods, right? Everybody knows eggs got a lot more expensive. We're receiving 2.9 percent of that higher number, so that's how that affects us, and how it affects everybody across the state. So that might have played a bigger part in DOR's figures. You know, eventually, it comes down to what people cut most. You know, we have a pretty stable tax base when it comes to food for home consumption. You know, our grocery stores do very well providing us, you know, probably the most stable base that we could have. So that portion of TPT is probably not going to be affected all that much in a recession. It is increasing because of inflation, but eventually, if people don't have disposal income, they're not going to go play golf as much, they're not going to go out to dinner . so those areas of our TPT sales would fall first. MAYOR DICKEY: Could I just ask you to check, at some point, those figures because I would never know this except, I just got something from Maricopa County today that said the high was in June and it was 9. something, and that now, it's just 6. So maybe we'll check those inflation numbers. Because it -- KALIVIANAKIS: Yeah, I think it's something that -- MAYOR DICKEY: -- was just -- I would not know that except I literally just got -- KALIVIANAKIS: I think something they sent off from MAG that I think I received TOWN OF FOUNTAIN HILLS Page 8 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 8 of 62 from you and it had a number of categories. And I thought it said we're at 8.5. MAYOR DICKEY: Yeah. I mean, I was just looking for it. I couldn't find it. KALIVIANAKIS: Yeah. MAYOR DICKEY: But Maricopa County did their monthly or weekly thing that they do and I just got it. So maybe we should just -- we can give that a -- KALIVIANAKIS: Yeah. MAYOR DICKEY: -- a look. Thanks. KALIVIANAKIS: It was something you said. MAYOR DICKEY: It was still a lot. KALIVIANAKIS: Yeah. POCK: And actually, we do have one slide when we talk about the cost of living increase that does go into some of those numbers. A lot of depends on when it's measured, what time of year. You know, if it goes from a January to December type thing. So in any event. Right. Any other questions on revenue -- on the revenue side, in general? All right. Those first expenditures, we talked a little bit about contingency, made this comment during the council retreat as well. First, and foremost, we have to have a balanced general fund budget. There's just no way about it. Even with the conservative revenue estimates that I have, we'd still have more revenue expected compared to what we have scheduled in regular base, plus supplement expenditures. That difference, we use a plug number, it goes into contingency and it balances our budget for the general fund. That contingency is included in our general government department. You'll see that later on. It provides budget authority for unforeseen expenditures, only if the revenues that we're expecting are received. If we don't' get them, the first thing that goes is contingency. So at the time I made this presentation last week, our contingency number was $3.5 million. It's changed a little here and there but not by much. So we do have $3.5 million more revenue than we have for just our regular budget in the general fund. Expenditures, excluding that contingency number for this current year, the year that we're in now, was $20.4 million. For next year, $21.8, it's an increase of almost 7 percent; it's around 6.8, TOWN OF FOUNTAIN HILLS Page 9 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 9 of 62 6.9. And with the numbers that you're going to see tonight, all of the recommended budget supplements had been included, now, after a few corrections. All right. So this overall, town-wide, all funds our total revenue is expected to be $36.8 million for next year. You can see most of that, of course, general fund. Then we've got some capital projects fund, and then special revenue funds. Which is going to be mostly streets. As far as expenditures, basically, the same. You'll see general fund, capital projects, and special revenue. Total expenditures across all funds is $47.5 million. Remember it's only the general fund that has to be balances. So we can use fund balance from this year, that's left over from 00:37:57this year, next year. General fund is the only one that gets -- I don't want to say wiped out, that's not the right term. But it is swept, according to policy, following certain guidelines. All right, any questions on just overall summary information before we get into the nitty- gritty. All right. Feel free to ask questions too, because it gives me a chance to monster up. Okay. So we're going to start off with supplements because I told you they were call included in the budget. You wouldn't know what was included in the budget, unless we put out the list of supplements. So that was the thought process. On this first page, you did receive revised pages before the meeting. There were three slight changes. You will notice on the supplement, parks operating supplies, on the original it's $14,471; that's about number 5, I think, on the list. It was inadvertently left out of the manager recommendation column and it was just blank. The line wasn't crossed off. It wasn't read, but we just neglected to carry that one over. The same is true for supplement parks landscape contract for $20,642. And then the supplement park irrigation for 7,700. MAYOR DICKEY: David -- POCK: Yes. MAYOR DICKEY: -- you put all the supplements that were recommended, they are in the stuff that you just went over? POCK: Right. TOWN OF FOUNTAIN HILLS Page 10 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 10 of 62 MAYOR DICKEY: Okay. POCK: Yep. And they will be broken out. So as you can see, like, the departments here, when we go through the admin department, these numbers will already be included in those. And then as far as this works, fiscal year '24 costs, that was the requested amount. Then obviously the manager's recommendation. And then, if there's an offset, it's in the next column. So you can see that "Evening with Santa" is basically, it's a supplement. It's an addition to our base budget. We haven't had it budgeted for that amount before. But we are collecting revenue to offset it, and it's at net zero for that supplement. So would highly recommend passing that one. I like net zeroes. All right. Any questions on those? Any further detail? MAYOR DICKEY: Just real quick, again. POCK: Sure. MAYOR DICKEY: Because, you know, just what is a supplement? And when you see some of these ongoing nonpersonnel, do they turn into part of the budget next year and they're not considered supplements anymore? POCK: Excellent question. MAYOR DICKEY: Yeah, it's a big one. POCK: So if it's not part of the base budget and it's something that we might want to be increasing the size of a service or a program, it goes in as a supplement. It's requested by the departments. It gets presented to the town manager, discussed, and then recommendations are made. So in this case, these are nonpersonnel on-going supplements. They will become part of next year's base budget and the year after that. You won't see them on a list again. We do have one-time supplements, happens for one year and then it disappears; and does not become part of the next year budget. And then of course, personnel is an ongoing. KALIVIANAKIS: Okay. MAYOR DICKEY: Sure. Oh, yes. Go ahead. KALIVIANAKIS: Thank you, Ms. Mayor. Again, a little bit in the weeds. But when there's a FY'24 cost and then there's a manager recommendation, and if those two numbers don't align, what would cause that? TOWN OF FOUNTAIN HILLS Page 11 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 11 of 62 POCK: They don't go up. They don't go higher -- KALIVIANAKIS: Right. POCK: -- than the cost. But maybe there was a discussion during that meeting, then there was the departmental meetings where portion of the cost could be covered by current budget. There was some type of discussions to bring down the cost to do that specific item. KALIVIANAKIS: Okay. Because here, like it says, under the facilities operation, staff training, the manager recommended 1,500 but what is projected is 3,000. MAYOR DICKEY: Oh, wait. That's the anti-viral. KALIVIANAKIS: Yeah. There's two of them right there. There's anti-viral and then facilities operations. And again, just to clarify why there's a discrepancy there? POCK: Yeah. So just in general, it was a way to reduce the number of supplements. So if during a meeting someone had said, okay, well, if it was staff training or something like that. Maybe we won't send two people this year, we'll send one. You know, something like that. Something that would reduce the cost for the fiscal year. KALIVIANAKIS: It just seems like the cost is more, not less. Because the manager recommendation 1,500 but the actual cost is 3,500. POCK: The 3,500 was the amount of the request. KALIVIANAKIS: Okay. POCK: The original request. And then the manager said you can't do 3,500, you can do 15. So manager recommendation is what's actually included in the budget. KALIVIANAKIS: Okay. So that overrides what you have here for cost? POCK: Clearly. KALIVIANAKIS: Okay. Perfect sense. MAYOR DICKEY: And there is also -- I don't know that they're here, but there are also supplement requests that just don't happen. So it reduces the overall amount. POCK: You'll see one of those later that forgot to be removed. But it was found before the meeting. So yes. All right. So that's the first page, second page of the non-personnel ongoing supplements. Again, if you've had a chance to look at these, I will say that on the electronic budget book, if anybody's looking at it at home, there are links underneath each of these charts TOWN OF FOUNTAIN HILLS Page 12 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 12 of 62 that goes to the request form that was submitted, that gives more detail about each of these. And then the last page of non-personnel ongoing supplements. Everybody, sign up for Turkey Trot. So on this last page for these non-personnel ongoing, you'll see that manager recommendation of 721,000 subtract the 54,000 in the offsets and that's the actual cost or budget number that's included in the budget for next year. So the next type of supplements that we have are nonpersonnel one-times. We just talked about these. These will be for fiscal year '24 only. They won't be carried forward for another year. $77,000 total. Anybody has any questions? I will mention too, the last two on this list are -- you'll see revenue sources from court enhancement. Court enhancement is one of those restricted funds or committed funds that we can't use for anything other than court-type projects. So those won't affect the general fund. MAYOR DICKEY: Councilmember Toth? TOTH: I'm sorry. I have a weeds question. The Adero Trailhead entrance supplement, that 15,000; what specifically is that going to be? POCK: We can pull it up. Unless Kevin knows by heart. SNIPES: Sure. POCK: Okay. SNIPES: So actually, that is right inside the entrance to the Adero Trailhead. When you get past the gate, we've had several slip and falls in that area. And so this is to remediate that safety issue for that, by bringing in some different material and guiding that water in a different direction to where that we can help reduce that risk. TOTH: Okay. Thank you. KALIVIANAKIS: Yeah, just a -- MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Yeah. Just a quick follow-up. Could that be taken out of development fees? POCK: I wouldn't say so because it's not providing new, it's just repairing something that we already have. If it was building a new trailhead, that would work. KALIVIANAKIS: Right. TOWN OF FOUNTAIN HILLS Page 13 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 13 of 62 POCK: So hold on a second. I don't know what happened. We have to start all over, because PowerPoints. What are you laughing for. All right. Any other questions on the one-times? All right. So then personnel supplements, I do need to make one -- I didn't put these together and probably should have. The first one there on that list, "human resources analyst", the fourth one on the list "IT support specialist", and the last one on the list, "fire department startup personnel", all of those positions go together. Those first two are because we're adding the fire department or bringing the fire department inhouse. So they should have been grouped together or at least, so that you could see that they were related. Couple of reclassifications and then a part-time. MAYOR DICKEY: Did any of these have to be added to our -- do we have to take separate action to add any of these positions when we do that part? POCK: So yeah, when it comes down to the budget implementation memo, all of these either if it's a reclassification -- I'm not sure if job description-wise we have to change anything other than the fire department. I think, everything else is -- MAYOR DICKEY: Right? POCK: Uh-huh. KALIVIANAKIS: Just recalling from memory. Is there something here about the dancefloor being redone? POCK: That is a one-time, I believe. KALIVIANAKIS: I can't see it. POCK: Yeah. The second line on the nonpersonnel one-time, "community center dancefloor general fund, 24,000". SKILLCORN: It's right here. KALIVIANAKIS: Yeah. There we go. Is that the mobile one that gets taken apart and set up, taken apart? GOODWIN: That's right. KALIVIANAKIS: And this is to replace it? GOODWIN: Correct. The one that's at the community center is well over 20 years old. So this would be a replacement that's portable, lighter, easier, and quicker for them to set TOWN OF FOUNTAIN HILLS Page 14 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 14 of 62 up. KALIVIANAKIS: How often do we use it? GOODWIN: More than you think. I mean, I would probably say at least a dozen times a year. I think the impact is the staff time to set it up and take it down. And that's why the request has come in. KALIVIANAKIS: Yeah. GOODWIN: It takes two people probably two hours to set it up. KALIVIANAKIS: Right. This -- I know we're not voting on anything tonight, but I would not be for that expenditure, when we finally vote on this. GOODWIN: Noted. Thank you. POCK: All right. Any questions on the supplement, so far? The next line -- there'll be some discussion required on the next line. So ta-da, cost of living adjustment. This goes back to what we were discussing earlier, as far as the percentage inflation in Maricopa County, that sort of thing. This slide was put together by deputy town manager, Dave Trimble. So he did all the research for it. If there's any really in-depth questions, I'm going to look to him to answer them. But I will say the first two are basically, Bureau of Labor statistics federal numbers. You can see Phoenix, Scottsdale, according to this was 9.5. And like I said, it's a time period sensitive so it depends on when you look at it. 4.7 for the previous year. The State of Arizona recently redid their minimum wage and now it is formula-based. That formula-based cost of living increase was 8.2 percent. Same with Social Security. If you're receiving Social Security, you received a raise of 8.7 percent. And then we did some -- the League basically, canvasses the different cities and towns in Arizona. The portion of towns that were here in the Valley, received five percent overall. And then, the estimated average COLA increase for next year, for those that were willing to share it, is 6.9 percent. Last year, fiscal year '23, so this current year that we're in, staff did receive a four percent compared to five percent on the average. This we're leaving up to council to decide what this number should be. For every one percent of our payroll cost, one percent would equal $56,301. So whatever number council sees fit to use, we would multiply it by that number and that's going to be our increase, or what we'll add to the numbers that you see TOWN OF FOUNTAIN HILLS Page 15 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 15 of 62 in the proposed budget. MAYOR DICKEY: Any discussion? So you know, there's a range there, obviously. Last year you said four percent. I was trying to figure out a way to compare that with what we're seeing from the rest of the state and from other cities and such. If I just look at the estimated average increase for Valley cities and towns in FY2024, 6.9 percent, and try to look at what -- so I don't know what we're going to do. But if you look at the previous year, which is five percent, and we did four percent, I'm wondering about that relationship. Because if you do that, then it wud be for us, if you look at that 6.9 percent then you're up to, like, 5 percent, 5 and a half percent. That would be comparable to what we did last year, as compared to the rest of the Valley. Yes, the Valley. So that's even more appropriate, because it's not the whole state. So I think, you know, we need to have a little conversation about that, what you all think. Again, Sharron? GRZYBOWSKI: I attended a meeting this morning with the Phoenix East Valley folks and part of that conversation was we're East Valley. So it's mostly Maricopa County people. And they were talking about rent increases, over the past couple of years, have been anywhere between 15 and 30 percent. So I wanted to be sure and have us take that into consideration as well. Not only are we talking about the inflationary cost that were mentioned, but we're also talking rent cost. And then the numbers that David and his folks provided for us. I am a -- and I say this every year, and I'm going to keep on saying it. I am a firm believer in, if you appreciate and value your employees and you don't want to lose them, making sure they get a decent living wage, which will include the cost of living increase. MAYOR DICKEY: Vice Mayor? MCMAHON: I agree because if you think about it, it's not just the cost of rent. Food has gone up, gas prices are crazy high. I don't see those changing. I think that of all the, you know, articles you read in the paper and the effect on people not being able to afford, you know, their homes even though they work and even when they work two jobs, et cetera. People can't afford to move into Fountain Hills and other areas. So I think right now, given the quality of our staff and the length of time that most of them have been here, et TOWN OF FOUNTAIN HILLS Page 16 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 16 of 62 cetera, and their commitment, I think that at least a five to five and a half percent increase is justified. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. I kind of, concur with my councilmembers here. You know, just because you work in Fountain Hills, I don't want people to have to take a pay decrease just because we're living in tough times. I think we have to be very cognizant to that. I think the Phoenix, Scottsdale number, the nine and a half percent, doesn't reflect, I think, the cost of Fountain Hills. But I would concur. I don't think that our staff should lose money by working here. So I think the number that we come up with, should be one that doesn't reflect them being punished for working in Fountain Hills. MAYOR DICKEY: Yes, Gerry. FRIEDEL: Two points I want to make. I think, I'm of the mind that we need to take care of our employees that we have here. So I'm not a big fan of adding staff or adding dancefloors. Sorry. I'd rather put that money into our employees, who work hard for us and show up every day and keep the town running. So I'm a big proponent of taking care of what we have. MAYOR DICKEY: Sharron? Can I ask you, were you talking about the 6.9? GRZYBOWSKI: I actually, was just getting ready to say I think we need to toss out a number and my number would be seven. MAYOR DICKEY: Thank you. Any -- GRZYBOWSKI: I just wanted to make that clear. MAYOR DICKEY: -- comments or questions, or anything? I'll be close -- I was just looking at the 6.9 and that was 388,000. So whatever that is, it's a little bit above. Other conversation about seven? POCK: Okay. I think -- MAYOR DICKEY: Oh, I do have a question. POCK: Sure. MAYOR DICKEY: So does that affect the cap if we don't diminish something else? POCK: So that increase, especially in the general fund, will just reduce the contingency TOWN OF FOUNTAIN HILLS Page 17 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 17 of 62 that we have planned for next year. So right now, if we're at 3.5, we're taking out not all of that $400,000 and the increase is going to come out of general fund. But just for this example, that contingency would come down to 3.1. MAYOR DICKEY: Okay. Thank you. Brenda? KALIVIANAKIS: Thank you, Ms. Mayor. Just to be clear, I mean, we're not deciding on numbers? We don't vote tonight, right? We're just throwing suggestions out there. MAYOR DICKEY: We're not voting. But when we do come back, then that's when he's going to present the number that's going to be our top. So it would be good if he had the idea of what that could be, because when we vote that's it. We can never change that. KALIVIANAKIS: Yeah. MAYOR DICKEY: That's our May 2nd meeting. KALIVIANAKIS: Yeah. I just want to reserve the right to have that number be flexible and not lock it in tonight. Because I didn't think we were locking in any numbers tonight. POCK: We're not. I'm sorry, Mayor and Councilmember. We're not locking in any numbers. It's a work session, so we can't have -- KALIVIANAKIS: Right. POCK: -- a vote. I will say that the closer that we get to these final meetings, the closer we can get to where we want to be and not have wild changes. It does help staff. KALIVIANAKIS: Yeah. I don't anticipate any wild -- yeah. POCK: To staff. KALIVIANAKIS: I don't anticipate any wild changes. POCK: Right. KALIVIANAKIS: But on the other hand, I was here tonight just to listen, to take thing in, and have time to reflect until the main meeting. That's why I just want to be careful that we're not committing to anything tonight, throughout the evening, as we go on. This is just a work session. This isn't deciding budgetary items tonight. I just want to be clear that that's what we're doing. POCK: But I think, Mayor and Councilmember, that I think my point is that, you know, if there is something that's a no-go for sure, when we get to capital projects, going TOWN OF FOUNTAIN HILLS Page 18 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 18 of 62 through those supplements. If there's something that the council is clear that they don't want to see, it's better to know now. So if we can get that idea, that direction -- not direction -- if we can come away from the meeting knowing that we don't need to include something, it would help if we got it. MAYOR DICKEY: Councilor? SKILLICORN: Madam Mayor, Director, I think the question is finding the $400,000 to do that. I think that we value our staff, and we want to make sure that they're invested in and they stay here, because training new people is expensive also. But you know, they're people and they do a great job, and we appreciate them. But part of it is finding options to fund it. POCK: Understood. MAYOR DICKEY: Brenda? KALIVIANAKIS: Yeah. Thank you, Ms. Mayor. And you know, we did this last month and there's some items that I thought we were in agreement to just get rid of, and they popped up here today. Actually, I wrote an email about that to staff. And so sometimes when I feel like we have consensus, the other people think we don't have consensus. So I think it's very difficult when you can't vote, okay? It's just to try to get the feel, and sometimes that's a hard thing to do. MAYOR DICKEY: Yeah. I watched the video because I was like, did we say no, or didn't we say yes? KALIVIANAKIS: Me too. MAYOR DICKEY: Don't we want that, but not that? So we'll -- the capital stuff, right? Mostly? KALIVIANAKIS: Yeah. Yeah. MAYOR DICKEY: Rachael? GOODWIN: I just wanted to chime in on that. Councilmember, for your -- and for everyone's help, you know, and David Pock mentions this. You know, when you guys throw out a number for this instance, or when I hear, hey, maybe the dancefloor isn't the right, you know, it's something we're not supportive of, I'm taking notes so that when we come back, unless someone stands up and said absolutely, we need a brand-new dancefloor, you know, we need to leave that in. That's what we're listening for. So TOWN OF FOUNTAIN HILLS Page 19 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 19 of 62 unless there's a lively discussion or there's some counterpoint discussion, that's where we're sort of your direction. So if there's a number thrown out in this instance, that somebody's uncomfortable with or feels like, hey, maybe we want to look at that, that's what we're listening for. We're listening for the discussion between the councilmembers, so if that helps at all; so that -- we do want to take direction from this. Even though it's not necessarily a voting official capacity, it is a workshop. We are listening and trying to take those notes so that we come back with the most accurate budget that we can put forward in May. MAYOR DICKEY: Thank you. POCK: Okay. On we go. So next we're going to talk about are three -- first, we're going to talk about our three major funds. Obviously, the general fund, then streets, and then capital projects. As far as an overall, just summary view, this slide is just meant to give you some historical context around the general fund. With this slide, and all the slides going forward, where you see five-years presented, the first three years or the years that are showing in the darker colors are actual numbers. The last two years are budgeted numbers. So you can see fiscal year '20, '21, and '22 are all actual numbers that somebody could go back and look in our financial statements at the end of the year, they're going to find those numbers. Fiscal year '23 we obviously, don't have actuals because we're still in fiscal year '23. And then fiscal year '24. Another point to this, you can see in the three years that are actuals for the general fund, the darker green portion of those lines, that's what we had budgeted. Then those lines keep going and get lighter. That lighter portion are excess revenues over what we expected to receive. So you can see we have a really good track record. Not only increasing that actual number each year but going over and above our budgeted number. As a small caveat, we just got our March numbers for sales tax and we're doing quite well. As far as our nine-month budget we're exceeding all of our categories. So we're on track so far, it's looking really good. Knock on wood. Because we still got three more months. As far as for fiscal year '23, you can see we do have a balanced budget. Revenues do TOWN OF FOUNTAIN HILLS Page 20 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 20 of 62 equal expenditures. As far as the total for next year, 25.2 million for revenues and expenditures. Again, 3.5 of the expenditure side is contingency. Here's our revenue makeup. If there's any questions about these numbers, we can go into the detail. The same detail that people can see in the electronic budget book. There's any questions as far as specific amounts, you should have them in your books. But you can see sales tax revenue and state shared revenue equal about 90 percent of our total revenue for the year. Any questions on these? Revenue side's so much fun. Okay. MAYOR DICKEY: That's true. FRIEDEL: What is our sales tax revenue as a percentage of our numbers here? Is it over 60 percent? POCK: Yeah, it's not quite 60. I think, yeah, it's just in the low 50s; whoops 52. And that -- MAYOR DICKEY: I (indiscernible). POCK: It's a little sensitive up here. So yeah, about 53 percent are sales tax and then, 41 percent for state shared revenue. And then you can see everything else is very narrow. And if you haven't been here so far, you can go into the breakdown and actually see those numbers, specifically for the general fund. All right. So then, as far as the expenditure side, sorry. Again, the number that we have currently, that we're working with for our MCSO contractors and here, you can see that's making up 25 percent of our general fund. Something to keep in mind, unlike the last three years, the general fund is going to have to pay the entire amount of our public safety contracts for next year. There are no more ARPA funds or CARES funds or anything like that. There's -- the printing presses have gone cold for right now, so it's all on us. As far as fire and EMS, as everyone's well aware, we have six months of our contract with Rural Metro, that's in the budget and then that final six months is our startup costs. And then, Fountain Hills Fire Department expenditures from that point going forward. So that's kind of a split year. General government, that next category, includes the $3.5 million in contingency. There's much less that that department's used for, like our liability insurance. Things that are town-wide expenditures are in there, but it's definitely made up with the majority of TOWN OF FOUNTAIN HILLS Page 21 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 21 of 62 our contingency number. And then it basically breaks down by department after that. Community services, administration, public works. Public works affects multiple funds, though, so don't think that that's the total amount that public works pends. You know, Justin's really good at spending money from different funds. MAYOR DICKEY: Dave, where would the raised amount be? Would that be in general government? POCK: The? I'm sorry. What was that? MAYOR DICKEY: If it was the seven percent or six percent, whatever, 300,000? POCK: So none of the cost-of-living adjustments were included in the numbers. So whatever those numbers would be, would reduce the amount of the contingency in general government. MAYOR DICKEY: I'm just asking, because if it is general government, the way it is right now, between '23 and '24, general government went down almost 19 percent, by $1 million. So if that's the area you're still looking at, this entire general fund expenditure amount only going up by 1.7 percent across the board. But that particular area went down. So I just wanted to know where that would fit in if we added that in. POCK: Okay, so -- MAYOR DICKEY: It's a good place for it. POCK: -- as far as comparing the contingency or general government fund, you might want to look at just everything except for contingency. Since the contingency is based or determined, by the amount of revenue that we're receiving each year, that contingency number can be anywhere and not necessarily have a specific meaning maybe or reason, other than the revenue is either higher or lower compared to the next year. MAYOR DICKEY: Okay. So if it came from the contingency, I'm just wondering -- well, what would it look like as an expenditure, because this entire area only went up by 1.7 percent. So it wouldn't affect it that much. POCK: No. So the general government, obviously, would get smaller by $400,000 let's say, just total. Law enforcement wouldn't receive anything since that's simply a contract and there's no payroll cost. Fire and emergency medical, that would be a discussion, because I don't know if you start somebody -- that would be a discussion, if that changed or not. TOWN OF FOUNTAIN HILLS Page 22 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 22 of 62 Obviously, all those other community services, administration, public works, those would all -- the payroll, when we get into those individual departments, would increase by the seven percent in those departments. MAYOR DICKEY: Okay. POCK: And Mayor and council doesn't get an increase. Sorry. Don't find me in the parking lot afterwards. I can give you $28 a month, you know, meet me outside. All right. I'm going to get myself in trouble. All right. So that first one we were looking by department or function. This next slide just goes by the individual expenditure types. So you can see by far contractual is the largest. MCSO is a contract. Rural Metro is a contract. All the landscaping, all that, that's paid for in the general fund is in that top bar. Then you would see payroll expenses. That obviously would increase after the cost-of-living adjustment. Contingency, again, dues and memberships, maintenance, repair; and then they start trailing off pretty fast after that. KALIVIANAKIS: Thank you, Ms. Mayor. This dues and memberships, we kind of skipped over that rather quickly. That went from fiscal year '23, from 86,000 to fiscal year '24 to $2 million. Can you explain that discrepancy? POCK: Sorry. I'm trying to get there slow; I mean, without scrolling past it. So these actually are broken down and I can't collapse them. KALIVIANAKIS: I suppose they helped you. POCK: Yeah. So I mean, as far as each individual department, those dues and memberships are outlined, and we have detail on those individual departments. This is overall general fund. What's that? MAYOR DICKEY: I think it has to do with the fire department. POCK: Sorry. Okay. So yeah, I see -- thanks. So they actually fixed this today. So there's this $1.9 million we didn't have payroll in our fire department before. In our fire department, as far as accounting goes, we didn't have payroll lines. So we had to add payroll into our accounting system, so that we could include it in the budget. When your books were done, we put those under dues and memberships, that 1.9 personnel cost, just TOWN OF FOUNTAIN HILLS Page 23 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 23 of 62 so that we could get it in the budget, and it would show in the right place. If you look on the screen now, they actually finished it today and got that dues and memberships line into payroll. So if you could see where my pointer -- can you see my pointer on your screens? MAYOR DICKEY: Yeah. POCK: Okay. So that -- now, if you look at dues and membership, it's only -- sorry. This is really sensitive scrolling. So yeah, you could just see it went from 86.8 to 89.8. KALIVIANAKIS: Okay. So that's -- POCK: So it's just a classification in the software that they had to go and add a spot for us to put payroll for fire department. KALIVIANAKIS: Okay. Thank you. POCK: Sorry. I was too busy thinking about trying to get to it. MAYOR DICKEY: That's why I asked (indiscernible). POCK: All right. Yeah, and the presentation was done, like I said, last week. So that's going to be off in the presentation, but the online book is correct, now. All right. So then as far as each individual department -- so that was overall general fund across all departments, divisions. Now, we can go through the different departments. There's truly, town council, not a lot of changes. Again, first three years are actual numbers, so if there's -- you can see it's pretty consistent. Obviously, the meetings and trainings we budget more than what we actually spend, as you can see; especially during fiscal year '20 and '21 there wasn't a lot, other than Zoom type meetings going on. Any questions as far as town council goes? Fortunately we don't have a revenue slide for town council. Just -- KALIVIANAKIS: Yeah. No cost of living increase either, by the way. POCK: All right. As far as the general fund, as well, the administration department is the largest department in general fund. It's actually broken down. This is just across the entire department, administration. But the town manager, town clerk, finance, public information, HR, IT, they all fall under this category. As far as general government, again, this is where a contingency lives. You can see that actual numbers though -- actual amount of expenditures is $1 million or less, basically, each year. If that contingency doesn't get used, it evaporates at the end of the year. It doesn't get carried forward. It just TOWN OF FOUNTAIN HILLS Page 24 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 24 of 62 collapses into actual numbers. Municipal court, not a lot of variability here. It stays pretty consistent throughout the years as well. Payroll expenses, clearly the majority of the expenditures. Any questions on the court? All right. Public works. So again, public works has budget in the general fund, the streets fund, and the capital projects fund; as well as some play in the facilities reserve vehicle replacement, that sort of thing. So there are other -- more major areas that public works uses. This is mostly like facilities maintenance and that kind of stuff. And then the administration for public works. Any questions on these expenditures? MAYOR DICKEY: I do, but I don't know what it is yet. Hold on. POCK: Okay. MAYOR DICKEY: So the street funds, the 7.7 million, is that representing -- I know I asked you this. So it's actually about 6 million of that is going to be on maintenance and repair? POCK: Yep. MAYOR DICKEY: It's at 5.9 million. POCK: Yeah. So that kind of goes back to what -- so that -- those expenditures would actually be coming up in the next set of slides, when we get into the streets. MAYOR DICKEY: Okay. POCK: This is just for the general fund -- MAYOR DICKEY: Okay. POCK: -- portion of public works, which is mostly facilities and that sort of thing. If you wouldn't mind, we're going to do that in just a few minutes. MAYOR DICKEY: Okay. Thanks. POCK: Okay. So next, development services. I don't have a ton to say here, either. Obviously, you can see the actuals. And the contractual services did grow. I know for this current year we're expecting some third-party review costs and that sort of thing. So that probably represents the biggest increase and why it's not coming down for fiscal year '24. MAYOR DICKEY: Can you repeat that again? Did you say that contractual services? POCK: Yeah. So that kind of orange color, the third part of the bar for this year and for TOWN OF FOUNTAIN HILLS Page 25 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 25 of 62 next year. We had quite a bit budgeted for this current year for a third-party plan review and that sort of thing. We might not be expecting quite as much of that next year. That's my guess, from what I can remember. If we have questions we can ask. MAYOR DICKEY: That's going from 149 to just 49, basically. Okay, thanks. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. I was just a little surprised that we have $1 million payroll in that department. This might be beyond the scope of what you can answer, but how many people work in departmental services? POCK: Not sure the exact FT count. Do you know, John? WESLEY: I believe it's (indiscernible). POCK: One more? WESLEY: I can verify that (indiscernible). KALIVIANAKIS: Okay. WESLEY: I think 11. KALIVIANAKIS: Okay. Thank you. POCK: That worked. All right. Next, community services, definitely one of the largest departments as far as FTE count and expenditures within one department. Everything I -- again, very consistent. I mean, there's not a lot of changes between those first three columns, except for the years that everything was closed. We shrunk a little -- stunted. All right. And then general fund expenditures, this is probably the worst chart you could -- you look at this and you go, well, what's going on? And that's all been caused -- I shouldn't say caused -- as a result of the ARPA funds. General fund hasn't had to pay a large portion of the fire contract for fiscal year '22. We budgeted a little different for this year so that we would be able to see the amounts a little better. That's still going to shrink quite a bit at the end of this fiscal year since a majority of the Rural Metro contract's being paid from Fund 400 or special revenues fund. So it's a little bit tough to look at those first four years and come to any conclusions. But you can definitely see what's happening next year. So our contractual services, we're doing a six months of the contract. So July through December is the green portion. Here's the dues and subscriptions that was just -- the number was put in wherever we TOWN OF FOUNTAIN HILLS Page 26 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 26 of 62 could until the payroll number -- or that payroll classification was added. So now that would be a different color when you go look on it -- actually, let's -- MAYOR DICKEY: And if you look at the amount in the contractual services, the difference is almost that. It's just slightly less than that 1.9 that was in dues. POCK: Yeah. So you can see now, this blue color has become payroll expenses and not dues and membership, which is way up here and not even visible as far as that amount up here in the top. So it is correct as far as the online version. It's been updated. Any questions as far as the fire go, those amounts? Again, all the supplements that we saw earlier that the personnel, all the startup costs, communications, all that sort of thing, are all showing in this amount here; and then law enforcement. No offense to our deputy in the room, but it's pretty plain. It's just green. There are other portions that, you know, we do have a few dollar amounts, but yeah, you can see they don't even show up as far as a percentage. That's all the contract. FRIEDEL: I have a few things I want to say. MAYOR DICKEY: Oh, sorry. FRIEDEL: I have a few things I want to say about this -- POCK: Sure. FRIEDEL: -- law enforcement. I'm shocked, first of all, at the amount of the increase. And it's no slight on any of the frontline people that work in this town for us. I have a couple of recommendations, if you're taking notes. I'd like to see a arbitration hearing so that we can make sure that we're on the same page as far as what's owed from back contract review. I think every resident in this town needs to know what the result of that is at some point in time, when it's ripe. I'd also like to make sure that there's an escape clause in any contracts that we have, so that if we decide to go in another direction, we have the ability to do that. And the third thing I'd like to suggest is a steering committee to look at the possibility of us having our own law enforcement here in this town. When I look at these numbers, $6.4 million; it's astronomical to me. And why we haven't resolved this and gotten this taken care of, is beyond me. And we did get a credit in our last contract, so it would have been even higher without that credit. So at any rate, I'd like to have some serious conversations about this and a direction for this town going forward. Thank you. TOWN OF FOUNTAIN HILLS Page 27 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 27 of 62 MAYOR DICKEY: To that point, we had the Matrix study done and even the most fervent person that wants our own police department had to -- you know, when we looked at that study, it was something that was beyond our means. But I do -- and I've said it before, that we will get another per capita -- cost per capita, cost per square mile, if they still do that; so that we can see where we are with, you know, all the cities that have their own. Because a few years ago, we were way at the bottom and by a lot. So I think we have to look at that and compare that. And also, I think we understand that some of this came from what I think a lot of law enforcement is saying, are issues with staffing. And so I think a lot of this has to do with payroll. So we'll get more information, for sure. Thanks. POCK: All right. With that, that ends the general fund discussion. So look at that, $25 million down. All right. So again, just to look at the overall streets fund as how it's shaken out over the last -- kind of, the way I look at these, the last three years as far as actuals, you know, tell the most story. You can see fiscal year '20, '21, '22, with the exception of last year, we actually received less than what we actually spent. So we were using a lot of fund balance for those two fiscal years. Which makes sense. There wasn't a lot of activity. You know, that was during the -- kind of the shutdown. Of course, people aren't driving places, they're not buying gas. If they're not buying gas, we're not getting HURF revenue. Obviously, that's changed. Fiscal year '22, we actually received more than what we spent. We budgeted to spend quite a bit. Since we didn't spend all that, it obviously goes into fund balance. Any unspent funds at the end of the year just roll over to the next year, so we are doing pretty well. As far as fund balance goes, we're looking to places to use that, obviously, streets. Pavement maintenance, is the biggest category for the streets fund. All that being said, I'll shut up. MAYOR DICKEY: No, no, no. Is this the point where I can ask about that? POCK: Yes. Yes, it is. MAYOR DICKEY: So obviously, you know, when we were getting the ARPA funds and such, we all agreed that we really wanted the bulk of it to go to streets. I think someone said the lake liner and a couple of other things. But so it's like, maybe, ten million. And I think, and just please tell me if I'm wrong, Justin, that we were -- we TOWN OF FOUNTAIN HILLS Page 28 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 28 of 62 probably had three million more to spend, possibly, this year. But we're not going to do that. You know, these projects are things that are hard to get out the door, so even if you have the money, the -- physically getting the work done is not something that's easy. So are we going to have $2 million that we thought we were going to spend this year on maintenance and repairs, go in with the other money? Because, again, it's almost six million that we have or that looks like we're planning on spending on roads. Which would be a great thing. So I'm just a little confused and I know I tried to get this through with you, you know, but I wasn't totally sure. So there was, the idea of this year's stuff and then the ARPA, and then the ARPA even for FY'25. Because if it's five and five or if it's four and four, it looks like we have a lot available to use for streets. And I wanted to kind of get my arms around that. WELDY: Madam Mayor, Councilmembers. There was a $3.8 million budget transfer approved by the Mayor and council not long ago, to go into the street funds. The intent with that and planning with the ad hoc pavement committee, is that we would align some projects for this fiscal year and accomplish those projects that were not on our original schedule with that funding. However, and there'll be more about this when I do my update to the Mayor and council, we are simply not ready to spend that money this year. We have not had adequate time to prepare. I'll give you a couple of good examples why not. Anytime we intend to spend that type of money and invest it in our streets, we need to make sure that the utility companies that have facilities in that area, do not have any work plan in the five-year horizon. We have not been able to accomplish that. It takes them a little bit of time to move stuff around, to look, and investigate. The second thing is, we want to be sure that we're putting the right money, in the right place, at the right time. And so we are having geotechnical work done. And so what they are doing is they're going into our older streets that were identified and showed on a map here not very long ago, drilling into the ground, and determining exactly what we have there. And that will help us plan and budget to do those roads correctly so they last longer with the right treatment at the right time, in the future. The intent, and again, the town manager and I have been working on this and we're going to bring it forward in a report, is that we will have all of those dominoes in line for next TOWN OF FOUNTAIN HILLS Page 29 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 29 of 62 fiscal year and we will present our proposal to spend that $3.8 million, plus our regular 2 million plus or minus slightly, on improvements for next year. And then the outlying year, we will obviously get our allotment from the state shared revenue, plus the unspent fund balance and the federal monies that are unspent in the amount of approximately, just under $5 million I believe. So as we get closer to budgeting for the '25 year, when we get to that year, we will have a lot more information because our assessment analysis and all of the optimized spending methods will be looked at, using the data that's being collected right now. That answer your question? MAYOR DICKEY: Yes. Brenda, I just want to say one thing. KALIVIANAKIS: Sure. MAYOR DICKEY: I don't mean to put the cart before the horse, but as we get into looking at, you know, the rest of the budget tonight including the capital part, it would be good for us to have that in mind, that we will have substantial amounts of funding available for -- and it may even be, you know, we can't even do more than the money that we have available for funding next year. Which is, you know, as we're seeing even for the rest of this fiscal year. So I just wanted that to be out there. Not that I need the specifics so much, but that to keep that in mind as we look through these other projects. Brenda? KALIVIANAKIS: Thank you, Ms. Mayor. At a former council meeting or workshop, you've displayed a map of ten miles of preincorporated roads. I've requested several times to get a copy of that. It was a blue- line map and it was various parts of our town. Jacklyn Drive was specifically included and that -- they told us that -- you told us that that was going to be in the summer. Do you recall that map? And is that work going to begin this summer? WELDY: I do, indeed, Madam Mayor, Councilmember. I do, indeed recall that map. And I had forwarded what I thought was the correct map to you, which had the labeling on it. The other map that was shown was proposed work for an outer lying year in '24 or '25, depending on the functionality and the funding available. So that other map did not have the identifying factors on it. And I believe that Jacklyn was on that one. The one that I sent you is the one we intend to propose for next year, and that did have the labeling on it. Do you recall having received that map? TOWN OF FOUNTAIN HILLS Page 30 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 30 of 62 KALIVIANAKIS: Yes, but it wasn't by street name, it was by just numbers. And I discussed this with the town manager and I said I don't understand. These numbers have no correlation. Like 123, is this street, 124 is that street. So it was information, but it was information I couldn't use. WELDY: I'll have to go back and get the map. So the map I intended to send, actually has the street names on them and identifies them by color. KALIVIANAKIS: That's the one I need. And what about the ten miles of pre- incorporated road? Is that number still a fact, or are we reducing that number? WELDY: For tonight's meeting I don't have a premeasured determination. We're somewhere in that general area of lane miles but we're not quite ready for that just yet, because we're still working on the geotechnical report and the utility planning. KALIVIANAKIS: Yeah, I think -- I've been waiting on that streets report for quite a while right now. Is that available yet? WELDY: No, ma'am, it's not. We have a draft summary that we are currently reviewing with the ad hoc committee. It will take them, obviously, a while to review that and come back to the town with recommendations in regards to that. And also, town staff is reviewing that report, the draft report as well. And keep in mind, this is a draft summary, and then that will be revised and become an executive summary. The full report is much, much larger and literally has several thousand lines in it. So the Mayor and council will receive an executive one and we will post the full one online for people to view. KALIVIANAKIS: Okay. And you refer to an ad hoc committee, how come the streets committee isn't doing this? Why do we have designated an ad hoc committee? WELDY: It's the ad hoc streets committee. KALIVIANAKIS: Oh, so it is the streets committee? WELDY: Yes, ma'am. KALIVIANAKIS: Okay. In the future, let's just call it a streets committee; I would appreciate that. I would -- just one more comment. But I know these things take time but I really wish that we could expedite this because I think that when we announced before that we were going to begin to fix these roads, there was a certain expectation by our townspeople that we're going to start getting some work done. And it just seems like it's taking a long time, it's slow. We have the money, but we got to get the plan, we've got to TOWN OF FOUNTAIN HILLS Page 31 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 31 of 62 get that report, and we got to get the show on the ground, okay? That's what I'm trying to say. We got to get this going. WELDY: Madam Mayor, Councilmember, we actually had a considerable amount of work approved by the previous council that is underway and will be completed. It's considerably more than nine lane miles. It's what we already had programed. In regards to expediting, we've certainly learned in the past, if we skip the step in regards to utility, we've spent a few millions dollars and then a utility company in there is cutting that street to put in their utility. And it's just not a good decision to skip that. Because we certainly can't tell them that they can't fix the water, sewer, or electric. KALIVIANAKIS: Okay. WELDY: So we have to allow that. And then that cut is permanent for the life of that street, where they cut into it. KALIVIANAKIS: All right. Okay. I just haven't seen any work done, even if it was proposed by the prior council; I just haven't seen it getting done. WELDY: And without going into a lot of detail, right now, just over the last few days they've been working on one that was previously approved for El Lago, Palisades to Fountain Hills Boulevard. The final coat went on that one today, and the temporary pavement markings will be down on that in the next few days. And the entire northeast side of the town is where we have been working all fiscal year. With the exception to that is Glenbrook, which runs from Fountain Hills Boulevard around to Bainbridge and the north center, and towards the western edge of town. Those are the areas that we have been applying and making investments for this fiscal year. KALIVIANAKIS: True. But there's a difference between slurry seal, like we're going to do in El Lago and repaving pre-incorporation roads. And that's why I'd like to start to get those pre-incorporation roads, and get improvements on those. Because I hear about it a lot and this is just reporting what the people are saying to me. WELDY: Understood. KALIVIANAKIS: Yeah. With respect. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. Director, I heard, you know, two things you're talking about is the delay for utilities. I understand how utility companies may not TOWN OF FOUNTAIN HILLS Page 32 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 32 of 62 get back to us right away and we will have to wait for them. But the geo survey you talk about, when is that information expected? When can we see that report? And when and we plan with it? WELDY: We'll have the geotechnical report probably in the next five to six weeks, for all of the roads that are proposed for next fiscal year, in regards to pre-incorporation. We have additional work in regards to preserving past improvements or investments, that are included in next year. But the bulk of that is going to go into addressing what we refer to as the backlog. And a lot of our backlog is in local roads. So it will be probably six weeks before we begin to review the geotechnical report. SKILLICORN: And Mayor and Director, when did this process start? When did we contract the company that does the study? WELDY: We entered into an agreement with them about six months ago, plus, or minus. And we have been working with them to identify the locations based on the assessment. And the assessment really needed to be done so we can run the algorithm to determine what the optimized location for the investments would be; right money at the right place in the right time. All of that takes steps. During this entire process the previous company that did analysis for us, our agreement with them was not renewed. We brought on a new company and had to start that process all over. And all of that takes time. SKILLICORN: And Mayor, Director. This have anything to do with the previous, you know, studies we've done? I think you emailed me ones, I think, from 20117 and 2018. Are these similar or something different? WELDY: All three of the past, from 2009, and '17, and the most current one, are nearly identical, with the exception of the equipment and the technology used to collect and dissect that data, has moved forward like any other technology that we utilize for this type of work. MAYOR DICKEY: Just let me ask. So are we going to have a work study on May 9th about it, or you don't think we would. We talked a little bit about that. WELDY: I don't believe we're going to have a -- I'm not sure about -- MAYOR DICKEY: I mean, not a work study, but a presentation or something. GOODWIN: The presentation is actually scheduled for next Tuesday. So our April 18th meeting, Justin will be doing an update. A lot of it may be a repeat to what you just TOWN OF FOUNTAIN HILLS Page 33 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 33 of 62 heard, but it will have maps too; to cover what has been done this fiscal, what is planned for next fiscal. To give the visuals of what is being proposed. So that again, we understand where that investment is going to go. And to Justin's credit, as well as the credit of the streets committee, it has been a overwhelming process. There's a lot of different factors going into it and Justin's trying to make the recommendations based on, again, the right money, at the right time, at the right place. So that's what we'll review and he'll be doing a presentation a week from tonight. WELDY: Correct. GOODWIN: Is that right? When does the streets committee meet again for the discussion of the report? WELDY: You and I need to establish that date based on the amount of time they need to review it. GOODWIN: Okay. WELDY: So probably within a week or so, we'll at least need to have a debriefing on the summary. GOODWIN: Got you. So they won't meet again before your update is where I was going with that one? WELDY: No. GOODWIN: Correct. Okay. Thank you. POCK: All right. Any other questions about streets fund expenditures? That's obviously the most -- it is the streets fund, right? So talk about streets in the streets fund. We didn't go through the revenues, but just so you can see, most of the revenues in that fund are from state shared revenues. The HURF fund, 70 percent of the VLT make up that green area, and then the blue is the two-tenths of a percent of our TPT that goes directly to streets. All right. So then we'll move on -- yes. Sorry. FRIEDEL: Can I ask one more question on that? So at the end of the year, Mayor maybe you want to weigh in on this? If we change our A location when we sweep excess funds, will that show up on this graph any way, and where would it show up? POCK: Yes. So it would be part of this green section. If you go into the detail for the revenue, if I don't scroll past it right away. So the VLT, 854,000 is expected for next year. That's 70m percent of the VLT. The remainder is in the general fund revenues. TOWN OF FOUNTAIN HILLS Page 34 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 34 of 62 MAYOR DICKEY: Councilman, if we get to that, where we have capital, we would always go right into the capital fund because that's what we had talked about before. We can make that decision. I think part of what we had to figure out is what could we actually spend in the one year, and is the six million or seven million that is already planned, is it worth taking something out of capital and putting it in there, if it doesn't realistically look like we would get to the projects. So that's the kind of information we need. But we can always do it anyway, you know. POCK: All right. So then the next and final major fund for the town is the capital projects fund. Again, you've gone through the individual projects a couple of weeks ago, during the CIP work session, as Councilmember Kalivianakis has alluded to. Staff tried to take the best pulse we could as far as what should be included and what shouldn't be. Believe me there were a few that were not included. We knew which ones we didn't want to bring back. There were some others that, you know, maybe it was a four three, or a three four and we just weren't sure. Maybe there was some modifications to the fundings sources, size of the project, that sort of thing. So that's why they came back. But I guess, before we get to the individual projects, just as far as this overall summary, you can see amounts, actual revenues, that sort of thing. One point that I didn't make earlier, and maybe should have -- and you can definitely see it here, is we do not include any transfers in the budget. As far as what you see, we don't want to increase or inflate that expenditure amount. When it's going from one fund to another that's not technically an expenditure. When it gets from that fund and actually gets spent is an expenditure. We do do some accounting magic as far as our accounting system to make sure that they all get taken care of, but none of these numbers actually show that in and out. So if you look at the revenues on this particular graph for fiscal year '23, it doesn't show $3.7 million coming into this account or this fund. So just to make that clear. All right. And then we can go to the projects. We can do this a couple of different ways. If there's just specific projects that you want to talk about, as far as this goes it starts with the community service projects. I can leave these here. We can have discussion just on ones that you want to talk about. Yes. TOWN OF FOUNTAIN HILLS Page 35 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 35 of 62 TOTH: Okay. I am trying to find that 400,000 that we want to give to staff. So my little list, and I'm sure there might be additions or subtractions to it, but I'd like to take another look at Centennial Pavilion, the Sunridge walking paths, the council chambers patio shade structure, town hall building entrance column repairs, MCSO locker room renovation, sidewalk gap infill, Palisades and Saguaro, Fountain Hills Boulevard and Palisades Boulevard intersection improvements, Shea Boulevard multi-modal path, and Palisades Boulevard and Eagle Ridge/Palomino Drive traffic signal. POCK: Sounds great. Did anybody hear ones that they -- didn't hear ones that they want talk on. MAYOR DICKEY: The park one -- POCK: Because maybe we'll just use that list to go through. MAYOR DICKEY: The Sunridge Park one, though, that money can't go to anything else. That's got to go to parks. But I'm okay with not doing that project, but I don't think we could technically use that money. But I'm okay with not doing it, too. TOTH: Okay. Thank you, Mayor. Yes, just to clarify the 400,000 thing was a joke. But the 100,000 for Sunridge, that was going to be from park development fees; is that correct? Do I have that right? POCK: Yes. TOTH: I think we had discussed another project that that could possibly be used on, the Fountain Park. So just an idea. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. I didn't bring a little list, and so I was just hoping we were going to go through them all tonight. POCK: Okay. KALIVIANAKIS: Okay. That's what I -- I should have been more prepared like you, Hannah. But I was thinking we were just going to take a look at everything that was put back in for -- POCK: We'll start at the top, then. So first was Centennial Pavilion. I know that one was one that you had mentioned. So let me get down to the breakdown. $250,000 project, all from the CIP fund. Right? Yes. TOWN OF FOUNTAIN HILLS Page 36 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 36 of 62 So as it stands right now, all $250,000 would come from the CIP fund. I know we had a discussion during the work session about some offsets to that and maybe a sponsorship type board, that sort of thing. I don't have any other -- MAYOR DICKEY: Well, I like the project, so I don't really want to get rid of that one. It's up to -- everybody else needs to talk about it. But yeah, I think when we discussed doing it I was convinced. And I think some of the stuff that Sharron said about it, said that it was worth doing. Vice Mayor? MCMAHON: I'm also for it. I really think that enhancing that area, especially with moving the guarding, having Dark Sky come in, et cetera, being able to utilize it more in the spring for the concerts that are put on, et cetera. I think it is -- it would really enhance and be more inviting and get more usage in that area, than it is today. So I think that -- I think that Rachael, I think you've got the price down from when it originally showed up, et cetera. And I think that it's a really good idea for the town. I know there's going to be a lot more activities in the town and there's going to be a lot more things with dementia friendly opportunities going on, and that would be an excellent venue for that. So thank you. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. I think that the 250,000 was the shade structure and all the improvements around it; is that correct? And so yeah, I'll be for this too because I think that area is right smackdab in the middle of everything here and in anticipation of the International Dark Skies Discovery Center, we'll probably just have a lot of people just coming there to see where it's going to be placed and so we want to have our best foot out and forward. And so I think this is something that should get done. SKILLICORN: Now, Mayor and Director. Yeah, when I look at some of the details, I mean, I see $200,000 for shade structure, $50,000 for the pavilion, you know. So there are some components, like, I think there was agreement on fixing the five Cs, we were talking about doing that Arizona puzzle piece fundraiser; great ideas, good stuff. But I'm still stuck on, you know, I still think -- I look at those trees and they're just like the trees in my yard, and -- at a time when we're trying to pinch pennies and we're trying to do a TOWN OF FOUNTAIN HILLS Page 37 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 37 of 62 $400,000 raise, I would definitely cut this. And from the argument about the shade structure, there's no synergy here. Most of our activities are on the Avenue of the Fountain, and people come to the Avenue of the Fountains, do an activity. Well, what do they do? they stop and have something to eat or they have tea or they stop at a store and spend some money here. They come here, you know, to this area right over here and there isn't corresponding stores there. There's no synergy. They would come to -- let's say we do an event there. People would come and you know, whatever it is. And reality is is that six months a year, it's shaded or not, it's too hot to do stuff outside. So it's still a very limited window. There isn't a synergy for them to go someplace else. I think of summer, we're going to drop people in from over the hill or from south of us, and they're going to come to Avenue of the Fountains and do an event, a concert, or do something like that, and then, sure enough we've got an amazing restaurant that needs their business and we also need the sales tax revenue. Same thing with the, you know, the stores there. So I just don't see this as a place of synergy. And I think it's -- I'm going to be very cliché here. It's the umbrella to nowhere. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I think it's really an important part for our whole little Discovery Center to help attract investors. They're going to come out. They're going to come look at it and the way it is now -- am I pointing in the right direction? The way it is now, is it's just -- it's not inviting. It doesn't give you a warm feeling. If we're not going to invest in that particular corner ourselves, why in the world would somebody want to help us invest in the Dark Sky Discovery Center? So I think it's imperative that we do it. And as for the trees, yeah, everybody's got those same trees in their backyard, but unfortunately you don't have that many people traipsing through the Centennial Circle -- or through your backyard that we do the Centennial Circle. So it's really important that we address that portion of the repair. MAYOR DICKEY: Thank you. KALIVIANAKIS: Yes. Thank you, Ms. Mayor. And just to make one more, very brief comment. On the description it says the renovation of the five Cs, as well as renovation of the art dedications -- I wrote down here, could we pay for that with the arts fund? TOWN OF FOUNTAIN HILLS Page 38 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 38 of 62 GOODWIN: Yes, we can certainly do that. And I think that would all be wrapped into this project. There is a number of art components that would be paid for out of the art funds. So yes. And just to sort of bring this back together. The conversation, and I want to thank Councilmember for bringing it up. We did put forward a $100,000 -- essentially, a $90,000 revenue project to offset the cost of this total project, so that the, again, the overall net expenditure would be well under 200. So that was kind of the staff's effort to try to minimize that, to help offset those costs. MAYOR DICKEY: Thank you. POCK: All right. At the first break, I'm adjusting this mouse. Note to IT department back there. All right. I keep overshooting everything. So Desert Vista multi-year was that on the list? I apologize, Councilmember. TOTH: It was not, but we can add it. POCK: Okay. Do we have any comments and questions? Okay. Fountain Park? That actually has two projects in it. One is erosion control in the hillside and then we have the picnic ramada area by the splashpad. Any questions there? I know we had some different funding sources too, so -- MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Yeah. Thank you, Ms. Mayor. The only thing I might want to say is that I'm for the bulk of the project but the drainage component of it, I think I'd probably wait a couple of years, just as a suggestion. It's not biggie. But I think it's adequate right now, and then we are trying to save money. Maybe we can put that off, maybe not. I'll just take direction from the council. But I just want to throw that out there. FRIEDEL: I would tend to agree with that as well. If we want to do this, a major improvement, I think we can wait on the other one, another year. Because that's rerouting a sidewalk and everything else, isn't it? GOODWIN: As a reminder. So that project is submitted at 100, but we do believe -- we're working with the sanitary district, we have the opportunity to potentially bring that down significantly. We just don't have that information yet from the sanitary district. So TOWN OF FOUNTAIN HILLS Page 39 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 39 of 62 there's the opportunity that that comes well under budget. I think in an ideal situation if the project was given the go ahead, we could come back and let you know what that actually comes in at. Really, this project isn't about esthetics, it's about liability because it creates a lot of -- all those rocks and all that dirt erodes onto the pathway, any time we have irrigation leaks, any time we have rain. Obviously, we can't always have a lot but we've had a lot recently, so it does create sort of a hazard area. So again, we kind of budgeted for the worst and are anticipating an under-budget project. But we don't know that until we engage the sanitary district. MAYOR DICKEY: Thank you. Councilwoman? GRZYBOWSKI: I was actually just going to say that I used to walk to the fountain every single day, and whenever there was rain that side of the hill would just wash into the street and Joe or whoever would have to spend a lot of time cleaning it up. So again, like Rachael said, the 100,000 was worst case scenario. So I feel like liability purposes we need to leave it in. Yeah, it kind of stinks, but I just -- again, this is a safety issue. Plus, it will save Joe a lot of time, which, he's got time he's got to spend elsewhere. MAYOR DICKEY: Thank you. Councilwoman? KALIVIANAKIS: Yeah. Thank you, Ms. Mayor. I'd say let's just keep it alive and let's flesh out the number at the next time we meet. I think that would be my recommendation. MAYOR DICKEY: These projects always come back to us. KALIVIANAKIS: Yeah, I get that. POCK: All right. The next one is Golden Eagle Park field lights. This is a two-year project. We're obviously doing the first part this year. The second part, beginning of next year. I think this one we had pretty strong consensus, if I should say, on the last one. Park sidewalk replacement. This is kind of an ongoing, just to fix sections within Park. Any questions there, on that one? Okay. MAYOR DICKEY: Vice Mayor? MCMAHON: I think this is important to continue our walking paths and ability for -- and for sidewalk safety. I would not like to see this taken away as part of the pedestrian safety committee. It's been discussed and agreed upon that this would take place. I mean, the sidewalks, you know we're known for being able to walk in the town. And so I TOWN OF FOUNTAIN HILLS Page 40 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 40 of 62 think that it's just part of the natural evolution and responsibility of the town to keep up our sidewalks. I would like to keep it. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I'd just like to say I concur with the Vice Mayor on this one. I think this one should be absolutely done. POCK: All right. So then, next is Sunridge. And I think everybody agrees that's just automatic approval, moved. MAYOR DICKEY: Councilwoman? POCK: Sorry. It's late. It's been a long day. TOTH: I do appreciate the humor; however, I have to disagree. I'm just going to reiterate the point I made last week, that I don't see a reason to spend money on this. The people don't want it. I understand that this project has been through a lot, a lot, a lot of different redesigns and a lot of work, but the peoples' minds haven't changed. If anything, I get the feeling that they feel as though they're being strongarmed into it, so they go oh, well, if you have to build something. And I just feel really strongly about that money that can be used elsewhere. Let's leave that land alone. They don't want it. MAYOR DICKEY: Thank you. Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. We're talking about Sunridge, right? Okay. I don't want to talk about the wrong subject. I spoke with some of the neighborhood and the home owner's association. This is -- I think it's a no-brainer. I don't think we have to spend $100,000. You know, they agreed to me, to put this on the other street that has the houses. The reason they didn't want it on that street was because it was going to be $1 million park and they didn't want all the traffic going in front of their houses. Since it's just going to be such a small project with no parking lot and no improvements, other than the trails, they're just fine with having it. So the builders can come in there, design it, and this could be done for zero and they'll have their park that they can walk through. There won't be any signs, there won't be outside traffic, and you know, we can just get something done with this thing. And I don't even think it's going to require any spending. Maybe Rachael, you could help me with that? MAYOR DICKEY: Councilwoman? TOWN OF FOUNTAIN HILLS Page 41 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 41 of 62 GOODWIN: I was going to answer the question first. You're right. It would be relatively -- it would be significantly less than 100,000. I think we would need, you know, some basic funding for some signage and for some other pieces to support the walking path, whether it's traffic cones or things like that. But it would be significantly nominal. TOTH: But not zero? GOODWIN: I think, I would say close. Closer to 0 than 100. How's that? TOTH: I'll take closer to 0 than 100,000. That's good. Sorry, Rachael. Madam Mayor, I just wanted to take a moment to reiterate that I think it would be better to leave this land alone. If it's not a project someone's excited about, I don't think that we should do it. Our job, as a government, is not to force these things on people. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I believe the last meeting we discussed the fact that we have somebody looking into getting an appraisal for us on the property. My opinion is, maybe let's put -- leave it there, and when it comes in -- because I am all for putting it up at market value. If they don't want a park, I'm of the let's not do a park, let's use this as an asset because it is a town asset. So if we can't do a park, then I want to take advantage of it as a town asset. MAYOR DICKEY: Thank you. SKILLICORN: Thank you, Madam Mayor. Yeah, this keeps coming back. It is distressing to me because the residents don't want it. They don't want a hiking trail, they don't want garbage cans, they don't want signs. Take it out. I don't -- it's actually -- this gets repeated for months now, we've said don't do it. And it went from a million to $100,000. Just take it out. Zero, period. MAYOR DICKEY: Thank you. My opinion is regardless of the money, I don't think we should put any more energy into it. I mean, we've just been talking about it forever. Every single thing we do, is going to have, you know, repercussions whether it's beautiful or not or whether we agree. But I do want to make it straight. It's a town park in our general plan and the town does have the right to have a park there, any kind of park we want. But again, and I'm not saying that to be like, oh, but what I'm saying that is because it's a park that's in the general plan. We can put a park there, but at this point I'd TOWN OF FOUNTAIN HILLS Page 42 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 42 of 62 just as soon not talk about it anymore and just not have it on here. And I understand exactly what you're saying but I'm kind of done with this thing. KALIVIANAKIS: Ms. Mayor, thank you. Since the last time we talked about this, you know, when we were talking about putting houses on that land, John Wesley he did send out a memo on that and this area is zoned OSR, open space recreational. And so that would include a golf course, it's too small for. Park land, private wildlife, public park, undeveloped natural land, utility service, or a special event facility. So it kind of has limited uses for using it as a town asset. And so you know, whether we don't do anything or just do the mini park, I'd be okay with either one. POCK: Madam Mayor, just so I can add something in here, since we did go from the 100,000 to 0, to closer to 0 than 100,000; that basically just takes it off the table as far as a capital project. So that's fine. So if it's not going to be that amount, there's no reason for it to be in the capital project fund, if that helps. Okay. So then bridge repair, was this on there? Is it one? Yes? TOTH: Oh, I'm sorry. It was -- sorry. MAYOR DICKEY: I'm like looking over there. Sorry. TOTH: Sorry, Madam Mayor. I will drop the Sunridge thing, I promise. But just from that last comment I wanted to make sure that if we are going with the walking path idea, and planning on developing that land in any capacity, that that would still go back, even if it is a small amount. I don't want that to accidentally happen without us technically approving it, because it's a small amount of money. I'm not sure if that's even possible but I wanted to make sure I said it out loud. POCK: Sorry. MAYOR DICKEY: I understand what you mean, because then that last made it like, well, you know, since it's not going to cost anything, it doesn't have to be here. But I don't want to go forward with it. So I don't think I want it to come back in any capacity. You know, that's just me. POCK: I think I can make that one official. The nondirection direction to staff is understood. All right. Next one. Now, we're into the public works projects. So bridge repair. Any questions on that one? I think it was agreed upon. TOWN OF FOUNTAIN HILLS Page 43 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 43 of 62 Community center interior lighting upgrade, 200,000. I believe that's all from the CIP fund. Yes. Any questions about that one? All right. I'll stop clicking on one, so I don't have to keep going back and doing this because I know that's halfway annoying to you. It's definitely annoying. Community center renovations, phase two. Again, I don't remember there being much conversation about that one. Council chambers patio shade structure. I believe, I've heard this one before. MAYOR DICKEY: What did you say about (indiscernible)? TOTH: I did. And I'll reiterate that point. I think that spending frivolous money on town hall when all we've been talking about -- sorry, I'm not very close to the microphone here. Spending frivolous money on town hall, when all we've been talking about is saving money, is ridiculous. I am extremely strongly against this. MAYOR DICKEY: I think the item that made it something we wanted to do is security. But I see we have some shades there, which I appreciate that those are up there. Thank you. GRZYBOWSKI: Does it help our electric bill in any way? If not, then I'm cool with dumping it. MAYOR DICKEY: Councilmember? SKILLICORN: Get rid of it. POCK: All right. Everybody do this. Okay. All right. Deuce Court drainage improvements. I think this one was a clear decision. Downtown streetscape improvements. I know there was quite a bit of discussion about this during the CIP work session. Is this something that we want to talk about? I know there was discussion about scaling back the scope, changing the funding sources, doing something different. MCMAHON: Thank you. Amanda and I met and we walked the street with Justin and a couple of other people and we discussed this project. So maybe Amanda, at this time, not to imposition you or anything, maybe give a little bit of an update, please? JACOBS: Yeah. So Madam Mayor, Vice McMahon. So I wanted to be clear that staff did hear you, and you do not want the $635,000. If you could be a little bit more patient with myself. So as the Vice Mayor mentioned, she reached out to understand a little bit TOWN OF FOUNTAIN HILLS Page 44 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 44 of 62 more and were meeting internally. So what we heard was could we cut it in half, instead of using the CIP streets fund, could it be the downtown fund? So we're evaluating all of that. So we could say we'll just do half of it, but I want to make sure that makes sense. If it doesn't make sense, I'm happy to remove the whole thing. But since there's some interest, again, just want to investigate that and so we'll have more information before the next meeting; which is May 2nd, I think. Yes. KALIVIANAKIS: Thank you, Ms. Mayor. I really like the idea of illumination. I did a lot of investigation and research in this, many hours' worth of work and I worked with Justin on that. From all the research I did is we can do illumination for an intersection for around 14 to 16,000, turnkey deal. I would like to -- if we're going to spend that kind of money, we can illuminate the whole town, not just one street. It wouldn't be the big poles with SRP digging in, it would be a solar project. But I think that all the strategic plans that I've read, and general plans calls for a vibrant downtown. And if we illuminated all the walkways and everything going into the downtown area, going into the parks, I think we would have a much different town. It would all be Dark Sky compliant lighting, but it would be lighted at night, and it would look like there's a city here and then maybe people would go out and have dinner and populate our restaurants and our businesses. I know it would be a real gamechanger for Fountain Hills to have illumination. But when the original Dark Sky plan came to fruition, it called for Dark Sky compliant intersection lighting. It's in the original plan. And so we agreed on the Dark Skies, but we forgot about the illumination. And so I talked to Betsy about that, and she says Brenda, it would be great to get the illumination. And I would like the illumination, but not at that cost. You know, if we could light up that street for you know, $16,000 times, one, two, three, four, five, six, you know, it would be a much cheaper project for maybe like $160,000. And we'll get the good lighting there and also all the feeders coming into downtown. That's the vision that I see, and I'll keep pursuing this as long as I need to, and I'll be around for a while, I hope; if the people want me here. But I love the illumination idea. I just think this is the wrong project. Thank you. MAYOR DICKEY: Councilman? SKILLICORN: Madam Mayor, Director, the -- we have posted up here is fabulous. We TOWN OF FOUNTAIN HILLS Page 45 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 45 of 62 call can see it here. And I see that we're focusing on an area in red, but I also want to look at Avenue of the Fountains there, right? That we want the same vibrancy in Avenue of the Fountains in the area in red. And that's, I think, our goal. But I'm not -- I don't know exactly if the streetlights are going to do it. I mean, look at Avenue of the Fountains, what is the key thing there? Is that there's green spaces, open space, there's place that's visually attractive but also usable. And we don't have that in the other -- the section in the red there. And frankly, you know, the lights are only going to be really useful when it's dark out, right? And that's not the majority of the day. So will putting lights there, will it attract people there when it's dark? I don't know. That's what I'm struggling with. I would like the, you know, community events to kind of naturally progress into the area in red. I would like to see the visitors kind of go there. So maybe it's going to be a way finding signs, and maybe something to visually spice it up. You know, like some sort of project to make that area more attractive looking. But I don't know if it's exactly lights, and I also don't know about the cost. So I mean, maybe this isn't the way to -- we all want this vision, but I'm not sure if this is the way to do it or not. JACOBS: And Mayor Dickey, if I can, and Councilmember Skillicorn, I know there was not a question there and I don't usually respond. But just to give you guys an update. I will be reaching out to you to see if you guys will be open to having some one-on-one meetings with myself, as well as some of our business owners who also happen to be residents. So some of the things that Councilmember Skillicorn are talking about, we actually just had a meeting. It's only our fourth official meeting with TAMA, so The Avenue Merchant Association, and they have a great vision. And so sometimes it helps, I don't know about you guys, but I'm a visual person, to see a little bit more. We're seeing red lines but they have come up with some fabulous ideas. We don't know the numbers. But again, to just give time of, okay. Again, we hear 600,000 is too costly, but what could that look like. MAYOR DICKEY: Councilman? FRIEDEL: I think we should leave it on. Let Amanda do some investigation. Check out the solar thing. My only issue with solar is how reliable is it and how long will it last. But I like the idea if we can significantly cut costs. Allan, I like your idea too about TOWN OF FOUNTAIN HILLS Page 46 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 46 of 62 something more attractive down that median too. It's a pretty wide road, so maybe there's something that we can do in the future about that, to make it more attractive. But I think giving you the opportunity to research that a little bit more, leave it on here. We know we're not going to spend the 600,000 on that. So let's look at some alternatives. Bring something back to us and we'll digest it. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I know I said this last meeting and I'm going to broken record myself and not apologize about it. It is our downtown. We consider it downtown. Everybody thinks of it as downtown. So we need to treat it like downtown and it should be lit. when you go into a city and you want to go -- you're walking to dinner, you get to a dark alley. What do you do? You call it a dark alley and you're not going to take that alley to the restaurant because it's dark, because you can't see anything. That is exactly how our visitors feel when they come into town, and they want to find a restaurant. They only go to the Avenue restaurants because of the lighting. It wasn't too long ago, I did an evening walk after an event and yeah, it's kind of a shock. You're on the street with a light and then all of a sudden, you're on the street without the light. But because I live here, I know I'm safe and I can walk down that street and I can go to Tap House or I can go wherever it was I was going that night. So I feel like, again, we're treating them like they're not as wanted as the rest of the downtown area. So we need to be welcoming. If we have the -- if you build it, they will come. If we have the lights, maybe people will actually walk down the street and participate in the events that happen or the restaurants that are on the other streets. Thank you. MAYOR DICKEY: Councilwoman? TOTH: I agree with Councilmember Grzybowski on that one. I've lived in this town my whole life. Park View has looked the same, my whole life pretty much. I would completely agree with Councilman Skillicorn and would love to explore more opportunities to beautify the street. However, I think this project is a great start and I'm really looking forward to what you can find for it. MAYOR DICKEY: Thanks. These aren't the posters. These are streetlights and it's a lot of money and I know what you said, "if you build it, they will come". But I mean, when you drive there -- I mean, there's not a lot of places that are destinations to walk to. So TOWN OF FOUNTAIN HILLS Page 47 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 47 of 62 what comes first? I think that the idea of decorating or some kind of fencing, or you know, it's how a poster or a sign can create a feeling. Like, you know, you're in San Diego and it's like the Italian area and they got this green, red, and white flag and you're like, you know. So that kind of ambience I get. I really -- part of it is obviously, the money but I see -- and we'll get into this, but we took the restrooms out. They're not here anymore on the list for Avenue of the Fountains. I think the Avenue of the Fountains still needs more work and I would never want to spend money on these lights without getting the restrooms for Avenue of the Fountains and/or the pet relief for that matter too. And again, maybe you saw a letter to the editor that had talked about the connectivity and how important the connectivity is from Avenue of the Fountains to the park. And you know, I think it said a tunnel, but it was mostly talking about how important that was to make that safer and to make that -- finish that up. Finish Avenue of the Fountains up. So I'm not against -- and you're right, it is defined as the downtown area, the whole thing is. But it's not there yet for walking and strolling. And like Allen said, it's only at night. This is just -- I don't know whether there's any ramifications to keeping this in with the 632, but I just think that doesn't -- I don't want to do that at all, but -- yes, ma'am, I see you're bustling around there. JACOBS: Madam Mayor, so we're kind of looking, consulting. The restroom should be in here, but I guess it's maybe not. Standby. MAYOR DICKEY: Well, we wanted it, right? SKILLICORN: I don't know where. JACOBS: Yeah. There was a clear consensus. And really, like when we're asking, we just want to make sure you support it. The location comes later. And so we thought that maybe that was actually unanimous to have the restrooms. MAYOR DICKEY: Yeah. And the language, I mean. Sorry. What you showed us was like those kind of pod things. But if you're talking $632,000 we could probably put real restrooms there. So I just think we have to kind of balance some of this stuff. So if leaving this in, means we have that much still in the capital improvement fund to use for that whole downtown area, then I'm okay with that. But I'm really against just regular light poles on these streets and thinking that that's going to be this ambience feeling. I think there's other things we can do to make that nice and inviting. TOWN OF FOUNTAIN HILLS Page 48 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 48 of 62 JACOBS: Yes, ma'am. MAYOR DICKEY: Allan? SKILLICORN: And Madam Mayor, I do kind of want to echo some of your comments on that. But not that I think that I'm thinking a no on this. But something scaled down or -- but still more work to be put into it. You know, I do remember, you know, other towns doing a culinary district or a restaurant district or something. And that could fit -- I don't know if you want to call culinary the establishments that are there. But you know we could brand it -- I've never been a huge fan of those banners, but they do have a point, right? And you go, hey, where is the restaurant district, right? If you're visiting Avenue of the Fountains, where is the restaurant district? Oh, look at the -- you know, there's branding on the light poles, or something like that. That's where we get something like that. So maybe a little more work, a little more creativity to this. I don't think this is ready to throw into the budget, especially for $600,000 but I still think that there is a vision here that we need to develop, and we need to do something with this area. And it will be productive, and it will build the downtown that we've always wanted, and it doesn't take away -- it doesn't make the rest of the town hustle and bustle, but it allows our businesses to succeed. You know, maybe the restaurants will stay open later because they'll have more patrons. Gives people more things to do but also gives people a reason to come to Fountain Hills and spend money and fund our government. JACOBS: Thank you. POCK: Okay. So hope everybody else got that. I was tracking down restrooms. Except for -- yeah. Anyway. So let's go onto the next. So Fountain Hills Boulevard and Palisades Boulevard intersection improvements. Okay. Moving on. Golden Eagle impoundment area. This project's actually been on the capital projects list for a while. It's kind of gone back and forth as far as design. But I think it should be included. Grande Vista, again, this kind of goes along with the Deuce Court. I think we're good with that one. Low-flow roadway drainage crossing improvement. If I remember correctly, this was grant funded as well, wasn't it? Is this McFlood (ph.). We like spending other peoples' money for sure. So let it stay in? Okay. TOWN OF FOUNTAIN HILLS Page 49 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 49 of 62 MCSO locker room renovation. Should I have the deputy step up to the podium? TOTH: Yeah. Because I'd like to question -- POCK: You know more about it than I do. TOTH: I'm kidding. I just -- I do have the question of whether or not this one could wait. 125,000 for a locker room renovation. Justin, on a scale of one to ten, how necessary is this to happen this year? WELDY: Madam Mayor, Councilmember, I would say it's a little bit above a six. TOTH: Okay. WELDY: They're pretty beat up and I don't want to say that in a term that's derogatory. But it's one of the items that has been delayed and/or deferred, which is a common theme in a smaller community with limited funding. Think streets and other infrastructure. So some of that stuff, because very, very few people see it, it's simply been put off and we've been trying to repair it. Can we put it off? Absolutely, we can defer it. But at some point in time, it's going to become much more expensive. TOTH: Okay. That' answers my questions. Thank you. WELDY: You're welcome. POCK: All right. Next project would be Palisades and La Montana intersection. Any questions? Good. Okay. Palisades Boulevard and Eagle Ridge Palomino Drive traffic signal. This is an awfully low dollar amount. That might not be -- MAYOR DICKEY: Councilmember -- POCK: -- is that the part of the study or design? WELDY: Design. POCK: This is the last part. What's -- WELDY: This is the remaining ten percent. POCK: We spent 300 so far? TOTH: And that's the design itself. So we've already paid about -- GRZYBOWSKI: $300,00. TOTH: Yeah. That's where I was going. Okay. At that point, you might as well finish the design, I guess. But I'm against the project, for the record. KALIVIANAKIS: Yeah, just -- thank you, Ms. Mayor. TOWN OF FOUNTAIN HILLS Page 50 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 50 of 62 Yeah. Just I concur with Hannah. You know last time I wasn't even okay with $34,000 because I'm so against the project. You know, I guess, I'll lighten my tone a little bit tonight and as long as we can finish the study and pull it out maybe in five or ten years, then I'd be okay with finishing it. But if they're going to come at us five years later and say well, traffic has changed and we have to do a whole new study, then why even waste the $34,000? That's kind of around that. MAYOR DICKEY: I think just on (indiscernible)? KALIVIANAKIS: Yeah. WELDY: Madam Mayor, if I may? So this is not a study. The intersection analysis was completed a couple of years ago. This is the design. So we're at 90 percent. The reason we couldn't make it last year is because of the emergency vehicle preemption devices. Imagine, if you would, the fire department, as they're approaching a traffic signal send a little strobe to that signal and depending on the agency -- in our case we give them a green. That allows them to safely traverse that intersection. At this particular location, it's at the very top of a hill, at an angle. So we had to put in an advanced one and it took a considerable amount of time to find something that would function safely in that intersection. In result of that, the project design was delayed just slightly. So we're at 90 percent. There's just a little bit of work remaining. Once we have a 100 percent design, we have paid for those plans. As a reminder -- and it's been a while since we have discussed this. In fact, it was with the previous council, this intersection has already met the vehicle volume and crash data warrants for a traffic signal to be built. So that was part of the intersection analysis that told us that. And also, as a reminder, the town has already collected funding from two different developers in that area to pay for a traffic signal to eventually be built there. The last bit of that gap of funding is in the event that the resort moves to their next phase and builds that. KALIVIANAKIS: Thank you for that. And just to finish, I guess, my thought and just to get a resolution. If we do finish the design and if this is put off for five years, then this design would be usable five years from now? WELDY: Yes, for the majority. The only thing that would have really changed is the technology in the controller cabinet and those specifications might need to be slightly TOWN OF FOUNTAIN HILLS Page 51 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 51 of 62 modified, depending on what technology has available at that time. KALIVIANAKIS: So we wouldn't have to do a new design? j WELDY: No. KALIVIANAKIS: Okay. Thank you . WELDY: You're welcome. POCK: All right. Then the next project, Panorama Drive spring pump electrical upgrade. I had no comments from the last. So moving on. Replacement of chiller number three compressors. I thought these were going to be done in front? WELDY: Question mark. POCK: Okay. Sorry. I had my own question. Do you have any questions about this one? It's possible that this could be taken care of in our facilities replacement or reserve fund. So that might disappear, just from staff standpoint, before you see it. Saguaro and Kingstree intersection drainage. I don't believe this one had any comments. Oops. Sorry. All right. Shea Boulevard muti-modal path. TOTH: Yeah. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Mayor. This project scares me so much because of year two and how much money we're down for that. Even with the grant, I think that took care of over half of it; is that correct, Justin? Well over half? I want to like it. I really do. I just -- that's such a big number. And we got to find that 400,000 for the staff. So I don't know about -- with this grant, Justin, would we be messing -- sorry to bring you up here again. Would we be messing anything up by waiting till next year to start this project? WELDY: Madam Mayor, Councilmember, so what we have done to date is submit the application. We've not yet received notification as to whether or not we have met the shortlist on that. TOTH: Okay. WELDY: The answer is it's not going to hurt us to wait until the next budget cycle. This is a placeholder for next year. We'll likely be notified within the next few months as to whether or not we've been selected. And ideally, when seeking those types of grants, TOWN OF FOUNTAIN HILLS Page 52 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 52 of 62 what they're looking for is a commitment from the elected body to support and provide the small percentage of the funding necessary to accomplish that. So if there's a commitment to move forward, the funding isn't necessarily needed to be available right away. TOTH: Okay. All right. That -- I think that answers my questions on that. So once you know, it will come back to us, right? WELDY: Absolutely. TOTH: Okay. WELDY: This is huge investment. TOTH: Yeah. WELDY: And it requires a lot of cooperation between the City of Scottsdale and the Town of Fountain Hills, and it's a -- for lack of a better description, multiyear process. TOTH: Okay. WELDY: Which is now in year -- I don't know, 12? TOTH: Okay. I feel better. Thank you, Justin. POCK: So if I -- MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Yeah. Thank you, Ms. Mayor. I'm kind of with Hannah on this one too. I don't know if this will really be used much. I talked about this with Rachael. I've looked -- I go through that every day. I go to Scottsdale a lot and I know the sidewalks that they have that started at, I don't know, 124th and go towards Fountain Hills. I very rarely see anybody on them. Maybe if that connection was made then more people would use that sidewalk. Because maybe that one is indeed a sidewalk to nowhere. But it just seems like a lot of money, again, when we're trying to save money. And then the total cost of the project -- I know a lot of this is going to come from elsewhere, but not the residents of Fountain Hills, on the taxpayer to the State of Arizona, the United States government. And so when I see this kind of money being thrown at a kind of a wasteful project, my reaction is, why are we spending millions and millions of dollars on something that's not going to be used? Because I do pay taxes, not just to Fountain Hills. So you know, if we could put this off and like think about it for a year, I would be all for that. TOWN OF FOUNTAIN HILLS Page 53 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 53 of 62 MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I'm pro paths. I don't know what else to say. I'm a road biker. I used to live on Shea right there and how many people walked through what you feel like is your backyard, but it's not really your backyard, and you know it. But it's -- there's quite a few people that walk that to go to Fry's and come back. And I know a ton of bicyclers that would love it. So I feel like we are doing an injustice by not having -- allowing this. I feel like we need to. MCMAHON: I live at Eagle Mountain and I know there's a lot of people that walk this. It's pretty dangerous, especially if you're trying to walk on top of the hill. There's a lot of cyclists, like Sharron said, that they would really, really appreciate it. The people, including myself, at times, and -- drive up to 60 miles an hour coming up that hill and it's really dangerous for the cyclist. And to have that continuity and to have, you know, the neighborhood just beyond -- right where Scottsdale is, et cetera, I think it would be a very, very good connection. Because there's a sidewalk already there and it just stops. And I understand and I'm hoping that Scottsdale will participate in this, because after all it is on, you know, the county line or the city line's right there. So if we can either keep it in place here, and look into it further, I would appreciate that. POCK: Okay. As far as what I heard is, either way we're still waiting on an answer to see if we made the cut. If it stays here, that's fine. If we take it out and bring it back, mid- year, it should be pretty good, I think. Oh, I'm losing my audience. Okay. See if this works better. Shea Boulevard widening Palisades to -- technology, again. This has been a CIP project for quite a while. I don't remember there being any discussion about it. It's part of the MAG projects. All right. And then sidewalk gap infill; this is, again, is another large grant -- mostly grant project, so we should be good. Sidewalk infill and design, $300,000. Any questions about that? Again, ongoing project. Okay. Back to town hall. So building entrance column repairs. Was this one that we wanted to talk about? MAYOR DICKEY: Councilwoman. POCK: Okay. TOWN OF FOUNTAIN HILLS Page 54 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 54 of 62 TOTH: I think this was the last one my list, besides the one I changed my mind about. The column repairs, I don't know. I took a good long look at them last week and they looked pretty sturdy to me. I just don't think I can justify spending that amount of money on those repairs right now, as cute as the little girl in the photo really is. I love her. MAYOR DICKEY: Vice Mayor. MCMAHON: Justin, isn't this a safety issue? I think that the last time you explained this to us, it really had to do not so much with cosmetic but basically, safety issue? WELDY: Madam Mayor, Vice Mayor, you -- we are facing a challenge. The challenge is is that the adhesive that holds on those 200-pound tablets is failing. We have been reapplying a different adhesive and pulling them back together. The recommendation to replace them with a different type of material was primarily a recommendation from the previous town manager. And so we brought it forward based on direction given to us at that time. As they fall off, to date, no one's been injured. We glue them back on, and will continue to do so. I had a proposal that wasn't well received in regards to this, which didn't involve very expensive stone, but rather what we refer to as an EIFS, that is the finished texture that's not block on this building and the exterior of the community center. It's a high-end, long-term stucco. For lack of a better description. Not well received because it -- in others' opinions it did not go with the original architecture or the vision plan of town hall. FRIEDEL: Can we look at bringing that back so we can get a look at it? Is that something we can consider doing? What's the cost difference? WELDY: Madam Mayor, Councilmember, I do not have that with me tonight, but we certainly had it in some of our proposals. So we can certainly bring it back. FRIEDEL: I'd be interested to see what other options we have, that would be safer and less costly, and look just as well. WELDY: Just for the record, and I want to be really clear. This is not structural. This is cosmetics. The structural component of these columns that hold that up are sound and in good condition. MAYOR DICKEY: Thank you. FRIEDEL: Then I think we need to look at some alternatives. TOWN OF FOUNTAIN HILLS Page 55 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 55 of 62 WELDY: Understood. FRIEDEL: Thank you. KALIVIANAKIS: Yeah. I'd like to second that, so to speak. Yeah, when we bring this back next month, if that could be one of the options that we can look at. I'd really appreciate that. GRZYBOWSKI: But we want the same picture, please, because Hannah and I love it. TOTH: If you could just crop the little girl in the new picture, I'd really appreciate it. MAYOR DICKEY: Funny. POCK: Okay. Town hall campus exterior lighting and electrical upgrade. I was looking for this one on my list. I don't remember this being a problem. Okay. Town hall fire alarm, again, panel. Town-wide stormwater infrastructure rehabilitation, multiyear. We've had water this year so it's good. All right. Last two. You might only see one on the screen, but there's actually two. It's written there in white text. It's just hidden. But first, before we get to that one. Way finding signs? MAYOR DICKEY: Yeah, go ahead. WELDY: Okay. So the magic pen says Avenue of the Fountains restrooms. MAYOR DICKEY: Oh, yeah. WELDY: So yeah. It was on my list. For some reason it didn't get pulled into this list. My apologies. I did have it down for 185,000. There was some discussion about location. Do we want to bring that forward? MAYOR DICKEY: Yes. POCK: In a couple of weeks? Okay. Perfect. Done. KALIVIANAKIS: Can I just ask? What's the funding source for that project? POCK: I think CIP would be the logical place for me. KALIVIANAKIS: What about the downtown fund? POCK: Could be done. KALIVIANAKIS: Okay. POCK: Especially, depending on -- I know we had some other projects that we just talked about that wouldn't be using the $635,000, the total amount. So yeah, that would be possible. TOWN OF FOUNTAIN HILLS Page 56 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 56 of 62 KALIVIANAKIS: That would be great. POCK: Okay. So that takes care of the capital projects fund. We're about a quarter of the way there. Just kidding. This would be a good time for a break. If we needed a quick break. MAYOR DICKEY: Oh, yeah. Sure. POCK: So now, I mean, it's going to go faster. Okay. MAYOR DICKEY: Let's take a moment. (Recess was taken.) GRZYBOWSKI: We're back. POCK: All right. So these final -- these aren't typically funds that we talk about in the budget process or have in the past. We usually cover the three major funds, and just kind of leave these to any discussion. So these should go fairly fast. This first one is a little bit of a discussion, the environmental fund. As you can see fiscal year '22 and our current fiscal year '23, there isn't any revenue into this fund, currently. GRZYBOWSKI: I'm sorry. I'm under obligation to remind us that we used to have an environmental fee until whatever report was filed with our Attorney General and we've not heard back on it. So we've been unable to collect that about $560,000 a year, since 2019. MAYOR DICKEY: I think so. GRZYBOWSKI: I'll say 2019-ish. MAYOR DICKEY: Thank you. POCK: Perfect. So yes, we've been transferring money into this fund each year from the general fund. Last two years, 500,000. Since fiscal year '16, is when I believe the fund was actually started, we were just -- the general fund would contribute about 200,00 a year in addition to those fees that were collected. There is still activity as you can see being paid for out of this fund. If it's -- if I don't get a tomato thrown at me in the next five seconds, I'll suggest we transfer another 500,000 for next year just so that we can continue with those expenditures. GRZYBOWSKI: Is (indiscernible) those. POCK: Shucks. GRZYBOWSKI: I said (indiscernible). TOWN OF FOUNTAIN HILLS Page 57 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 57 of 62 POCK: Make a note for next year. All right. Any questions as far as the expenditures that come out of this fund. It's pretty self- explanatory. Looks an awful lot like maintenance and repair, right? MAYOR DICKEY: Yeah. POCK: So then economic development. This one did have a change. After a couple of discussions with councilmembers, there was a large increase in the contractual services for the economic development fund. So we've got a couple of things going on here. There -- as far as this fund goes, there was a $75,000 increase in contractual services. That had been a supplement in the past that had been a recommendation. However, it came off of recommendations. So it came off of our supplement list. It didn't come out of this line item. So my apologies. That's on me. It's correct now online, so you'll see that. So when we get to this next slide, contractual services will be much, much smaller. We can just pull it up just to be -- there you can see. I think there was an increase after that was taken out, maybe of 2 or $3,000. It is working well, and so is the mouse. Thanks. Yes, so you can see here contractual services. Oh, it actually went up $10,000. But it looks like it was kind of still moving around and then there was marketing that was added. That was kind of a discussion and if I get this wrong, you can throw something at me. But yeah, we did have originally -- in prior years we did have marketing within the economic development and somehow it got removed or transferred to tourism, I think. I don't know, I can't remember exactly. So this is just kind of replacing it from historic. Any questions there? Okay. Speaking of tourism. So there are actually three funds that the economic development director rules over, reigns over. And that is economic development, the one we just looked at, tourism, and the downtown strategy fund. So these are kind of going to go in order, hopefully, if I did my job right. So the overall you can see for the past few years. Tourism is also another fund that does have an annual transfer into tourism. It is from the economic development fund to pay for the salaries that are paid out of tourism. So there's a reason why we have this as a separate fund because we do have specific income that we receive. Our additional bed tax for TPT, we're required to spend a certain amount of that on tourism. So that keeps TOWN OF FOUNTAIN HILLS Page 58 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 58 of 62 this segregated so that we can report back, so that we're meeting those commitments. KALIVIANAKIS: Excuse me. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Ms. Mayor, thank you. Is that that the three percent bed tax? POCK: Four percent. KALIVIANAKIS: Is that four percent? POCK: Correct. KALIVIANAKIS: Okay. Thank you. POCK: Uh-huh. So as far as short-term rentals, hotels, motels, they pay 2.9 percent, the regular sales tax, plus an additional 4 percent on those stays. You can see the revenues. And then the expenditures. Again, it's one of those funds where we do budget more. You can see that the actual for the last three years is actually quite a bit less. A lot of that's due to grants that we receive into this fund. So we put in a little extra budget, if we do receive those grants. Any questions on tourism? Nothing exciting. Okay. So then the last of the three, downtown strategy. It's come up in some of the CIP projects. Those, again, you won't see in those numbers just because it would be a transfer from this fund to CIP. Any questions on downtown strategy? There's not a lot of ongoing expenditures. Probably the biggest is the holiday lighting gets paid out of downtown strategy. All right. Revenues, expenditures. Fiscal year '21 just in case anybody's, what's that all about? It's our roundabout. Downtown fund actually transferred money for that project. All right. And then we've got a list of all the other little funds. Not necessarily little, but least impactful. Public art fund, court enhancement fund, Cottonwoods maintenance district. We'll start in May at the tentative budget. We have special meetings just for Cottonwoods and for Eagle Mountain. They're on special taxing districts. So those meetings last all of five minutes and it's pretty straightforward. Development fees. So all three of the development fees we have; streets, parks and rec, and fire. Internal service funds, that's our vehicle replacement fund, facilities, reserve, and our IT fund. Any questions about those. Those are all funded through charges to individual departments. TOWN OF FOUNTAIN HILLS Page 59 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 59 of 62 And the most boring funds we have, debt service funds, because nothing happens there. All right. That's that. Congratulations. MAYOR DICKEY: Thank you. POCK: Okay. MAYOR DICKEY: I know that so much went into creating that. So we really appreciate your work. Councilman? SKILLICORN: Thank you, Madam Mayor. One last question. I got a message from a constituent about what happened to investment income? Has there been a change that -- or should I research this a little bit and get back to you? j POCK: No, if everybody wants to see investment income, it's actually in other revenues, under funding sources. So -- GRZYBOWSKI: So just to make it clear for our thousands of fans that are still tuned in, you're actually on the town website/budget and that's how you get to all this -- POCK: Correct. GRZYBOWSKI: -- fun stuff. POCK: That's right. So we do have investments. We do have a lot of unrealized losses right now. As you can imagine. As those bonds mature, obviously, we're going to get that back. So I mean, as long as the bond market stays around, and we should be all right. Let me get down. It's the very end. So you'll start seeing investment earnings at the very bottom of each fund. So -- sorry, I'm not talking into the mic and I'm going to get murdered. So we have $20,000 for general fund for investment earnings projections. It's really a guess as far as what these are going to be. Since there's really no way to trend or forecast these. So they are budgeted in there but it's minimal amounts for next year. SKILLICORN: So this is just, like $1, 200, $600 for each one. It's just an assumption? POCK: Right. SKILLICORN: And it's a conservative assumption? POCK: Right. And it's -- you know, I do take into account what we usually have in those fund balances, because obviously, the more -- or the larger fund balance we have the more allocation of interest or investment interest it gets. So like streets, general fund, capital projects funds, last couple of years with the facilities reserve, has a little larger numbers. TOWN OF FOUNTAIN HILLS Page 60 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 60 of 62 SKILLICORN: And as I recall, we have transferred quite a bit of money into the, like, special investment -- you know? POCK: Right. SKILLICORN: And we'll be pulling it back out. So I almost think like, you know, the income from this is small but higher than normal I would think because of the amount of money we have. POCK: True. So our two main investment accounts, one is the treasurer's office, right? The local government investment pool, pool 7, is a short term, highly liquid investment pool. Because it is typically shorter term, easily redeemable, it typically has a smaller earnings on it. Those short-term investments though, lately have been doing pretty well compared to long-term stuff. Right. So there is that component. LGIP Pool 7 is doing fairly well. PFM takes care of our other longer term asset. Usually, those maturities go up to just three years; it's the longest. We try to keep it along that benchmark. We did put the $4.2 million -- the first 4.2 million that we received into that fund because that fund does stay in the PFM arena. When we pulled that out -- and I say pull it out, it's going to be a reallocation, the other funds are going -- cash from other funds will be recorded into facilities reserve, so that we can take the facilities reserve out of LGIP and put it into streets. So that's how that's going to -- that's how it's planned. So we won't reduce our balance at PFM. Just so that we can keep that allocation going. It's just going to be different funds. SKILLICORN: Thank you. ; POCK: Yeah. TOTH: Thank you, Madam Mayor. And I'd like to thank Councilmember Skillicorn because he's -- well, I guess, your constituent reminded me that I have a question about investment earnings. The downtown strategy fund revenues, I see no blue lines for '23 or '24. Are we no longer investing in that fund or is that just from your -- what you were just discussing for each fund of whether or we'll have revenues? POCK: So revenues into the downtown fund? TOTH: So the downtown strategy fund revenues in 2020, I see a pretty significant amount of investment earnings. 2021, not quite a big but it's there. And '22, same thing. It's there. But I don't see that in '23 or '24, and I was wondering if we are still investing TOWN OF FOUNTAIN HILLS Page 61 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 61 of 62 money from that fund or -- POCK: Okay. So all of our cash is invested somewhere except for the small amount that we keep at Chase Bank to clear bills. The downtown -- and correct if I'm wrong. But in fiscal year '20 we did have quite a bit of balance in downtown fund and that's why that was used to pay for portion of the roundabout. So since it would have had a higher balance at that point, it would have had higher earnings, plus the market was pretty good for the first part of fiscal year '20. So yeah. So everything -- to answer your question. Everything is invested. All of our fund balance is invested somewhere, just depending on what the fund balance is at the end of the month, how much interest allocation it gets. TOTH: Got it. Okay. Thank you. POCK: That help? TOTH: Yes. POCK: It's probably true for the other -- I can't remember what other fund you asked about. Was it tourism, or -- TOTH: That was it. I think I just said it wrong the first time. POCK: I will say, as far as this graph that's on the screen right now, that fiscal year '22 we don't have negative earnings, as far as I know from fiscal year '22. It's most likely just a software. They have a funny debit/credit thing that accountants like to do. The program's probably just reading that wrong. So sorry. Who wants to go into accounting class. We can talk about debits and credits if you'd like. All right. Any other questions? MAYOR DICKEY: All right. I guess we're okay. What's our next steps then, Rachael? GOODWIN: Well, our next step is, we have quite a bit of direction from this evening. So we will apply that. We will make the adjustments as recommended. I know there's a few other working things that you may see on the 5th, that we may want to bring back from lastminute discussions, as I'll say. Because there are a few other outstanding conversations popping up. I'll use, for instance, Amanda and she's going to be doing some work to bring back an idea regarding the downtown development. We have some other follow-up to do whether we're going to get a grant or where we're at with that process. So we'll bring back a number of updates. We'll bring back the max, our maximum budget number for adoption on May 2nd. Again, we can come down from TOWN OF FOUNTAIN HILLS Page 62 of 62 APRIL 11, 2023 WORK SESSION – BUDGET WORKSHOP Page 62 of 62 that, it's still open for discussion, it's not locked it. We just can't go above that number after that point. And then we'll do the formal budget adoption in June. The first meeting in June? POCK: Correct. GOODWIN: So there's still some movement available. So if there's still projects that we need to get some detail on or some other follow-up, there's still ability to do that. MAYOR DICKEY: Great. Any other questions or comments? Thank you, everyone, so much. We're adjourned. Having no further business, Mayor Ginny Dickey adjourned the Work Session - Budget Workshop of the Fountain Hills Town Council held on April 11, 2023, at 7:33 p.m. TOWN OF FOUNTAIN HILLS _______________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Work Session - Budget Workshop held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 11th day of April 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 16th Day of May 2023. _____________________________ Linda G. Mendenhall, Town Clerk ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-17, abandoning the 10' Public Utility and Drainage Easement along the south side of 15509 E El Lago Boulevard (Application A23-000007) Staff Summary (Background) This is a proposal to abandon the pre-incorporation 10' Public Utility and Drainage Easement along the southern property line of Plat 602D, Block 2, Lot 15 (15509 E El Lago Boulevard).  Kent Stalcup and Linda Ricchiuti, the owners of the property, are planning to install a masonry wall which will encroach into the existing easement.  Staff have reviewed the site to determine the potential on-site drainage issues in addition to the Town's general interest in the easement.  There is no need for the Town to retain the drainage easement proposed to be abandoned, with the understanding that the owner of the lot is required to pass the developed flows generated by the upstream lots across their property.  All public utilities have approved the abandonment of this easement. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2023-17. SUGGESTED MOTION MOVE to adopt Resolution 2023-17.   Attachments Vicinity Map  Aerial Photo Map  Res 2023-17  Exhibit A: Survey  Form Review Inbox Reviewed By Date Development Services Director John Wesley 05/02/2023 02:06 PM Town Attorney Aaron D. Arnson 05/03/2023 04:09 PM Interim Town Manager Rachael Goodwin 05/08/2023 08:02 AM Form Started By: David Janover Started On: 04/19/2023 11:07 AM Final Approval Date: 05/08/2023  BEELIN E H W Y SHEA BLVD PAL I S A D E S B L V D SAGUARO BLVD SAG U A R O B L V D PALIS A D E S B L V D PALISA D E S B L V D SA G U A R O B L V D FO U N T A I N H I L L S B L V D McDOWELL M O U N T A I N R D FO U N T A I N H I L L S B L V D SUNR I D G E D R EL L A G O B L V D AVEN U E O F T H E FOUN T A I N S PA N O R A M A D R FI R E R O C K C O U N T R Y CL U B D R CR E S T V I E W D R SIERRA M A D R E GRANDE BL V D G O L D E N E A G L E B L V D E A G L E R I D G E D R E A G L E R I D G E D R VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is Ar i z o n a F O U N TAIN HI L L S T OWN OF INC. 1989 TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FO R T M c D O W E L L Y A V A P A I N A T I O N SALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 15509 E El Lago Blvd A23-000007 DEVELOPMENT SERVICES All that is A r i z o n a F O U N T AIN HIL L S T OWN OF INC. 1989 ZONING: R1-10 LOT 15 LEGEND: PHOTO MAP 2022 AERIAL LOT 14 A23-000007 LOT 16 E EL LAGO BLVD PARCEL "A" ABANDON 10' P.U.E. & D.E. COLONY WASH RESOLUTION 2023-17 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE- INCORPORATION 10' PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE SOUTHERN PROPERTY LINE OF PLAT 602D, BLOCK 2, LOT 15 (15509 E EL LAGO BOULEVARD) FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 166 OF MAPS, PAGE 34 WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the governing body of real property located in the Town of Fountain Hills (the “Town”), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the certain public utility and drainage easement, located at the SOUTHERN property line of Plat 602D, Block 2, Lot 15 (15509 E El Lago Boulevard) Fountain Hills, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 166 of Maps, Page 34, and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference, is hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills May 16, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Town Attorney EXHIBIT "A" TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT LOT 15 A23-000007 ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Request to apply and take receipt of Prop 302 Grant Funding Staff Summary (Background) In order to market and promote the community, the Economic Development Department depends heavily upon grant funding from the Arizona Office of Tourism (Proposition 302), Fort McDowell Yavapai Nation, and the Salt River Pima-Maricopa Indian Community (Proposition 202). Staff is seeking approval to apply for Prop 302 Grant Funding from the Arizona Office of Tourism (AOT). The estimated statutory amount is $67,682 for FY2023/24. The Economic Development Department has undertaken significant marketing and advertising efforts to encourage visitors to come to the Town. Previous marketing efforts included advertisements in local publications (Phoenix Magazine, Wander AZ, ExperienceAZ) and in Canada (Canadian Snowbird Association Magazine), updates to the Experience Fountain Hills website, a new tourism video and offsetting the cost of the annual Visitors Guide that is distributed across the state of Arizona. Related Ordinance, Policy or Guiding Principle 2022 Town of Fountain Hills Strategic Plan Priorities: Targeted Collaborative Economic Development and Promote the Long-Term Financial Sustainability of Town Infrastructure, Environmental and Social Resources. Risk Analysis Grants provide funding to support economic development and tourism initiatives for the Town of Fountain Hills. Failure to receive funding will result in less funding available for marketing and promotion of the community, which may impact the number of visitors to Fountain Hills resulting in a loss of bed and sales tax revenue.  Recommendation(s) by Board(s) or Commission(s) N/A   Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to approve staff to apply, take receipt and make any necessary budget transfers of Prop 302 grant funding from the Arizona Office of Tourism to support the Town's economic development and tourism efforts. Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/01/2023 07:52 PM Finance Director David Pock 05/02/2023 02:14 PM Finance Director David Pock 05/02/2023 02:14 PM Town Attorney Aaron D. Arnson 05/03/2023 04:09 PM Interim Town Manager Rachael Goodwin 05/08/2023 08:04 AM Form Started By: Amanda Jacobs Started On: 05/01/2023 05:16 PM Final Approval Date: 05/08/2023  ITEM 8. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-18 approving the Second Amendment to the Intergovernmental Agreement with the Flood Control District of Maricopa County for the Golden Eagle Park Dam-Debris Mitigation Improvement Project. Staff Summary (Background) Golden Eagle Park lies in the flood impoundment area of Golden Eagle Park Dam. Previous flooding at the Park (particularly during storm events of Oct. 2, 2018 and of Sept. 23, 2019) have demonstrated the need for drainage improvements within the Park. J.E. Fuller prepared the "Golden Eagle Park Drainage Improvements Study, Technical Report" and presented its findings to the Town Council on 1-21-20 (Item 4.0 on that agenda). A contract with J.E. Fuller for the design of the recommended Phase 1 Drainage Improvements (primarily, accumulated sediment removal and grading enlarged drainage channels through the Park) was approved by the Town Council on 3-3-2020, and amended on 1-4-2022. Town staff submitted a proposal to the Flood Control District of Maricopa County under its Small Projects Assistance Program in Oct. 2019, for the portion of the drainage improvements project that will improve the protection of the dam and downstream residences, including:   Removal of accumulated sediment from the drainage channels near the dam. Removal of the inlet (Park side) steel access barrier at the Auxiliary Principal Outlet Structure (a 10' x 4' reinforced concrete box culvert through the dam). Removal of the drop inlet approach to that Structure. Regrading (lowering) the drainage channels near the dam (possible due to removal of the drop inlet approach). Placing debris catching features, such as bollards, upstream from the Outlet Structures. Constructing a sediment drop basin near the dam. FCDMC approved the Town's funding application in Oct. 2019.  On April 7, 2020, Town Council approved Resolution 2020-14, adopting an IGA, which provided the legal basis for the FCDMC's participation in the project work - FCDMC will fund 75% of the fundable project costs during a two-year period (estimated to total $121,000; FCDMC participation is estimated to be $90,750. The funding period was from July 1, 2020 to June 30, 2022. The IGA specifically excluded FCDMC funding for various work (including R/W acquisition, permitting, construction management, O&M, landscaping, aesthetic features, and utilities). The Town was responsible for all other project costs, and for the operation and maintenance of the project features after their completion.  During the project design phase, Town staff changes and scope modifications resulted in a schedule delay.  The Town requested additional time from the Flood Control District, to allow the Town to complete the project construction within the funding period.  The Flood Control District agreed to extend the construction funding period for 1 year, extending the deadline from June 30, 2022 to June 30, 2023.  On May 3, 2022, Council adopted Amendment One to the IGA which extended the deadline, and represented the only modification to the IGA. During the last year, the Arizona Department of Water Resources (ADWR) performed a review of the plans, and had extensive comments, which were addressed by the design consultant.  This review cycle extended longer than expected, and delayed the design completion.  The Town has received the 100% construction plans, but construction will not be complete by June 30, 2023.  The Flood Control District of Maricopa County has agreed to extend the construction deadline by an additional year, from June 30, 2023 to June 30, 2024, and Amendment Two to the IGA establishes this time extension. Related Ordinance, Policy or Guiding Principle Town of Fountain Hills Ordinance 16-02 amended Fountain Hills Town Code Chapter 14, which addresses flood damage prevention relating to floodplain management. Risk Analysis Not approving this IGA would result in the Town missing the deadline for construction completion, and the Town would then have to fund the FCDMD portion of the project costs for the "Golden Eagle Park Dam - Debris Mitigation Improvements", currently estimated to be $90,750, in addition to all of its other proposed costs for upgrading the drainage facilities at Golden Eagle Park. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2023-18. SUGGESTED MOTION MOVE to adopt Resolution 2023-18 and associated budget transfers.   Fiscal Impact Fiscal Impact:$30,250 Budget Reference: Funding Source:CIP If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments Attachments Res 2023-18  IGA - Amendment 2 - Golden Eagle Park Dam  Form Review Inbox Reviewed By Date Public Works Director Justin Weldy 04/20/2023 06:26 PM Finance Director David Pock 04/20/2023 06:38 PM Town Attorney Aaron D. Arnson 04/21/2023 08:52 AM Interim Town Manager Rachael Goodwin 05/08/2023 08:02 AM Form Started By: David Janover Started On: 04/20/2023 04:22 PM Final Approval Date: 05/08/2023  RESOLUTION NO. 2023-18 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, ADOPTING AMENDMENT TWO TO AN INTERGOVERNMENTAL AGREEMENT WITH THE FLOOD CONTROL DISTRICT OF MARICOPA COUNTY RELATING TO THE DESIGN, RIGHTS-OF- WAY, ACQUISITION, UTILITY RELOCATIONS, CONSTRUCTION, CONSTRUCTION MANAGEMENT AND OPERATION AND MAINTENANCE OF THE GOLDEN EAGLE PARK DAM-DEBRIS MITIGATION IMPROVEMENT RECITALS: WHEREAS, by Resolution 2020-014 the Mayor and Town Council of the Town of Fountain Hills (the “Town”) approved an Intergovernmental Agreement with the Flood Control District of Maricopa County (the “District”) relating to design, rights-of-way, acquisition, utility relocations, construction, construction management, and operations and maintenance of the Golden Eagle Park Dam – Debris Mitigation Project (the “Agreement”); and WHEREAS, by Resolution 2022-017 the Town approved Amendment One to the Intergovernmental Agreement extending the completion date; and WHEREAS, the Town and the District desire to amend the Agreement to further extend the completion date. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Town, through its Mayor and Council, hereby approves Amendment One to the Intergovernmental Agreement (the “Agreement”), attached hereto as Exhibit A. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of Amendment One to the Intergovernmental Agreement and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa County, Arizona, this 16th day of May, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: __________________________________ ____________________________________ Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: __________________________________ ____________________________________ Rachael Miller, Interim Town Manager Aaron D. Arnson, Town Attorney RESOLUTION NO. 2023-18 PAGE 2 EXHIBIT A AMENDMENT TWO TO THE INTERGOVERNMENTAL AGREEMENT IGA FCD 2020A010B PCN 699.21.31 PAGE 1 OF 5 AMENDMENT NO. 2 to Intergovernmental Agreement 2020A010 for the Design, Rights-of-Way Acquisition, Utility Relocations, Construction, Construction Management and Operation and Maintenance of the Golden Eagle Park Dam-Debris Mitigation Improvement Project between the Town of Fountain Hills and the Flood Control District of Maricopa County IGA FCD 2020A010B Agenda Item _________ This Amendment No. 2, also known as Intergovernmental Agreement (IGA) FCD2020A010B (AMENDMENT 2) IGA FCD 2020A010 is entered into by and between the Flood Control District of Maricopa County, a political subdivision of the State of Arizona, acting by and through its Board of Directors (the “DISTRICT”), and the Town of Fountain Hills, a municipal corporation, acting by and through its Mayor and Town Council, (the “TOWN”). The TOWN and the DISTRICT are collectively referred to as the PROJECT PARTNERS and as a PROJECT PARTNER. This AMENDMENT 2 shall become effective as of the date it has been executed by all PROJECT PARTNERS. STATUTORY AUTHORIZATION 1. The DISTRICT is empowered by Arizona Revised Statutes (A.R.S.) § 48-3603, as revised, to enter into this Agreement and has authorized the undersigned to execute this Agreement on behalf of the DISTRICT. 2. The TOWN is empowered by A.R.S. § 9-240(B), as amended, to enter into this Agreement and has authorized the undersigned to execute this Agreement on behalf of the TOWN. BACKGROUND 3. On October 19, 2022 the Board of Directors of the DISTRICT (the Board) adopted Resolution FCD 2022R003 (C-69-23-009-X-00) authorizing the DISTRICT to cost-share in projects recommended under the DISTRICT’s Small Project Assistance Program. 4. On July 22, 2020, the Board approved IGA FCD 2020A010 (C-69-21-000-X-00) authorizing the DISTRICT and the TOWN to cost-share in the Golden Eagle Park Dam-Debris Mitigation Improvement Project (PROJECT). IGA FCD 2020A010B PCN 699.21.31 PAGE 2 OF 5 5. On June 8, 2022, the Board approved IGA FCD 2020A010A (C-69-21-000-X-01) (AMENDMENT 1) to extend the completion date from June 30, 2022 to June 30, 2023. 6. Due to an additional delay in Project design, the TOWN has requested and the DISTRICT has agreed to extend the completion date from June 30, 2023 to June 30, 2024. PURPOSE OF THE AGREEMENT 7. The purpose of this Amendment is to extend the PROJECT construction and funding from June 30, 2023 to June 30, 2024. TERMS OF AMENDMENT 8. The PROJECT DESIGN AND CONSTRUCTION COST is estimated to be $121,000 but is subject to change without amendment to this Agreement. 9. The DISTRICT shall: 9.1 Fund seventy-five percent (75%) of the PROJECT DESIGN AND CONSTRUCTION COST incurred and invoiced between July 1, 2021 and June 30, 2024, with the funding from the DISTRICT limited to a maximum of $500,000 in accordance with the DISTRICT’s Small Project Assistance Program. The DISTRICT’s current estimated funding share is $90,750. 10. The TOWN shall: 10.1 Fund the full PROJECT DESIGN AND CONSTRUCTION COST not reimbursed by the DISTRICT, making the TOWN’s estimated PROJECT DESIGN AND CONSTRUCTION COST share $30,250; and TOWN will fully fund all PROJECT costs for any work completed and invoiced before July 1, 2021 or after June 30, 2024. 10.2 Invoice the DISTRICT as follows: 10.2.1 After the construction contractor has mobilized and then started construction activities, the TOWN may invoice the DISTRICT for one-half (1/2) of its share of the PROJECT DESIGN AND CONSTRUCTION COST. 10.2.2 Within thirty (30) days of completion of construction of the PROJECT, but no later than June 30, 2024, prepare a final accounting including change order costs not previously paid, and invoice the DISTRICT for the remainder of its share of the PROJECT DESIGN AND CONSTRUCTION COST incurred, if any, to date. 11. This Amendment shall expire either (a) one year from the date of execution by all PROJECT PARTNERS, or (b) upon both completion of the PROJECT and satisfaction of all funding obligations and reimbursements associated with this Agreement, whichever is the first to occur. However, by mutual written agreement of all PROJECT PARTNERS, this Agreement may be amended or terminated except as expressly stated in this Agreement. The operation and maintenance and indemnification provisions of this Agreement shall survive the expiration of this Agreement. IGA FCD 2020A010B PCN 699.21.31 PAGE 3 OF 5 11.1 Any contractor selected for the PROJECT pursuant to IGA 2020A010, AMENDMENT 1 or this AMENDMENT shall be required to: 11.2 Warrant its compliance with all federal immigration laws and regulations that relate to its employees and their compliance with A.R.S. § 23-214(A). 11.3 Warrant and certify that it does not currently, and agrees for the duration of the contract that it will not, use: The forced labor of ethnic Uyghurs in the People's Republic of China. Any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China Any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People's Republic of China. If the TOWN becomes aware during the term of the Agreement that any Contractor is not in compliance with this paragraph, the TOWN shall notify the DISTRICT within five business days after becoming aware of the noncompliance. Failure of TOWN to provide a written certification that the appropriate contractor has remedied the noncompliance within one hundred eighty (180) days after notifying the public entity of its noncompliance, this Agreement shall terminate unless the Term of this Agreement shall end prior to said one hundred eighty (180) day period. 12. On an annual basis, commencing on the first anniversary date of the completion and acceptance of the project, provide written notification to the DISTRICT that the project has been properly maintained by the Town of Fountain Hills over the past year in accordance with the project design intent and to ensure proper hydraulic function. 13. This AMENDMENT 2 governs where terms conflict with the original IGA FCD 2020A010, and the AMENDMENT 1. However, the original IGA FCD 2020A010 and the AMENDMENT 1 are applicable unless specifically changed by this AMENDMENT 2. The paragraph numbering in this AMENDMENT 2 is coincidental and is not intended to indicate that these same numbered paragraphs in the original IGA FCD 2020A010 or the AMENDMENT 1 are being replaced in their entirety. 14. Nothing in this AMENDMENT 2 (either express or implied) is intended to confer upon anyone other than the parties herein and their respective representatives, successors, and permitted assigns any rights or remedies under or because of this AMENDMENT, nor is anything in this AMENDMENT intended to relieve or discharge the liability of either party hereto. 15. Attached to this AMENDMENT 2 or contained herein are the written determinations by the appropriate attorneys for the PROJECT PARTNERS, that these agencies are authorized under the laws of the State of Arizona to enter into this Agreement and that it is in proper form. 16. If legislation is enacted after the effective date of this AMENDMENT 2 that changes the relationship or structure of one or more PROJECT PARTNERS, the PROJECT PARTNERS agree that this AMENDMENT 2 shall be renegotiated at the written request of either PROJECT PARTNER. IGA FCD 2020A010B PCN 699.21.31 PAGE 4 OF 5 FLOOD CONTROL DISTRICT OF MARICOPA COUNTY A Political Subdivision of the State of Arizona Recommended by: Michael A. Fulton Date Director Approved and Accepted: By: Chairman, Board of Directors Date Attest: By: Clerk of the Board Date The foregoing Amendment No. 2 FCD 2020A010B has been reviewed pursuant to A.R.S. Section 11-952, as amended, by the undersigned General Counsel, who has determined that it is in proper form and within the powers and authority granted to the Flood Control District of Maricopa County under the laws of the State of Arizona. General Counsel Date IGA FCD 2020A010B PCN 699.21.31 PAGE 5 OF 5 TOWN OF FOUNTAIN HILLS A Municipal Corporation Approved and Accepted By: Town Mayor Date Attest: By: Town Clerk Date The foregoing Amendment No. 2 FCD 2020A010B has been reviewed pursuant to A.R.S. Section 11-952, as amended, by the undersigned General Counsel, who has determined that it is in proper form and within the powers and authority granted to the Flood Control District of Maricopa County under the laws of the State of Arizona. Town Attorney Date ITEM 9. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  HOLD A PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-07 declaring the document "Site Plan Review Ordinance" as a public document and Ordinance 23-06 repealing and replacing Zoning Ordinance Section 2.04, Site Plan Review Regulations. Staff Summary (Background) Staff is conducting a complete update to Chapter 2, Procedures, of the Zoning Ordinance.  This update is being done one section at a time.  Staff started with, and Council has approved, an update to Section 2.02, Special Use Permits.  Staff is now updating Section 2.04, Site Plan Review Regulations. This report reviews the changes staff has identified to improve the functioning and usability of this section of the Zoning Ordinance.  These staff identified changes have been reviewed by the Planning and Zoning Commission.  The Commission provided their input, suggestions, and direction for further modification.  The proposed ordinance has been recommended for approval by the Planning and Zoning Commission following their review. This section has been organized to follow the pattern being set up in each of the sections of this chapter.  To keep that organizational structure, the first change is to combine what were sections A and B into parts 1 and 2 of Section A.   A.  Purpose and Applicability.  1.  Purpose.  The first change in this section is to add the clarifying statement that a purpose of site plan review is to review for compliance with the architectural guidelines in Chapter 19 of the Zoning Ordinance.  This is implied with Chapter 19, but this change will make it clear.  The second sentence is being removed as a duplicate of what is in the Applicability section.  An additional sentence describing the purpose of site plan review has been added. 2. Applicability.  This changes the requirement that site plans need to be approved prior to submission of construction plans and that it applies to redevelop or expansion of an existing development.  Staff has been operating on the premise that site plans need to be approved prior to submission of the building permit plans for many years.  The purpose of the site plan is to ensure conformance with design guidelines (Chapter 19) and to uncover any significant roadblocks to development.  This is better and easier to do prior to the applicant making significant investment in construction drawings. Reviewing construction drawings and site plans at the same time also leads to confusion regarding changes to one application that might not get reflected in the other set. B.  Application.  A new 1 and 2 have been added to update the application requirements and provide for a project narrative.  These are essentially the same as what was approved for Special Use Permit applications.  Section 3 provides clarification that these site plans need to be prepared by a registered professional and then lists the items required to be shown on the site plan.  The list of required items has only been slightly changed, references to other code sections were added to assist those using this portion of the ordinance.  Section 4 is for the fee and has been changed slightly to follow the same language used in Section 2.02. C. Review and Approval.  This section has been expanded to follow the same format used in Section 2.02.  In this case, however, the application is approved administratively, so this section also includes approval. D. Appeals.  Same as Section F in the current ordinance.  No changes. E.  Expiration of Approval.  Same as Section G in the current ordinance.  No changes. F. Site Plan Amendments.  This is new.  The current ordinance provides no direction on the modification of a site plan once it has been approved.  This section provides for minor and major modifications with minor modifications being 1/2 the fee of a major modification. G.  Special Use Permits, Temporary Use Permits.  This section describes the site plan requirement in relationship to processing a special or temporary use permit.  The proposed language simplifies the process.  It allows the applicant to process a conceptual plan with the special or temporary permit and then follow up with the full site plan.  This recognizes the idea that a developer may not want to go to the expense of preparing a full site plan submittal if they may not get approval of the special or temporary permit.  They can, however, submit the full site plan at the time of the other application if they choose.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission reviewed and discussed this ordinance change at two meetings.  At their meeting on April 10, 2023 they voted unanimously to recommend approval. Staff Recommendation(s) Staff recommends approval of the ordinance as presented.   SUGGESTED MOTION Move to adopt Resolution 2023-07 and Ordinance 23-06, repealing and replacing Section 2.04 of the Zoning Ordinance. Attachments Ordinance 23-06  Resolution 2023-07  Strikethrough ordinance language  Current Ordinance  Form Review Inbox Reviewed By Date Finance Director David Pock 04/25/2023 03:01 PM Town Attorney Aaron D. Arnson 04/25/2023 03:32 PM Interim Town Manager Rachael Goodwin 05/08/2023 08:12 AM Development Services Director (Originator)John Wesley 05/09/2023 01:09 PM Form Started By: John Wesley Started On: 04/19/2023 08:40 AM Final Approval Date: 05/09/2023  ORDINANCE NO. 23-06 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS ZONING ORDINANCE BY REPEALING SECTION 2.04, SITE PLAN REVIEW REGULATIONS, AND REPLACING IT WITH A NEW SECTION 2.04, SITE PLAN REVIEW REGULATIONS, BY ADOPTING THE “SITE PLAN REVIEW ORDINANCE” BY REFERENCE ENACTMENTS: NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That Section 2.04, Site Plan Review Regulations, of the Fountain Hills Zoning Ordinance is hereby repealed and a new Section 2.04, Site Plan Review Regulations, adopted as a Public Document entitled “Site Plan Review Ordinance” by Resolution 20232-07, is adopted and made a part hereof as if fully set out in this ordinance. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa County, Arizona, this 16th day of May, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Town Attorney RESOLUTION NO. 2023-07 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, DECLARING AS A PUBLIC RECORD THAT CERTAIN DOCUMENT FILED WITH THE TOWN CLERK AND ENTITLED “SITE PLAN REVIEW ORDINANCE” BY REFERENCE ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That certain document entitled “Site Plan Review Ordinance” of which one paper copy and one electronic copy maintained in compliance with ARS 44-7041 are on file in the office of the Town Clerk and open for public inspection during normal business hours, is hereby declared to be a public record, and said copies are ordered to remain on file with the Town Clerk. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa County, Arizona, this 16th day of May, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Town Attorney EXHIBIT A Site Plan Review Ordinance Section 2.04 Site Plan Review Regulations A. Purpose and Applicability 1. Purpose: The purpose of these Site Plan Review regulations is to provide for administrative review and approval of Site Plans and review for compliance with the architectural guidelines in Chapter 19 of the Zoning Ordinance prior to submitting for building construction plan review. This review process helps address any potential development issues early in the development process and ensure that the proposed building can be located on the lot in conformance with the intent and provisions of the General Plan, this Zoning Ordinance and all other relevant Town ordinances and polices. These Site Plan Review regulations also provide for a two-step appeal of the Site Plan Review administrative decision first to the Planning & Zoning Commission and second to the Town Council. 2. Applicability: All nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments shall receive Site Plan approval prior to submission of construction plans related to a development, redevelopment, or expansion of existing development. B. Application 1. Complete Application. Applications for site plan review shall be filed electronically on the Town’s website by an owner of the real property within the area proposed for the site plan review using the process established by the Director for such applications. All such applications shall include the information required in this section. 2. Project Narrative. A written statement which includes: a. A narrative describing the existing zoning, desired use of the property, and reasons justifying the proposed site plan. b. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property and the date or dates (if any) of expiration thereof. If the applicant is not the current owner, or has owned the property for less than one year, this statement should also include any real estate disclosures associated with the purchase of the property. 3. A fully dimensioned, detailed site plan drawn to a scale, prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which show the following: a. Legal description, property dimensions and heading, along with the name, address and telephone number of the owner, developer and designer. b. A generalized location map showing surrounding land use, zoning, and traffic circulation patterns within a 300-foot radius of the property, measured in all directions from the perimeter of the property lines. A north arrow and scale shall be provided. c. Site conditions information, including: i. A topographic survey extending at least 100 feet beyond the exterior property line of the site. Contour interval shall not exceed 2 feet within 20 feet of any proposed improvement and 5-foot intervals for the remainder of the lot or parcel. ii. Location and extent of major vegetative cover (if any). All Saguaro cacti over three feet in height must be identified as well as significant vegetation and rock outcroppings as defined in Article 1 of the Subdivision Ordinance. iii. Location and extent of intermittent streams and water ponding areas. iv. Existing drainage, including arrows showing direction of flow. Show any areas of ponding. v. Natural features such as mesas, rock outcroppings, or streams and manmade features such as existing roads and structures, with indication as to which are to be retained and which are to be removed or altered. vi. A slope analysis map with categories of less than 10 percent, 10 to 20 percent, 20 to 30 percent and 30 percent and above. Identify hillside disturbance areas and Hillside Protection Easement (H.P.E.) areas with areas of each totaled in a table. Demonstrate compliance with the hillside disturbance regulation of the Town’s Subdivision Ordinance, Section 5.04, or specifically identify variations from these requirements. d. Proposed land use areas and specifications, including use standards of each area, as applicable: i. Proposed dwelling unit type, total land area and maximum density of residential use areas. ii. Proposed uses, total land area and maximum lot coverage. List the individual square footage of all nonresidential buildings and disturbance areas. iii. Proposed public streetscape and public and private open space improvements and their relationship to the overall development. iv. Building heights, minimum lot areas and setbacks. Show the size and dimensions of yards and spaces between buildings and show the location, type and height of walls and fences. v. Building elevations and architectural renderings showing architectural theme colors and type of exterior building materials for each structure or group of structures; include all sides in both black and white and color (See Chapter 19 for Architectural Review Guidelines). vi. A graphic representation of the proposed landscaping treatment, plant materials, fences, walls and other site plan and open space improvements, in accordance with the Subdivision Ordinance, Article 6. vii. Proposed location and width of any arterial, collector or local streets. viii. Proposed location and use of all lands proposed to be dedicated for public purposes including parks, storm water retention areas and school sites. ix. If structures are proposed, show cross-sections through site and building at 25- foot intervals perpendicular to slope, giving percentage of slope at each, and showing exact heights of structures at each existing contour. x. If structures are proposed, each floor level shall be shown with different shading with a legend giving grade or elevation of each level. xi. If a garage(s) is proposed, the proposed elevation or grade at garage floor and at existing street level at drive entry. Give percentage of total average slope, and percent and length of single steepest portion of driveway. xii. The individual square footage of buildings, garages, patios, footprint, and disturbance area. xiii. All disturbed (or graded) areas and the proposed method of final treatment. Indicate all retaining walls, showing the actual heights. xiv. Existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel and show that the requirements regarding storm water runoff and drainage have been met. xv. Location, number of spaces, dimensions, circulation patterns, and surface materials for all off-street parking and loading areas, driveways, access ways, and pedestrian walkways. Show compliance with all parking lot landscape requirements (See Chapter 7, Parking and Loading Requirements). The acceptability of any proposed shared parking arrangement must be validated in a study prepared by an independent traffic expert approved by the Town and whose services are paid for by the applicant. xvi. The location, dimensions, area, materials, and lighting of signage. xvii. A lighting plan in conformance with Chapter 8 of this Zoning Ordinance; include a photometric plan showing foot candles of lighting in all parking lots. xviii. Street dedications and improvements. xix. The size and locations of all existing and proposed public and private utilities. All easements must be shown and given in writing. xx. A phasing plan, if the project will be completed in phases, indicating which improvements will be completed in each phase. xxi. A traffic analysis, unless waived by the Development Services Director. e. If the site contains unique features requiring additional analysis, any other information the plan reviewer reasonably determines to be necessary to establish compliance with this Zoning Ordinance. 4. Fee: Payment of a filing fee established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be refundable. Payment of the filing fee shall be waived when the applicant is the Town, school district, special purpose district, county, state, or federal government. C. Review and Approval 1. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall evaluate the submittal to determine if it is complete and meets the requirements of this Section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete the applicant will be notified to pay the application fee. When the fee has been received, staff will begin review of the application. 2. Staff review. Staff will conduct review and analysis of the site plan and will seek additional information and clarification from the applicant as necessary to take action on the application. Staff will inform the applicant of any revisions needed to bring the site plan into compliance with Town requirements. 3. The action of the staff shall be one of approval when the applicant submits a site plan which conforms to all applicable regulations and the conditions placed upon the site plan by the staff. Approval shall be documented by staff stamping the final site plan approved. D. Appeals: The application for an appeal of an Administrative Site Plan Review decision shall be made within 30 days of said decision and shall be accompanied by a filing fee in an amount established by the Town Council as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, the federal government or a county, state, school district, or sanitary district. 1. Any applicant for Administrative Site Plan approval who is dissatisfied or aggrieved by the decision of the Planning and Zoning Division may, within 30 days, appeal the decision to the Planning & Zoning Commission. The Planning & Zoning Commission may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. 2. Any applicant who is dissatisfied or aggrieved by the appeal decision of the Planning & Zoning Commission may, within 30 days, appeal their decision to the Town Council. The Town Council may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. E. Expiration of Site Plan Approval: 1. A Site Plan approval becomes void if a building permit has not been issued within one year from the date of the approval. 2. If the applicant files for an extension prior to the Site Plan approval becoming void, an extension may be granted by the Planning & Zoning Division. F. Site Plan Amendments. Following approval of a site plan, modifications to the site or building must be approved through approval of a site plan amendment following the procedures above. Site plan amendment may be considered minor or major as defined below. The fee for a minor site plan amendments shall be one-half (1/2) the current site plan review fee. The Zoning Administrator shall determine if a site plan modification is minor or major using the criteria below. 1. A modification shall be considered minor if the Zoning Administrator determines the modification involves: a. A change in landscape area or open space of less than 25%; or b. A change in the total building footprint that is less than 10% of the initially approved building footprint; or c. An increase in building height at any point that is less than 10% of the initially approved building height; or d. Minimal adjustments to: i. the building footprint, location, or orientation; ii. the pad location; iii. the configuration of a parking lot or drive aisles; iv. project amenities such as, but not limited to, recreational facilities, pedestrian amenities, fencing or other screening material; v) residential density; or, v. the approved phasing plan; e. Does not modify any specific conditions of approval for the original site plan. 2. A modification shall be considered major if it does not meet the requirements to be considered a minor site plan modification. G. Special Use Permits, Temporary Use Permits. If the site plan is proposed for a property or use that will require approval of a special use permit or temporary use permit, the special use permit or temporary use permit must be considered and acted upon prior to approval of the site plan. The applicant may choose to have the site plan processed concurrently with a special use permit and considered by the Planning and Zoning Commission and Town Council with the special use permit. Section 2.04 Site Plan Review Regulations A. Purpose and Applicability 1. Purpose: The purpose of these Site Plan Review regulations is to provide for administrative review and approval of Site Plans and review for compliance with the architectural guidelines in Chapter 19 of the Zoning Ordinance prior to submitting for building construction plan review. for all nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments, upon making a finding that the proposed development conforms to the intent and provisions of this Zoning Ordinance and all other relevant Town ordinances. This review process helps address any potential development issues early in the development process and ensure that the proposed building can be located on the lot in conformance with the intent and provisions of the General Plan, this Zoning Ordinance and all other relevant Town ordinances and polices. These Site Plan Review regulations also provide for a two-step appeal of the Site Plan Review administrative decision first to the Planning & Zoning Commission and second to the Town Council. 2. B. Applicability: All nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments shall receive Site Plan approval prior to approval submission of construction plans related to a development, redevelopment, or expansion of existing development. After a Site Plan and construction plans are approved according to this Section 2.04, and all fees have been paid according to the Town’s adopted fee schedule, a building permit shall be issued for the development. B. C. Application for Administrative Site Plan Review & Approval: 1. Complete Application. Applications request for Ssite Pplan Rreview & Approval shall be filed electronically on the Town’s website by an owner of the real property for the site plan review with the Planning & Zoning Division on a form prescribed by the Development Services Departmentusing the process established by the Director for such applications. . The request for approval shall be accompanied by 1 electronic copy of the Site Plan and 10 identical copies of the Site Plan, as follows: (i) scale of the Site Plan shall be not less than 1 inch equals 20 feet (for large-scale projects, the Development Services Director may allow a different scale); and (ii) the Site Plan copies shall be on one or more sheets of paper measuring not more than 24 by 36 inches, drawn to a scale,All such applications shall prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which show the following include the information required in this section:. 2. Project Narrative. A written statement which includes: a. A narrative describing the existing zoning, desired use of the property, and reasons justifying the proposed site plan. b. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property and the date or dates (if any) of expiration thereof. If the applicant is not the current owner, or has owned the property for less than one year, this statement should also include any real estate disclosures associated with the purchase of the property. 1.3. A fully dimensioned, detailed site plan drawn to a scale, prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which show the following: a. 1. Legal description, property dimensions and heading, along with the name, address and telephone number of the owner, developer and designer. b. 2. A generalized location map showing surrounding land use, zoning, and traffic circulation patterns within a 300-foot radius of the property, measured in all directions from the perimeter of the property lines. A north arrow and scale shall be provided. c. 3. A narrative describing the project in sufficient detail to enable the plan reviewer to understand the scope and complexity of the project. d.c. 4. Site conditions information, including: i. a. A topographic survey extending at least 100 feet beyond the exterior property line of the site. Contour interval shall not exceed 2 feet within 20 feet of any proposed improvement and 5 foot5-foot intervals for the remainder of the lot or parcel. ii. b. Location and extent of major vegetative cover (if any). All Saguaro cacti over three feet in height must be identified as well as significant vegetation and rock outcroppings as defined in Article 1 of the Subdivision Ordinance. iii. c. Location and extent of intermittent streams and water ponding areas. iv. d. Existing drainage, including arrows showing direction of flow. Show any areas of ponding. v. e. Natural features such as mesas, rock outcroppings, or streams and manmade features such as existing roads and structures, with indication as to which are to be retained and which are to be removed or altered. vi. f. A slope analysis map with categories of less than 10 percent, 10 to 20 percent, 20 to 30 percent and 30 percent and above. Identify hillside disturbance areas and Hillside Protection Easement (H.P.E.) areas with areas of each totaled in a table. Demonstrate compliance with the hillside disturbance regulation of the Town’s Subdivision Ordinance, Section 5.04, or specifically identify variations from these requirements. e.d. 5. Proposed land use areas and specifications, including use standards of each area, as applicable: i. a. Proposed dwelling unit type, total land area and maximum density of residential use areas. ii. b. Proposed uses, total land area and maximum lot coverage. List the individual square footage of all nonresidential buildings and disturbance areas. iii. c. Proposed public streetscape and public and private open space improvements and their relationship to the overall development. iv. d. Building heights, minimum lot areas and setbacks. Show the size and dimensions of yards and spaces between buildings and show the location, type and height of walls and fences. v. e. Building elevations and architectural renderings showing architectural theme colors and type of exterior building materials for each structure or group of structures; include all sides in both black and white and color (See Chapter 19 for Architectural Review Guidelines). vi. f. A graphic representation of the proposed landscaping treatment, plant materials, fences, walls and other site plan and open space improvements, in accordance with the Subdivision Ordinance, Article 6. vii. g. Proposed location and width of any arterial, collector or local streets. viii. h. Proposed location and use of all lands proposed to be dedicated for public purposes including parks, storm water retention areas and school sites. ix. i. If structures are proposed, show cross-sections through site and building at 25 foot25-foot intervals perpendicular to slope, giving percentage of slope at each, and showing exact heights of structures at each existing contour. x. j. If structures are proposed, each floor level shall be shown with different shading with a legend giving grade or elevation of each level. xi. k. If a garage(s) is proposed, the proposed elevation or grade at garage floor and at existing street level at drive entry. Give percentage of total average slope, and percent and length of single steepest portion of driveway. xii. l. The individual square footage of buildings, garages, patios, footprint, and disturbance area. xiii. m. All disturbed (or graded) areas and the proposed method of final treatment. Indicate all retaining walls, showing the actual heights. xiv. n. Existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel and show that the requirements regarding storm water runoff and drainage have been met. xv. o. Location, number of spaces, dimensions, circulation patterns, and surface materials for all off-street parking and loading areas, driveways, access ways, and pedestrian walkways. Show compliance with all parking lot landscape requirements (See Chapter 7, Parking and Loading Requirements). The acceptability of any proposed shared parking arrangement must be validated in a study prepared by an independent traffic expert approved by the Town and whose services are paid for by the applicant. xvi. p. The location, dimensions, area, materials, and lighting of signage. xvii. q. A lighting plan in conformance with Chapter 8 of this Zoning Ordinance; include a photometric plan showing foot candles of lighting in all parking lots. xviii. r. Street dedications and improvements. xix. s. The size and locations of all existing and proposed public and private utilities. All easements must be shown and given in writing. xx. t. A phasing plan, if the project will be completed in phases, indicating which improvements will be completed in each phase. xxi. u. A traffic analysis, unless waived by the Development Services Director. f.e. 6. If the site contains unique features requiring additional analysis, any other information the plan reviewer reasonably determines to be necessary to establish compliance with this Zoning Ordinance. 2.4. D. Fee: The application for an Administrative Site Plan Review & Approval shall be accompanied byPayment of a filing fee, which shall include Town staff review time costs, in an amount established by a schedule adopted by resolution of the Town Council and filed in the offices of the Town Clerkeither as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may shall be waived when the petitioner applicant is the Town, school district, special purpose district, county, state, school district, or federal government. C. E. Review and ApprovalProcedures: For each Site Plan submitted, the Planning & Zoning Division shall determine administrative completeness, determine substantive completeness, review and consider approval within the time periods adopted by resolution of the Town Council in compliance with ARIZ. REV. STAT. § 9-835, as amended. 1. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall review the submittal to determine if it is complete and meets the requirements of this Section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete the applicant will be notified to pay the application fee. When the fee has been received, staff will begin review of the application. 2. Staff review. Staff will conduct review and analysis of the site plan and will seek additional information and clarification from the applicant as necessary to take action on the application. Staff will inform the applicant of any revisions needed to bring the site plan into compliance with Town requirements. 1.3. The action of the staff shall be one of approval when the applicant submits a site plan which conforms to all applicable regulations and the conditions placed upon the site plan by the staff. Approval shall be documented by staff stamping the final site plan approved. B.D. F. Appeals: The application for an appeal of an Administrative Site Plan Review decision shall be made within 30 days of said decision and shall be accompanied by a filing fee in an amount established by the Town Council as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, the federal government or a county, state, school district, or sanitary district. 1. Any applicant for Administrative Site Plan approval who is dissatisfied or aggrieved by the decision of the Planning and Zoning Division may, within 30 days, appeal the decision to the Planning & Zoning Commission. The Planning & Zoning Commission may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. 2. Any applicant who is dissatisfied or aggrieved by the appeal decision of the Planning & Zoning Commission may, within 30 days, appeal their decision to the Town Council. The Town Council may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. C.E. G. Expiration of Site Plan Approval: 1. A Site Plan approval becomes void if a building permit has not been issued within one year from the date of the approval. 2. If the applicant files for an extension prior to the Site Plan approval becoming void, an extension may be granted by the Planning & Zoning Division. F. Site Plan Amendments. Following approval of a site plan, modifications and amendment must be approved through approval following the procedures above. Site plan modifications may be considered minor or major as defined below. The fee for a minor site plan modification shall be one-half (1/2) the current site plan review fee. The Zoning Administrator shall determine if a site plan modification is minor or major using the criteria below. 1. A modification shall be considered minor if the Zoning Administrator determines the modification involves: a. A change in landscape area or open space of less than 25%; or b. A change in the total building footprint that is less than 10% of the initially approved building footprint; or c. An increase in building height at any point that is less than 10% of the initially approved building height; or d. Minimal adjustments to: i. the building footprint, location, or orientation; ii. the pad location; iii. the configuration of a parking lot or drive aisles; iv. project amenities such as, but not limited to, recreational facilities, pedestrian amenities, fencing or other screening material; v) residential density; or, v. the approved phasing plan; e. Does not modify any specific conditions of approval for the original site plan. 1.2. A modification shall be considered major if it does not meet the requirements to be considered a minor site plan modification. H.G. Special Use Permits, Temporary Use Permits, Waivers Requests:. If the site plan is proposed for a property or use that will require approval of a special use permit or temporary use permit, the special use permit or temporary use permit must be considered and acted upon prior to approval of the site plan. The applicant may choose to have the site plan processed concurrently with a special use permit and considered by the Planning and Zoning Commission and Town Council with the special use permit. Administrative Site Plan Review approval shall be permitted for temporary use permits and administrative use permits. Administrative Site Plan Review approval shall not be granted if all Zoning Ordinance provisions are not fully met or if one or more special use permits or waivers are necessary. In such cases, applications must be heard by the Planning & Zoning Commission and Town Council as follows: G. 1. The Planning & Zoning Commission shall review and consider the Site Plan along with any Special Use Permit or Waiver requests. Applications shall be filed with the Planning & Zoning Division on a form prescribed by the Development Services Department. The application shall be accompanied by a detailed Site Plan prepared in accordance with Subsection 2.04(C) above showing all information necessary to demonstrate that the proposed use will comply with all special conditions as well as other regulations and requirements of this Zoning Ordinance. H. 2. The Planning & Zoning Commission shall forward a recommendation for approval, conditional approval, or denial to the Town Council. The Town Council shall consider the request within 30 working days of the Planning & Zoning Commission forwarding its recommendation. Section 2.04 Site Plan Review Regulations A. Purpose: The purpose of these Site Plan Review regulations is to provide for administrative review and approval of Site Plans for all nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments, upon making a finding that the proposed development conforms to the intent and provisions of this Zoning Ordinance and all other relevant Town ordinances. These Site Plan Review regulations also provide for a two-step appeal of the Site Plan Review administrative decision first to the Planning & Zoning Commission and second to the Town Council. B. Applicability: All nonresidential developments, multifamily developments having five or more dwelling units, and mixed-use developments shall receive Site Plan approval prior to approval of construction plans related to a development. After a Site Plan and construction plans are approved according to this Section 2.04, and all fees have been paid according to the Town’s adopted fee schedule, a building permit shall be issued for the development. C. Application for Administrative Site Plan Review & Approval: A request for Site Plan Review & Approval shall be filed with the Planning & Zoning Division on a form prescribed by the Development Services Department. The request for approval shall be accompanied by 1 electronic copy of the Site Plan and 10 identical copies of the Site Plan, as follows: (i) scale of the Site Plan shall be not less than 1 inch equals 20 feet (for large-scale projects, the Development Services Director may allow a different scale); and (ii) the Site Plan copies shall be on one or more sheets of paper measuring not more than 24 by 36 inches, drawn to a scale, prepared by an Arizona registered Land Surveyor, an Arizona registered Civil Engineer, or an Arizona registered Architect, which show the following: 1. Legal description, property dimensions and heading, along with the name, address and telephone number of the owner, developer and designer. 2. A generalized location map showing surrounding land use, zoning, and traffic circulation patterns within a 300-foot radius of the property, measured in all directions from the perimeter of the property lines. A north arrow and scale shall be provided. 3. A narrative describing the project in sufficient detail to enable the plan reviewer to understand the scope and complexity of the project. 4. Site conditions information, including: a. A topographic survey extending at least 100 feet beyond the exterior property line of the site. Contour interval shall not exceed 2 feet within 20 feet of any proposed improvement and 5 foot intervals for the remainder of the lot or parcel. b. Location and extent of major vegetative cover (if any). All Saguaro cacti over three feet in height must be identified as well as significant vegetation and rock outcroppings as defined in Article 1 of the Subdivision Ordinance. c. Location and extent of intermittent streams and water ponding areas. 2.04 Site Plan Review Regulations | Fountain Hills Zoning Ordinance Page 1 of 4 The Fountain Hills Zoning Ordinance is current through Ordinance 22-07, passed November 15, 2022. d. Existing drainage, including arrows showing direction of flow. Show any areas of ponding. e. Natural features such as mesas, rock outcroppings, or streams and manmade features such as existing roads and structures, with indication as to which are to be retained and which are to be removed or altered. f. A slope analysis map with categories of less than 10 percent, 10 to 20 percent, 20 to 30 percent and 30 percent and above. Identify hillside disturbance areas and Hillside Protection Easement (H.P.E.) areas with areas of each totaled in a table. Demonstrate compliance with the hillside disturbance regulation of the Town’s Subdivision Ordinance or specifically identify variations from these requirements. 5. Proposed land use areas and specifications, including use standards of each area: a. Proposed dwelling unit type, total land area and maximum density of residential use areas. b. Proposed uses, total land area and maximum lot coverage. List the individual square footage of all nonresidential buildings and disturbance areas. c. Proposed public streetscape and public and private open space improvements and their relationship to the overall development. d. Building heights, minimum lot areas and setbacks. Show the size and dimensions of yards and spaces between buildings and show the location, type and height of walls and fences. e. Building elevations and architectural renderings showing architectural theme colors and type of exterior building materials for each structure or group of structures. f. A graphic representation of the proposed landscaping treatment, plant materials, fences, walls and other site plan and open space improvements, in accordance with the Subdivision Ordinance. g. Proposed location and width of any arterial, collector or local streets. h. Proposed location and use of all lands proposed to be dedicated for public purposes including parks, storm water retention areas and school sites. i. If structures are proposed, show cross-sections through site and building at 25 foot intervals perpendicular to slope, giving percentage of slope at each, and showing exact heights of structures at each existing contour. j. If structures are proposed, each floor level shall be shown with different shading with a legend giving grade or elevation of each level. k. If a garage(s) is proposed, the proposed elevation or grade at garage floor and at existing street level at drive entry. Give percentage of total average slope, and percent and length of single steepest portion of driveway. l. The individual square footage of buildings, garages, patios, footprint, and disturbance area. 2.04 Site Plan Review Regulations | Fountain Hills Zoning Ordinance Page 2 of 4 The Fountain Hills Zoning Ordinance is current through Ordinance 22-07, passed November 15, 2022. m. All disturbed (or graded) areas and the proposed method of final treatment. Indicate all retaining walls, showing the actual heights. n. Existing and proposed grades and drainage systems and how drainage is altered, how it is redirected to original channel and show that the requirements regarding storm water runoff and drainage have been met. o. Location, number of spaces, dimensions, circulation patterns, and surface materials for all off-street parking and loading areas, driveways, access ways, and pedestrian walkways. The acceptability of any proposed shared parking arrangement must be validated in a study prepared by an independent traffic expert approved by the Town and whose services are paid for by the applicant. p. The location, dimensions, area, materials, and lighting of signage. q. A lighting plan in conformance with Chapter 8 of this Zoning Ordinance. r. Street dedications and improvements. s. The size and locations of all existing and proposed public and private utilities. All easements must be shown and given in writing. t. A phasing plan, if the project will be completed in phases, indicating which improvements will be completed in each phase. u. A traffic analysis, unless waived by the Development Services Director. 6. If the site contains unique features requiring additional analysis, any other information the plan reviewer reasonably determines to be necessary to establish compliance with this Zoning Ordinance. D. Fee: The application for an Administrative Site Plan Review & Approval shall be accompanied by a filing fee, which shall include Town staff review time costs, in an amount established by a schedule adopted by the Town Council either as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, county, state, school district, or federal government. E. Review Procedures: For each Site Plan submitted, the Planning & Zoning Division shall determine administrative completeness, determine substantive completeness, review and consider approval within the time periods adopted by resolution of the Town Council in compliance with ARIZ. REV. STAT. § 9-835, as amended. F. Appeals: The application for an appeal of an Administrative Site Plan Review decision shall be made within 30 days of said decision and shall be accompanied by a filing fee in an amount established by the Town Council as part of its annual budget or by separate resolution. No part of the filing fee shall be refundable. Payment of the filing fee may be waived when the petitioner is the Town, the federal government or a county, state, school district, or sanitary district. 1. Any applicant for Administrative Site Plan approval who is dissatisfied or aggrieved by the decision of the Planning and Zoning Division may, within 30 days, appeal the decision to the Planning & Zoning Commission. 2.04 Site Plan Review Regulations | Fountain Hills Zoning Ordinance Page 3 of 4 The Fountain Hills Zoning Ordinance is current through Ordinance 22-07, passed November 15, 2022. The Fountain Hills Zoning Ordinance is current through Ordinance 22-07, passed November 15, 2022. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Zoning Ordinance. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Code Publishing Company The Planning & Zoning Commission may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. 2. Any applicant who is dissatisfied or aggrieved by the appeal decision of the Planning & Zoning Commission may, within 30 days, appeal their decision to the Town Council. The Town Council may approve, conditionally approve, continue to a later date or deny said Site Plan based on compliance with all provisions of this Zoning Ordinance. G. Expiration of Site Plan Approval: 1. A Site Plan approval becomes void if a building permit has not been issued within one year from the date of the approval. 2. If the applicant files for an extension prior to the Site Plan approval becoming void, an extension may be granted by the Planning & Zoning Division. H. Special Use Permits, Temporary Use Permits, Waivers Requests: Administrative Site Plan Review approval shall be permitted for temporary use permits and administrative use permits. Administrative Site Plan Review approval shall not be granted if all Zoning Ordinance provisions are not fully met or if one or more special use permits or waivers are necessary. In such cases, applications must be heard by the Planning & Zoning Commission and Town Council as follows: 1. The Planning & Zoning Commission shall review and consider the Site Plan along with any Special Use Permit or Waiver requests. Applications shall be filed with the Planning & Zoning Division on a form prescribed by the Development Services Department. The application shall be accompanied by a detailed Site Plan prepared in accordance with Subsection C of this Section showing all information necessary to demonstrate that the proposed use will comply with all special conditions as well as other regulations and requirements of this Zoning Ordinance. 2. The Planning & Zoning Commission shall forward a recommendation for approval, conditional approval, or denial to the Town Council. The Town Council shall consider the request within 30 working days of the Planning & Zoning Commission forwarding its recommendation. 2.04 Site Plan Review Regulations | Fountain Hills Zoning Ordinance Page 4 of 4 The Fountain Hills Zoning Ordinance is current through Ordinance 22-07, passed November 15, 2022. ITEM 9. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: Farhad Tavassoli, Senior Planner Staff Contact Information: Farhad Tavassoli, Senior Planner Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Request to amend the Final Settlement Agreement, Amended and Restated, with MCO Realty to allow a total of 40 single-family lots in Eagles Nest Parcel 2. Staff Summary (Background) MCO Realty, Inc. is requesting amendments to the Amended and Restated Final Settlement Agreement between the Town of Fountain Hills and MCO Properties, Inc., EN, LLC and Adero Canyon LLC, originally approved by Town Council via Resolution No. 2014-08 on May 1, 2014. The purpose for the amendments is to allow 14 additional lots in Eagles Nest Parcel 2, which was originally planned for a total of 26 lots per the final plat from 2005, which was never recorded. Thus, there would be a total of 40 lots in Parcel 2. Additional amendments are proposed to allow the relocation of emergency and utility easements, allowable disturbance and retaining wall construction. The details of the request are listed below:  The Emergency Access/Utility Easement will be moved as per the attached drawing. The area in yellow is the existing easement. MCO is requesting the easement be moved as per the blue area. This shortens the easement, but essentially leaves it in the same area within Parcel 2. The Town, Toll Brothers, and EPCOR have verbally agreed to this change. Allow the creation of 4 flag lots per the drawing attached, labelled as lots 190, 198, 256 and 258. (Lot numbers are highlighted in red.) Increased cut allowances to 20' for lots 192, 193, 194, 195, 196 and 197. (Lot numbers are highlighted in orange.) Increase the disturbance allowance to allow for 22,700 square feet (avg. per lot) of disturbance for the 40 lots for Parcel 2. Disturbance shall be allocated to each lot by the developer. The disturbance amount does not include driveways or utility cuts. The total number of lots allowed in Eagles Nest to be increased from 245 to 254. This number does not include the 21-acre lot, which has a North Heights legal description. The additional lots would be located in Parcel 2. The applicable Subdivision Standards shall be modified in conjunction with its approval of the final plat to allow development of the property in accordance with the Mountain Retaining Wall Standards. In addition, MCO requests that the Town:  Agree to allow retaining walls with an average height of (a) ten feet for cut slopes without handrails and (b) ten feet for fill slopes without handrails, unless a sidewalk or pathway is within five feet of the fill retaining wall or unless a roadway curb is within ten feet of a fill retaining wall, and; 1. Agree that regulations pertaining to retaining walls shall not apply bridge abutments, headwalls and wing walls not be considered retaining walls. 2. Analysis The current development agreement allows for 245 lots throughout Eagles Nest, and Parcel 2 was originally planned for 26 lots according to the plat from 2005. The increase from 26 lots to 40 results in an increase of 14 lots for Parcel 2, but only a net increase of 9 lots throughout Eagles Nest, as 5 previously approved lots in other parcels have been combined to form larger lots. MCO does not allow lots to be split after they have been combined. The Eagles Nest community is comprised of a total of 485.5 acres. The addition of 14 lots would increase the density from 0.50 lots per acre 0.52 lots per acre. In staff's opinion, this is only a nominal density increase. The requested allowances for flag lots, disturbance, and cut and fill deviations are similar to modifications approved in other subdivisions.  It should also be noted that approval of this amendment does not constitute final plat approval. A hearing for the final plat for Parcel 2 will occur at a later date. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the amendments to Amended and Restated Final Settlement Agreement. SUGGESTED MOTION MOVE to approved the amendments to the Final Settlement Agreement between the Town of Fountain Hills and MCO, and adopt Resolution 23-20 approving the amendments. Attachments Preliminary Site Layout  RES 23-20  Original Final Settlement Agreement  Form Review Inbox Reviewed By Date Development Services Director John Wesley 05/03/2023 03:22 PM Development Services Director John Wesley 05/03/2023 03:22 PM Form Started By: Farhad Tavassoli Started On: 05/03/2023 08:15 AM Final Approval Date: 05/03/2023  RESOLUTION NO. 2023-20 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AN AMENDMENT TO THE AMENDED AND RESTATED FINAL SETTLEMENT AGREEMENT BETWEEN THE TOWN AND MJFFH7, LLC. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Amendment to the Settlement Agreement between the Town of Fountain Hills and MJFFH7, LLC is hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to execute all documents take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, May 16, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Interim Town Manager Aaron Arnson, Town Attorney EXHIBIT A TO RESOLUTION NO. 23-02 [Amendment to Final Settlement Agreement] See following pages. Page 1 of 8 AMENDMENT TO FINAL SETTLEMENT AGREEMENT THIS AMENDMENT TO THE AMENDED AND RESTATED FINAL SETTLEMENT AGREEMENT (“Amendment”) dated __________, 2023 (“Effective Date”) is between the Town of Fontain Hills, an Arizona municipal corporation (“Town”) and MJFFH7, LLC, an Arizona limited liability company (“MJFFH7”). The Town and MJFFH7 are each referred to herein individually as a “Party” and collectively as the “Parties” RECITALS A. On May 1, 2014, the Town, MCO Properties, Inc., a Delaware corporation, MCO Properties Inc., a Delaware corporation, successor-in-interest to MCO Properties LP. d/b/a MCO Properties Limited Partnership, a Delaware limited partnership doing business in the State of Arizona ("MCO"), EN LLC d/b/a EN at Fountain Hills LLC, a Delaware limited liability company ("EN"') and Adero Canyon LLC, a Delaware limited liability company ("Adero") entered into a Final Settlement Agreement (“Restated Agreement”) regarding the development of the Adero Canyon Property and the Eagles Nest Property in Fountain Hills, Arizona. B. The Eagles Nest Property is now owned by MJFFH7. A substantial portion of the Eagles Nest Property has been constructed pursuant to the Restated Agreement. MJFFH7 submitted a preliminary plat to the Town for the development of the property legally described and depicted on Exhibit 1 attached hereto and incorporated herein by this reference (“Parcel 2”). The development of Parcel 2 may be referred to herein as “Eagles Nest Phase II”. The Parties intend for MJFFH7 to continue to develop the Eagles Nest Property as contemplated by the Restated Agreement, except as modified by this Amendment. The Parties desire to amend certain portions of the Restated Agreement subject to the terms and conditions set forth below. Nothing in this Amendment shall affect the Adero Canyon Property or the development thereof as set forth in the Restated Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and MJFFH7 agree as follows: Page 2 of 8 1. Approved Density. Paragraph 6.2.1 of the Restated Agreement is amended so that MJFFH7 shall be permitted to develop, and the Town shall approve for development, final parcel plats and site plans for an additional 14 lots within Parcel 2 and no more than 259 single- family lots within the Eagles Nest Property, which shall increase the total lots within the Eagles Nest Property and Adero Canyon Property to 602 lots/dwelling units. The number of lots shall not include the 21-acre lot which is legally described as set forth in Exhibit 2 (“North Heights Lot”) 2. Limitations Upon Re-Subdividing. Paragraph 6.2.4 of the Restated Agreement is amended so the 424 single family lot restriction is increased to 438 single family lots, which shall result in an increase of 14 single family lots within Parcel 2 of the Eagles Nest Property. 3. Retaining Walls. Paragraph 6.3.4 of the Restated Agreement is amended as it pertains to Parcel 2 of the Eagles Nest Property as follows: The Town hereby approves (i) retaining walls with an average height of (a) ten feet for cut slopes without handrails and (b) ten feet for fill slopes without handrails, unless a sidewalk or pathway is within five feet of the fill retaining wall or unless a roadway curb is within ten feet of a fill retaining wall, and (ii) that bridge and con-arch abutments, headwalls, and wing walls are not considered retaining walls (“Mountain Retaining Wall Standard”). The Town agrees that the applicable Subdivision Standards shall be modified in conjunction with its approval of the final parcel plat of Parcel 2 of the Eagles Nest Property to allow development of the property in accordance with the Mountain Retaining Wall Standards. 4. Exempt Areas. Paragraph 6.5.2 of the Restated Agreement shall be amended as it pertains to Parcel 2 of the Eagles Nest Property as follows: The Town hereby approves development of Parcel 2 of the Eagles Nest Property with an average lot disturbance not to exceed 22,700 square feet per single-family lot within Parcel 2 of the Eagles Nest Property and a total allowable disturbance of 908,000 square feet for the Parcel 2 of the Eagles Nest Property (“Parcel 2 Disturbance Allowance”). The disturbance area utilized on each lot shall be allocated by MJFFH7 at its discretion. All temporary and permanent subdivision improvements, including but not limited to all road, utility line and water tank construction as well as the areas covered by driveways and related vegetation as provided in section 6.5.5 of the Restated Agreement are exempt (i.e. with respect to subdivision infrastructure and other such areas, all necessary disturbance will be permitted without disturbance penalty). Any disturbed areas for predevelopment investigations, testing, relocation or recovery including, but not limited to, geotechnical, environmental, archaeological or power line relocation work as well as any future or historic trails and roads used by hikers, bicyclists, recreational vehicles or utility equipment shall not be counted towards the total amount of hillside disturbance within the Property and, after revegetation with native plant materials, shall be accepted by the Town as undisturbed hillside areas. Page 3 of 8 5. Increased Cut Allowances. The following lots within Parcel 2 of the Eagles Nest Property as reflected on the plat for Eagles Nest Phase II shall have cut allowances of 20 feet: Lots 192, 193, 194, 195, 196 and 197. 6. Flag Lots. The following lots within Parcel 2 of the Eagles Nest Property as reflected on the plat for Eagles Nest Phase II may be Flag Lots: Lots 190, 198, 256 and 258. 7. Emergency Access/Utility Easement. Exhibit 3 attached hereto depicts a portion of Parcel 2 of the Eagles Nest Property which shall be utilized as Emergency/Utility Access. Such Exhibit shall replace all other exhibits, depictions, and easements within the definition of Emergency/Utility Access as set forth in the Restated Agreement it is pertains to Parcel 2 of the Eagles Nest Property. 8. Effect of Amendment. Except as otherwise contained herein, the remaining terms and provisions of the Restated Agreement shall remain in full force and effect and are otherwise hereby ratified and confirmed. All capitalized terms used in this Amendment shall have the meetings ascribed to them in the Restated Agreement unless otherwise indicated herein. In the event of any conflict between the terms and conditions of this Amendment and the terms and conditions of the Restated Agreement, the terms and conditions of this Amendment shall control, unless a contrary interpretation is required by a particular situation or circumstance. 9. Notices. Any notice required or permitted to be given under this Amendment or the Restated Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the Party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Grady Miller With a copy to: Pierce Coleman Aaron D. Arnson, Esq. 7730 East Greenway Road, Suite 105 Scottsdale, Arizona 85260 MJFFH7: Steven B. Vargo 9617 North Saguaro Boulevard Fountain Hills, Arizona 85268 With a copy to: MJM Holdings, LLC Page 4 of 8 1201 Manoa Road Wynnewood, Pennsylvania 19096 Attn: Frank Sparrow or at such other address, and to the attention of such other person or officer, as any Party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (i) when delivered to the Party in person or by facsimile, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a Party's counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a Party shall mean and refer to the date on which the Party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 10. Counterparts. This Amendment may be executed in any number of counterparts, all of which together shall be deemed to constitute one instrument, and each of which shall be deemed an original. In addition, the Parties acknowledge and agree that facsimile or scanned and electronically transmitted signatures shall be deemed valid and binding, and thereafter, upon request of either Party, each Party agrees to deliver original signed copies of this Amendment to the other Party. 11. Conflict of Interest. This Amendment is subject to the provision of Ariz. Rev. Stat. §38- 511. SIGNATURES ON FOLLOWING PAGES Page 5 of 8 IN WITNESS WHEREOF, the Parties hereto have executed this Amendment as of the day and year first written above. “Town” TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation By: __________________________ Ginny Dickey, Mayor ATTEST: _________________________________ Town Clerk STATE OF ARIZONA ) ) ss. County of Maricopa ) This instrument was acknowledged before me on __________________, ___________ by Ginny Dickey, the Mayor of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, on behalf of the Town of Fountain Hills. ___________________________________ Notary Public My Commission Expires: _______________________ Page 6 of 8 “MJFFH7” MJFFH7, LLC, an Arizona limited liability company By: __________________________ Steven B. Vargo Its: Manager STATE OF ARIZONA ) ) ss. County of Maricopa ) This instrument was acknowledged before me on __________________, ___________ by Steven B. Vargo, the Manager of MJFFH7, LLC, an Arizona limited liability company, on behalf of such entity. ___________________________________ Notary Public My Commission Expires: _______________________ Page 7 of 8 EXHIBIT 1 LEGAL DESCRIPTION PARCEL 2 OF EAGLES NEST, ACCORDING TO THE PLAT OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 580 OF MAPS, PAGE 25. EXCEPT ALL OIL, GASES AND OTHER HYDROCARBON SUBSTANCES, COAL, STONE, METALS, MINERALS, FOSSILS AND FERTILIZERS OF EVERY NAME AND DESCRIPTION, TOGETHER WITH ALL URANIUM, THORIUM, OR ANY OTHER MATERIALS, WHETHER OR NOT OF COMMERCIAL VALUE, IN, ON, OR UNDER THE PROPERTY, AS RESERVED ON DEED RECORDED DECEMBER 30, 1993 AS 93-921340 OF OFFICIAL RECORDS; EXCEPT ALL UNDERGROUND WATER IN, UNDER OR FLOWING THROUGH SAID PROPERTY AND WATER RIGHTS APPURTENANT THERETO, AS RESERVED ON DEED RECORDED DECEMBER 30, 1993 AS 93-921340 OF OFFICIAL RECORDS. Page 8 of 8 EXHIBIT 2 LEGAL DESCRIPTION PLAT 515 A: LOT 27, OF FOUNTAIN HILLS ARIZONA FINAL PLAT NO. 515 AMENDED, ACCORDING TO THE PLAT OF RECORD IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED AS BOOK 409 OF MAPS, PAGE 26; EXCEPT ALL OIL, GASES AND OTHER HYDROCARBON SUBSTANCES, COAL, STONE, METALS, MINERALS, FOSSILS AND FERTILIZERS OF EVERY NAME AND DESCRIPTION, TOGETHER WITH ALL URANIUM, THORIUM OR ANY OTHER MATERIAL WHICH IS OR MAY BE DETERMINED TO BE PECULIARLY ESSENTIAL TO THE PRODUCTION OF FISSIONABLE MATERIALS, WHETHER OF NOT OF COMMERCIAL VALUE; AND ALSO EXCEPT ALL UNDERGROUND WATER, IN, UNDER OF FLOWING THROUGH SAID LAND AND WATER RIGHTS APPURTENANT THERETO. Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Development Services Department I I I I I I Unofficial 20 Document RE, Pa RESOLUTION NO. 2014-08 APPROVING THE FINAL SETTLEMENT AGREEMENT, AMENDED AND RESTATED MAY 1, 2014, BETWEEN THE TOWN OF FOUNTAIN HILLS AND MCO PROPERTIES, INC., EN, LLC AND ADERO CANYON, LLC. QUITCLAIM SIGNED ON MAY 13, 2014, REFERENCED AND RECORDED BY SEP ARA TE DOCUMENT DO NOT REMOVE This is part of the official document. 20140314508 RESOLUTION NO. 2014-08 A RESOLUTION OF MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE FINAL AGREEMENT, AMENDED AND MAY l, 2014, BETWEEN THE TOWN AND MCO PROPERTIES EN LLC AND ADERO CANYON LLC. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION L The Final Settlement Agreement, Amended and Restated May 1, 2014, between the Town of Fountain Hills and MCO Properties Inc., LLC and Adero Canyon LLC (the "Agreement"), is hereby approved substantially the form attached hereto as Exhibit A. SECTION 2. The Mayor, the Manager, the Clerk and the Town Attorney are hereby authorized and directed to execute all documents and take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, May 1, 2014. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Unofficial Document REVIEWED BY: AP)VED AS TO FORM: Kenneth W. Buchanan, Town Manager 2147237.l 2147237.l 20140314508 A TO RESOLUTION NO. 2014-08 [ Amended and Restated Agreement] Unofficial Document 20140314508 FINAL SETTLEMENT AGREEMENT Amended and Restated May 1, 2014 THIS AMENDED AND REST A TED FINAL SETTLEMENT AGREEMENT (this "Restated Agreement") dated May l, 2014 (the "Effective Date"), is between the Town of Fountain Hills, an Arizona municipal corporation (the "Town"), MCO Properties Inc., a Delaware corporation, successor-in-interest to MCO Properties LP. d/b/a MCO Properties Limited Partnership, a Delaware limited partnership doing business in the State of Arizona ("MCO"), EN LLC d/b/a EN at Fountain Hills LLC, a Delaware limited liability company ("Eagles Nest"') and Adero Canyon LLC, a Delaware limited liability company ("Adero"). The Town, MCO, Eagles Nest and Adero are each referred to individually as a "Party" and collectively as the "Parties." MCO, Eagles Nest and Adero are collectively referred to as the "Developer Parties." RECITALS A. The Town and MCO are Parties to a Final Settlement Agreement dated December 4, 2001 (the "Original Agreement") that (i) resolved litigation between MCO and the Town and (ii) governed the development of two parcels of real property: (i) approximately 431.20 acres as described on Exhibit A-1 and depicted on Exhibit A-2, both attached hereto (the "Eagle Ridge North Property"); and (ii) approximately 485.53 acres as described on Exhibit B-1 and depicted on Exhibit B-2, both attached hereto (the "Eagles Nest Property"). The Eagle's Nest Property and rights pertaining thereto were conveyed by MCO to Eagles Nest and the Eagle Ridge North Property and rights pertainint'tnereto were conveyed to Adero. Accordingly, Eagles Nest and Adero have the rights hereunder as they pertain to their respective portions of the Property. The Eagle Ridge North Property and the Eagles Nest Property are collectively referred to herein as the "Property." B. The Original Agreement was amended by a Final Settlement Agreement Addendum dated April 3, 2003, to modify the date for construction of Eagle Ridge Drive to the date a certificate of occupancy is issued for a home in Eagle Ridge North, and a First Amendment to Final Settlement Agreement dated October 6, 2011, to modify the "Initial Vesting Period" for the Property. The Original Agreement, as amended by the Addendum and First Amendment described above, is referred to as the "Agreement." C. The dispute that necessitated the settlement evidenced by the Agreement has been resolved, all of the "Conditions" as defined in the Agreement have been satisfied, all of the "Pending Actions" described in Section 2 of the Agreement have been resolved by the appropriate court actions, the Town has acquired the approximately 354 acre parcel of land adjacent to the Property and referred to as the "New Preserve Land" and paid the "Purchase Price" and all other matters relating to such Pending Actions have been concluded. However, the Agreement continues to govern the development of the Property. D. The Eagle Ridge North Property referred to in the Agreement has been renamed as "Adero Canyon." Accordingly, all references to what was previously named the Eagle Ridge North Property shall be referred to in this Restated Agreement as the Adero Canyon Property. 2112643.24 20140314508 The Adero Canyon Property is now owned by Adero, and the Eagles Nest Property is now owned by Eagles Nest. E. Adero has (i) applied for Planned Area Development ("PAD") rezoning of approximately 80 acres of Adero Canyon, to allow for conversion of 52 single-family, custom lots into 31 semi-custom single-family lots, 44 attached "Townhome" lots and 120 Condominium units (the "Adero Canyon PAD"), resulting in an increase in Adero Canyon of 173 dwelling units to a total of 343 and (ii) requested other modifications to the Agreement. As used in this Restated Agreement, all references to "Adero Canyon PAD" shall mean the exhibit to the Town-Council approved ordinance that adopts the PAD zoning for Adero Canyon, including all stipulations, alterations and conditions included as part of its approval (the "PAD Rezoning Ordinance"). The Parties agree and understand that all items submitted in Adero's PAD application, and the letters, comments and other materials explaining or discussing that application, including MCO's January 22, 2014, PAD Application brochure, are of no force and effect, and that Adero, MCO and the Town shall look solely to the Town's regulations, the PAD Rezoning Ordinance and this Restated Agreement with respect to the zoning regulations for Adero Canyon. To the extent of any conflict between the PAD Rezoning Ordinance, this Restated Agreement and the Town's regulations, the PAD Rezoning Ordinance shall control first, then this Restated Agreement and then the Town's regulations. F. The Town has requested that MCO (i) convey to the Town the property identified as Maricopa County Assessor's Parcel No. l 76-13-6 l 7W, as more particularly described and depicted on Exhibit C, attached hereto and incorporated herein by reference (the "New Town Lot"), in exchange for a conveyance by tlfeffi1•~wn"1m Eagles Nest of Tract E identified on the Final Plat for Eagles Nest Parcel 11 ("Tract E") which was originally conveyed to the Town for potential use as a fire station and the use of which would be modified to a single family residential lot (the "New Eagles Nest Lot") and (ii) release and quitclaim to the Town all deed restrictions and reversionary rights retained by MCO pertaining to the real and personal property located at 11445 N. Saguaro Boulevard. The Parties have agreed to this exchange of real property for their mutual benefit and, accordingly, the Parties have agreed to modify the Agreement and the Eagles Nest Final Plat to provide for a change in the use of Tract E into the New Eagles Nest Lot and modification ofthe applicable documents so that Tract E benefits from all entitlements applicable to all other single family residential lots in the Eagles Nest subdivision. G. Eagles Nest has constructed a substantial portion of the Eagles Nest Property, and it is the Parties' intent that Eagles Nest continue development of the Eagles Nest Property as contemplated by the Agreement, and that nothing in this Restated Agreement shall affect Eagles Nest or the Eagles Nest Property, except that the total lot count and overall disturbance shall be increased to permit the use of the New Eagles Nest Lot as a lot for construction of a single- family residence and the related provisions pertaining the New Eagles Nest Lot. H. In addition to and as a result of the Adero Canyon PAD, Adero Canyon is to be replatted and the existing right-of-way for Eagle Ridge Drive, which was dedicated to the Town as part of the master plat for Adero Canyon, MCR # 2001-12013 70, dated December 20, 200 l (the "Existing Final Master Plat"), must be abandoned by the Town. The final master plat and 21!2643.24 2 20140314508 all final parcel plats for Adero Canyon shall be consistent with the Adero Canyon PAD and the new preliminary master plat approved concurrently with the PAD Rezoning Ordinance and the execution of this Restated Agreement (the "New Preliminary Master Plat"). Accordingly, the Town and Adero have agreed to modify the Agreement to accommodate the changes consistent with the new Preliminary Master Plat and Adero Canyon PAD. Adero shall also coordinate with the City of Scottsdale regarding the abandonment and rededication of the bicycle path near Eagle Ridge Drive. L Upon its approval and execution, this Restated Agreement shall be deemed to replace and supersede the Agreement and the McDowell Preserve Settlement Agreement dated June 27, 2001. AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Developer Parties hereby agree as follows: L Lot Exchange. 1.1 Town Approvals. The Town shall approve a modification to the Eagles Nest Final Plat without fees payable by MCO or Eagles Nest to the Town and without any stipulations that are not already contained in"0rne0exisnng approved subdivision, such that the use of Tract E shall be changed from fire station use to use as the New Eagles Nest Lot, and record the amendment to the Eagles Nest Final Plat in the records of the Maricopa County Recorder's Office. MCO will prepare at its sole cost and submit to the Town the revised final plat for Parcel 11 and other documentation necessary to effect this modification. 1.2 Benefits to New Eagles Nest Lot All rights and benefits under the Agreement and the guidelines, standards and agreements that govern the development of all other single family residential lots in the Eagles Nest subdivision shall apply to the New Eagles Nest Lot as though it was originally platted as a single family residential lot in the applicable Eagles Nest Final Plat. 1.3 Driveway Locations. The driveway location for the New Eagles Nest Lot shall be permitted in non-conformance with the Town's "Driveway Policy" with respect to the proximity to bridges. As was contemplated with the original fire station use, utility stub outs were approved for this lot and are within I 00 feet of a small bridge to the east, and a driveway shall be permitted proximate to these uti Ii ties within the l 00-foot restriction. 1.4 Conveyance of Property. Not later than 90 days after the Effective Date, the Town shall convey the New Eagles Nest Lot to Eagles Nest and MCO shall convey the New Town Lot to the Town. Each conveyance shall be free and clear of all monetary encumbrances placed upon each lot by the Town or MCO, as applicable and otherwise subject to all matters filed of record in Maricopa County, Arizona and as to the New Eagles Nest Lot, this Restated Agreement. 2112643.24 3 20140314508 Eagles Nest, MCO and the Town agree to cooperate reasonably to remove any other non-monetary encumbrances on the New Town Lot and the New Eagles Nest Lot that would unreasonably impair the use of such lot by the receiving Party provided neither Party shall be required to incur material costs to remove such encumbrances. 2. Deed Restrictions Release. Not later than 30 days after the Effective Date, MCO shall deliver to the Town a quitclaim deed suitable for recording and in the form attached hereto as Exhibit D. It is the specific intent of the Parties that recording of the quitclaim deed and this Restated Agreement shall eliminate all restrictions and reversionary interests included in (i) the Warranty Deed dated December 13, 1979, recorded in the office of the Maricopa County Recorder in Docket 14123, pages 1143 to 1146 and (ii) those provisions of the instrument dated April 16, 1979, and recorded in the Office of the Maricopa County Recorder in Docket 13650 at Pages 0769 to 0787 but only to the extent that they apply to the property at 11445 N. Saguaro Boulevard. 3. SRP Aesthetic Funds. Upon Adero's request, the Town shall initiate a request with Salt River Project for use of up to $500,000 of funds in the Town's Aesthetic Fund account to partially defray the cost of making aesthetic improvements to the 69kv electric line in Adero Canyon (the "69kv Improvements"). In conjunction with the requests, Adero shall provide SRP with the scope of work for the 69kv Improvements. The Parties agree that SRP will be solely responsible for (i) completing design and cost estimates and (ii) determining what portion of the 69kv Improvements shall be eligible for funding. Adero agrees and understands that the Town's "balance" of Aesthetic Funds is set to be diminished by SRP on May 1, 2015 from the current balance to $300,000. If Adero fails to both submit the request and accompanying documents to SRP and meet SRP's requirements with su'l°fl'c11~n'l'.0"hme to ensure that SRP approves the 69kv Improvements and commits the funding by May l, 2015, and the Town's SRP Aesthetics Funds are diminished to $300,000, the Town's obligation to commit the entire $500,000 of funds to the 69kv Improvements shall be reduced to $300,000 with the remaining $200,000 conditioned upon (i) permission by SRP for the Town to "borrow" $200,000 of future SRP Aesthetics Funds and (ii) availability from SRP of the Aesthetics Funds. The Town agrees to maintain at least $300,000 of Salt River Project Aesthetic Funds available for such purpose. The Town agrees to use reasonable good faith efforts to maximize the SRP Aesthetic Funds to Adero (not to exceed $500,000) including requesting to borrow funds in subsequent years if not available when first requested. The Town's obligation to maintain the balance in the Aesthetic Funds shall be terminated upon the earlier to occur of completion of Phase la (as defined below) or January 1, 2018. 4. The Town Trailhead. 4.1 Trailhead Design. The Town intends to construct a trailhead near the northern extent of Eagle Ridge Drive within the New Preserve Land (the "Trailhead") to provide improved access to a system of trails it has constructed on its land. The Town intends to construct the Trailhead in accordance with the site plan attached hereto as Exhibit E. If the Town determines, in its sole discretion, to materially modify the Trailhead from the site plan on Exhibit E, it shall notify Adero not less than 30 days prior to such modifications and shall permit Adero to comment on such changes. The Town's changes to the Trailhead shall not impede the emergency access for the Eagles Nest Property or the Adero Canyon Property. 2112643.24 4 20140314508 4.2 Deed Restrictions. Prior to the sale of those lots within Adero Canyon that are located immediately adjacent to the Town's McDowell Mountain Preserve, Adero shall record restrictions against such lots, notifying the respective owners of such lots of the public trails adjoining the lots. The Town acknowledges that such notification may be incorporated into the declarations of reservations that Adero intends to record governing the development of the Property (the "CC&Rs"). 4.3 Emergency Access. Exhibit F attached hereto depicts a portion of the New Preserve Land commonly referred to as the "existing jeep trail'' and referred to herein as the "Emergency/Utility Access." Notwithstanding the Town's acquisition of the New Preserve Land, the Town agrees that the Emergency/Utility Access shall be utilized for gated fire/emergency vehicle access and utilities service for Eagles Nest and Adero Canyon on the terms provided herein. 4.3. I Necessary Easements. The Town acquired the New Preserve Land subject to those rights and easements (but not fee title) in favor of MCO or its affiliate as are reasonably necessary to construct, improve and use (on the terms set forth herein) an unpaved emergency access roadway and construct, maintain and use underground utilities (including customary above-ground appurtenances) within the corridor comprising the Emergency/Utility Access. 4.3.2 Standards; Maintenance. The Emergency/Utility Access shall be no wider than 20 feet wide (or such other lessuooiru's'ive configuration as may be allowed), and its design shall (i) be exempt from Subdivision Ordinance road design criteria, (ii) be reasonably acceptable to the Parties, (iii) allow its use for utilities service to serve the Property, and (iv) allow concurrent use as a pedestrian/bicycle trail. The Emergency/Utility Access shall be completed by Adero in conjunction with its completion of subdivision improvements for either the adjacent Parcel 2 in Eagles Nest or the Temporary Roadway Segment described in Section 7 below. Following improvement of the Emergency/Utility Access, Adero shall return its surface to as natural a state as reasonably possible, including needed revegetation and natural color restoration to minimize the appearance of previous disturbance as viewed from offsite. Following completion of Adero's work on the surface of the Emergency/Utility Access, the Town shall maintain the Emergency/Utility Access area, which obligation shall be reflected in an easement instrument or by reservation in the conveyance instrument. 4.3.3 Use of Access. The Emergency/Utility Access easement shall additionally provide that the Emergency/Utility Access shall be used for vehicular traffic only for utility, emergency vehicle, trail restoration/construction and McDowell Mountain Preserve maintenance purposes and otherwise by private vehicles for emergency use only in cases where the southern route to Adero Canyon is blocked or otherwise unusable or on other emergency situations when reasonably necessary for purposes of public safety or to preserve private property. 4.3.4 Easement Form. The Emergency/Utility Access easement shall contain such other provisions and shall be in such form as is reasonably acceptable to both the Town and Adero. 2112643.24 5 20140314508 4.4 Utilities. When required to be constructed in accordance with this Restated Agreement, permanent utilities in Eagle Ridge Drive shall extend to the property line shared between the Adero Canyon Property and the New Preserve Land at the closest point to the Trailhead. 4.4.1 Temporary Utilities. The Town and Adero agree that, due to the allowance for phased construction of Eagle Ridge Drive, as set forth in Section 7 below, temporary utilities will be necessary for operation of the Trailhead. Adero shall be responsible for the cost of constructing (i) a "vault-and-haul" system for collecting wastewater generated from the restroom facilities included on the site, (ii) a temporary water supply via a temporary tank and (iii) the use of temporary solar power generating facilities sufficient to power the water fountains, gate, irrigation and lights at the Trailhead (the vault-and-haul system, temporary water supply and temporary solar facilities are referred to collectively as the "Temporary Utilities"). The Temporary Utilities are to be constructed by Adero (according to plans reasonably approved by the Town and Adero) in conjunction with construction of the Trailhead and completed no later than completion of the Temporary Roadway Segment described in Section 7 below. If Adero fails to construct the Temporary Utilities, which failure continues after notice and reasonable right to cure, the Town may construct them and Adero shall promptly reimburse the Town for the actual out-of-pocket costs incurred by the Town to design and construct those Temporary Utility Improvements. The Town may at its option submit to Adero a proposed budget for the Town to construct the Temporary Utility Improvements and if acceptable to Adero, the Town shall construct those improvements and Adero shall reimburse the Town for the costs incurred by the Town, not to exceed the amount approved by Adero in t11ito0uaget submitted by the Town and approved by Adero. Thereafter, the Town shall be solely responsible for the cost to maintain the Temporary Facilities. In conjunction with the pennanent roadway improvements described in Subsection 7.1.4, Adero shall connect the permanent utility service lines for the Trailhead for water, sewer and grid power, if needed, to the permanent utility lines in Eagle Ridge Drive. This connection shall be at the property line shared between the Adero Canyon Property and the New Preserve Land at the closest point to the Trailhead. 4.4.2 Water Tank Site. Prior to approval of the New Final Master Plat, the Town and Adero shall (i) agree upon a precise location for a water tank necessary to serve the Adero Canyon Property, which water tank shall be located within the area generally depicted on Exhibit G, and (ii) execute such agreements as appropriate to carry out the purpose and intent of this Subsection. 5. Final Parcel Plats within Eagles Nest and Adero Canyon. 5.1 Revised Plats. The Parties agree and understand that Adero has submitted, and the Town has approved, Final Parcel Plats for Adero Canyon, but that the Adero Canyon PAD and other changes requested by Adero require that those plats be replaced. It is the Parties' intent that the subsequent New Final Master Plat will revoke any portions of the existing Final Master Plat and the existing final parcel plats which are modified by the New Preliminary Master Plat in Adero Canyon, but that the Parties will endeavor to preserve the revised standards included on such final plats to the extent possible, as more fully described in Section 6 below. Adero will 2112643.24 6 20140314508 submit to the Town a Final Master Plat for Adero Canyon consistent with the New Preliminary Master Plat. Unless otherwise provided herein, any references to the "Preliminary Plat" shall mean the New Preliminary Master Plat. Any prior approvals unmodified herein under the Original Agreement remain approved. The Final Master Plat shall show the easements necessary to provide legal access between Hidden Hills, Scottsdale Mountain Estates and the Adero Canyon Property. 5.2 Plat Review. The Town shall use its best efforts to promptly process and approve the applications for preliminary plats and final parcel plats within Adero Canyon to replace the plats revoked by the New Preliminary Master Plat, including improvement drawings in connection therewith, as soon as reasonably possible following submittal of same by Adero. 5.3 Submittal Completeness. The Town shall use its customary past standards in determining whether Adero's final parcel plat applications are complete. The Town shall work in good faith with Adero and notify Adero no more than 30 days after the Town's receipt if it deems any such application, or any submittal consisting of part of the application, to be incomplete. 5 .4 Private Access. In connection with its approval of final parcel plats within Adero Canyon, the Town shall do both of the following, ifrequested by Adero: 5.4.1 Private Streets. Approve the private rights-of-way within Adero Canyon as shown in the applicable preliminary parcel plat so long as the private rights-of-way are constructed in general confonnance with ~n1t"1 ~ 0owh s public street standards, unless modified herein (the Parties acknowledge that Eagle Ridge Drive as depicted on the New Preliminary Master Plat and the subsequent final master plat for Adero Canyon shall be a public right-of-way). 5.4.2 Adero Canyon Gates. Approve gated entrances to such private rights-of-way from Eagle Ridge Drive. 5.5 Adiacent Development Connections. 5.5.l Hidden Hills Connection(s). One private street roadway shall physically and legally allow emergency vehicle and public service vehicle access to/from The Hidden Hills II (Scottsdale) subdivision. Public pedestrian and bicycle access to/from that subdivision area shall be physically and legally allowed, either within that roadway right-of-way or in a separate right-of-way or easement. Adero shall be solely responsible for coordinating with the City of Scottsdale to address all matters necessary to cause relocation of the existing bicycle path easement and for designing the pathway to the City of Scottsdale standards. 5.5.2 Scottsdale Mountain Estates Connection(s). One private street and one emergency connection shall physically and legally allow access for the Scottsdale Mountain Estates subdivision (which lies at the northeast corner of Section 18). 2112643.24 7 20140314508 6. Matters Relating to Development of Eagles Nest and Adero Canyon. 6.1 Zoning. The Official Zoning District Map of the Zoning Ordinance of the Town of Fountain Hills (the "Zoning Ordinance'') provides that portions of the Property are zoned Rl-43, Rl-35, Rl-8, Rl-6 and PAD (the "Zoning"). 6.1.l Timing of Vesting. All zoning in Eagles Nest is vested. Zoning in Adero Canyon outside the Adero Canyon PAD is vested. Upon completion of Phase la (as defined below) of Eagle Ridge Drive and all related utilities, approximately 0.7 miles in length completed to the entrance to Parcel 2, as described in the Adero Canyon PAD, all zoning in the Adero Canyon PAD will be vested. 6.1.2 Vesting Defined. "Vested" means that the Town shall not, without the applicable Developer Party's (or its successor's) written consent, (i) change the Zoning to another zoning district or zoning classification, or (ii) amend a zoning classification or take any other action in a manner which would apply to the Property, where any such change, amendment, or action would reduce the density, permitted uses, or lot development standards provided for hereunder or otherwise in effect as of the date hereof. 6.2 Density. 6.2.1 Approved Density. Adero and Eagles Nest shall be permitted to develop, and the Town shall approve for develooment final parcel plats and site plans for no more than 588 lots/dwelling units within the Prop~rty:1~om1prised of245 single-family lots within Eagles Nest and a total of 343 single-family lots, townhome dwelling units and multi-family/hotel units within Adero Canyon. 6.2.2 Limited Collector Roadway. Without limiting the foregoing, the Town Zoning Administrator has detennined that the Emergency/Utility Access eliminates the single entrance 90-lot limitation for Adero Canyon set forth in Subdivision Ordinance Section 3.05 (A)(3)(e). The inapplicability of the 90-lot limitation has been confirmed by the Town Council in connection with its approval of the New Preliminary Master Plat, and shall be confirmed by the Town Council in connection with its approval of final parcel plats for parcels within Adero Canyon. 6.2.3 Permitted Modifications. Adero and Eagles Nest may increase the number of single-family lots as set forth in the final parcel plats for one or more parcels or sub- parcels comprising the Property, provided that the total number of all single-family lots for the entire Property does not exceed 424, the Property remains in conformity with the Zoning, and any such final parcel plat is materially consistent with the New Preliminary Master Plat and applicable preliminary parcel plat. 6.2.4 Limitations Upon Re-Subdividing. The CC&Rs shall prohibit re- subdivision of any lot or parcel comprising the Property, following recordation of the applicable Final Parcel Plat, unless such re-subdivisions are lot-line readjustments, lot joins or other subdivisions that do not result in the creation of more than the 424 single family lots as permitted 2112643.24 8 20140314508 in Section 6.2.3 (any such re-subdivision or lot line adjustment by a retail purchaser of a lot shall not be permitted in order to create an additional lot), which shall be granted in the reasonable discretion of the Town. 6.3 Subdivision Standards. The Town's Subdivision Ordinance establishes the standards for location and installation of infrastructure within the Property (the "Subdivision Standards"). The Parties agree that certain variations from the Subdivision Standards are appropriate for development within the Property, and that the Existing Final Master Plat and the final parcel plat maps previously approved for Adero Canyon (collectively, the "Existing Plats") included a number of such variations. It is the Parties' intent to preserve, to the extent possible, the standards agreed to in conjunction with the Existing Plats. Accordingly, the Parties agree to the following variations from the Subdivision Standards: 6.3. I Cul-de-sac Streets. The Town agrees that the Cul-de-sac Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of cul-de-sac streets within the Property no longer than _3000 feet, with no more than 25 lots. The Developer Parties shall use good faith efforts to limit the cross-slope of cul-de-sac bulbs to 8% where reasonably possible. Eagle Ridge Drive shall not be considered a cul-de-sac street for the purposes of the Subdivision Ordinance. 6.3.2 Loop Roads. The Town agrees that the Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of the loops roads within the Adero Canyon portion of the Property substantially in accordance with the standards approved on the Existing Plats. Unofficial Document 6.3.3 Road Grades. The Town hereby approves road grades above 15%, but no greater than 18%, for up to 400 feet within private hillside local roads within the Property, and road grades above 15%, but no greater than 20%, for the Emergency/Utility Access and utility access roads serving the Reservoir Sites (the "Mountain Road Grade Standards"). The Town agrees that the applicable Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of the Property, the Emergency/Utility Access, and the utility access roads serving the Reservoir Sites in accordance with the Mountain Road Grade Standards. 6.3.4 Retaining Walls. The Town hereby approves (i) retaining walls with an average height of (a) six feet for cut slopes, without handrails and (b) eight feet for fill slopes, without handrails, unless a sidewalk or pathway is within five feet of a fill retaining wall or unless a roadway curb is within ten feet of a fill retaining wall, and (ii) that bridge and con arch abutments, head walls and wing walls are not considered retaining walls (the "Mountain Retaining Wall Standards''). The Town agrees that the applicable Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of the Property in accordance with the Mountain Retaining Wall Standards. 6.3.5 Roadway Design. The Town has approved the Existing Plats, which provide for roadway design, including stopping distances and lines of sight, for certain private hillside local roads, local roads, and collector roads within the Property, pursuant to local 2112643.24 9 20140314508 streets and road standards promulgated by the American Association of State Highway and Transportation Officials in A Policy of Geometric Design of Highways and Streets 2001, Fourth Edition (the "2001 AASHTO Standards"). The Parties agree that the 2001 AASHTO Standards have subsequently been replaced with the current edition thereof, and that the Subdivision Standards have been modified to address a number of the issues related to development in Adero Canyon. The Parties agree that the applicable Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to the extent necessary to meet the current AASHTO Standards as of the date of this Restated Agreement, except as to Eagle Ridge Drive which shall meet the then current AASHTO Standards at the time the design is submitted for approval. 6.3.6 Lot Ratios: Depth. With respect to custom single-family lots, the lot depth to width ratio shall not be restricted. For other than custom single-family lots, a lot depth of less than 95 feet is permitted. 6.3.7 Roadway Cross Sections. The Town hereby approves the roadway cross sections set forth on Exhibit H as alternatives to the applicable Subdivision Standards. Roadway curbs may be rolled or 12", 18" or 24" ribbon style on all public and private streets except where rolled or vertical curbs are necessary for storm water management or public safety as detennined by an independent Professional Engineer and confirmed by the Town Engineer. 6.3.8 Roadway Minimum Horizontal Curve Length. The Town has approved the Existing Plats including certain roadways with minimum horizontal curve lengths less than the Subdivision Standards. The ui~~;'ag~ees that the Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of the Property substantially in accordance with the horizontal curve standards on the Existing Plats. All Hillside Local roads may have a minimum horizontal curve length of 50 feet. 6.3.9 Sidewalks, Trails and Bicycle Paths. The Town agrees that the Subdivision Standards shall be modified in conjunction with its approval of the New Preliminary Master Plat and subsequent final plats to allow development of the Property with sidewalks on one side of Local and Collector roads; provided, however, that nothing in this Restated Agreement shall be deemed to modify the requirements that all sidewalks shall be constructed of Class A concrete. All cul-de-sacs with ten or fewer units need not have a sidewalk. The sidewalk for Eagle Ridge Drive, beginning at the southern entrance to Adero Canyon and continuing to the Trailhead at the northern end of Adero Canyon, may be constructed as a meandering, public-access trail separated from the paved roadway. Where necessary, the trail may extend beyond the Eagle Ridge drive right-of-way; provided that Adero shall dedicate to the Town a ten-foot right-of-way for this trail for all portions outside the Eagle Ridge Drive right-of- way. The trail shall be within the Eagle Ridge Drive right-of-way at all road and wash crossings unless otherwise approved by the Town. The trail shall (i) be six feet in width, (ii) be constructed of class A concrete, which may be colored and textured to blend with the native environment and (iii) be certified as meeting all requirements of the Americans With Disabilities Act. A concrete-paved public bicycle path connection shall link the tenninus points of two off- site bicycle lanes, one in the Hidden Hills subdivision in Scottsdale and one terminating on Eagle Ridge Drive at the southern entrance of Adero Canyon. Adero or a property owners' association 2112643.24 20140314508 shall be solely responsible for any maintenance associated with sidewalks and bicycle paths on private property. Adero or a property owners' association shall also maintain the landscaping along all sidewalks and bicycle paths and shall be responsible for bike path sweeping and other basic upkeep. The Town shall be responsible for repairs to the surface of any sidewalks and bicycle paths within public right-of-way dedicated to the Town. 6.3. l O Minor Collector Design. The Town hereby approves modifying the Subdivision Standards for minor collector roads on the Property to permit a design speed of 25 miles per hour and a minimum radius of 250 feet. 6.3.11 Collector Road Improvements. Subject to the terms of Section 7.1.5, the Town hereby approves the elimination of turn pockets on Eagle Ridge Drive, except at the locations as shown on the New Preliminary Master Plat approved contemporaneously with this Restated Agreement. 6.4 Cuts and Fills. 6.4. l Existing Waivers. Pursuant to the approval procedures set forth in Section 5.03(0) of the Subdivision Ordinance, the Town Council has previously approved (Case Numbers CFW2001-05 and CFW2001-06) those cut and fill waivers necessary to construct the streets and roads and other subdivision improvements serving the Property according to the Existing Plats (the "Existing Cut and Fill Waivers"). However, due to the changes necessary because of the Adero Canyon PAD, the Existinll Cut and Fill Waivers are now obsolete for that Unofficial Document area. The Parties hereby agree that (i) the cut and fill waivers shown on Exhibit I attached hereto (the "New Cut and Fill Waivers") substantially conform to the Existing Cut and Fill Waivers and (ii) the New Cut and Fill Waivers hereby replace the Existing Cut and Fill Waivers. 6.4.2 Further Waivers. Any additional cut and fill waivers as may be necessary for the development ofresidential structures on the Property shall be subject to the approval procedure set forth in Section 5.03(0) of the Zoning Ordinance, as the standards for granting such waivers have been implemented to date by the Town Council. 6.4.3 Mountain Cut Standards. The Town has previously approved the Existing Plats, which, where permissible in the reasonable judgment of The Developer Party's independent soils engineer, provide for (i) cut slopes of up to four feet in height with completely vertical inclination (without retaining wall), and (ii) exposed cut slopes equal to one foot horizontal for every two feet vertical (for cut slopes up to six feet in height) (the "Mountain Cut Standards"). Grading standards shall follow the standards previously approved on the original Adero Canyon plats. Notwithstanding the foregoing, terraced retained slopes may be up to 3:1 for fill slopes and 2: 1 for cut slopes between terraced retaining walls. Unretained slopes may exceed ten feet for cut slopes so long as the natural material is stable and shall be as prescribed by the Town Engineer. The Town agrees that the Subdivision Standards shall be modified in conjunction with its approval of the final parcel plats to allow development of the Property in accordance with the Mountain Cut Standards. 21 !2643.24 11 20140314508 6.5 Disturbance Allowance Procedures. 6.5. l Standards. The Parties acknowledge that Subdivision Ordinance Section 5.04 sets forth provisions allowing hillside disturbance within subdivisions, and except as provided by the Disturbance Allowance Procedures (as defined below), shall apply to development of the Property, including the penalties set forth therein for violation thereof. 6.5.2 Exempt Areas. The Town hereby approves development of the Property with an average lot disturbance not to exceed 22,700 square feet per single-family lot (the "Disturbance Allowance"), and a total allowable disturbance of 5,561,500 square feet for the Eagles Nest Property (the "Eagles Nest Disturbance Allowance") and 4,138,200 square feet for the Adero Canyon Property (the "Adero Disturbance Allowance"), without cost to the Developer Parties. All temporary and permanent subdivision improvements, including but not limited to all road, utility line and water tank construction as well as the areas covered by driveways and related vegetation as provided in section 6.5.5 are exempt (i.e. with respect to subdivision infrastructure and other such areas, all necessary disturbance will be permitted without disturbance penalty). Any disturbed areas for predevelopment investigations, testing, relocation or recovery including, but not limited to, geotechnical, environmental, archaeological or power line relocation work as well as any future or historic trails and roads used by hikers (including temporary trails necessary for the safe passage of hikers during construction of Eagle Ridge Drive), bicyclists, recreational vehicles or utility equipment shall not be counted towards the total amount of hillside disturbance within the Property and, after revegetation with native plant materials, shall be accepted by the Town as undisturbed hillside areas. Unofficial Document 6.5.3 Disturbance Procedures. The Parties hereby adopt the following procedures (the "Disturbance Allowance Procedures") to implement the Disturbance Allowance permitted for the Property: (i) In order to allow for development of the Property with the densities and intensities of uses as contemplated by this Restated Agreement the Adero Disturbance Allowance shall be allocated by Adero among the single-family lots, townhome lots, multi-family/hotel parcels and the sales/administration building parcel. The total allowable area of a lot that may not be disturbed (the ''Nondisturbance Area") shall be the total lot area, less the Disturbance Allowance for such lot plus any areas within the lot anticipated to be exempt from the provisions of the Subdivision Ordinance Section 5.04. No Eagles Nest Disturbance Allowance shall be allocated within the Adero Canyon Property, and no Adero Canyon Disturbance Allowance shall be allocated within the Eagles Nest Property. (ii) Prior to approval of each preliminary parcel plat within the Adero Canyon Property, Adero shall provide the Town with the calculations showing that each lot or parcel within such preliminary plat conforms with the applicable allocations of Disturbance allowance. The calculated Disturbance Allowance and Nondisturbance Area for each lot shall be set forth on a separate schedule submitted to the Town with the applicable final plat (the "Disturbance Schedule"). 2112643.24 12 20140314508 (iii) In the event that the actual Disturbance Allowance within a lot or parcel, as established by a site plan approved by the Town for that lot or parcel in connection with building permit issuance is less that the Disturbance Allowance for such lot or parcel set forth on the Disturbance Schedule, the unused Disturbance Allowance for that lot or parcel may be allocated by Adero to other lots or parcels within the Adero Canyon Property. In no event shall the Disturbance Allowance exceed 35,000 square feet on any single family lot. (iv) The Adero Disturbance Allowance may only be allocated within the Adero Canyon Property. Any unused Disturbance Allowance remaining after the final residential or hotel improvements are constructed on each lot shall be deemed abandoned. (v) All disturbance pursuant to this Restated Agreement on a lot within the Property shall be the total allocated Disturbance Allowance for such lot. The property owner of each lot shall, concurrently with the issuance of the building permit for the construction of a single-family residence on such lot, record a Hillside Protection Easement in the form set forth on Exhibit J hereof. Such Hillside Protection Easement shall cover all portions of such lot outside of its allocated Disturbance Allowance area as finally configured, and which are not exempt from the provisions of Subdivision Ordinance Section 5.04. 6.5.4 Rounding of Cuts. "Rounding" or feathering the edges of cut banks adjacent to roadways, at the points ~n~rtsu0c11 slopes meet the natural grade, shall not be considered disturbance pursuant to the Subdivision Ordinance, and therefore shall not be deducted from the Disturbance Allowance for the Property. 6.5.5 Vegetation. Driveways up to 20 feet in width and the areas in which drought tolerant plantings on the front entrance areas to those 20 foot wide driveway corridors shall not be deemed disturbance of such areas hereunder and such areas shall not be deducted from the Disturbance Allowance for the applicable lot; provided that the ground work associated with the plantings on the front entrance areas to those driveways is minimized to the extent reasonably possible, and prior Town administrative approval is obtained for such work. 6.6 Subdivision Ordinance Section 5.04(E) Approval. 6.6.1 Disturbance Buffers. The Parties acknowledge that (i) Section 5.04(E) of the Subdivision Ordinance provides for fencing (as set forth in Subdivision Ordinance Section 5.04(E)(l)), or disturbance buffers (as set forth in Subdivision Ordinance Section 5.04(E)(2)), in order to protect "an area at least equal to the hillside protection requirements of the lot, parcel or tract;' and (ii) Subdivision Ordinance Section 5.04(8) provides that "[d]isturbance within street rights-of-way shall be exempted from the horizontal hillside disturbance limitations of this ordinance.'' 6.6.2 Exempt Areas. The Town agrees that Subdivision Ordinance Section 5.04(E) is not applicable to development of the street rights-of-way, utility corridors 2112643.24 13 20140314508 outside of street rights-of-way, and other areas disturbed in connection with the installation of subdivision improvements for the Property. 6.6.3 Alternative Marking For Rights-of-Way. The Town acknowledges that the street rights-of-way disturbance in connection with development of the Property is exempt from the disturbance buffers and fencing provisions of Subdivision Ordinance Section 5.04(E) and accordingly in compliance with said section. Notwithstanding the foregoing, disturbance corridors shall be delineated with iron stakes and ropes, which shall be maintained in place during the period of construction of the applicable street right-of-way. 6.7 Driveway Locations. The Town agrees that, to the extent consistent with the driveway requirements in the Town's adopted Fire Code, it shall not withhold approval of the final parcel plats based on non-conformance with the driveway restrictions set forth in Section 7.03(A) of the Town Zoning Ordinance, as amended; provided, however, that any such non- conforming driveways shall be located as permitted by the Town Engineer in his reasonable discretion, including at locations within 100 feet of a bridge or major drainage structure. Notwithstanding the foregoing, there shall be no shared driveways and no driveway easements across one lot for the benefit of another lot on any single family residential lot; each single family residential lot shall have direct access through its own street frontage. 6.8 Sanitary Sewer. The sanitary sewer system for the Property will be designed per the specifications of the Fountain Hills Sanitary District and subject to approval by the Fountain Hills Sanitary District and the Town. Unofficial Document 6.9 Water. The water systems for the Property shall be designed to specifications established by EPCOR and subject to approval by the Town relating to fire flow demand. 6.10 Miscellaneous Engineering Matters. The Town hereby approves (i) private roadways using CMP pipe to carry street flows; (ii) warranty curb replacement at five foot intervals; (iii) roadways with drop manholes, and (iv) other minor variations from Town staff policy, as set forth in this Restated Agreement (the "Miscellaneous Matters"). The Town Engineer shall approve development within the Property pursuant to the Miscellaneous Matters. Minor draws and drainage channels that do not require US Army Corps of Engineers permits may be modified or relocated so long as downstream drainage flows are not materially impacted. Facilities for the collection of water shall be designed so as to retain safely and adequately the maximum expected storm water runoff volume equal to the difference between the predevelopment condition and the post development condition for a I 00-year storm event. Detention basins shall be sized for specific drainage requirements for Adero Canyon. Detention basins need not be oversized, and no land area will be required to be set aside for additional uses 6. l 1 Sale Limited to Improved Lots. Adero agrees that it shall not intentionally pay any tax pursuant to Section 8A-416(a) of the Town's Tax Code, as amended, if it does not believe at the time it is paid that such amount is owed. 2112643.24 14 20140314508 7. Additional Adero Obligations. 7.1 Eagle Ridge Drive. The Parties acknowledge that Eagle Ridge Drive as located on the Existing Plats (as subsequently amended) shall remain a public roadway. The Town agrees there shall not be a public transit route allowed on Eagle Ridge Drive. Adero shall construct Eagle Ridge Drive pursuant to a combination of Limited Collector and Minor Collector standards (from Palisades Boulevard to the Parcel 2 Entrance (defined below), as shown on the New Preliminary Master Plat) and Local Road Standards (from the Parcel 2 Entrance to the Trailhead), with a sidewalk on one side or a meandering trail as described in paragraph 6.3.9 and bicycle lanes on each side (for the Collector section) within the right-of-way for Eagle Ridge Drive. For the side of the roadway that contains both the sidewalk and a bicycle lane, the sidewalk shall be constructed of concrete and not less than six feet wide. 7.1. l Timing of Construction: Phasing. Adero shall pave Eagle Ridge Drive and complete all appurtenant infrastructure and utility improvements related thereto, but may do so in two phases. The portion of Eagle Ridge Drive beginning at the southern entrance to Adero Canyon and ending at the entrance to "Parcel 2," as shown on the New Preliminary Plat (the "Parcel 2 Entrance") shall be fully constructed, with all utilities and appurtenant infrastructure, prior to issuance of the first certificate of occupancy for any residential building in Adero Canyon. The portion of Eagle Ridge Drive beginning at the Parcel 2 Entrance and continuing to the Trailhead shall also be constructed, as a temporary roadway, prior to issuance of the first certificate of occupancy for any residential building in Adero Canyon. The portion of Eagle Ridge Drive north of the Parcel 2 Entrance constructed as a temporary roadway shall be (i) fully graded to the approximate final subgrade elevations as p~~vt&'e'u0"ln grading plans reasonably approved by the Town, (ii) compacted to the standards set forth in the Town's Fire Code and (iii) covered with a dust controlled, all weather, aggregate surface with adequate drainage, erosion control fall protection, roadway shoulders/side slopes and safety features as reasonably deemed appropriate by the Town Engineer (the "Temporary Roadway Segment"). 7.1.2 Maintenance of Temporary Roadway Segment. Adero shall be solely responsible for maintaining and repairing the Temporary Roadway Segment until it is replaced with the permanent road and utility improvements. 7.1.3 Access to Trailhead. Access to the Trailhead prior to completion of the pennanent road over the Temporary Roadway Segment shall be provided as follows: (i) The Town may construct a foot path from the current pavement edge of Eagle Ridge Drive to the Trailhead location (the "Temporary Foot Path''). The Temporary Foot Path shall be designed by the Town and reasonably approved by Adero to ensure that its construction and use is compatible with Adero's planned construction of Eagle Ridge Drive. Adero agrees that the Temporary Foot Path will be open and accessible to the public until such time as Adero has commenced construction on Eagle Ridge Drive pursuant to a pennit issued by the Town. (ii) Access by the Town to the Trailhead for the purpose of constructing or maintaining the Trailhead will be provided without interruption after 2112643.24 15 20140314508 completion of the construction of Eagle Ridge Drive. The Town and Adero shall use reasonable efforts to coordinate construction schedules of the Traithead and Eagle Ridge Drive prior to the Town bidding the Trailhead construction project and shall arrive at a reasonable schedule that accommodates both projects being completed in a timely manner, including a reasonable number of days allocated to delays caused by temporary closures as described below (the "Coordination Schedule"). During the construction of Eagle Ridge Drive the Town shall have access for constructing and maintaining the Trailhead according to the Coordination Schedule and at all times when, in the reasonable judgment of Adero, the use of such areas would not unreasonably interfere with Adero's construction activities and use of such area would allow for safe access; provided, however, that if the Town has commenced construction of the Trailhead and Adero determines that a temporary restriction to the Town's construction access is necessary to prevent an unreasonably dangerous condition, Adero may, after reasonable notice to the Town, cause such temporary closures as necessary so long as the Coordination Schedule is not unreasonably compromised. If Adero reasonably determines not to provide such access for the reasons above, Adero shall cause the Eagles Nest Property Owners Association to permit access through Eagles Nest to access the emergency road connection to Adero Canyon ("Alternative Access") for purpose of emergency response, potable water delivery, maintenance, security and sewage removal ("Alternate Access Uses"). If (A) the Alternative Access is not usable by the vehicle necessary to perform the potable water delivery, maintenance, security or sewage removal task and (B) Eagle Ridge Drive has been closed by Adero according to this Subsection for a period of more than 60 days, then Adero shall be responsible for either oerforming the task itself at no cost to the Town or making such other accommodationusoffifil,D0necessary to allow the vehicle to access the Trailhead. (iii) Public access will be provided following the Town's approval of construction of the completed Eagle Ridge Drive segment up to the Parcel 2 Entrance and the Temporary Roadway Segment; provided, however, that during construction of the pennanent road improvements to replace the Temporary Roadway Segment, Adero may restrict public access during the time periods when, in the reasonable judgment of Adero, public access cannot be safely permitted or would unreasonably interfere with Adero's construction activities. At times when such public access is restricted, pedestrian/bicycle public access will be provided along the meandering public access sidewalk/trail described in Subsection 6.3.9 to the Trailhead subject to prohibition of use of such trail at such times when in the reasonable judgment of Adero, the use of such areas would not allow for safe public access. To accommodate this, the Town acknowledges that temporary rerouting of this trail may be necessary during construction, which temporary routes will be of a natural surface. During this period, Adero shall provide for (i) signage and barricading to clearly indicate road closure and the alternate access to the Trailhead and (ii) temporary parking along Eagle Ridge Drive for the number of cars that can reasonably be accommodated in that area, allowing for safe ingress and egress, as well as the passage of construction equipment. Any disturbance required to provide such temporary parking shall not count toward the Disturbance Allowance. 2112643.24 16 20140314508 7.1.4 Permanent Roadway. Adero shall replace the Temporary Roadway Segment with permanent road improvements prior to issuance of the first building permit for construction of a Dwelling Unit within any lot or parcel in any part of Adero Canyon other than the Adero Canyon PAD area and "Parcel l ." In the event that a certificate of occupancy has not been requested and approved, in accordance with the Town's adopted building codes, for a dwelling unit in the Adero Canyon PAD area (not including the Sales Office) by December 31, 2020, unless such date is extended due to a Force Majeure, the Temporary Roadway Segment phasing option described above shall be revoked and MCO shall thereafter be required to construct the entirety of Eagle Ridge Drive prior to issuance of the first certificate of occupancy for any dwelling unit in Adero Canyon, as previously required by the Agreement. Any delay or failure in the performance by any Party hereunder shall be excused if and to the extent caused by the occurrence of a Force Majeure. For purposes of this Agreement, Force Majeure shall mean a cause or event that is not reasonably foreseeable or otherwise caused by or under the control of the Party claiming Force Majeure including, without limitation, hard dig and blasting not identified in an independent geotechnical report, referendum, lawsuits, construction delays not due to Adero's actions, acts of God, fires, floods, explosions, riots, wars, hurricane, sabotage terrorism, vandalism, accident, restraint of government, governmental acts, injunctions, labor strikes that prevent the furnishing of materials or equipment, and other like events that are beyond the reasonable anticipation and control of the Party affected thereby, despite such Party's reasonable efforts to prevent, avoid, delay, or mitigate the effect of such acts, events or occurrences. Each Party shall notify the other not later than 30 days following the date on which such Party has knowledge of the Force Majeure event. If such notice is not provided within that 30-day period, the applicable extension shall be reduced by the time period commencing after such 30-day notice period has expired, until such notice is given. Each party shall update theuu~1it?t0'~"'tu the status of the continuance of such Force Majeure. 7.1.5 Eagle Ridge Drive/Palisades Boulevard Improvements. MCO previously paid the Town for its share of the traffic signal to be constructed by the Town at Eagle Ridge Drive and Palisades Boulevard and all associated tum lanes. Adero shall have no further obligations with respect to the intersection improvements. 7.2 Wildlife Sensitivity. Adero shall construct wildlife sensitive crossings within the Property. The Town agrees that MCO may meet this obligation by utilizing bridges, con-arch structures and/or large box culverts, subject to Town approval, so long as designs incorporate concrete bottoms or sandy bottoms with rip rap under the sand and along the sides as necessary for adequate erosion control. 7.3 Utility Location. The Developer Parties shall use good faith efforts to avoid locating wet utilities (i.e., water, sewer, and natural gas) within unfilled wash areas within the Property. In connection therewith Developer Parties shall be permitted to suspend wet utility lines below the Bridges, if applicable. 7.4 Custom Signage and Landscaping. Adero shall submit a sign plan to the Town for approval. A property owners' association shall be responsible for the maintenance of any custom signage and landscaping along all rights-of-way including the public right-of-way for Eagle Ridge Drive. Custom signage for vehicular control shall convey the basic principles that 21 !2643.24 17 20140314508 govern design in accordance with the most current edition of the Manual on Uniform Traffic Control Devices. 8. Town Regulation of Development. 8.1 Applicable Rules. The rules, regulations and official policies of the Town applicable to and governing the development of Adero Canyon shall be those rules, regulations, and official policies which were existing and in force for the Town as of January 1, 2014. The Town shall not impose or enact any additional conditions, zoning exactions, dedications, rules, regulations, or official policies applicable to or governing the development of the Property except for any of the following: 8.1.1 Consistent Modifications. Future land use rules, regulations and official policies of the Town that are consistent with and not contrary to the Preliminary Plats, the Final Master Plats, and the Final Parcel Plats and that do not: (i) decrease the development potential of the Property; (ii) require any additional infrastructure improvements or dedications in connection with the development of the Property; (iii) limit or adversely affect the rate, timing or sequencing of development of the Property; or (iv) limit or adversely affect the uses, number and density oflots or dwelling units or intensity of development of the Property. 8.1.2 Regulatory Compliance. Future land-use rules, regulations and official policies of the Town enacted as necessary to comply with state and federal laws and regulations, provided that in the event any such state or federal laws or regulations prevent or preclude compliance with this Restated Agreem"en'i:, such affected provisions of this Restated Agreement shall be modified as may be necessary (and only to the extent required) in order to comply with such state and federal laws and regulations. 8.1.3 Fees and Charges. Future imposition of taxes or filing or review fees, development fees, or modifications thereto, so long as such taxes or fees are imposed or charged by the Town to all similarly situated persons and entities. Notwithstanding the foregoing, in no event shall Adero be required to pay any type fees that did not exist in the Town's rules and regulations in 2000. 8.1.4 Model Homes. The Town shall allow the construction of up to five model homes in each parcel before substantial completion of roads and utilities so long as operable fire hydrants and all-weather fire access are in place to serve the fire protection needs (i.e. adequate pressure and volume) for the homes. Certificates of Occupancy for these homes shall not be issued until finished roadways ( subject only to paving of the "final lift") are complete and potable water, sewer and electrical power services are operational to the homes and approved by the Town for use. 8.1.5. Parking. On-street parking on private streets shall be permitted on the non-sidewalk side of streets only, so long as a 20-foot driveable area remains in the right-of- way for passage of emergency vehicles. 2112643.24 18 20140314508 To the extent that any new or amended rules, regulations, or official policies of the Town not specifically enumerated in this Section 8.1 above conflict with the Preliminary Plats, the Final Master Plats, the Final Parcel Plats, or this Restated Agreement, then the Preliminary Plats, the Final Master Plats, the Final Parcel Plats and this Restated Agreement as applicable, shall control. 8.2 Moratorium. The Town may enact any moratorium, ordinance, resolution or other land-use rule or regulation or limitation on the rate, timing or sequencing of the development of the Property that applies equally to all vacant residential lots in Fountain Hills, and is otherwise permitted pursuant to ARIZ. REV. STAT. § 9-463.06 in effect as of the date hereof. 8.3 Utilities. The Developer Parties acknowledge that the Town, at the date of execution of this Restated Agreement, provides no municipal utility services ( except fire service, if applicable) and the Town has no control over the provision of such services by other entities and makes no representations with respect to the availability of such services provided by other entities. Notwithstanding the foregoing, the Town agrees that in the event it provides municipal utility services in the future, the Town (i) shall make such services available to the Property on the same terms of availability as are applicable to other real property served by the Town, (ii) shall continue to provide such services as reasonably required in connection with development and use of the Property, and (iii) shall not adopt policies and procedures with respect to the provision of such services which would delay development of the Property. 8.4 Review Fees. The Town shall waive all construction permit (but not plan Unoffic_ial Document • check) fees for subdivisions for the Property tor Eagles Nest and Adero. If expedited review of any plans is requested by Adero, upon receipt of such a request, the Town shall discuss the request with Adero and Town staff to determine who the Town will retain as its outside consultant to complete the expedited review. Once the Parties reasonably agree on (i) the applicable time frame for review, (ii) the applicable outside consultant, and (iii) the consultant's total fees, Adero will be responsible to promptly pay the Town's actual cost related to outsourcing as such costs are billed to the Town. The Town shall complete the review process as outlined above in a timely manner. If the Town needs or desires technical expertise beyond its internal expertise for items for which fees are payable by Adero, the Town may engage such experts as it deems necessary according to the process above and all costs of such experts shall be the responsibility of Adero. Adero shall also pay within 30 days after execution of this Agreement by all parties, $30,000 to defray a portion of the Town's reasonable attorney's fees incurred in drafting, revising and negotiating this Restated Agreement. 9. Cooperation and Alternative Dispute Resolution. 9.1 Representatives. To further the commitment of the Parties to cooperate in the implementation of this Restated Agreement, upon the request of any Developer Party or the Town, the Town and the applicable Developer Party shall each designate and appoint a representative to act respectively on behalf of the Town and its various departments and the applicable Developer Party, except as otherwise provided in this Restated Agreement or by law. The initial representative for the Town shall be the Town Attorney, and the initial representative for the applicable Developer Parties shall be its General Counsel, or other party, as identified by 2112643.24 19 20140314508 the applicable Developer Party from time to time. The representatives shall be available at all reasonable times to discuss and review the performance of the Parties to this Restated Agreement, and shall cooperate in order to facilitate any third party action needed to complete the actions contemplated by this Restated Agreement. 9.2 Impasse Procedure. If an impasse or dispute arises out of or relates to this Restated Agreement, or the breach thereof, including without limitation the submittal, its interpretation or intent, or processing and approval of the Final Parcel Plats, the Parties agree to first try in good faith to settle the dispute by negotiation. In the event of any such negotiation, the Parties shall personally meet in an effort to resolve such dispute within twenty (20) days of written request to do so by either the Town or the applicable Developer Party. 9.3 Default; Cure. Upon a failure or unreasonable delay by any Party to perform or otherwise act in accordance with any term or provision of this Restated Agreement, and failure of the procedures set forth in Sections 9.1 and 9.2 above, the other Party may give written notice of default specifying the nature of the failure or delay and the manner in which it may be satisfactorily cured, if possible. In the event such failure or delay is not cured within 30 days after notice of nonperformance is given by the non-defaulting Party, such Party win be in default. In the event of such default, the non-defaulting Party may seek as its remedy, either the damages reasonably related to the breach or specific performance. If the nature of the defaulting Party's nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting Party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the defaulting Party promptly (i) provides written notice to the non-defaulting Party and (ii) col'.Wrfi'eiW!es to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. 10. Notices. Any notice required or permitted to be given under this Restated Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the Party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: Town: With a copy to: 2ll2643.24 Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Kenneth W. Buchanan, Town Manager GUST ROSENFELD, P.L.C. One East Washington Street, Suite 1600 Phoenix, Arizona 85004-2553 Attn: Andrew J. McGuire 20 Developer Parties: With a copy to: 20140314508 MCO Properties Inc. 13620 S. Saguaro, Suite 200 Fountain Hills, Arizona 85268 Attn: Jeremy Hall MCO Properties Inc. 1330 Post Oak Boulevard, Suite 2000 Houston, Texas 77056 Attn: David Suson or at such other address, and to the attention of such other person or officer, as any Party may designate in writing by notice duly given pursuant to this Subsection. Notices shall be deemed received (i) when delivered to the Party in person or by facsimile, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a Party's counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a Party shall mean and refer to the date on which the Party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 11. General Provisions. I L1 Waiver. No delay t11°ffie•xe'rc°fsmg any right or remedy shall constitute a waiver thereof, and no waiver by the Town or a Developer Party of the breach of any covenant of this Restated Agreement shall be construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of this Restated Agreement. 11.2 Headings. The descriptive headings of the sections and paragraphs of this Restated Agreement are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof. 11.3 Exhibits. Any exhibit attached hereto shall be deemed to have been incorporated herein by this reference with the same force and effect as if fully set forth in the body hereof. l I .4 Further Acts. Each of the Parties hereto shall execute, acknowledge and deliver all such documents, instruments, stipulations and affidavits and perform all such acts as reasonably necessary, from time to time, to carry out the matters contemplated by this Restated Agreement. Without limiting the generality of the foregoing, the Town shall timely cooperate and process promptly any requests and applications for any necessary approvals relating to the development of the Property by a Developer Party and its successors and assigns, or otherwise provided for hereunder. The Town's cooperation, processing and approvals of matters with respect to the Property shall not be withheld or delayed so as to unreasonably impede development of the Property. 2112643.24 21 20140314508 11.5 Successors and Assigns. All of the provisions hereof shall inure to the benefit of and be binding upon the successors and assigns of the Parties hereto. 11.6 Third Parties. No term or provision of this Restated Agreement is intended to or shall be for the benefit of any person, firm, organization or corporation not a Party hereto, and no such other person, firm, organization or corporation shall have any right or cause of action hereunder. 11.7 Entire Agreement. This Restated Agreement constitutes the entire agreement between the Parties hereto pertaining to the subject matter hereof. All prior and contemporaneous agreements, representations and understandings of the Parties, oral or written, are hereby superseded and merged herein. 11.8 Amendments. No change or addition shall be made to this Restated Agreement except by a written amendment executed by the Parties hereto. Except as otherwise provided herein, any such amendment shall be adopted as required by law. 11.9 Good Standing: Authority. Each of the Parties respectively represents and warrants to the other (i) that it is duly formed and validly existing under the laws of Arizona, with respect to MCO, or a municipal corporation within the State of Arizona, with respect to the Town, (ii) that it is respectively a Delaware limited partnership duly qualified to do business in the State of Arizona or an Arizona municipal corporation and is in good standing under the applicable state laws, and (iii) that the individual(s) executing this Restated Agreement on behalf of the respective Parties is authorized and ~mp&'we"red to bind the Party on whose behalf each such individual is signing and that all necessary corporate, Town Council or other approvals or consents necessary to the effectiveness of this Restated Agreement have been granted or obtained. l l.10 Legality. The Town hereby represents that: 1 L 10. l. Valid Approval. The Town has complied or shall timely comply with all applicable laws and has taken or shall take all necessary steps, including without limitation, the holding of all required public hearings, to enter into this Restated Agreement and obligate the Town hereunder; and 11.10.2. Valid Authority. The Town has the authority to enter into this Restated Agreement and comply with its requirements. 11.11 Severability. If any provision of this Restated Agreement is declared void or unenforceable, such provision shall be severed from this Restated Agreement, which shall otherwise remain in full force and effect and this Restated Agreement shall be deemed reformed to replace the void or unenforceable provision with a valid and enforceable provision as similar as possible in effect to the void or unenforceable provision. The Parties shall meet and confer as soon as practicable for the purpose of drafting, in good faith, the substitute provision. If an applicable law or court of competent jurisdiction prohibits or excuses the Town from undertaking any contractual commitment to perform an act hereunder, this Restated Agreement 2112643.24 22 20140314508 shall remain in full force and effect, but the provision requiring such action shall be deemed to permit the Town to take such action at its discretion. l 1.12 Termination Upon Sale of Lots. This Restated Agreement shall automatically terminate as to any Lot ( defined below), without the necessity of any notice, agreement or recording by or between the Parties, anytime the required certificates of occupancy are issued by the appropriate Town official for all buildings on a Lot. A "Lot" (collectively "Lots") shall be any part of the Property, including common areas, that is identified in a recorded residential subdivision plat or site plan that has received final approval from the Town. This Restated Agreement shall automatically terminate as to any part of the Property that is dedicated by deed, map of dedication or otherwise for public or governmental facilities and uses. Nothing contained in this Section 11.12 shall affect any obligation, tax, charge, assessment, encumbrance or other lien imposed on any Lot by the Town, a community facilities district or any other special taxing district. 11.13 Governing Law. This Restated Agreement is entered into in Arizona and shall be construed and interpreted under the internal laws of Arizona, without reference to conflict of laws principles, and suit pertaining to this Restated Agreement may be brought only in courts in Maricopa County, Arizona. 11.14 Notice of ARIZ. REV. STAT. §38-511. The Town hereby notifies the Developer Parties of the provisions of ARIZ. REV. STAT. §38-511 (Cancellation of political subdivision and state contracts; definition), which provides, inter a/ia, that the state, its political subdivisions or any department or agency or'e11t°ner1 may, within three years after its execution, cancel any contract, without penalty or further obligation, made by the state, its political subdivisions, or any of the departments or agencies of either if any person significantly involved in initiating, negotiating, securing, drafting or creating the contract on behalf of the state, its political subdivisions or any of the departments or agencies of either is, at any time while the contract or any extension of the contract is in effect, an employee or agent of any other party to the contract in any capacity or a consultant to any other party of the contract with respect to the subject matter of the contract. The Parties acknowledge that no person significantly involved in initiating negotiating, securing, drafting or creating this Restated Agreement on behalf of the Town either is an employee or agent of the Developer Parties, in any capacity, or a consultant to the Developer Parties with respect to the subject matter of this Restated Agreement. 11.15 Time of Essence. Time is of the essence of this Restated Agreement and each provision hereof. 11.16 Counterparts. This Restated Agreement may be signed in counterparts, and the fully executed counterparts shall together constitute a single original Agreement. 11.17 Attorneys Fees. If either Party hereto shall bring suit against the other as a result of any alleged breach or failure by the other Party to perform any obligations under this Restated Agreement or in any exhibit or other document delivered pursuant hereto, or shall seek declaratory relief with respect to any provision hereof, then in such event, the prevailing Party in such action shall, in addition to any other relief granted or awarded by the court, be entitled to 2112643.24 23 20140314508 judgment for reasonable attorneys' fees and expert witness expenses incurred by reason of such action and all costs of suit and those incurred in preparation thereof at both trial and appellate levels. 11.18 Counterparts. This Restated Agreement may be executed in counterparts, all of which together shall be deemed to constitute one instrument, and each of which shall be deemed an original. In addition, the Parties acknowledge and agree that facsimile or scanned and electronically transmitted signatures shall be deemed valid and binding, and thereafter, upon request of either Party, each Party agrees to deliver original signed copies of this Restated Agreement to the other Party. 11.19 Non-Default. By executing this Restated Agreement, all parties affirmatively assert that (i) the other parties are not currently in default, nor have been in default at any time prior to this Restated Agreement that has not been cured, under any of the terms or conditions of the Agreement and (ii) any and all claims, known and unknown, relating to the Agreement and existing on or before the date of this Restated Agreement are forever waived. [SIGNATURES ON FOLLOWING PAGES] Unofficial Document 2112643.24 24 20140314508 IN WITNESS WHEREOF, the Parties hereto have executed this Restated Agreement as of the date and year first set forth above. "Town" TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation Kenneth W. Buchanan, Town Manager ATTEST: (ACKNOWLEDGMENT) STA TE OF ARIZONA ) Unofficial Document ) ss. COUNTY OF MARICOPA ) I , 2014, before me personally appeared Kenneth W. Buchanan, the Town Man of the TOWN OF FOUNTAIN HILLS, an Arizona municipal corporation, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document. 2112643.24 25 20140314508 "MCO" MCO Properties Inc., a Delaware corporation, successor-in-interest to By: MCO Properties L.P., d/b/a MCO Properties Limited Partnership a Delaware limited partnership (ACKNOWLEDGMENT) STATE OF A~Z-on ,,__ ) ) ss. COUNTY OF ::.:::..L....L.="'--F-,:..,,__-) On k( ~ , 2014, bef~;; 1 ;:•n~ersonally appeared Jeremy Hall, President of MCO PROPER'rIES INC., a Delaware corporation, as successor-in-interest to MCO Properties L.P., d/b/a MCO Properties Limited Partnership, a Delaware limited partnership, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document, on behalf of the corporation. Notary Public (Affix notary seal here) 211264324 [SIGNATURES CONTINUE ON FOLLOWING PAGE] CASSANDRA 8. HANSEN Notary Public -Arizona ., Maricopa County • "n • ' My Comm Expires Jan 20. 2017 26 "EAGLES NEST" EN LLC, d/b/a EN at Fountain Hills LLC, a Delaware limited liability company 20140314508 (ACKNOWLEDGMENT) On l ;{,,.,. • / , 2014, before me personally appeared Jeremy Hall, President of EN LLC, ~ Hills LLC, a Delaware limited partnership, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above docu~~~!!'.-'l~P,00~1'~' :,ehalf of the partnership. C!i~~tL~ ~ ~ Notary Public (Affix notary seal here) [SIGNATURES CONTINUE ON FOLLOWING PAGE] 2112643.24 CASSANDRA 8. HANSEN Notary Public . Arizona Maricopa County My Comm. Expires Jan 20, 2017 27 20140314508 "ADERO" Adero Canyon LLC, a Delaware limited liability com any (ACKNOWLEDGMENT) STATE OF Ar-;~ n COUNTY OF w~\'"l-~ PIA_ ) ) ss. ) On ~ 0!::-1 / , 2014, before me personally appeared Jeremy Hall, President of ADERO CANYON LLC, a Delaware limited liability company, whose identity was proven to me on the basis of satisfactory evidence to be the person who he claims to be, and acknowledged that he signed the above document, on behalf of the company. Notary Public (Affix notary seal here) 2112643.24 Unofficial Document ~ CASSANDRA B. HANSEN Notary Public • Arizona . Maricopa County My Comm. Expires J3n 20. 2017 28 2112643.24 20140314508 EXHIBIT A-I TO FINAL SETTLEMENT AGREEMENT AMENDED AND RESTATED MAY 1, 2014 BETWEEN THE TOWN OF FOUNTAIN HILLS AND MCO PROPERTIES INC. [Legal Description Eagle Ridge North Property] See following pages. Unofficial Document 29 ITEM 9. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-21 extending the contract with Maricopa County Sheriff's Office (MCSO) for law enforcement services until December 31, 2023. Staff Summary (background) The Town contracts with the Maricopa County Sheriff's Office for law enforcement services. The current agreement, #2013-105, was executed in June 2012 for an initial term of five years with five additional one-year renewals. An amendment was executed in May 2022 to extend the contract for one additional year. That extension will end on June 30, 2023. In preparation for contract negotiations, the Town hired an independent auditing firm to conduct a contract review to ensure that all terms of the current contract were being fulfilled. That review has been completed; however, the final discussions with MCSO are still ongoing. To ensure patrol services for the Town continue while these discussions are completed and a new contract is negotiated, staff recommends extending the current contract for an additional six months until December 31, 2023. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis If not approved, the current contract with MCSO would end on 6/30/2023. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2023-21.   SUGGESTED MOTION MOVE to adopt Resolution 2023-21. Fiscal Impact Fiscal Impact:$3,138,695 Budget Reference: Funding Source:General Fund If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments RES2023-21  Exhibit A  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/04/2023 08:47 PM Finance Director David Pock 05/04/2023 09:04 PM Finance Director David Pock 05/04/2023 09:04 PM Town Attorney Aaron D. Arnson 05/04/2023 09:15 PM Interim Town Manager Rachael Goodwin 05/08/2023 08:11 AM Form Started By: David Pock Started On: 05/04/2023 08:25 AM Final Approval Date: 05/08/2023  RESOLUTION 2023-21 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING AMENDMENT NO. 3 TO THE AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN THE TOWN OF FOUNTAIN HILLS AND MARICOPA COUNTY BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. The Town Council hereby approves Amendment No. 3 to the Agreement for Law Enforcement Services Between the Town of Fountain Hills and Maricopa County, in substantially the form attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, May 16, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Pierce Coleman PLLC Town Attorney RESOLUTION 2023-21 PAGE 2 EXHIBIT A TO RESOLUTION 2023-21 [Amendment No. 3 to the Agreement for Law Enforcement Services Between the Town of Fountain Hills and Maricopa County] See following pages. 1 Amendment 3 to AGREEMENT FOR LAW ENFORCEMENT SERVICES BETWEEN THE TOWN OF FOUNTAIN HILLS AND MARICOPA COUNTY on behalf of the Sheriff’s Office C-50-12-084-3-00 C-50-12-084-3-01 C-50-12-084-3-02 C-50-12-084-3-03 Term: July 1, 2012 through June 30, 2017 with up to five (5) Six (6) Successive One-Year Automatic Renewals Amendment Effective July 1, 2023 2 Amendment 3 Agreement for Law Enforcement Service between the Town of Fountain Hills and Maricopa County on behalf of the Sheriff’s Office C-50-12-084-3-03 This Amendment to the Agreement between the Town of Fountain Hills (“Town”) and Maricopa County (“County”) on behalf of the Sheriff's Office shall be effective on July 1, 2023, and upon approval of the Maricopa County Board of Supervisors and the Town of Fountain Hills. Recitals The County acting on behalf of the Sheriff's Office and the Town entered into an Agreement for Law Enforcement Services (the “Initial Agreement”), executed August 6, 2012 (C-50-12-084-3- 00). Amendment 1 to the Agreement was approved by the Board of Supervisors on May 22, 2019, (C-50-12-084-3-01). Amendment 1 reduced the sergeant to deputy staffing ratio, changed the calculation method for annual ammunition charges, and adopted an administrative service charge of 3%. Amendment 2 to the Agreement was approved by the Board of Supervisors on June 8, 2022, (C- 50-12-084-3-02) and extended the number of automatic renewals to six, extending the agreement from July 1, 2022, through June 30, 2023. Parties desire to extend the term of the agreement. Amendment This Agreement is extended on month-to-month basis beginning July 1, 2023, for up to six months through December 31, 2023, or until a new contract is adopted, whichever comes first. A. The FY 2024 Law Enforcement Reimbursement Costs and Charges is incorporated herein as Worksheet Exhibit A. will be in effect. B. Contact information in the Legal Notices, Section I. B. are amended as follows: If to the County: Joy Rich Jen Pokorski Maricopa County Manager 301 W. Jefferson, 10th Floor Phoenix, AZ 85003 E-Mail: jen.pokorski@maricopa.gov 3 If to the Town: Grady E. Miller Rachel Goodwin, Interim Town Manager 16705 Avenue of the Fountains Fountain Hills, AZ 85268 E-Mail: rgoodwin@fountainhillsaz.gov C. This document may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. Faxed, copied, electronic and scanned signatures are acceptable as original signatures. Authorization and Signatures IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date of the last signature set forth below. TOWN OF FOUNTAIN HILLS MARICOPA COUNTY By: ____________________________ By: _____________________________ Ginny Dickey Clint Hickman Mayor, Town of Fountain Hills Chairman, Board of Supervisors Date: __________________________ Date: ___________________________ Attest Attest _____________________________ _________________________________ Town Clerk Clerk of the Board MARICOPA COUNTY SHERIFF'S OFFICE _________________________________ Paul Penzone, Sheriff Date In accordance with the requirements of A.R.S. § 11-952(D), the undersigned attorneys acknowledge that (i) they have reviewed the above Agreement on behalf of their respective clients and (ii) as to their respective clients only, each attorney has determined that this Agreement is in proper form and that execution hereof is within the powers and authority granted under the laws of the State of Arizona. _________________________________ __________________________________ Town Attorney Date Deputy County Attorney Date 4 Worksheet Exhibit A. BEATS 3.80 Operating $6,094,553.62 3% Indirect 182,836.61 One Time 0.00 Total Contract Costs $6,277,390.23 Part 1. Personnel Services $5,445,037.52 Annual Hours Budgeted 2088 Position FTE Allocations Average Hourly Base Pay Hourly Variable Benefits Rate Charge Hourly Average Base Plus Variable Benefits Fixed Benefit Annualized Patrol Beat Deputies (LEO)19.00 $34.31 84.42%$63.27 $13,632 2,769,023.60$ Supplemental School Resource Officer (LEO)1.00 $34.31 84.42%$63.27 $13,632 145,738.08 Detective (LEO)2.55 $33.98 84.42%$62.66 $13,632 368,373.98 Sergeants 3.00 $45.11 84.42%$83.19 $13,632 562,009.30 Lieutenants 1.25 $54.07 84.42%$99.72 $13,632 277,927.45 Captain 0.75 $68.81 84.42%$126.90 $13,632 209,420.01 Clerical/Administrative Assistant 1.00 $23.13 19.82%$27.71 $13,632 71,490.48 Worker's Comp 28.55 $1,059.87 (Fund-Wide Allocation per FTE)30,264.00 Unemployment 28.55 $73.18 (Fund-Wide Allocation per FTE)2,089.61 Dispatch 2.13 $26.38 19.82%$31.61 $13,632 169,939.72 Sub Total Salary and Benefits 4,606,276.23$ Type of Duty Post FTE Allocation Market Range Title/ Position FTE Allocation Allocation Unit # of Units Calculated and This Contract 24 hour / 7 day 5.00 Patrol Deputies (LEO)5 Beat 3.8 19.00 8 hour / 7 day 1.67 Detectives (LEO)0.5 Beat 3.8 2.55 8 hour / 5 day 1.19 Sergeant 1 LEO's 8 3.00 Lieutenant 1 LEO's 18 1.25 Captain (LEO Commander)1 LEO's 30 0.75 Clerical/Admin Assist.0.14 Beat 3.8 1.00 Dispatch/Communica- tions 2.13 Special Pay Sworn Eligible Sworn FTEs District Rate Per FTE Cost Cost Includes 84.42% Variable Benefits Overtime 25.55 $33,461.54 854,942.25$ Shift Differential 25.55 $1,261.17 32,222.96$ Regular Over Budget (Sworn)27.55 $2,094.22 57,705.00$ Sub Total Special Pay 944,870.21$ FY 2022 Dept Wide Vacancy Credit (11.23%)-106,108.92 Net Total Special Pay 838,761.29$ Staffing FTE Allocation Factor FTE Staffing Requirements Cost allocation expressed as FTE using annual number of calls for this contract. (PRELIMINARY--Subject to new Contract Changes) Town of Fountain Hills Maricopa County Sheriff's Office Law Enforcement Reimbursement Costs and Charges FY 2024 (July 1, 2023 through June 30, 2024) 5 Worksheet Exhibit A. Part 2. Supplies and Rent 51,485.53$ Total Applicable FTE's 28.55 FTE total minus Dispatch Supply Cost (By District)$577.88 Per applicable FTE 16,501.04$ Ammunition $469.65 Per Sworn FTE 27.55 12,940.93 Uniform Allowance $800.00 Per Sworn FTE 27.55 22,043.56 51,485.53$ Part 3. Communications and Information Technology (IT)262,594.25$ Sworn FTEs 27.55 Information System Service $150,115.14 Annual Cost 150,115.14$ Monthly Radio Charges Vehicles $124.19 Per Month (12); 2 per Vehicle Vehicles 15 44,708.40 Monthly Radio Charges Sworn $124.19 Per Month (12) per Sworn FTE Sworn FTE 27.55 41,063.84 Deputy Laptop Connection $40.01 Per Month (12) per Sworn FTE Sworn FTE 27.55 13,229.44 I-Phone Monthly Charge $40.76 Per Month (12) per Device per Sworn FTE Sworn FTE 27.55 13,477.43 262,594.25$ Part 4. Vehicles and Equipment 335,436.32$ Vehicle Cost with Warranty 49,338.12$ Vehicle life 125,000 milesEquipment Costs (Lights; Push Bar; Etc.)20,000.00$ Equipment life 343,750 Component Per Mile Rate Annual Miles (Calculated)Costs Mileage Rate $0.652 303,484 197,992.65$ 197,992.65$ Vehicle Depreciation $0.395 303,484 119,786.45$ 119,786.45 Equipment Depreciation $0.058 303,484 17,657.22$ 17,657.22 335,436.32$ 182,836.61$ Part 6. Indirect Cost Recovery Indirect costs are recovered at 3% for Sections 1 - 4. Sub Total Supplies and Rent Sub Total Communications and IT Sub Total Vehicles and Equipment Part 5. One-Time Costs This section is reserved for cost reimbursement of replacement or new equipment items that have been identified as necessary for Law Enforcement Service delivery that are not otherwise funded in the Sheriff's operational budget. (Requires amendment.) (PRELIMINARY--Subject to new Contract Changes) Town of Fountain Hills Maricopa County Sheriff's Office Law Enforcement Reimbursement Costs and Charges FY 2024 (July 1, 2023 through June 30, 2024) ITEM 9. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-022, approving the Second Amendment to the Intergovernmental Agreement with the State of Arizona for design and construction of sidewalk gap elimination along Saguaro Boulevard and Palisades Boulevard. Staff Summary (Background) Staff continuously look for opportunities to improve the road network for all modes of transportation, with a focus on pedestrian safety. Most areas within the town prior to incorporation were constructed without sidewalks. Due to Council interest in making Fountain Hills more pedestrian friendly and to add greater connectivity for the community, town staff applied to Maricopa Association of Governments (MAG) for federal funding for various transportation and pedestrian projects, including the installation of sidewalks to fill gaps on two corridors: (a) Palisades Blvd between Fountain Hills Blvd and Saguaro Blvd, and (b) Saguaro Blvd. between Fountain Hills Blvd and Colony Drive. In the Spring of 2020, the Town was notified by MAG that our Sidewalk Gap Elimination Project was selected to receive a $2 million grant.   This project will construct 8-foot sidewalks along both corridors. The project will fill gaps between existing sidewalks, complete full street block sidewalk lengths, connect to existing pedestrian generators (including schools, parks, churches, and commercial areas), and will address pedestrian safety (hazard removal, better accessibility and curb ramp upgrades along arterial streets). The project will also include utility relocations, driveway improvements, roadway narrowing, pavement obliteration and re-striping, retaining walls, landscape restoration and sign relocation. On May 4, 2021, Town Council approved Resolution 2021-11 for an Intergovernmental Agreement (IGA) with the State of Arizona, defining the project costs and outlining the federal funding and the town’s contributory match.  Amendment one was approved by Council on April 5, 2022, after the Town was awarded closeout funds for additional potholing during the design phase, which refined the project costs and outlined the federal funding and the town's contributory match. Amendment two to the IGA, which is being presented to Council for consideration, further refines the town’s contribution for the increased ADOT PDA (project administrative) cost during the design phase, in the amount of $47,626.  The total town share of the PDA cost and our construction share has increased from $152,491 to $200,117   The following represents an updated summary of the federal share and town share of the project costs, which incorporates the additional PDA cost:   Design: Federal-aid funds @ 94.3%   $365,048 Town's match @ 5.7%            $22,065 ADOT (PDA) Cost:                    $77,626 (Paid by Town) Subtotal - Design/PDA             $464,739   Construction:     Federal-aid funds @ 94.3%          $2,026,477 Town's match @ 5.7%                   $122,491 Subtotal - Construction                  $2,148,968 Estimated TOTAL Project Cost      $2,613,707 Total Estimated Town Funds           $222,182 Total Federal Funds                          $2,391,525   If the actual project costs exceed the federal grant funding allocation, the Town will be responsible for paying the difference between actual costs of the project and the federal funds received. Related Ordinance, Policy or Guiding Principle Sidewalk infill (gap elimination) has been a top priority of the Town Council for several years. This agreement provides design and construction support, and in doing so, creates significantly safer walking paths. It is a key element and part of a comprehensive plan to improve pedestrian safety Town-wide.   Risk Analysis Not approving the Resolution will have a negative impact on grant funding and on the project.   Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2022-014.   SUGGESTED MOTION MOVE to adopt Resolution 2023-022, approving Amendment No. 2 to the Intergovernmental Agreement with the State of Arizona for design and construction of sidewalk gap elimination.  Fiscal Impact Fiscal Impact:$222,182 Budget Reference:N/A Funding Source:Capital Projects If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Resolution 2023-22  IGA - State of Arizona  Exhibit A  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 05/04/2023 06:04 PM Finance Director David Pock 05/04/2023 06:31 PM Town Attorney Aaron D. Arnson 05/04/2023 08:45 PM Interim Town Manager Rachael Goodwin 05/09/2023 11:11 AM Form Started By: Justin Weldy Started On: 04/21/2023 10:45 AM Final Approval Date: 05/09/2023  ',, RESOLUTION NO. 2023-22 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, APPROVING AMENDMENT TWO TO AN INTERGOVERNMENTAL AGREEMENT WITH THE STATE OF ARIZONA RELATING TO SIDEWALK INFILL DESIGN AND CONSTRUCTION RECITALS: WHEREAS, by Resolution 2021-011, dated May 4, 2021, the Mayor and Town Council of the Town of Fountain Hills (the "Town") approved an Intergovernmental Agreement, dated May 28, 2021, with the State of Arizona (the "State") (as amended via Resolution 2022-014, dated April 5, 2022, and Amendment No. 1, dated April 13, 2022) relating to the Design and Construction of sidewalk along Saguaro Boulevard from Colony Drive to Fountain Hills Blvd and Palisades Boulevard from Saguaro Boulevard to Fountain Hills Boulevard (the "Agreement"); and WHEREAS, the Town and the State desire to amend the Agreement to revise the project costs. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Town, through its Mayor and Council, hereby approves Amendment Two to the Intergovernmental Agreement (the "Agreement"), attached hereto as Exhibit A. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of Amendment Two to the Intergovernmental Agreement and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa County, Arizona, this ____ day of ______, 2023. FOR THE TOWN OF FOUNTAIN HILLS REVIEWED BY: ATTESTED TO: APPROVED AS TO FORM: __________________________________ ______________________________ Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Town Attorney ___________________________ Ginny Dickey, Mayor _____________________________ Linda Mendenhall, Town Clerk Page 1 of 4 ADOT File No.: IGA 21-0008123-I Amendment No. Two: 23-0009174-I AG Contract No.: P0012021000539 Project Location/Name: Palisades Blvd., and Saguaro Blvd. Type of Work: Sidewalk Gaps Federal-aid No.: FTH-0(210)T ADOT Project No.: T031401C TIP/STIP No.: FTH23-040D, FTH23-040 CFDA No.: 20.205 - Highway Planning and Construction Budget Source Item No.: NA AMENDMENT NO. TWO TO INTERGOVERNMENTAL AGREEMENT BETWEEN THE STATE OF ARIZONA AND THE TOWN OF FOUNTAIN HILLS THIS AMENDMENT NO. TWO to INTERGOVERNMENTAL AGREEMENT (the “Amendment No. Two”), is entered into this date ______________________________, pursuant to Arizona Revised Statutes (“A.R.S.”) §§ 11-951 through 11-954, as amended, between the STATE OF ARIZONA, acting by and through its DEPARTMENT OF TRANSPORTATION (the "State" or “ADOT”) and the TOWN OF FOUNTAIN HILLS, acting by and through its MAYOR and TOWN COUNCIL (the “TOWN”).The State and the Town are each individually referred to as a “Party” and are collectively referred to as the “Parties.” WHEREAS, the INTERGOVERNMENTAL AGREEMENT, IGA 21-0008123-I, A.G. Contract No. P0012021000539, was executed on May 28, 2021, (the “Original Agreement”); IGA 21-0008446-I Amendment No. One, executed on April 13, 2022, (the “Amendment No. One”); WHEREAS, the State is empowered by A.R.S. § 28-401 to enter into this Amendment No. Two and has delegated to the undersigned the authority to execute this Amendment No. Two on behalf of the State; WHEREAS, the Town is empowered by A.R.S. § 9-240 to enter into this Amendment No. Two and has by resolution, if required, a copy of which is attached and made a part of, resolved to enter into this Amendment No. Two and has authorized the undersigned to execute this Amendment No. Two on behalf of the Town; and NOW THEREFORE, in consideration of the mutual terms expressed herein, the purpose of this Amendment No. Two is to increase the Project construction cost estimate; Exhibit A is revised and replaced accordingly. The Parties desire to amend the Original Agreement and Amendment No. One, as follows: The Parties incorporate the paragraphs set forth above as part of the body of this Amendment No. Two. IGA: 21-0008123-I Amendment No. Two: 23-0009174-I Page 2 of 4 II. SCOPE OF WORK Section II, Paragraph e. is revised, as follows: 1. The State will: e. After completion of design and prior to bid advertisement, invoice the Town for the actual PDA costs, as applicable, and the Town share of the Project construction costs, estimated at $200,117.00. After the Project costs for construction are finalized, the State will either invoice or reimburse the Town for the difference between estimated and actual costs. De-obligate or otherwise release any remaining federal funds from the scoping/design phase of the Project. Section II, Paragraph d. is revised, as follows: 2. The Town will: d. After completion of design, within 30 days of receipt of an invoice from the State and prior to bid advertisement, pay to the State, any outstanding PDA costs and the Town share of the Project construction costs, estimated at $200,117.00. Be responsible for and pay the difference between the estimated and actual construction costs of the Project, within 30 days of receipt of an invoice. III. MISCELLANEOUS PROVISIONS Section III, Paragraph 21. is revised, as follows: 21. Contractor Certifications. The Parties shall certify that all contractors comply with the applicable requirements of A.R.S. §§ 35-393.01 and 35-394. EXCEPT AS AMENDED, ALL OTHER terms and conditions of the Original Agreement and Amendment No. One remain in full force and effect. THIS AMENDMENT NO. TWO shall become effective upon the full completion of signing and dating by all Parties to this Amendment No. Two. IGA: 21-0008123-I Amendment No. Two: 23-0009174-I Page 3 of 4 IN ACCORDANCE WITH A.R.S. § 11-952 (D), the written determination of each Party’s legal counsel providing that the Parties are authorized under the laws of this State to enter into this Amendment No. Two and that the Amendment No. Two is in proper form is set forth below. IN WITNESS WHEREOF, the Parties have executed this Amendment No. Two the day and year first above written. TOWN OF FOUNTAIN HILLS By ________________________________________Date_________________________ GINNY DICKEY Mayor ATTEST: By ________________________________________Date_________________________ LINDA MENDENHALL Town Clerk I have reviewed the above referenced Amendment No. Two to the Original Agreement between the State of Arizona, acting by and through its DEPARTMENT OF TRANSPORTATION, and the TOWN OF FOUNTAIN HILLS, an agreement among public agencies which, has been reviewed pursuant to A.R.S. §§ 11-951 through 11-954 and A.R.S. § 9-240, and declare this Amendment No. Two to be in proper form and within the powers and authority granted to the Town under the laws of the State of Arizona. No opinion is expressed as to the authority of the State to enter into this Amendment No. Two. Approved as to Form: By ________________________________________Date_________________________ AARON D. ARNSON Town Attorney ARIZONA DEPARTMENT OF TRANSPORTATION IGA: 21-0008123-I Amendment No. Two: 23-0009174-I Page 4 of 4 By _______________________________________Date________________________ STEVE BOSCHEN, PE Division Director A.G. Contract No. P0012021000539 (ADOT IGA 21-0008123 Amendment No. Two: 23-0009174), an Agreement between public agencies, the State of Arizona and Town of Fountain Hills has been reviewed pursuant to A.R.S. §§ 11-951 through 11-954, and § 28-401 by the undersigned Assistant Attorney General who has determined that it is in the proper form and is within the powers and authority granted to the State of Arizona. No opinion is expressed as to the authority of the remaining Parties, other than the State or its agencies, to enter into said Amendment No. Two. By _______________________________________Date________________________ Assistant Attorney General EXHIBIT A Palisades Blvd., and Saguaro Blvd. Cost Estimate IGA: 21-0008123-I Amendment No. Two: 23-0009174-I T031401C The Project costs are estimated as follows: Original Amend #1 Amend #2 TOTAL Executed Date:28-May-21 13-Apr-22 Pending ADOT Project Development Administration (PDA) Cost, non-federal-aid: Town's Cost @ 100%30,000.00$ -$ -$ 30,000.00$ Scoping/Design: Federal-aid funds @ 94.3%274,144.00$ 90,904.00$ -$ 365,048.00$ Towns's match @ 5.7%16,571.00$ 5,494.00$ -$ 22,065.00$ Subtotal - Scoping/Design/PDA 320,715.00$ 96,398.00$ -$ 417,113.00$ Construction:* Federal-aid funds @ 94.3%2,026,477.00$ -$ 1,284,227.00$ 3,310,704.00$ Town's match @ 5.7%122,491.00$ -$ 77,626.00$ 200,117.00$ Subtotal - Construction 2,148,968.00$ -$ 1,361,853.00$ 3,510,821.00$ Estimated TOTAL Project Cost 2,469,683.00$ 96,398.00$ 1,361,853.00$ 3,927,934.00$ Town Funds 169,062.00$ 5,494.00$ 77,626.00$ 252,182.00$ Federal Funds 2,300,621.00$ 90,904.00$ 1,284,227.00$ 3,675,752.00$ *(Includes 15% construction engineering (CE) and administration cost (this percentage is subject to change, any change will require concurrence from the Town) and 5% Project contingencies) ITEM 9. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Awarding Professional Services Agreement 2023-087 with Pipeliners USA, LLC for Sewer line repairs  Staff Summary (Background) Over the past several months, staff has been working to resolve issues related to the underground sewer lines that service the Community Center and Library. Staff secured the services of a specialty company to clean the lines before undergoing a Sewer Camera Inspection. The Camera inspection confirmed that the piping was most likely installed incorrectly showing low spots that collected waste and revealed several locations where the piping had begun to corrode. Due to the age of the infrastructure and ongoing maintenance issues, staff worked with industry specialists on possible solutions. Based on that research, staff has determined that it is necessary to perform restoration of these sewer lines and selected the method of Cured-In-Place Pipelining, which is the most efficient method of sewer line repair. Sewer pipe lining is a process used for repairing and replacing cracked, leaking, backed up and damaged sewer lines. Cured in place pipe (CIPP) lining is a less invasive method of sewer rehabilitation as compared to other techniques. The CIPP process requires little to no digging and significantly less time to complete than other repair methods. The newly installed liner essentially forms a smooth surface inside of the existing pipe, restoring it to near-new condition. Benefits of Sewer Relining  Reliable and durable – re-lined pipes have a longer lifespan. Increased pipe effectiveness and fluid flow rate – pipe re-lining creates a smooth surface in the inside of the pipes which increases the flow capacity and reduces obstructions, helping to prevent blocked drains. Staff worked with the Town Procurement officer, Robert Dunham, to solicit bids for the work. The results of the solicitation are as follows.  Zippity Split Plumbing – No bid Master Rooter – No bid Rooter Ranger – No bid Nu Flow – Bid $58,578 Pipeliners - Bid $72,500  Nu Flow uses a method called “gapping” where the pipes are lined except for the fittings where other lateral sewer lines connect with the main. The result is a start-stop method of lining which leaves the fittings un-lined. Their logic was the fittings are typically constructed a bit heavier than the pipe itself, and therefore, provided less risk of failure that cast iron pipe does. Pipeliners system lines the entire pipe and has equipment that goes in afterward and “re-establishes” holes for the lateral lines to enter the main line. While this is more expensive to accomplish, the result is a superior product. Staff have selected Pipeliners in the amount of $72,500, as they have a more durable and superior process and product. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement  Risk Analysis Not repairing the sewer line will result in additional issues and require the interment closing of the building for cleanup and repairs. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends Approval of Professional Services Agreement 2023-087- with Pipeliners USA, LLC for Sewer line repairs  SUGGESTED MOTION MOVE to approve Professional Services Agreement 2023-087. Fiscal Impact Fiscal Impact:72,500 Budget Reference:N/A Funding Source:FRAD If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Professional Services Agreement  Scope and Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 05/04/2023 04:29 PM Finance Director David Pock 05/04/2023 06:31 PM Town Attorney Aaron D. Arnson 05/04/2023 08:44 PM Interim Town Manager Rachael Goodwin 05/09/2023 11:11 AM Form Started By: Justin Weldy Started On: 04/21/2023 10:43 AM Final Approval Date: 05/09/2023  1 Contract No. 2023-087 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND ON SERVICES, LLC DBA PIPELINERS USA, LLC THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and On Services, LLC d/b/a Pipeliners USA. LLC, a(n) Arizona corporation (the “Consultant”). RECITALS A. Pursuant to Section 11.2 of the Town’s Procurement Policy and Section 3-3-26 of the Town Code, the Town may directly select certain consultants for professional and technical services. B. The Consultant possesses the specific skill and experience required to provide the Town with drain/pipeline clearing and repair services (the “Services”). C. The Town desires to enter into an Agreement with the Consultant to perform the Services, more particularly set forth in Section 2 below. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Consultant hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth above and attested by the Town Clerk pursuant to Section 3-3-31 of the Town Code, and shall remain in full force and effect until December 1, 2023. 2. Scope of Work. Consultant shall provide the Services as set forth in the Proposal attached hereto as Exhibit A and incorporated herein by reference. 3. Compensation. The Town shall pay the Consultant an aggregate amount not to exceed $72,500 at the rates set forth in Exhibit A. There shall be no renewals or work beyond this scope. 2 4. Payments. The Town shall pay the Consultant monthly (and the Consultant shall invoice the Town monthly), based upon work performed and completed to date, and upon submission and approval of invoices. All invoices shall document and itemize all work completed to date. Each invoice statement shall include a record of time expended and work performed in sufficient detail to justify payment. This Agreement must be referenced on all invoices. 5. Documents. All documents, including any intellectual property rights thereto, prepared and submitted to the Town pursuant to this Agreement shall be the property of the Town. 6. Consultant Personnel. Consultant shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Consultant agrees to assign specific individuals to key positions. If deemed qualified, the Consultant is encouraged to hire Town residents to fill vacant positions at all levels. Consultant agrees that, upon commencement of the Services to be performed under this Agreement, key personnel shall not be removed or replaced without prior written notice to the Town. If key personnel are not available to perform the Services for a continuous period exceeding 30 calendar days, or are expected to devote substantially less effort to the Services than initially anticipated, Consultant shall immediately notify the Town of same and shall, subject to the concurrence of the Town, replace such personnel with personnel possessing substantially equal ability and qualifications. 7. Inspection; Acceptance. All work shall be subject to inspection and acceptance by the Town at reasonable times during Consultant’s performance. The Consultant shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Consultant shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Consultant. The Town has no obligation to provide Consultant, its employees or subcontractors any business registrations or licenses required to perform the specific services set forth in this Agreement. The Town has no obligation to provide tools, equipment or material to Consultant. 9. Performance Warranty. Consultant warrants that the Services rendered will conform to the requirements of this Agreement and with the care and skill ordinarily used by members of the same profession practicing under similar circumstances at the same time and in the same locality. 10. Indemnification. To the fullest extent permitted by law, the Consultant shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, breach of contract, in connection with the work or services of the Consultant, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of 3 insurance coverage requirements set forth below will in no way be construed as limiting the scope of the indemnity in this Section. 11. Insurance. 11.1 General. A. Insurer Qualifications. Without limiting any obligations or liabilities of Consultant, Consultant shall purchase and maintain, at its own expense, hereinafter stipulated minimum insurance with insurance companies authorized to do business in the State of Arizona pursuant to ARIZ. REV. STAT. § 20-206, as amended, with an AM Best, Inc. rating of A- or above with policies and forms satisfactory to the Town. Failure to maintain insurance as specified herein may result in termination of this Agreement at the Town’s option. B. No Representation of Coverage Adequacy. By requiring insurance herein, the Town does not represent that coverage and limits will be adequate to protect Consultant. The Town reserves the right to review any and all of the insurance policies and/or endorsements cited in this Agreement but has no obligation to do so. Failure to demand such evidence of full compliance with the insurance requirements set forth in this Agreement or failure to identify any insurance deficiency shall not relieve Consultant from, nor be construed or deemed a waiver of, its obligation to maintain the required insurance at all times during the performance of this Agreement. C. Additional Insured. All insurance coverage, except Workers’ Compensation insurance and Professional Liability insurance, if applicable, shall name, to the fullest extent permitted by law for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees as Additional Insured as specified under the respective coverage sections of this Agreement. D. Coverage Term. All insurance required herein shall be maintained in full force and effect until all work or services required to be performed under the terms of this Agreement are satisfactorily performed, completed and formally accepted by the Town, unless specified otherwise in this Agreement. E. Primary Insurance. Consultant’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping coverage in force or purchasing an extended reporting option, for three years past completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period. 4 G. Waiver. All policies, except for Professional Liability, including Workers’ Compensation insurance, shall contain a waiver of rights of recovery (subrogation) against the Town, its agents, representatives, officials, officers and employees for any claims arising out of the work or services of Consultant. Consultant shall arrange to have such subrogation waivers incorporated into each policy via formal written endorsement thereto. H. Policy Deductibles and/or Self-Insured Retentions. The policies set forth in these requirements may provide coverage that contains deductibles or self-insured retention amounts. Such deductibles or self-insured retention shall not be applicable with respect to the policy limits provided to the Town. Consultant shall be solely responsible for any such deductible or self-insured retention amount. I. Use of Subcontractors. If any work under this Agreement is subcontracted in any way, Consultant shall execute written agreements with its subcontractors containing the indemnification provisions set forth in this Agreement and insurance requirements set forth herein protecting the Town and Consultant. Consultant shall be responsible for executing any agreements with its subcontractors and obtaining certificates of insurance verifying the insurance requirements. J. Evidence of Insurance. Prior to commencing any work or services under this Agreement, Consultant will provide the Town with suitable evidence of insurance in the form of certificates of insurance and a copy of the declaration page(s) of the insurance policies as required by this Agreement, issued by Consultant’s insurance insurer(s) as evidence that policies are placed with acceptable insurers as specified herein and provide the required coverages, conditions and limits of coverage specified in this Agreement and that such coverage and provisions are in full force and effect. Confidential information such as the policy premium may be redacted from the declaration page(s) of each insurance policy, provided that such redactions do not alter any of the information required by this Agreement. The Town shall reasonably rely upon the certificates of insurance and declaration page(s) of the insurance policies as evidence of coverage but such acceptance and reliance shall not waive or alter in any way the insurance requirements or obligations of this Agreement. If any of the policies required by this Agreement expire during the life of this Agreement, it shall be Consultant’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00 administrative fee shall be assessed for all certificates or declarations received without the appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded. Certificates of insurance and declaration page(s) shall specifically include the following provisions: 5 (1) The Town, its agents, representatives, officers, directors, officials and employees are Additional Insureds as follows: (a) Commercial General Liability – Under Insurance Services Office, Inc., (“ISO”) Form CG 20 10 03 97 or equivalent. (b) Auto Liability – Under ISO Form CA 20 48 or equivalent. (c) Excess Liability – Follow Form to underlying insurance. (2) Consultant’s insurance shall be primary insurance with respect to performance of this Agreement. (3) All policies, except for Professional Liability, including Workers’ Compensation, waive rights of recovery (subrogation) against Town, its agents, representatives, officers, officials and employees for any claims arising out of work or services performed by Consultant under this Agreement. (4) ACORD certificate of insurance form 25 (2014/01) is preferred. If ACORD certificate of insurance form 25 (2001/08) is used, the phrases in the cancellation provision “endeavor to” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives” shall be deleted. Certificate forms other than ACORD form shall have similar restrictive language deleted. 11.2 Required Insurance Coverage. A. Commercial General Liability. Consultant shall maintain “occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-completed operations, personal injury and advertising injury. Coverage under the policy will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10 03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. 6 B. Vehicle Liability. Consultant shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Consultant’s owned, hired and non-owned vehicles assigned to or used in the performance of the Consultant’s work or services under this Agreement. Coverage will be at least as broad as ISO coverage code “1” “any auto” policy form CA 00 01 12 93 or equivalent thereof. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, directors, officials and employees shall be cited as an Additional Insured under ISO Business Auto policy Designated Insured Endorsement form CA 20 48 or equivalent. If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be “follow form” equal or broader in coverage scope than underlying insurance. C. Professional Liability. If this Agreement is the subject of any professional services or work, or if the Consultant engages in any professional services or work in any way related to performing the work under this Agreement, the Consultant shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Consultant, or anyone employed by the Consultant, or anyone for whose negligent acts, mistakes, errors and omissions the Consultant is legally liable, with an unimpaired liability insurance limit of $2,000,000 each claim and $2,000,000 annual aggregate. D. Workers’ Compensation Insurance. Consultant shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Consultant’s employees engaged in the performance of work or services under this Agreement and shall also maintain Employers Liability Insurance of not less than $500,000 for each accident, $500,000 disease for each employee and $1,000,000 disease policy limit. 11.3 Cancellation and Expiration Notice. Insurance required herein shall not expire, be canceled, or be materially changed without 30 days’ prior written notice to the Town. 12. Termination; Cancellation. 12.1 For Town’s Convenience. This Agreement is for the convenience of the Town and, as such, may be terminated without cause after receipt by Consultant of written notice by the Town. Upon termination for convenience, Consultant shall be paid for all undisputed services performed to the termination date. 12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and will have all remedies that are available to it at law or in equity including, without limitation, the remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the 7 defaulting party immediately (A) provides written notice to the non-defaulting party and (B) commences to cure its nonperformance and thereafter diligently continues to completion the cure of its nonperformance. In no event shall any such cure period exceed 90 days. In the event of such termination for cause, payment shall be made by the Town to the Consultant for the undisputed portion of its fee due as of the termination date. 12.3 Due to Work Stoppage. This Agreement may be terminated by the Town upon 30 days’ written notice to Consultant in the event that the Services are permanently abandoned. In the event of such termination due to work stoppage, payment shall be made by the Town to the Consultant for the undisputed portion of its fee due as of the termination date. 12.4 Conflict of Interest. This Agreement is subject to the provisions of ARIZ. REV. STAT. § 38-511. The Town may cancel this Agreement without penalty or further obligations by the Town or any of its departments or agencies if any person significantly involved in initiating, negotiating, securing, drafting or creating this Agreement on behalf of the Town or any of its departments or agencies is, at any time while this Agreement or any extension of this Agreement is in effect, an employee of any other party to this Agreement in any capacity or a Consultant to any other party of this Agreement with respect to the subject matter of this Agreement. 12.5 Gratuities. The Town may, by written notice to the Consultant, cancel this Agreement if it is found by the Town that gratuities, in the form of economic opportunity, future employment, entertainment, gifts or otherwise, were offered or given by the Consultant or any agent or representative of the Consultant to any officer, agent or employee of the Town for the purpose of securing this Agreement. In the event this Agreement is canceled by the Town pursuant to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover and withhold from the Consultant an amount equal to 150% of the gratuity. 12.6 Agreement Subject to Appropriation. This Agreement is subject to the provisions of ARIZ. CONST. ART. IX, § 5 and ARIZ. REV. STAT. § 42-17106. The provisions of this Agreement for payment of funds by the Town shall be effective when funds are appropriated for purposes of this Agreement and are actually available for payment. The Town shall be the sole judge and authority in determining the availability of funds under this Agreement and the Town shall keep the Consultant fully informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is a current expense of the Town, payable exclusively from such annual appropriations, and is not a general obligation or indebtedness of the Town. If the Town Council fails to appropriate money sufficient to pay the amounts as set forth in this Agreement during any immediately succeeding fiscal year, this Agreement shall terminate at the end of then-current fiscal year and the Town and the Consultant shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or agent of the other for any purpose whatsoever. The Consultant acknowledges and agrees that the 8 Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Consultant, its employees and subcontractors are not entitled to workers’ compensation benefits from the Town. The Town does not have the authority to supervise or control the actual work of Consultant, its employees or subcontractors. The Consultant, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Consultant meets the requirements as agreed in Section 2 above and in Exhibit A. Consultant is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Consultant do not intend to nor will they combine business operations under this Agreement. 13.2 Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 13.3 Laws and Regulations. Consultant shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Consultant is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 13.4 Amendments. This Agreement may be modified only by a written amendment signed by persons duly authorized to enter into contracts on behalf of the Town and the Consultant. 13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in this Agreement will be read and enforced as though it were included herein and, if through mistake or otherwise any such provision is not inserted, or is not correctly inserted, then upon the application of either party, this Agreement will promptly be physically amended to make such insertion or correction. 13.6 Severability. The provisions of this Agreement are severable to the extent that any provision or application held to be invalid by a Court of competent jurisdiction shall not affect any other provision or application of this Agreement which may remain in effect without the invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning, and no presumption shall be deemed to apply in favor of, or against the party drafting this Agreement. The parties acknowledge and agree that each has had the opportunity to seek and utilize legal counsel in the drafting of, review of, and entry into this Agreement. 9 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Consultant without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Consultant in violation of this provision shall be a breach of this Agreement by Consultant. 13.9 Subcontracts. No subcontract shall be entered into by the Consultant with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Consultant is responsible for performance under this Agreement whether or not subcontractors are used. Failure to pay subcontractors in a timely manner pursuant to any subcontract shall be a material breach of this Agreement by Consultant. 13.10 Rights and Remedies. No provision in this Agreement shall be construed, expressly or by implication, as waiver by the Town of any existing or future right and/or remedy available by law in the event of any claim of default or breach of this Agreement. The failure of the Town to insist upon the strict performance of any term or condition of this Agreement or to exercise or delay the exercise of any right or remedy provided in this Agreement, or by law, or the Town’s acceptance of and payment for services, shall not release the Consultant from any responsibilities or obligations imposed by this Agreement or by law, and shall not be deemed a waiver of any right of the Town to insist upon the strict performance of this Agreement. 13.11 Attorneys’ Fees. In the event either party brings any action for any relief, declaratory or otherwise, arising out of this Agreement or on account of any breach or default hereof, the prevailing party shall be entitled to receive from the other party reasonable attorneys’ fees and reasonable costs and expenses, determined by the court sitting without a jury, which shall be deemed to have accrued on the commencement of such action and shall be enforced whether or not such action is prosecuted through judgment. 13.12 Liens. All materials or services shall be free of all liens and, if the Town requests, a formal release of all liens shall be delivered to the Town. 13.13 Offset. A. Offset for Damages. In addition to all other remedies at law or equity, the Town may offset from any money due to the Consultant any amounts Consultant owes to the Town for damages resulting from breach or deficiencies in performance or breach of any obligation under this Agreement. B. Offset for Delinquent Fees or Taxes. The Town may offset from any money due to the Consultant any amounts Consultant owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been 10 duly given if (A) delivered to the party at the address set forth below, (B) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (C) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Attn: Rachael Goodwin, Interim Town Manager With copy to: Town of Fountain Hills 16705 East Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney If to Consultant: On Services, LLC d/b/a Pipliners USA, LLC 633 W. 2nd Ave. Mesa, Az. 85210 Attn: Dacia Alvarez or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received (A) when delivered to the party, (B) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (C) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. 13.15 Confidentiality of Records. The Consultant shall establish and maintain procedures and controls that are acceptable to the Town for the purpose of ensuring that information contained in its records or obtained from the Town or from others in carrying out its obligations under this Agreement shall not be used or disclosed by it, its agents, officers, or employees, except as required to perform Consultant’s duties under this Agreement. Persons requesting such information should be referred to the Town. Consultant also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Consultant as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Consultant and its subcontractors are complying with the warranty under subsection 13.17 below, Consultant’s and its subcontractor’s books, records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Consultant and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to 11 audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit (A) evaluation and verification of any invoices, payments or claims based on Consultant’s and its subcontractors’ actual costs (including direct and indirect costs and overhead allocations) incurred, or units expended directly in the performance of work under this Agreement and (B) evaluation of the Consultant’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in subsection 13.17 below. To the extent necessary for the Town to audit Records as set forth in this subsection, Consultant and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Consultant pursuant to this Agreement. Consultant and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this subsection. The Town shall give Consultant or its subcontractors reasonable advance notice of intended audits. Consultant shall require its subcontractors to comply with the provisions of this subsection by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 13.17 E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41-4401, the Consultant and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Consultant’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 13.18 Israel. Consultant certifies that it is not currently engaged in, and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 13.19 China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 13.20 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Proposal, any Town-approved invoices, and the RFP, the documents shall govern in the order listed herein. 12 13.21 Non-Exclusive Contract. This Agreement is entered into with the understanding and agreement that it is for the sole convenience of the Town. The Town reserves the right to obtain like goods and services from another source when necessary. [SIGNATURES APPEAR ON FOLLOWING PAGES] ESTIMATE 34371524 ESTIMATE DATE Nov 02, 2022 J O B A D D R ES S Town Of Fountain Hills 13001 North La Montana Drive Fountain Hills, AZ 85268 USA Job: 34020144 ESTI M AT E D E TA IL S Line 2 Mainlines in the Community Center and Library: The mainlines to the community center and library have had consistent back ups several times a year. After performing a camera inspection on the drain lines, we discovered that the pipes are old cast iron pipes with scale and corrosion. This scale can snag onto sewage and cause back-ups and flooding. In order to fix this and restore the pipes to better than new conditions, we recommend descaling the pipes and installing a permanent solution epoxy liner in the mainline drains. This will restore the pipes to better than new conditions. We will line over the fittings and perform robotic reinstatements so the fittings will be covered. The Community Center mainline drain is 155 feet with an estimated 5 tie ins. The library drain line is an estimated 175 feet with 5 tie ins. We will use Brawoliner Liner and it is expected to last 50+ years. This is an inversion lining system and the epoxy adhears to and seals directly to the pipe unlike pull in place liners. This solution requires no demolition to the property. We made need small drywall access through certain branch line tie ins but most of them can be performed through the mainline using our robotic system. Link to inspection videos and diagrams. https://drive.google.com/drive/folders/10yXQwLkIb-ri9ZPIKkwkWKP_Nd2zNCIf?usp=share_link TA S K D E S C R IP T I O N QT Y P R I C E TOTA L PL-M2 Permanent Solution Pipe Lining - Mainline Drain *Price Per Foot* (3-4 inch diameter) The mainlines to the community center and library have had consistent back ups several times a year. After performing a camera inspection on the drain lines, we discovered that the pipes are old cast iron pipes with scale and corrosion. This scale can snag onto sewage and cause back-ups and flooding. In order to fix this and restore the pipes to better than new conditions, we recommend descaling the pipes and installing a permanent solution epoxy liner in the mainline drains. This will restore the pipes to better than new conditions. We will line over the fittings and perform robotic reinstatements so the 155.00 $200.00 $31,000.00 Pipeliners 633 W 2nd Avenue Mesa, AZ, 85210 ROC #334242 BILL TO Town Of Fountain Hills 13001 North La Montana Drive Fountain Hills, AZ 85268 USA Estimate #34371524 Page 1 of 4 fittings will be covered. The Community Center mainline drain is 155 feet with an estimated 6 tie ins. The library drain line is an estimated 175 feet with 6 tie ins. We will use Brawoliner Liner and it is expected to last 50+ years. This is an inversion lining system and the epoxy adhears to and seals directly to the pipe unlike pull in place liners. Benefits of Pipe Lining: Improves flow comparable to new, ABS pipe Prevents root intrusions as there are no joints Has the strength of the old drain system and the liner Has a life expectancy of 50+ years Requires much less demolition than traditional plumbing Process: Access and map the piping system with a video inspection May need to cut into wall (We are not responsible for wall repairs) Thoroughly clean and descale the pipe of roots and all debris Insert the resin-saturated liner into the host pipe Install a full length epoxy liner Allow the liner to harden using the Cured-In-Place-Pipe (CIPP) process (Up to 12 hour cure time, drain system cannot be used during this time.) Camera Inspect the pipe to assure a smooth, jointless lining Estimated Time Of Completion: 1-2 days Disclaimer: If pipe is in such poor condition that lining any area is not possible and that section needs to be dug up, we are not liable for any damage to the property needed for access. If there is limited access to branch lines, we may use Picote Brush Coating system instead, same warranty applies. Warranty: Pipe Lining is as good as installing brand new pipe. Pipe Lining comes with a structural warranty for 50 years In order to maintain warranty, do not use chemical drain cleaners on pipe. Whenever drain is backed up, hydro-jet, do not use cable machine. PL-M2 Permanent Solution Pipe Lining - Mainline Drain *Price Per Foot* (3-4 inch diameter) The mainlines to the community center and library have had consistent back ups several times a year. After performing a camera inspection on the drain lines, we discovered that the pipes are old cast iron pipes with scale and corrosion. This scale can snag onto sewage and cause back-ups and flooding. In order to fix this and restore the pipes to better than new conditions, we recommend descaling the pipes and installing a permanent solution epoxy liner in the mainline drains. This will restore the pipes to better than new conditions. We will line over the fittings and perform robotic reinstatements so the fittings will be covered. The Community Center mainline drain is 155 175.00 $200.00 $35,000.00 Estimate #34371524 Page 2 of 4 feet with an estimated 6 tie ins. The library drain line is an estimated 175 feet with 6 tie ins. We will use Brawoliner Liner and it is expected to last 50+ years. This is an inversion lining system and the epoxy adhears to and seals directly to the pipe unlike pull in place liners. Benefits of Pipe Lining: Improves flow comparable to new, ABS pipe Prevents root intrusions as there are no joints Has the strength of the old drain system and the liner Has a life expectancy of 50+ years Requires much less demolition than traditional plumbing Process: Access and map the piping system with a video inspection May need to cut into wall (We are not responsible for wall repairs) Thoroughly clean and descale the pipe of roots and all debris Insert the resin-saturated liner into the host pipe Install a full length epoxy liner Allow the liner to harden using the Cured-In-Place-Pipe (CIPP) process (Up to 12 hour cure time, drain system cannot be used during this time.) Camera Inspect the pipe to assure a smooth, jointless lining Estimated Time Of Completion: 1-2 days Disclaimer: If pipe is in such poor condition that lining any area is not possible and that section needs to be dug up, we are not liable for any damage to the property needed for access. If there is limited access to branch lines, we may use Picote Brush Coating system instead, same warranty applies. Warranty: Pipe Lining is as good as installing brand new pipe. Pipe Lining comes with a structural warranty for 50 years In order to maintain warranty, do not use chemical drain cleaners on pipe. Whenever drain is backed up, hydro-jet, do not use cable machine. PL-RR Single Reinstatement Fee We a liner sleeves a pipe, it covers up each branch line tie in. We will use a robotic machine that has controls and drills to go into the liner and open up each branch line. Disclaimer: If the tie in fitting is in such poor condition it collapses upon reinstatement, we are not liable for any access needed to the property to dig up and replace tie in. 10.00 $650.00 $6,500.00 Estimate #34371524 Page 3 of 4 SUB-TOTAL $72,500.00 TAX $0.00 TOTAL $72,500.00 EST. FINANCING $1,435.50 Thank you for choosing pipeliners Estimate #34371524 Page 4 of 4 ITEM 9. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 05/16/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: 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.  Staff Summary (Background) This is a regularly recurring agenda item on the Town Council agenda during the legislative session. This agenda item aims to obtain consensus from the Mayor and Council on legislative bills and provide direction, if any, to staff to communicate the town's position on the bills. For every Council meeting, the Legislative Bulletin will be attached to the Town Council agenda, including legislative analysis of the bills and their impacts on municipalities. The Mayor and Council will have an opportunity to review the bills that are under consideration in the Arizona State Legislature and provide direction on supporting or opposing the bills. The Mayor and Council may also bring up other bills of interest to the Town of Fountain Hills for discussion that are not listed in the Legislative Bulletin.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A SUGGESTED MOTION MOVE to provide staff direction on one or more bills being considered by the State Legislature. Attachments Legislative Bulletin - Issue 16  Legislative Bulletin - Issue 16  Legislative Bulletin - Issue 17  Form Review Form Started By: Linda Mendenhall Started On: 05/08/2023 09:05 AM Final Approval Date: 05/08/2023  Legislative Bulletin: Today marks the 111th day of the 2023 legislative session. A total of 1,632 bills, memorials and resolutions have been introduced. Out of these, 176 have been transmitted to the governor. So far, 93 have been signed into law, while 63 have been vetoed by the governor. Veto Override Debate Despite initially passing both chambers with veto-proof majorities, HB2509 (food preparation; sale; cottage food) failed an attempted veto override in the House on a vote of 35-23 with five Democrats joining Republicans. It would have taken at least a 2/3 supermajority vote to override the Governor. Debate on the House Floor became heated with multiple points-of-order called and emotional testimony from members. The bill expanded exemptions for cottage food products and came to be known as the ‘Tamale Bill’ referencing the common sale of homemade goods in Arizona. League Resolutions SB1189 (municipal tax code commission; continuation), sponsored by Senator Mesnard (R-Chandler), was scheduled for Third Read on Tuesday, April 25, but ultimately was not put up for a vote. The bill would continue the Municipal Tax Code Commission (MTCC) until July 1, 2027. SB1006 (municipal notices and ordinances; posting), sponsored by Senator Kavanagh (R-Fountain Hills), was heard in Committee of the Whole and received a do-pass recommendation. The bill modifies requirements for publication of notices and ordinances. Recess The Legislature is adjourned until Wednesday, May 3rd as the Maricopa County Board of Supervisors continues to consider candidates for two vacant seats – Senate Legislative District 26 and House Legislative District 13. These became open upon the resignation of Senator Raquel Teran to focus on her campaign for the U.S. House of Representatives and the expulsion of Representative Liz Harris for disorderly behavior related to the Joint Elections Committee hearing earlier this year. 2023 Session Deadlines Every session has deadlines pertaining to bill submissions and hearings. This year, the schedule is as follows: April Tuesday 4/18 – 100th day of session Legislative Staff You can contact our legislative division at (602) 258-5786 or email using the information below: Tom Savage, Legislative Director: tsavage@azleague.org Marshall Pimentel, Senior Legislative Associate: mpimentel@azleague.org Jonathon Bates, Legislative Analyst: jbates@azleague.org Michael Jones, Legislative Intern: legisintern@azleague.org #Keepup with us on Twitter. Keep up with the issues and events. Legislative Bill Monitoring All bills being actively monitored by the League can be found by clicking the link below. League of Arizona Cities and Towns 1820 W Washington Street Phoenix, AZ 85007 info@azleague.org No longer want to receive these emails? Unsubscribe. CLICK HERE Legislative Bill Monitoring Legislative Bulletin: Today marks the 118th day of the 2023 legislative session. A total of 1,632 bills, memorials and resolutions have been introduced. Out of these, 196 have been transmitted to the Governor. So far, 113 have been signed into law, while 64 have been vetoed by the Governor. Policy Committees This week, Mayors and Councilmembers throughout the state met to consider policy proposals submitted from the League’s membership. The policy committee framework was created to give the membership an opportunity to provide direction on issues impacting cities and towns. Policy proposals may be recommended for consideration before the full Resolutions Committee held during the League Annual Conference in August, be referred for further study, or be assigned as a non-legislative issue. Policy Committees will meet again in June. Any member wishing to recommend a proposal is asked to submit those to League staff by Friday, May 26th. League Resolutions SB1189 (municipal tax code commission; continuation), sponsored by Senator Mesnard (R-Chandler), would continue the Municipal Tax Code Commission (MTCC) until July 1, 2027. Although no member of the House objected to the bill’s inclusion on the Consent Calendar, it was placed on an Additional Committee of the Whole (Add. COW) calendar last week for the consideration of an amendment. The amendment would have continued the MTCC for just one year despite the House Ways & Means Committee of Reference’s four-year continuation recommendation issued in January. The amendment ultimately failed and the bill received a do-pass recommendation. Legislative Appointments On Friday, the Maricopa County Board of Supervisors voted 4-1 to appoint Julie Willoughby to the vacant LD13 House seat. Now Representative Willoughby was promptly sworn in and will represent Chandler and Gilbert. The Board now must turn its attention to filling the vacant LD26 Senate seat left by former Senator Raquel Teran. Nominees for the seat include two House members – Representatives Aguilar and Bravo – as well as Quantá Crews, a former candidate for the Phoenix Elementary School District Governing Board. 2023 Session Deadlines Every session has deadlines pertaining to bill submissions and hearings. This year, the schedule is as follows: April Tuesday 4/18 – 100th day of session Legislative Staff You can contact our legislative division at (602) 258-5786 or email using the information below: Tom Savage, Legislative Director: tsavage@azleague.org Marshall Pimentel, Senior Legislative Associate: mpimentel@azleague.org Jonathon Bates, Legislative Analyst: jbates@azleague.org Michael Jones, Legislative Intern: legisintern@azleague.org #Keepup with us on Twitter. Keep up with the issues and events. Legislative Bill Monitoring All bills being actively monitored by the League can be found by clicking the link below. League of Arizona Cities and Towns 1820 W Washington Street Phoenix, AZ 85007 info@azleague.org No longer want to receive these emails? Unsubscribe. CLICK HERE Legislative Bill Monitoring