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HomeMy WebLinkAboutAGENDApacket__08-22-23_0936_492       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Sharron Grzybowski Councilmember Peggy McMahon Councilmember Hannah Toth Councilmember Gerry Friedel Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, AUGUST 22, 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.        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 Clayton Wilfer, Joy Christian Community Church     3.ROLL CALL – Mayor Dickey     4.STATEMENT OF PARTICIPATION     5.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     6.PRESENTATIONS     A.Economic Development Fourth Quarter Update     B.Presentation from the Public Works Director for Donated and Stored Construction Materials     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.     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   Town Council Regular Meeting of August 22, 2023 2   normal sequence on the agenda.   A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Regular Meeting of June 6, 2023; the Work Session and Regular Meeting of June 20, 2023.     B.CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application by the Fearless Kitty Rescue for a wine garden in conjunction with Wet Your Whiskers on October 14, 2023.     C.CONSIDERATION AND POSSIBLE ACTION: Request to apply and take receipt of Prop 202 Grant Funding from Salt River Pima-Maricopa Indian Community.     D.CONSIDERATION AND POSSIBLE ACTION: Approval of grant applications submitted to the Water Infrastructure Finance Authority of Arizona. (AZWIFA)     E.CONSIDERATION AND POSSIBLE ACTION: Adoption of Resolution 2023-27, Accepting Gila River Indian Community Grant Funding on behalf of the Fountain Hills Chamber of Commerce.      F.CONSIDERATION AND POSSIBLE ACTION: Approval of a Cooperative Purchasing Agreement (C2024-013) with L.N. Curtis and Sons for the purchase of new structure and wildland firefighter personal protective equipment (PPE).     G.CONSIDERATION AND POSSIBLE ACTION: Approval of a Cooperative Purchasing Agreement (C2024-012) with SHI International Corp. for the purchase of new computers and associated equipment for mounting the fire apparatus.     9.REGULAR AGENDA     A.CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-11 - Pedestrians in the Roadway.     B.CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-12 - Prohibited Solicitation     C.CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-13 - Urban Camping.    D.CONSIDERATION AND POSSIBLE ACTION: Approving Professional Services Agreement 2023-088 with Kimley Horn & Associates for a Town Center Parking Analysis     E. CONSIDERATION AND POSSIBLE ACTION: Approving Authorization to Proceed with   Town Council Regular Meeting of August 22, 2023 3   E. CONSIDERATION AND POSSIBLE ACTION: Approving Authorization to Proceed with Capital Project T6005, for final design of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge and Palomino Drives.     F.DISCUSSION AND POSSIBLE ACTION: Relating to the New Laws Report provided by the League of Arizona Cities and Towns of the enacted bills that impact the operations of cities and towns.      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 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 August 22, 2023 4   ITEM 6. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 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 Fourth Quarter Update Staff Summary (Background) Economic Development Director Amanda Jacobs will be presenting a fourth quarter (April 1, 2023 - June 30, 2023) Economic Development Update to the Town Council at its meeting on August 22, 2023.  The presentation will include town efforts on business attraction, business retention and expansion, marketing, advertising, tourism and strategic partnerships.   Attachments Economic Development Fourth Quarter Update  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 07/27/2023 08:56 AM Finance Director David Pock 07/27/2023 01:22 PM Finance Director David Pock 07/27/2023 01:22 PM Town Attorney Aaron D. Arnson 07/27/2023 02:56 PM Interim Town Manager Rachael Goodwin 08/08/2023 10:10 AM Form Started By: Amanda Jacobs Started On: 07/03/2023 05:40 PM Final Approval Date: 08/08/2023  Economic Development 4th Quarter Update •New Openings •AZ Stone and Crystal Company •Alpha Financial Nordic •Motor Vault •Snowy Ice Cream •Coming Soon •Coffee Roasters •Dutch Bros. •Above Board Charcuterie/Graze Craze •Phoenix Cannabis Business Attraction •Business Retention and Expansion Program •Workforce •Workforce Housing in FH •8-Week Shop Local Ad Campaign in FH Times Business Retention & Expansion Apartment Occupancy Rate Apartment Occupancy Rate Gunsight 92% Casa Del Lago 91% Four Peaks Vista Condos 80% Pillar at Fountain Hills 97% Luna at Fountain Hills 94% Park Place at Fountain Hills 92% Vacancy Rate – Existing Buildings S o u r c e : C o S t a r S o u r c e : C o S t a r / S t a f f Category Vacancy Rate Vacancy Rate Office 12.3%37.9% Industrial 1.3%9.9% Retail 6.4%19.9% •Community Engagement •Community Leaders Workshop – January 12 •Public Workshop – April 12 •Strategic Planning Advisory Commission – August 23 •Councilmember Meetings Economic Development Strategy •FY23 Final •$85,464.75 •FY24 Estimates •$69,792 AOT Prop 302 Grant Partnerships •Arizona Office of Tourism •Arizona Association for Economic Development •Fountain Hills Chamber of Commerce •Fountain Hills Dark Sky Association •Fountain Hills Times •Fountain Hills Unified School District •Greater Phoenix Economic Development Council •Hotel Occupancy: 65.9% •Social Media: 44% increase •Fountain Live Feed: 1.3 million views, during FY •Experience Fountain Hills Website •32,450 unique visits (35% increase) •Top 5 Cities •Phoenix •Scottsdale •Mesa •Los Angeles •Chandler Tourism •Tourism and Event Impact Study •Estimated winter visitors – 11.8% •Events •32.7% - Local •43.8% - Regional •23.5% - Out of State •Opportunities •Attract new hotel/resort •Multi-Day Events •National PR Campaign Tourism Continued Questions? ITEM 6. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  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):  Presentation from the Public Works Director for Donated and Stored Construction Materials Staff Summary (Background) The Town of Fountain Hills began receiving and utilizing donated construction materials shortly after incorporation to reduce the cost of current and future Town projects. The material primarily consists of clean fill, large boulders and rip-rap. Some of the materials donated are decorative rock, (granite) and select fill used for road construction. Early on, the Town Engineering Department recognized the value of the material and began the long-range planning process. In doing so, the Department started preparing site plans where the materials would be placed. The Town has endorsed and encouraged developers and contractors to donate excess materials from private development projects to the Town for short- and long-range projects.  Most of the donated material is hauled and placed by the developer at designated locations that have been identified for specific projects, such as road widening. Currently, some of the donated material is stockpiled on Town property for use at a later date. The Public Works Director will provide additional information in a PowerPoint presentation. Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 08/10/2023 03:35 PM Town Attorney Aaron D. Arnson 08/10/2023 04:00 PM Town Manager Linda Mendenhall 08/10/2023 04:47 PM Interim Town Manager Rachael Goodwin 08/10/2023 06:12 PM Form Started By: Justin Weldy Started On: 08/10/2023 01:04 PM Final Approval Date: 08/10/2023  ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Regular Meeting of June 6, 2023; the Work Session and Regular Meeting of June 20, 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 June 6, 2023, the Work Session of June 20, 2023, and the Regular Meeting of June 20, 2023. SUGGESTED MOTION MOVE to approve the minutes of the Regular Meeting of June 6, 2023, the Work Session of June 20, 2023, and the Regular Meeting of June 20, 2023, as presented.   Attachments Verbatim Transcript  Verbatim Transcript  Verbatim Transcript  Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 08/03/2023 02:06 PM Finance Director David Pock 08/03/2023 02:34 PM Town Attorney Aaron D. Arnson 08/04/2023 02:11 PM Interim Town Manager Rachael Goodwin 08/08/2023 10:15 AM Form Started By: Linda Mendenhall Started On: 08/03/2023 02:00 PM Final Approval Date: 08/08/2023  TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL June 6, 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 ninety members of the public were present. TOWN OF FOUNTAIN HILLS Page 1 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 1 of 78 Post-Production File Town of Fountain Hills Town Council Meeting Minutes June 6, 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 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 2 of 78 MINUTES OF REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL MAYOR DICKEY: And we'll -- ready to start our regular session. Please stand. And if you'd like, remain standing for the invocation. ALL: I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, indivisible with liberty and justice for all. MAYOR DICKEY: Thank you. We have Pastor Clayton Wilfer from Joy Christian Community Church. Hi. WILFER: Hi. Gracious God, merciful God, we thank you for the gift of this day. We thank you for the gift of this town, and we thank you for the gift of this town council. I pray that you would lead this town council in this meeting with your wisdom. Give them insight as they lead this town and meet the needs of all of its residents. We pray this in the name of Jesus. Amen. ALL: Amen. MAYOR DICKEY: Thank you. One more time. Roll call, please. MENDENHALL: 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: Here. MENDENHALL: Councilmember Skillicorn. SKILLICORN: Here. TOWN OF FOUNTAIN HILLS Page 3 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 3 of 78 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 agenda item. When your name is called, please approach the podium, speaking into the microphone, and state your name for the public record. Please limit your comments to three minutes. It is the policy of the mayor and the 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 future council agenda. MAYOR DICKEY: Thank you, Linda, so much. We'll start with our reports. Do you have anything to report, Rachael? GOODWIN: I do, Mayor, thank you. Quickly, I just want to say, we have a great staff here and tonight I really wanted to take a moment to recognize our town clerk, Linda Mendenhall. Linda was one of 175 clerks that were recognized from 28 different states. She made the 2023 Municipal Clerk's Honor Roll this year. So we're super proud to have her. Just by way of some of her background. She has her master's in municipal clerk -- her master municipal clerk designation, as well as her certified municipal clerk designation. So we're really grateful and really have benefited from Linda's knowledge and her expertise as our town clerk. So congratulations to her. MENDENHALL: Thank you. [APPLAUSE] MAYOR DICKEY: Okay. I'm going to surprise you and go to Councilman Skillicorn first, activities. I keep -- I always go on that side so I -- SKILLICORN: Yeah. Well, thank you, Madam Mayor. I will be very brief. I attended the Falcon Fiesta as a volunteer. And what a good time. I actually came home to my wife at 3 o'clock in the morning and just told her how much fun it was. And kind of bragged about all the kids that won all the raffle coupons from me playing roulette. So it was a great time and they won such great prizes and all the kids were so amazing. So it was such a great opportunity, part of -- and to move things along, I will give up my time. TOWN OF FOUNTAIN HILLS Page 4 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 4 of 78 MAYOR DICKEY: Councilmember Kalivianakis. KALIVIANAKIS: Thank you, Ms. Mayor. Hi everybody. Good evening. Thank you for coming again, a very well-attended council meeting this afternoon -- this evening. I appreciate it. Good governance is based on citizen participation. And if that's any case here in Fountain Hills, we have a good government because you guys are very active. Like to also say hello to everyone on Cox Channel 11 and livestreaming tonight and especially the people that are in my home delivered meals program. I would ask everybody to please speak up when they're addressing the microphone out there because they can't here you. Okay? I was told to say that. We had an open house at the Boys & Girls Club on May 17th. The mayor was there, as well as most of council. It was a very wonderful event. The Boys & Girls Clubs are just tremendous. They provide safe childhoods for our children, providing them safe and fun places for kids to grow and thrive. Life enhancing programs, delivering engaging programs focus on academics, health, and leadership. And they also are mentors -- offered staff training who guide, coach, and motivate kids to be successful. They're a treasure to have here. As life would have it, the next day at our Business Retention and Expansion program, Betsey (ph.) from the Chamber, Amanda (ph.), and myself, went back to the Boys and Girls Club to find out how we could better serve them in our community. That program that Amanda put together, puts together the stakeholders, business owners, a member from the town council, member from the chamber, to help individual business owners with any of their needs. We discover a lot about the businesses. We discover about what they need. And it's a -- it's a great loop to go back and forth. Based on the meeting on the 18th, we had another follow-up meeting with Rachael on the 22nd to address some of the problems that the Boys & Girls Clubs were having. Having not had that meeting, we wouldn't even know. And so I want to thank Rachael for being right on top of that. I think Amanda, it's just a great program. And just a reminder, not only do we have the Boys & Girls Club, we have the Chamber of Commerce, the Reservation, sanitary district, school system, Maricopa County Sheriff's Office, Rural Metro, so there's a lot of organizations that this council interfaces TOWN OF FOUNTAIN HILLS Page 5 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 5 of 78 with for the good governance of our town and to make sure that when there's a problem, the police show up, the fire shows up, and the water turns on. And so it's a lot of work. And hopefully, you guys don't even think about it because that's how it should be and it just takes care of itself. I wanted to congratulate the Class of '23. I went to some of the graduation parties. It's a wonderful time of the year for our graduates. So congratulations. Also, last Thursday I attended the Lawyers Luncheon. This -- the guest speaker was Tom Horne, Arizona Superintendent of Public Instruction. Tom is an advocate for the basics, stressing reading, writing, and arithmetic. With the proper education, young people can realize their goals and achieve success. Never forget your dreams because they are who you are. They become your plan. Lastly, tomorrow I'm going to be attending the League of Arizona Cities and Towns, public safety, military affairs, and the courts, for another policy committee meeting. These are really important to set the direction for the 91 municipalities throughout the State of Arizona to get guidance from council and mayors. So that's what I've been up to. Thank you very much for your attention. MAYOR DICKEY: Thank you. Vice Mayor. MCMAHON: Good evening, everybody, and welcome to the council meeting. I'm going to be brief. I attended the Dementia Friendly Committee meeting. We are continually moving along and addressing the initiatives and accomplishing them for the benefit of our community, which is great. I also attended the Boys and Girls open house. It was very impressive to see how all of our donations have significantly helped improve the Boys & Girls Club for our local kids. And it was great to see how involved and proud the kids were of their clubhouse, and how much they are thriving. They look you in the eye. They talk to you. They're really polite. They're just amazing young kids. It was great to see. I attended the Valley Metro Board meeting. Once again, we were talking about Proposition 400, how it's moving through the legislation. And hopefully, that will come into action and so that we can have voter approval on it. We, Ginny -- Mayor Dickey and I and Gerry Friedel, we attended the Central Arizona prop -- excuse me, Councilmember Toth attended the Central Arizona Project, Water TOWN OF FOUNTAIN HILLS Page 6 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 6 of 78 Resource dinner. It was really, really nice. We learned that major steps have been taken with important government stakeholders to continue our water conversations over the next three years so that Arizona can be the decision maker and how it will use and secure water resources for Arizona versus having that dictated to us. That's a significant achievement. Also, I attended the Acute Care Facility grand opening. It is a facility here that provides acute care for elderly people who need it. And also gives respite for the caretakers. I also had lunch with executives of the United Way to learn more about their significant contribution to addressing temporary and permanent housing for those living without shelter throughout Maricopa County. I don't think we all realize how much United Way works very closely with the homeless, providing a lot of facilities for them, resolutions to some issues. They also work very closely with one of our key partners, the Maricopa Association of Governments. They are working closely to address this major homeless issue that, really, ultimately affects Fountain Hills. So while Fountain Hills, thankfully, doesn't have a large unsheltered population, we still do. And it is important for us to continue to work with these stakeholders, to be part of the conversation and the resolution. And today, I attended the MAG Economic Committee. Governor Lewis of the Tribal Nation was there. He shared a lot of information about the gaming and the funds that are distributed amongst the state and the towns and cities and how they benefit everyone. Also, about their new relationship with the Suns team, their design of the jerseys. They're aqua, and they have a lot of the code designations on them, very small, but it's really -- seems like it's a really great relationship of which they are very proud. So thank you. MAYOR DICKEY: Thank you. FRIEDEL: Thank you, Mayor. I did attend the Domestic Violence Regional Council meeting. We are developing a serious of best practices for teen dating violence. So that'll be in the works and we should have that done pretty quickly. So we'll be able to share that with the town and maybe put that out on our website. I did attend the groundbreaking ceremony at the American Legion Post 58 here in town. In fact, if you went by there today, their temporary shade structure has been taken down TOWN OF FOUNTAIN HILLS Page 7 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 7 of 78 and they're going for -- forward on a permanent structure with solar panels to totally operate that American Legion Post for free, basically. But anyway, it's exciting because we are the benefactors of that temporary shade structure. So that should be coming to us anytime now, right Rachael? GOODWIN: It is. It's already at our refurbishing facility. FRIEDEL: Okay. So it's being refurbished right now as we speak. So Saturday morning I did attend the Farmer's Market. I was in line, a long line to get corn. I'm sure there were others in this room that were in that line. And on the way back, I stopped by our skate park, which isn't even open yet and there were 15 to 18 people using that state-of- the-art skate park. So we are planning a ceremony on the 24th, I believe, of June. So if you haven't seen that facility, I'm telling you, it's really something. And it's not even opened and it's being used. So that's how nice it is. I did also attend the Falcon Fiesta and the graduation. The Falcon Fiesta, I was working the bingo table that night. So again, it was a lot of fun. A lot of activity. A lot of our students went there. So congratulations to all the graduates. And as the vice mayor mentioned, I did also attend the Central Arizona Project, Water dinner. And she mentioned something that I think I will mention it again. CAP gave us a seat at the table for negotiations for water, which is very important to every person in this state. We don't want this administration in Washington dictating what happens to our water in our state. So it's very important that they had that seat for us, representing the State of Arizona and all the communities around here. You know, I don't know if you knew this but I didn't know they had 350 miles of canals that run all the way to Tucson. So they are a big seat and a big speaker for us on behalf of water in Arizona. So that's important. And I did also attend the Boys & Girls Club open house. That was really exciting to hear some of those students, some of those young people in our town, the way they handle themselves and the way they speak, it was really eye opening. And that facility, I'm telling you, it was very impressive, what they have there. And that's all I have, thank you. MAYOR DICKEY: Thank you. GRZYBOWSKI: In lieu of talking about meetings that I did this past, what are we at, TOWN OF FOUNTAIN HILLS Page 8 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 8 of 78 three weeks, I received approval from the mayor to do something that I don't generally do, but there are young lives at risk. I'd like to take a moment to recognize Pride Month. Pride is about more than rainbows and parades. It's about boring, everyday things that we cisgender, heterosexual people take for granted. Life is hard enough, but in validating someone based on your opinion of how they live invites misinformation as a means of reason -- excuse me -- as a means of reason justification. It invites bullying. Misinformation and bullying creates a hardship that results in our young people looking for a way out. Too often, that way out is suicide. Using someone's preferred pronoun or name is not that hard. No one questions nicknames that they receive from their friends in high school. No one questioned me, 35 years ago, when I got married and took my husband's last name. You don't need to approve of someone's personal choices. You just need to have enough respect for your fellow human to treat them the way you would like to be treated. Each of the religions teaches that there is only one true judge, and that judge is your God. Thank you. TOTH: Well, I was also at the Boys & Girls Club open house. I had to sneak out a little early, I felt so bad. But it was really lovely in there. And you can tell how much the kids love going. I was also at Falcon Fiesta, which was a blast. Congratulations to the class of 2023. I so enjoyed being the PE teacher for graduation night. And with Alan's help, running the trike races, then the dodgeball games. I was at the CAP Water dinner. As you've heard from others, that was a lovely way to get updated on the water situation in Arizona. You can tell, I'm trying to be brief. And I was at the groundbreaking ceremony for the American Legion. I'm so excited for them for that project that's going to really set them above for -- as an example for other Legions around the nation. So we're so excited about that project. And congratulations to the Legion. MAYOR DICKEY: Thank you. Thank you. You'd think it was not getting into summer with all of the activities everybody's been involved with. And we appreciate that. I just wanted to read a little bit about the nomination for Linda that resulted in her being recognized as a clerk. TOWN OF FOUNTAIN HILLS Page 9 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 9 of 78 "Linda Mendenhall has fully embraced her vital role as clerk with energy and knowledge to the great benefit of townhall and the community. Our rules of procedure needed attention and she professionally suggested changes that improved them, all of the positive and welcoming demeanor. She managed elections in a reassuringly calm way. Staff, Council, and the public respect and like Linda. She's a true asset to our hometown." So something that we said -- and Peggy also put something in there, so I guess it worked. So again, congratulations. Yeah, the graduation was awesome, It was the 30th. I think I've been to, probably all of them. I watched my own three sons, nieces and nephews, my future daughter-in-law, who's now the mother of three of my grandchildren. Multiple family members, and even great nephews cross that stage. So I want to congratulate all of the kids and the educators for a great year. As Sharron mentioned, yes, June is Pride Month, recognizing the support of healthy, safe, prosperous communities for all of us. I want to take the opportunity to mention that 2023, this is the 10th anniversary of the One Community's Unity Pledge and support of equality and nondiscrimination. And remind everyone that Fountain Hills had joined more than 3,500 businesses, 500 faith leaders, and 20,000 Arizonans in taking the Unity Pledge in 2022. So it seemed like a good time to bring that up. Again, the CAP dinner was very informative. It's exactly like Gerry said, Arizona, California, and Nevada got together and they'll be conserving historic volumes of Colorado Water and Lake Mead is a, I don't even know how to picture this, but 3 million acre-feet in Lake Mead, over the next three years, which is expected to have an immediate impact on the stability of the Colorado River. I know that you probably heard, too, that City of Phoenix said some stuff about development and groundwater. It kind of got a life of its own. So the Greater Phoenix Economic Counsel and the mayor also, I think, today wanted to kind of hone in on that a little bit. So Greater Phoenix is not halting housing development. It doesn't impact commercial or industrial development. It's not affecting any existing homeowners or businesses. This temporary halt is for newly subdivided developments that are relying on groundwater. So it's quite of a bit different than I think, maybe, it sounded a little more extreme from the way that we heard it. So I just wanted to take the opportunity to TOWN OF FOUNTAIN HILLS Page 10 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 10 of 78 mention that when we were talking water. So I think that's it for now. Our next item is the -- we don't have any presentations, so we're going straight to Call to the Public, and do we have any speaker cards? MENDENHALL: Yes, Mayor, we do. We're going to do this a little differently. We're going to, just like in baseball, there's a person that, you know, on -- what is it, on bat or -- GOODWIN: On deck. MENDENHALL: -- on deck. [LAUGHTER] MENDENHALL: All right. So first, we have Crystal Cavanaugh. And then on deck is Matthew Corrigan. MAYOR DICKEY: Thank you. CAVANAUGH: Good evening. Last week a former councilman, in his letter to the editor, insulted and mocked those who speak up and reference the people. He dismissed those who show up at councils and boards as a small contingent of folks who complain about virtually everything. He classified peaceful protestors defending personal freedoms again COVID restrictions as a raucous group that managed to recruit a few stragglers to disrupt the meeting with signs and chants from their outdoor location, actually. He was confident that our type does not actually represent the people in a town of 25,000. Well, former councilman, there are only seven town councilmembers on the dais. Do they represent the people? I certainly hope so. And let's talk more about this small group of vocal residents. You mean those that did extensive 5G research to pause small wireless data towers from popping up all over town and sitting in yards above ground without adequate information about the process or consequences? Or did you mean the small group of vocal residents that spoke up to provide accurate information to town staff, commissions, and town council that outpatient drug treatment was trying to operate in the wrong zoning off of Shae and Saguaro? And you're welcome. Because some of those players pushing their way into Fountain Hills included Angel Heart and Imani Wellness who are currently suspended and under investigation with the FBI and State of Arizona for fraud and worse. If there had been no pushback, Angel Heart would have been operating here with a TOWN OF FOUNTAIN HILLS Page 11 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 11 of 78 business license approved by the town. Or did you mean the involvement of local residents who reached out to state representatives, commissioners, and town councilmembers regarding sober living homes in our residential neighborhoods that housed 10 to 15 clients at a time, sometimes illegally? Vigilant neighbors helped to stop this. Vocal residents pushed the town to craft an ordinance for transitional community residences, limiting occupancy to five clients in any new homes, thus minimizing the proliferation. That former councilmember actually voted against the protective ordinance. Coincidentally, he happened to work for a drug coalition. So who was actually representing the people in this situation? There is indeed a small group who consistently speak up about concerns. But it doesn't mean the larger community is not being represented. Many fear reprisal or backlash if they speak up. So they don't do it publicly. But it doesn't mean they don't contact this visible group of people privately with their support and concerns. More new faces have been seen at town council recently. And hopefully, the small group of frequent flyers has inspired them to do so and speak up. More watch from home. Instead of discouraging community involvement, it seems wiser to encourage it. Thank you. CORRIGAN: Madam Mayor, Councilmembers, Matthew Corrigan, homeowner, Fountain Hills. I would like to first thank Crystal Cavanaugh for her public comments in March, revealing how now disgraced Angel Hearts Services attempt to open a $2.2 million outpatient center, disguised as behavioral health, in a property zoned commercial office, not eligible for behavioral health uses in Fountain Hills. Thanks to prevailing wisdom of Councilmembers Friedel, Kalivianakis, Skillicorn, and Toth, restricting detox away from residential areas and enforcing commercial office zoning ordinances as written, the Angel Heart scam was revealed and rejected, saving Fountain Hills from national embarrassment as the FBI and the State of Arizona investigation uncovered hundreds of millions of dollars in AHCCS fraud and human trafficking. The Fountain Hills Alternative reporter Marshall Tucker offered a very well written local history and summary of the ongoing investigation. I encourage everyone to read it. Also TOWN OF FOUNTAIN HILLS Page 12 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 12 of 78 FOX 10 News and the left-leaning The Arizona Republic covered the investigation. The purpose of zoning is to divide towns or cities into residential, commercial, or industrial zones. Within those zones are specified further-defining permitted use areas. Our planning and zoning boards are obligated to uphold and enforce those defined zoning ordinances. They must be followed specifically and not loosely to insure the integrity of our town. To do less than this diminishes the quality and nature of Fountain Hills in general and the master planning and general planning. There are two, maybe three items on the agenda just tonight that reflect just that desire to rezone areas of town. The first was label -- was tabled at the -- but it -- excuse me, was tabled, but it request a special use permit to convert a hotel into apartments and four short-term rental units. Rezoning? The second, to rezone our 1-10 single family to R3 multifamily. Rezone? The third is a special use permit to permit up to ten apartments in three buildings. Rezone? Why the sudden need for special use permits and rezone? I support free enterprise and energetic business growth, but that freedom should not be construed as license. I encourage building and development within appropriately designed zoned areas. Many of us has moved to Fountain Hills to enjoy the master planned, energetic development of correctly applied growth, not the Phoenix plan of urban sprawl and destiny design. From the moment my wife and I visited and enjoyed the small town wonder and peaceful and beautiful mountains -- Fountain Hills, to the day we bought and now enjoy our home, we knew that, as many of us know now, Fountain Hills is a unique and precious oasis from a noisy concrete jungle of chaos and crime. Many of us moved here to get away from problems related to lacked zoning decisions. Let's plan and be careful. Oppose zoning and rezoning inappropriately. Thank you. MENDENHALL: Next we have Terese LoPresti, if I said it right. And then on deck we have Wendy Bozzi. LOPRESTI: Hi, it's LoPresti. Again, Terese LoPresti. I'm a resident of Fountain Hills since 1999 and in the Maricopa County area since 1981. I'm here to support 5G. I know, going against the grain, but -- and sorry I'm late to the party. I want to encourage the town to move forward and not restrict 5G, in other words, small cell. The 5G data is not TOWN OF FOUNTAIN HILLS Page 13 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 13 of 78 only for the residents but for those who visit our town and for our major events. And 5G has been geared towards first responders, too. So that's something that needs to be taken into consideration. I'm not up on the law with regard to the moratorium, but if Fountain Hills does not have an ordinance that works within the guidelines of the state and federal laws, then this is the time to figure it out. And the moratorium is probably good so that you can do that. To work on those design standards that -- oops, sorry -- that encompass the state and federal guidelines or statutes. I have gone to, or I had looked that online, there was a previous meeting and when somebody was concerned about 2,000 applications coming in. That's not going to happen. The carriers are not going to inundate Fountain Hills. You'll be lucky if you get 20 all at one time. So you know, that's a consideration, too. Not allowing 5G or trying to severally restrict it, you're going to put Fountain Hills in the dark ages. You're going to be behind the times. That's going to restrict our population growth. People will not want to come here because there's not going to be that telecommunication infrastructure for the growth of our small businesses. And doing so could also violate current state, federal statutes. Sorry, if we do not get wireless cell communications in place in a timely manner, we could lose major events. We have a lot of events here in Fountain Hills. And so some of these events may go away or get severely curtailed. Again, even a loss of revenue. So you would need that to do that. I mean, we have events at the Avenue of the Fountains, the Community Center, here at the townhall, at the library. We've got the upcoming Dark Sky Observatory. Why would you curtail any of that? And I -- sorry, I'm, like, going out of order on my notes here. Other jurisdictions have worked with the carriers to minimize the impact and still be within the state and federal guidelines. It can be done. You just need to be able to work it out. Health issues, I know that people are concerned about health issues. You can go to studies that take it to this extreme, and then all the way through the other extreme. We just need to have commonsense when doing this. You know, the 5G is a different bandwidth than some of the macro-towers or in the macro-antennas, there are procedures in place by the industry that notify people of those antennas, those public antennas, and TOWN OF FOUNTAIN HILLS Page 14 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 14 of 78 how to stay, you know, that you're to stay away from them. That you shouldn't be climbing those towers or those structures. MAYOR DICKEY: Thank you, ma'am, the buzzer just went off, sorry. LOPRESTI: Oh, I'm sorry. Okay. MAYOR DICKEY: Thank you. LOPRESTI: All right. BOZZI: Hello. Wendy Bozzi, I have lived here since 1999 and I've worked for our school district for 24 years, which I love. I went out last Wednesday and hiked around where we had had the homeless person living behind the middle school. And I went to see, you know, to check up if things had been cleaned up and cleared out like we were told. And what -- I was kind of surprised by what I saw because there is a very nice tent structure in the exact same spot, set up. There's buckets, there's pile of firewood. So there is a person still there. I don't know if it's the same person or a different person, but there's somebody there in that same spot. It's north of the middle school, which is going to be the new McDowell Mountain School. So I was just concerned and would hope there'd be some more follow up on that because we were told that was all going to get cleaned out and cleared out and that's not what I observed. So I made a report to the nonemergency number Friday, a couple days after I had been out there. So this was just this last Wednesday when I went out there and saw that. So just wanted to report about that and would hope there'd be some follow up because that's a concern. GOODWIN: Wendy, thank you for your comments. Generally we don't speak to public comment but I did want to clarify. A few updates is that that was received. That is it was investigated. The State trust land does issue 14-day camping permits. The person in question does have a valid permit. There are no current burn bans on the State Trust Land, so they are permitted to have camping fires associated with that. So at this time, there doesn't seem to be any violation with this person participating on the State Trust Land. MENDENHALL: Next we have Lori Troller and on deck is April McCormick. TROLLER: Hi. Hi, Mayor, Council, Rachel, Aaron, I'm just going to -- I'm glad I kind of followed up here because I just want to make sure everybody realizes, I'm not trying to TOWN OF FOUNTAIN HILLS Page 15 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 15 of 78 stop 5G. None of that is going on. We're bringing broadband in. We just want to bring it in the way we can. So everyone here can make a phone call whether, right now. Right here, right now. AT&T, Verizon, Singular, we can all do that. Why is that? Well, this location is covered by 19 antennas. Did a little research. And those 19 antennas are on five towers around town. Why isn't it one antenna? Why is it 19? Well, buildings have to be hit from all sorts of angles. Now, they also have to be, the antennas also have to be operating at a certain signal strength. And that's negative 85 decibels. That's also related, there's a relationship between that and the amount of exposure, emission exposures to that. So as we discussed last meeting, the 85 decibels, that's an FCC standard. But we know that the FCC standards were -- they tested plastic. They're a bunch of engineers. They did what they knew to do, tested the way they knew how to test it on plastic. They're not doctors. That went out to the FDA. The FDA said, we're not FR -- radio frequency specialists, throw it to the National Technology program. They took it. They were given $30 million in 20 years. And in that testing period, there is no doubt these things have all sorts of problems. Again, I don't discuss the health things. Anyway, there's -- I'm just saying let's take that 85 decibels. So who's checking in Fountain Hills that all our antennas are working at 85 decibels? And the reason you want to ask this is because you're being advised to bring more towers in and to bring more radiation in. So what do we have? Turns out 5 of the 19 antennas we're sitting in right now, way over emitting. Two of them are emitting at negative 116 decibels. Two are emitting at a negative 111. One is emitting at 108 -- negative 108. So before we go and look at bringing antennas in, let's manage, get a hold of what we've got. And there is no -- it's an industry that came in with zero regulation. And we can put that in our ordinance, that we look at that. Okay. So one other thing I just want to point out. There are two ordinances. I don't know if you guys realize that. There's the -- there's a telecommunication ordinance and then there's this SWF ordinance. It's separate. The reason it's separate is because everything Aaron is saying, the rules and everything that we have to apply to the towers, TOWN OF FOUNTAIN HILLS Page 16 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 16 of 78 that's the telecommunications' piece. We're talking -- I'm not talking about that. We're talking about the broadband piece. We can bring this in under -- real quick, let me go - if you write an ordinance to put towers in, you're literally writing against our standard of underground. You have to go against our underground standards to bring it in via all the towers. So thank you. Sorry I went over. MCCORMICK: Hello, good evening. April McCormick, Fountain Hills resident. Right now everyone in Fountain Hills can get a 5G signal in their home because all of the cell towers in Fountain Hills have been upgraded to have 5G antennas on them. And that's just a fact. So we have 5G and we have very good 5G service. All we've been advocating for is a restrictive ordinance to keep 5G out of our front yard, ten feet from our home and right next to our bedroom window. And that can be done. I've given you ten pages of case law where every district court in the country has upheld a hierarchy of preferred locations, least intrusive means test, and a significant gap in coverage, mat -- proving that they don't have 5G or a single. And they have to put it in your home and they can't find a better location than right next to your home. We've been at this for over a year at this point. And all that's been accomplished by the former council was to stonewall us, is what I'd like to say, frankly. And for Aaron to bring in the telecom law firm to help draft any replacement ordinance is a utter slap in the face. I don't know, he said he vetted him. I'm not sure if you realize that he owns a real estate brokerage company where he's a licensed broker for his own purpose. If you want to sell your property that has an antenna on it, you list it with them. If you want to buy property that has an antenna on it, you list it with him. After you buy or sell, he has a antenna property management company who will manage the parcel that he just sold or helped you buy, that he exclusively has an antenna on it. If there were no antennas, this man would have two of his companies evaporate. There is such a blatant conflict of interest. I'm utterly shocked. His Twitter feed, if anyone care to look at, looks like an antenna porn. I don't know how else to say it. Every single tweet is of an antenna, either next to somebody's home, on a building, on a TOWN OF FOUNTAIN HILLS Page 17 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 17 of 78 billboard. He also does billboard leasings where he puts antenna on both sides of the billboard. I have read his ordinances from other counties and other cities. And they even include OTAR devices, over-the-air reception devices, which enable you to put a 5G transmission on your roof. They're the most permissive, crazy things I've ever seen, I've read, honestly. Over 75 municipal telecommunication ordinance in the last three to four years. We've furnished you a petition of over 158 signers. And what you need to know about that is, it was only one signer per household. If you use Brave browser, you can't sign it at all. It logged your IP address and won't let anyone else from your household sign it. Lori and I fielded so many complaints about how does my husband sign this. So really, that number is double. Thank you. MENDENHALL: Mayor, that's it for public comments. MAYOR DICKEY: Thank you, Linda, very much. Our next item our Consent agenda. Do I have a motion? MCMAHON: So move to -- I move to approve the Consent Agenda. KALIVIANAKIS: Second. MAYOR DICKEY: Did you second it? GRZYBOWSKI: It was seconded at that time. MAYOR DICKEY: Oh, okay. Thank you. Roll call, please. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Yes. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. TOWN OF FOUNTAIN HILLS Page 18 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 18 of 78 MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you so much. So as you heard -- so our first item has been tabled and so we will move to 9B, which is the Public Hearing for our budget. So I'll open the public hearing and we will hear from staff, do a presentation. We'll hear from speaker -- if we have any speaker cards, and Council will discuss and we'll close the hearing. And then we'll vote. MAYOR DICKEY: David? POCK: Got to speak into the mike, so everybody can hear me, right? The thousands of people on YouTube and Channel 11 and everybody here. I'm glad to see so much attention for the budget. We do have four other public meetings a year, but we'll get to that -- anyway. All right. So first we like to start with the fiscal year '23, the current year revenue update. We're doing very well. I'm going to make it short and sweet. You can see the first ten months of this year, we've actually had a 19 percent increase over the first ten months of last year, and currently we've reached our total revenue, TPT revenue, that we had budgeted for fiscal year '23. We've achieved that in the first ten months, so we're on a good track there. As far as our state shared revenues, three out of the four are coming in right on track. The HURF fund, or the HURF revenues are down a little bit from what we were expecting, but that's about ten percent off, but we'll make up for it, right? Okay. Any questions as far as this year's revenues go? All right. So on to fiscal year '24 budget. As I mentioned, we've had multiple meetings already this year. Public meetings about the budget started in February with our open house and public outreach, and then we've had our workshops, CIP workshops, budget workshop, and then the tentative budgeted option was last month. And then this is our final budget meeting for fiscal year '24. So as I mentioned, the tentative budget adopted last month set a maximum amount of the $43.1 million. At that adoption, there wasn't any substantial changes TOWN OF FOUNTAIN HILLS Page 19 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 19 of 78 requested by Council. It did include a $2.5 million General Fund contingency that can only be used with Council approval as needs arise. It also included a $5 million Streets Fund appropriation for pavement maintenance. That is a million dollars more than we've ever had in that line item. This specific line item was added, I believe, in 2016, and the most that we've ever spent in one single year was 3.5 million. So we do have more capacity next year and the ability to spend more in that specific line item. As far as the overall General Fund, if you take out the contingency that we had in this year's budget, we've got $20.4 million next year. Without the contingency, it's 23.1, a difference of $2.7 million, and then that's a 13 percent increase. However, that $2.7 million increase this year also includes the 1.9 that we have in Public Safety increases. So if you take that out, it's only a 4 percent increase over this year. Any questions on that? A lot of information, one slide. I've got you guys all practiced up on all the other meetings, so hopefully this goes quick. All right. So we did want to do some comparisons compared to other cities around the Valley. We broke it up by eastside, westside. You can see here which cities and towns have primary property taxes, secondary property taxes, both. There are not a lot that don't have either. So overall, you can see we're doing quite well as far as per capita expenditures. So any questions on those? All right. So then we'll take a quick look at the capital projects. This first group are the projects that we believe there was general consensus from the group, from Council, to go ahead and start July 1st without any further action required by Council. A lot of these projects are continuing projects from the current year or grant funded projects. The second group of projects are projects that would be coming back to Council at a later date, after your return from your summer break. So those are the total authorized projects so far, at $6.6 million. This next list, we started talking about at the -- I believe it was the budget work session. These are projects that were identified by the Community Services Director and TOWN OF FOUNTAIN HILLS Page 20 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 20 of 78 Public Works Director as projects that didn't need to start right at the beginning of the year. We can take some time. We had to move these out of our suggested CIP, just because of the expenditure limitation that we have. We don't have as many exclusions for next year. I lost my train of thought. I apologize. So these had to be taken out because of the expenditure limitation. We can take a look at revenues, see how they're coming in. This would be a possible use of that $2.5 million in contingency that we have. Some of these projects between now and November or December might be delayed for other reasons. We're just not sure. But they could come back and be approved at a later time. MAYOR DICKEY: Just to -- POCK: Sure. MAYOR DICKEY: -- remind you what Justin had said about some of them, too, which was they were being delayed because there was no way we were -- for one reason or another, that they were going to start before then, anyway. So I just wanted to -- it wasn't like a prioritizing kind of a thing. POCK: All right. The last slide here is on our fund transfers. Transfers aren't specifically or officially budgeted; however, we don't count them because we don't want to double count the transfer from one fund to another and then the expenditure. But they are included in the schedules that you received in your packets. I did want to go over these first three because as far as the Environmental Fund and the Facilities Reserve Fund, the General Fund -- transfers from the General Fund are the sole resource or funding source for those two funds. So as long as we can agree that that's the minimum amount that gets transferred in, we can make those transfers at the beginning of the fiscal year and continue that. As far as the 4.2 million, that is the final amount from the ARPA funding that we had previously talked about moving into the Streets Fund, so -- I will say when the audit is complete in October or November, we'll probably come back. We'll have the excess revenues number at that point and we can make further decisions as far as the transfers. Yes? TOWN OF FOUNTAIN HILLS Page 21 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 21 of 78 FRIEDEL: David, a quick question. The 2.5 million General Fund contingency, could that at some point, if this Council decided, be moved to Streets? POCK: Absolutely. FRIEDEL: Thank you. POCK: I should've changed slides. Can you ask your question again? Sorry. Okay. MAYOR DICKEY: I have a question for Aaron. Is this the special meeting already? Should I have recessed, or do we start that after the Public Comments? ARNSON: No. I think we'll recess into that next, unless Linda disagrees with me and wants to slap my hand to correct me. MENDENHALL: I agree with you. ARNSON: Good. MAYOR DICKEY: Thank you. MCMAHON: (Indiscernible). MAYOR DICKEY: No, not yet. Okay. FRIEDEL: I do have a comment. I think it's really important to recognize David because with the debt ceiling agreement that was recently reached, they're clawing back any unused COVID money. So I think it was a very wise decision on your part to prepay our -- POCK: Public Safety. FRIEDEL: -- Public Safety bills, because had we not done that, we would be giving back -- X amount of millions of dollars going back. So I want to recognize you for that decision. I think it was very, very wise and you just saved us, you know, close to $10 million in road funding, so thank you for that. MAYOR DICKEY: Yeah, that was one of the reasons we had to use it, right? Public Safety? POCK: Right. MAYOR DICKEY: Do we have speaker cards on this item? MENDENHALL: We don't have anyone in person that wanted to speak. We do have in your packet two people who wrote written comments. The first is J.P. Ward, who is for adopting the -- both resolutions for the budget. And then we have Cindy Couture, who is TOWN OF FOUNTAIN HILLS Page 22 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 22 of 78 in favor of approving the budget for the COLA. And they're in your packet. MAYOR DICKEY: Thank you. So now, I'm going to recess the meeting. [Recess Regular Meeting] [Open Special Meeting] MAYOR DICKEY: And this is the special meeting, which hopefully the legislature's going to change this this year, so we're not doing this -- ARNSON: Someday. MAYOR DICKEY: -- for any other reason. Do we have any other comments or a question from Council? SKILLICORN: Actually, I have a question. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. Director Pock, I actually heard last week that Maricopa County, the Board of Supervisors passed a budget where they're below the maximum budget cap. So we're right at the budget cap, which is what? The $43,057,708, correct? So if I wanted to say let's do a budget at $43,060,000, that's not legal, right? We're at that actual maximum cap. POCK: Correct. SKILLICORN: Okay. POCK: Based on the exclusions that we're anticipating. SKILLICORN: Okay. And I just want to point out for Council, it seems like Maricopa County found a way to spend less than the cap, and that's again something I urge us to do, is spend less than the cap. POCK: Madam Mayor, Council, I will say we have never spent up to the cap. We have budgeted up to the cap, never even come close to reaching it, so -- MCMAHON: I'll make a motion. I move to adopt Resolution 2023-15, approving the Final Budget for the fiscal year 2024; adopt Resolution 23-16, approving the Budget Implementation Policy, organizational charts, pay plans, schedule of authorized positions, updated employee job descriptions, comprehensive fee schedule for the fiscal year 2024, and reconvene into the regular meeting. TOWN OF FOUNTAIN HILLS Page 23 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 23 of 78 MAYOR DICKEY: That was a mouthful. GRZYBOWSKI: Second. MAYOR DICKEY: Thank you. Are there any other discussion items? All those in favor -- we will do a roll call, please. MCMAHON: Thanks. MAYOR DICKEY: Thank you. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: No. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. So closing the hearing, closing the special meeting. [Close Special Meeting] MAYOR DICKEY: Starting the regular meeting again. [Reconvene Regular Meeting] MAYOR DICKEY: And we'll move on. Thank you. Thank you, everyone. Thank you, David. So our next item is the rezone of the -- from R-3 -- well, we know what this is. So we'll just move on. Thank you. TAVASSOLI: Okay. Thank you and good evening, Madam Mayor and members of the Council and the public. TOWN OF FOUNTAIN HILLS Page 24 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 24 of 78 Well, what you have before you is a rezone request for a 6.3-acre subject property rezoning from R1-10 single-family residential to R1-4, and also from an R-3 -- or also from an R-4 single-family residential to an R-3. I'm going to keep my comments, my introduction to this case brief, as the applicant has prepared a presentation as well, but just to clarify for the benefit of the public as well as the councilmembers, the subject property pertains to an independent stand-alone piece that is currently zoned R-4, as well as a portion of a 6.3-acre property on which on the west side there's the -- it's the -- you'll see the Trinity Lutheran Church. The eastern half for about 3.1 acres is vacant. The northern portion is the portion that's zoned R1-10 and currently the southern portion is zoned R1-4. And you can see the neighboring zoning in and around the area is also single-family residential with R1-10 to the east -- or I beg your pardon, the west, and R1-8 to the north. And to the south is the Four Peaks residential condominiums. And once again, the applicant is proposing a uniform zoning for the 6.3-acre piece to R1-3. This is really just a summary of the rezone request. As I mentioned, 3.1 acres is proposed for a rezoning from R1-10 to R-3 and 3.2 acres is proposed from R1-4 to R3. The planned use, as you'll see in the following slide, the tentative development plan in the following slide, is a proposal for an 80-unit multifamily development consisting of four buildings. Each building will be three stories with tuck-under garages, including a combination of garage and surface parking and two vehicular access points from Mountainside Drive. The applicant has included a tentative development plan. I will let the applicant go to greater detail as to what has been done to minimize some of the visual impacts that has been a lot of concern for the neighboring Lost Hills development to the north, but again, consisting of four buildings, three stories each with tuck-under garages and some landscaped open space. So as for the recommendation, staff and the Commission recommend approval of the rezone with the stipulations, the eight stipulations that you have before you. As listed in the ordinance, I do want to make one point of correction. The staff report mentions that the Commission recommended approval by a vote of four to two. That number is actually five to two in favor of. And with that, I do want to acknowledge that last week, staff received a petition TOWN OF FOUNTAIN HILLS Page 25 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 25 of 78 of protest in an effort to require at least a three-quarters supermajority vote from the Town Council in order for this rezone request to pass. There are two methodologies that come into play here, one defined by the state statute about what requires a supermajority vote and also one defined by the town zoning ordinance. If we go by the state statute, it doesn't meet the criteria that would require a supermajority vote. However, if we go by the town as defined in the zoning ordinance, that does trigger the need for a supermajority vote. And we can get into a deeper discussion if we need to later on about which one should trump the other or which one should take precedence. With that, I'll conclude my comments and open it up to questions, if -- MAYOR DICKEY: Do we want to do questions now, or do you want to hear the presentation first? Why don't we have the developers come up and make the presentation. I think I'll -- should I open -- I'm going to open the hearing for now and then we'll take public comments after the presentation and then we'll discuss. And we can ask questions, of course. Thank you. MAEROWITZ: Good evening, Mayor, Vice Mayor, and councilmembers. For your record, my name is Mike Maerowitz with the law firm of Snell & Wilmer at One East Washington Street in Phoenix. As a zoning attorney, any time I or my firm approaches a rezoning application, we do so with the idea that we are going to improve the status quo, and if we're not going to improve the status quo, then we shouldn't file the rezoning application. And in this case, the decision was a very easy one. This is clearly a rezoning application that very much improves the status quo. And as you'll see as I go through my presentation, the developer of this project, my client, Mr. Cutler, already owns the south parcel that makes up half of this property, and that property under its existing zoning is permitted to be developed as a matter of right with 70 units. And that was certainly the plan for Mr. Cutler to develop that property until the north parcel became available. The issue with that development with 70 units on that property, because of its size, is that very much is an urban development project, where you have 70 units that are all studios and one-bedroom units and it is not TOWN OF FOUNTAIN HILLS Page 26 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 26 of 78 nearly as well of a design project that is sensitive to the surrounding neighbors in terms of protecting their views and it certainly is not consistent with the type of high quality development that you expect to see in Fountain Hills. And so when Mr. Cutler approached us and asked if we could help him with the rezoning application so that he could build a better development project with 80 units spread over both parcels, our answer was yes. That is exactly what rezoning is all about. That is a rezoning application that improves the status quo. The decision before the Council today is a choice between two options. The first option is the option to maintain the status quo, and the second option is the option to approve the rezoning application. And you'll see in my presentation exactly what those two options entail. The first option, to maintain the status quo and leave the existing zoning in place, will result in an urban development with 70 units just on that south parcel. It will be unable to protect the views of the adjacent neighbors on Mountainside Drive because there's not room to move the buildings down the hill, so they'll need to sit up the hill. It will have little open space and it can only have one driveway that will need to be located towards the south end of Mountainside Drive, so all the traffic from the 70 units will come in and out of that single driveway closer to the residences. The alternative, the option two, which would be to approve this rezoning application, results in a suburban development with 80 units over both parcels which are much larger units. Rather than studios and one-bedrooms, they can now be one- bedrooms, two-bedrooms and three-bedrooms, so, of course, is now targeting a different demographic. It will significantly increase the open space. It will be able to preserve the views of the neighboring homes because now we can drop the buildings down the hill and orient them in a way where now the neighbors can see right over the top of the buildings. And we can direct our traffic closer to Palisades and we can close off that southern driveway to emergencies only, and this way we're not having traffic that's going towards the homes. It's going over towards Palisades. There is a notion by some of those in opposition, and you may hear some of that tonight, that somehow if the Town Council were to deny this rezoning application, that my client would go away. And this is not a situation where my client is under contract to TOWN OF FOUNTAIN HILLS Page 27 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 27 of 78 purchase a property if the rezoning application is approved. He already owns the parcel to the south. And while he prefers to build the development that we view as being much better with 80 units, if the Town Council's decision today is that he should build the 70 units on the south parcel, that is certainly what he will build. So to go through my presentation, you can see -- we all know where the property is. It's located at the southeast corner of Mountainside Drive and Palisades Boulevard, and I know you'll know this area well and it, of course, slopes to the east. But it also follows a very common land use and zoning pattern, where at your corner of your major intersections, you have your commercial land uses with commercial zoning. Then as you move up the hill, you have multi-family residences. Directly to our east, we have the Four Peak condominiums, and then as you move past our property to the west, then again up the hill, past Mountainside Drive, you have your single-family homes. And so this property very much is part of that land use transition, where it sits in the pocket where you have multi-family residences that then provides a transition to your single-family homes. Here's a closer-up image of the property, and as Farhad explained, it's just over six acres in size and it's currently split into two parcels. There's a parcel to the south which is the R-4 piece and then there's a parcel to the north which is the R1-10 piece. You can't see it too well on this slide, but as I mentioned this property significantly slopes to the east. In fact, there is a 60-foot drop from Mountainside Drive down to the edge of our property to the east. That is a very significant drop. But one of the benefits of approving our rezoning application, again option two, is it allows us to design a development that utilizes that slope so we can move the buildings down that hill, tuck them into the hill, and then preserve the views of the neighboring homes that are on Mountainside Drive there. So again, as I mentioned, property to the south is zoned R-4. This is the piece that my client, Mr. Cutler, already owns. And you can see in that table that's at the top there, under the existing zoning, the Town of Fountain Hills zoning ordinance permits 70 units to be developed there as a matter of right. And because it's a matter of right, that could be done without any public input. Without any approval from the Town Council, he could start building it. TOWN OF FOUNTAIN HILLS Page 28 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 28 of 78 But if he were to build that development, here's what it would look like. As I mentioned, it's a very urban project. You can see that the three buildings with the 70 units would all need to be located just on the south parcel. And there's a couple of reasons why this is really not a great development that certainly doesn't fit within the character of the community or the high quality development that you see in Fountain Hills. The first is, again, the size of the units. All these units need to be studios and one- bedrooms. This site plan shows 40 studios and 30 one-bedrooms. There's also minimal open space on this site plan. In terms of protecting the views, because of the site constraints, this property faces the buildings need to be pushed up right along Mountainside Drive and placed parallel to Mountainside Drive, which means that the neighbors that are just across the street on Mountainside Drive are looking right at a 30-foot tall building, which significantly impacts the views. The other thing, as I mentioned on the introduction, you can see because we don't have a lot of frontage along Mountainside Drive, we can only have the one entrance and it has to be located towards the south end of Mountainside Drive where you have the homes that are across from it. And so all the traffic from the 70 units now needs to be directed towards these homes, rather than towards Palisades. This site plan that you see in front of you, this represents the status quo. This is the option that if the rezoning application is not approved today, this is what will need to be built here. So instead, the reason why we're here is to propose a much better development. And that's through a rezoning application that would allow us to develop a project that incorporates this property to the north. And by doing this, we've now been able to double the size of the property from just over three acres to just over six acres, and we're proposing to develop it with 80 units, so doubling the size of the property for only ten additional units. And if you do that, that allows us to develop this project. And this is a project with four buildings, 80 units spread out over both parcels, and you can see that it is far superior to the development of just developing that parcel to the south for a number of reasons. TOWN OF FOUNTAIN HILLS Page 29 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 29 of 78 The first is the quality of the units. These are much larger units that are a mix of one-bedrooms, two-bedrooms, and three-bedrooms, so again targets a different demographic than the property -- or the development that would be by right to the south. It also has significantly more open space. You can see at the table there that the open space for this development is 66 percent. That is by far and away the most open space that I have ever been a part of in a rezoning case for any development anywhere. And that says something about this development. The other thing is preserving views. One of the problems with developing just that south parcel, as I mentioned, is that you have the buildings really close to Mountainside Drive. So you have a 30-foot building that is blocking the neighbors' views. Here we're able to orient and angle the buildings away from Mountainside Drive, move them down the hill so that now the neighbors' views are protected. And then with respect to traffic, you can see that now we're able to provide a second driveway and have it -- that's located further north, right along Palisades. And what we are proposing to do is to close off that southern driveway, so it can only be used now for emergencies and for solid waste collection, and you'll see that in the stipulations that are in your staff report, which I'll cover in a minute here. And this way, our only entrance and exit for the residents will be through that northern driveway, which is now directing all the traffic towards Palisades, away from the homes that are to the south there. To give you a sense of a visual of what this project will look like and how it is a superior development from the status quo and leaving the existing zoning in place, we had these 3D site line renderings prepared. And these 3D site line renderings prepared show, in particular, how it is that we are protecting the neighbors' views. And so this particular rendering that's on the screen here, this was taken with flying a drone over the property and it shows a site line perspective if you're five feet tall, standing right at the property with the home that's located right on Ponderosa and Mountainside Drive. And this image is looking at the south parcel, the one that's currently zoned R-4 today. And you can see on the righthand side of your screen is Building 1 and then on the lefthand side of your screen is Building 2. And you can see that because of the way that we've been able to orient these buildings, because we can TOWN OF FOUNTAIN HILLS Page 30 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 30 of 78 now spread it out and drop it down the hill, the neighbors can see right over the top of the buildings, which is significantly protecting their views, compared to having a building that's right up against Mountainside blocking your views. This next one is that same perspective, if you're standing right on that property, but instead now you're turning your head a little bit to the right looking at the Four Peaks condominiums, and that building that you see there is Building number 1 there. And you can that again, you can see right over the top of the building, but the other thing that you see is that the way that this project is able to design with this rezoning application, is that it is actually shorter in height than some of the Four Peaks condominiums buildings that are located behind us. And so this is a lot of the effort that we've put into it to make sure that we're preserving the views and again is one of the benefits of choosing the option to approve the rezoning case. This last 3D site line rendering is looking at the parcel to the north, and this would be if you were standing right in front of the home that is located at Tumbleweed Drive and Mountainside Drive if you're five feet tall. And so you can see to the righthand side of your screen there, that is a portion of Building 2, and then on the lefthand side of your screen is Building number 3. We of course have a Building 4, but you can't see that building because it's pushed so far down the hill that it's actually hidden by Building 3. As I mentioned, this has a significant slope and this development project is able to use that slope to design a development that now respects the neighboring views and you can see how we've done that here. You can see right over the top of the building. This design and this development that you see in these renderings is only possible if you approve the rezoning application. If you have the status quo, that remains in place and you leave the existing zoning, this development here cannot be done. But a better design and one that you're seeing here is not the only benefit of approving this rezoning application. Approving this rezoning application also includes stipulations that are in a sense concessions in exchange for approving the rezoning application that do a number of things. They first ensure that the development that is being developed is consistent with what we've shown in that site plan and in those renderings, but also they provide solutions to some of the existing safety concerns that we heard in the area and in TOWN OF FOUNTAIN HILLS Page 31 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 31 of 78 particular, the safety concerns at the intersection of Palisades and Mountainside Drive. And so you saw all these stipulations in your staff report. These would be approved alongside the rezoning application if that was the Town Council's decision, and I'll just go through them very, very briefly. So stipulation number 1 requires the development to be in general conformance with the site plan that we've included in our application, and you'll see subsets A through E point to specific design features that need to be complied with, such as the orientation of the buildings away from Mountainside Drive and how far they are from Mountainside Drive. Stipulation number 2 requires the development to be in general conformance with the elevations that we've provided, and then subsections A through C point to specific design features that need to be complied with, including one specific feature that there can't be any mechanical equipment on the rooftop, and that's in order to keep that flat roof. You saw on these 3D renderings that there's no mechanical equipment on top of those roofs, and the reason that we've done that is because we want to be respectful of the neighboring property owners' views so they can continue to see over them, and this stipulation requires that. Stipulation 3 requires the development to provide a minimum of 60 percent open space, 4 limits the maximum number of dwelling units on the entire property to 80, and then stipulation number 5, 6, 7, 8 are examples of how this development can be a solution to some of the existing problems. So 5 requires our gated entrance or that southern driveway to be restricted to emergencies only and solid waste collection so we don't have residents that have traffic directed towards the homes that are further down Mountainside. Stipulation 6 addresses parking on Mountainside Drive by requiring the developer to work with the Town Engineer on improvements such as no parking signs or striping to prevent parking on Mountainside. Stipulation 7 requires the developer to enforce no parking restrictions on Mountainside Drive, which would be in the form of the lease with the residents so they wouldn't be permitted to park on Mountainside Drive. And then Stipulation 8 requires the improvements to the intersection at TOWN OF FOUNTAIN HILLS Page 32 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 32 of 78 Mountainside Drive and Palisades. And I want to cover that because one of the things that we heard a lot throughout this process and one of the concerns was that this intersection is currently a dangerous condition, that it can be very dangerous to make that left there and there's traffic on Palisades. And so that stipulation, Stipulation number 8, requires us to install improvements to address that condition, and here is an exhibit that -- our development team and the Town Engineer worked together in order to develop this exhibit. And essentially what it does is from our northern driveway to Palisades, it converts Mountainside Drive into three lanes. So now the easternmost lane will be a dedicated right turn lane, so that if you're looking to go southbound on Palisades you have your own dedicated right turn lane to do that. The middle lane there will be a dedicated left turn lane and so that way if you're looking to make a left, you're not blocking those that are just wanting to make a right. And currently one of the reasons why that intersection can be so dangerous is that you're competing with two ways of traffic. You have to compete with people that are traveling south down on Palisades and also traveling north. Another thing we're doing that you can see is that median there, we will be improving the median and creating a refuge lane. And so that way, you can now only compete with one way of traffic. You can make your lefthand turn, get into the refuge lane, and then make your way over and merging over into Palisades. And then the last one is, of course, the southbound lane. That's that westernmost lane and that's for people from Palisades turning into Mountainside Drive. And the very last feature I want to point out is, you can see that one of the concerns that we heard was if people are turning into our driveway that's nearer towards Palisades, will they be blocking cars that are making that turn into Mountainside Drive? And to address that what we've done is you can see we've created a dedicated left turn lane, so that if you're turning, making a left into the project, you can get into that lane. You're not blocking anyone so they can continue to go by you, and then turn into that project. These traffic improvements and all the other stipulations that I mentioned, all the other seven, they only exist in the option where this rezoning application is approved. If TOWN OF FOUNTAIN HILLS Page 33 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 33 of 78 the status quo remains and the property is built with the 70 units, which is allowed today, none of these stipulations apply. So these are additional benefits in the form of developer concessions to design a much better development that improves the status quo. One of the things that's important with any rezoning case is neighborhood outreach and there are several reasons why you do this, but first and foremost, it's so that you can hear the comments and concerns and work on designing a development that is ultimately a better fit for the community. And we certainly did that here, and there's been a tremendous amount of outreach on this project and this slide highlights that outreach. You can see on the lefthand chart there that throughout this process the outreach team on this project knocked on over 800 doors and they made contact with just over 400 homeowners. And each time that contact is made, they provide a full presentation and the meeting has lasted on average just over 40 minutes. So when you take 40 minutes and multiply that out over nearly 400 homes, that is a tremendous amount of hours that has been spent on this development project, but we viewed it as a very important piece to make sure that we are improving the status quo and respecting the concerns of all the neighbors in the area. And then the righthand side of screen highlights the results of the outreach from our outreach team. You can see that we received 77 letters of support. Those were residents that met with the outreach team and after hearing the presentation and having their questions answered, signed a letter of support and those were included in the case file. We also had 65 that expressed verbal support, but for one reason or another did not want to include a letter of support that would be made part of the public record. And then we had a very large contingent that was the neutral component. There was 155 that expressed to us they didn't have questions, they didn't have concerns, they were neither supportive or neither opposed, and that made up a very big part of it. But of course, and you can see in the red there, our outreach team certainly ran into opposition. In fact, there were 63 of them that after the presentation was made, they told us that they were opposed to the project. But our outreach team doesn't just hear that someone is opposed and then leave. What they do is they listen to the concerns of all those who are opposed, and we do that because as I mentioned that is what allows us to design a much better development. And TOWN OF FOUNTAIN HILLS Page 34 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 34 of 78 in fact, that is where all these stipulations came from. They came from hearing the concerns of the neighbors about traffic further down Mountainside Drive, about views, about safety at the intersection. And this is why the stipulations were negotiated with staff and proposed to staff as a way to address those concerns. The outreach wasn't just solely with the neighbors. We also presented this application to the Fountain Hills Chamber of Commerce and you can see that there was a support letter. The Fountain Hills Chamber of Commerce's Board unanimously voted to support the project and included a support letter that we provided in the case file and this is just a copy of that support letter, in which they indicate that this will be a better designed development as a result of the rezoning change and then also on a broader level will benefit the Town of Fountain Hills. Beyond that, we also have support as I had mentioned from your Planning Department, as well as your Planning Commission, and these are significant. And before I conclude, I really want to emphasize the Planning Commission's recommendation because they spent a lot of time reviewing this application. In fact, we had two public hearings in front of the Planning Commission. Each one lasted over two hours. And I'll be honest, the first time that we presented this case to the Planning Commission, they were not ready to approve it. They had some questions and concerns about the design of the project and asked us to go back and work on ways that we could design the project in a way that they could support. And we certainly did that. We changed the orientation of the buildings. We dropped them down further for the buildings to the north so that we could preserve the views of the home. And ultimately, as Farhad mentioned, the Planning Commission recommended approval by a 5 to 2 vote. And your Planning Department did the exact same thing. Staff has spent a lot of time with us to review this application and they have also recommended approval. So ultimately, as I said in the introduction, the decision today before the Council is a choice between the two options. It's a choice to leave the status quo in place, which means a more urban development with 70 units on the south parcel that can be built with studios and one-bedrooms that will block the views of the neighbors because there's no TOWN OF FOUNTAIN HILLS Page 35 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 35 of 78 way to orient them and move them further down the hill because there's simply not room. It will mean more traffic that's further down Mountainside Drive because we can only have that one driveway to the south there and it's less open space. Whereas as the option, option two that is in front of the Council, the rezoning application as you saw in the presentation addresses those things. It results in preserving the neighbors' views. It's a suburban project now with much larger units, a mix of one- bedroom, two-bedrooms, and three-bedrooms. And on top of that much better design, it also includes improvement to issues today like to that intersection that are legitimate safety concerns. And so that's what's in front of the Town Council today. For us, it was a very easy decision, and I hope it is as well for the Town Council. So with that, we respectfully request your approval of this rezoning application, and I'm happy to answer any questions you may have. MAYOR DICKEY: Thank you. Do we want to have questions or do you want to hear from the public first? (Indiscernible) go to speaker cards? Unless you have a specific -- okay, thank you. Let's start with that. MENDENHALL: Okay. Speaker cards -- MAYOR DICKEY: Want to do the on deck again, or -- KALIVIANAKIS: Yeah, the speaker cards. MENDENHALL: Okay. I just noticed someone was coming up to speak. Is he one of the applicants or the owner? MAYOR DICKEY: Are we ready for a public comment? Are you guys ready? Okay. Well, let's do that. MENDENHALL: All right. So we're going to start first with the written comments in your packet 9D. We have one from Faryl Palles and I'm probably saying it wrong, but she's not here. But she's against it and she wrote a long statement of why she's against it. We have Linda Farra, doesn't wish to speak, but is commenting in writing that she's against it. Renee and Dennis Martyka. Hopefully, I said that right. They're commenting in TOWN OF FOUNTAIN HILLS Page 36 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 36 of 78 writing that they're against the project. Dusty Harwell is commenting in writing that he's against the project and if passed there will be a referendum, just letting people know. And then we have the people who are here who would like to speak. And we're going to do the same thing as we did before, so first is Gretchen Boyer and then on deck is David Boyer. BOYER: Mayor Dickey, members of the Council. First, I'd like to thank you for giving us the opportunity to state our case. The attorney for the developer -- MAYOR DICKEY: Speak louder, please. They said they can't hear you. BOYER: Oh. The attorney for the developer does an excellent job at stating his case. But his case is not our case. And I'm going to start with what's most important to me as a fairly new resident of Fountain Hills and we're about three-and-a-half years into living here. And when we chose to come here, we chose because of what's important to this community, having our natural resources close at hand, having bobcats visit us and the animals and the natural environment. When we bought our property, and we are the home right across from that south driveway that's going to get all of the about 160 vehicles if there's two, three, four- bedroom apartments there, the lights into our backyard which will basically eliminate our dark city status which we dearly enjoy. We bought the home based on the fact that it was zoned residential. Three and a quarter acres about, average home a third acre, maybe. Three times three, nine homes versus 80 units. A big difference. Would you like to have those units behind you? Or across the street from where you live? And they're rental. They're not even condos. They're rental. That means we're going to have a continuous flow of new people in and out of those apartments. I just find it unacceptable and we made a huge investment. We've made that home to our liking to meet our needs. We plan on living there until the day we die or get moved out to go to a nursing care center. And the developer wants you to change it to develop it. Let's remember, what do developers do? They're a business. They want to make money, you know? They aren't doing this out of any altruistic manner. They want to TOWN OF FOUNTAIN HILLS Page 37 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 37 of 78 make money. I want to live a healthy lifestyle that all of my neighbors have wanted when they purchased the land. I -- MAYOR DICKEY: (Indiscernible). BOYER: That's it? MAYOR DICKEY: Yes. BOYER: Oh, sorry. Thank you. MENDENHALL: And then next on deck is Liz Gildersleeve. BOYER: (Indiscernible). MENDENHALL: After you. You're up and then Liz, Dave. BOYER: Oh, I'm up now? MENDENHALL: Yes. BOYER: Oh, thank you. Good evening, Mayor, Vice Mayor, and Council. I've had an opportunity to meet quite a few of you through this process of this zoning issue and my approach today will be a little bit different than maybe some. I did a little research on this company, Senderos. They have another development, by the way, in South Mountain and on Yelp I discovered quite a few reviews of those living conditions in that particular development and they're not very positive. So I do want to share those with you because they could extend into ours here as well. Again, I have a couple I want to read specifically. One said here, I had so many issues with this place from day one. My AC didn't work on the move-in date. I could not even stay there for two days. I didn't get any compensation or updates. I had to keep calling. The front gate was broken. I called the emergency number to try to get some results and nobody answered on Saturday and it continued with the same situation on Monday, no return calls. I had no cold water in the master shower. They came and fixed it, and then I had no hot water. I'm not going to again attest to the quality of the plumbing situation here, but it wasn't resolved. She says here, the dishwasher needs both the hot and cold water. It went on for over seven days. I have to constantly reach out for updates on services and air filters. TOWN OF FOUNTAIN HILLS Page 38 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 38 of 78 This place is amazing to move here. And that was, of course, derogatory. Another person, her name is Tracy (ph.), and she responded she works for this company, basically offering an apology but didn't look like too many physical results. One individual said the issues from the neighbors in this complex are negligible at this point. However, they have had my previous extremely detailed review removed by the way from the site. And I'm not going to go into the neighborhood. They had some issues with police, et cetera, which may not be relative to here. But what was disappointing, she had a neighbor throw things such as feces and other types of things on her door. She called maintenance and they came out. On the back side of the apartment there were a bunch of, you know, animal-type of diaper pads and stuff like that and she asked them to clean up and they said there's not an issue. So there was no response to that. So these are just a couple of examples of the management mentality and the process with this corporation. I hope we don't see it here. I'd prefer them maybe to develop 40 to 45 units on the top of that hill. Why is it mandated they have to go 70? I know money's involved. I'd love to see them develop probably ten units of residential homes right across the street from us. All that traffic, 160 cars plus guests will come out directly at our bedroom window as they depart towards the intersection. And the last point on the intersection, if they believe some striping is going to solve that problem they're badly mistaken, because when we leave there we follow that pattern anyway. You have no choice. You have a right, you've got a left, and you have an egress right of the lefthand turn coming off of Palisades. We practice this now and it's extremely dangerous. Hopefully, I didn't -- I did pretty good, didn't I? Anyway, thank you for your time -- MAYOR DICKEY: Thank you. BOYER: -- and again, consider the long-term results of this. Thank you. GILDERSLEEVE: Good evening. Liz Gildersleeve, Fountain Hills resident and TOWN OF FOUNTAIN HILLS Page 39 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 39 of 78 registered voter. I am here tonight to ask this entire Council to honor the single-family zoning promised to residents on the church parcel at Mountainside and Palisades as it's been for decades. Changing it now in an established neighborhood would really be unconscionable. We've watched for six months as this developer has pulled out all the stops. They've met and lobbied with some of you privately. The developer has also visited all the businesses in our area and other outlying properties, trying to drum up support for their rezone request when they realized they weren't going to get that support from the homeowners in Lost Hills who would be directly impacted by the increased density and traffic, especially on Mountainside where you once lived, Mayor Dickey. History shows that when you were a councilmember years ago and increased traffic would've directly impacted your home, you voted against allowing vehicle access to the Fountain Hills Boulevard condos and apartments that butt up to Mountainside. Hopefully, you can still emphasize with your former neighborhood tonight. And I understand that two of the five businesses who submitted support letters for the rezone have already withdrawn their support, as one of the businesses said that they were misled by this developer. Being the great neighbor they claimed they'd be, this developer has repeatedly threatened the Lost Hills neighborhood, just like they did a few minutes ago, they could still build 70 units on the small parcel they currently own which is adjacent to the church parcel, even though the original MCO listing for the sale of this parcel two years ago and which the developer apparently responded to touted a maximum of 30 units. Given the terrain, the washes, and our own building codes and height restrictions, 70 seems unlikely. And make no mistake, we will be monitoring our Development Services staff very closely on this, should this 70-unit fantasy ever break ground. Bottom line, this developer wouldn't be making such an effort to bamboozle our town if they knew they needed that church parcel to make their project profitable. Put residents first, as most of you campaigned that you would. We expect you to uphold the current single-family zoning promise to residents and vote no tonight on this rezone request. TOWN OF FOUNTAIN HILLS Page 40 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 40 of 78 Thank you. [Applause] MAYOR DICKEY: Stop that, please. No applause and I appreciate if you would be civil when you talk. Some people are here, they make a living -- they're here. They are developers and they're presenting their case and now you're presenting yours, and let's be civil about it and not say some people are threatening or doing anything like that. That's not what's happening. It's a request and we're hearing it. Who's next, please? MENDENHALL: Next, we have Doreen DeLucia and then on deck is Joe DeLucia. Hopefully, I said your name correctly. DELUCIA: Good evening. As you know, I live on the corner of Mountainside and Tumbleweed. We are directly across the street from the church property. This is very -- people say don't let your emotions get in this. But it is emotional. It's emotional because when we purchased our home 24 years ago, we purchased that our neighborhood was going to be what it was sold to us. R-10 is across the street. We've always known that up the hill there was a lot that was for sale. We've always known that it was R-4, but we have always known that it could be built up to 20, 30 units. Now, he says by right, and by right when you compute a piece of property that's flat, that's 3.2 acres, without so many restrictions they might be able to put 70 units. By right, that lot across the street from our house needs to stay R-10. By right, that is what the town was promising us and our neighborhood when we bought into this neighborhood. It shouldn't be at the expense of our neighborhood for a developer who purchased a piece of property that he knew what he was up against; the hill, the 60-foot incline, the decline, the drainage, the wash, and all of the requirements that the Town of Fountain Hills has above and beyond Maricopa County. Fountain Hills is a special place and we all bought here as a choice. We all moved here as a choice. We all can choose to live wherever we want. And the Town of Fountain Hills is a different place. If we wanted to have the hustle and bustle and the density and the traffic, we would choose to live somewhere else other than Fountain Hills. We could live in Scottsdale where there's all the hustle and bustle. We have to TOWN OF FOUNTAIN HILLS Page 41 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 41 of 78 honor what it is that the town was supposed to be. We have to honor the residents that bought in the neighborhood and in this town. We have to keep the zoning what it is. You all bought here. You all moved here for a specific reason and it's to enjoy what Fountain Hills has to offer; a small town, the views, and we just have to remember and respect the residents, the town, and what we're supposed to be. Thank you. DELUCIA: Good evening, Mayor Dickey and Vice Mayor McMahon and Town Council. My name's Joe DeLucia. I agree with everything that my wife just said, as I should. But you know, I moved out here in 1977, okay? So I've been living out here a very long time and I've seen this town grow. And I love it, okay? I'm not saying that I'm not pro-growth, okay? We just want the town to keep the promise that you guys made to the people. Okay? Keep the zone the way it is and let these guys figure out what they can do. Do they have engineering on that property yet to know that they can put 70 units? I don't know. Did anyone ask that of the town? I'm not sure. Okay? So I don't know where they're thinking that they can do that. I'm opposed to this and I'm a little nervous right now, so I think that's all I'm going to say. MENDENHALL: Next, we have Linda Kavanagh and on deck Gale Evans. KAVANAGH: Good evening. I'm Linda Kavanagh. I've been a resident of Fountain Hills for 30 years. Mayor, Vice Mayor, and Council, you've had a lot of information thrown at you over the last few months. So has the neighbors and so have many of the local stores concerning this development. Sometimes it gets confusing. You've heard the expression, to muddy the waters? That's defined as to confuse or obscure a situation by introducing irrelevant facts or irrelevant information. So for my three minutes, I'd just like to lay out some of the facts, including the irrelevant ones. The developer bought a piece of property that was multi-family, that on a real estate listing it clearly stated that possibly 30 units could be built there. Now, we all know that at times real estate agents have a tendency to exaggerate in TOWN OF FOUNTAIN HILLS Page 42 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 42 of 78 order to sell a property. How many of us have ever met a real estate agent to under- exaggerate a property? It doesn't happen. So now we have the magic number of 30. The neighborhood wanted to confirm this in some way, so we contacted a former planner, one who planned a great deal of this town in the early days and is very familiar with the zoning regulations and the topography of that multi-family lot. We paid him nothing. He did this as a favor to the neighborhood. After looking at this multi-family lot, his conclusion was if the town abides by all of its own zoning regulations for the multi-family lot, he didn't even think that 30 was possible. Please remember that this developer went into this with his eyes open, knowing when he purchased it that he could possibly put 30 units on that lot. But he wants more. He wants 80. So how is he going to get 80? He knows the church lot is zoned residential and if he can change that to multi- family, then he can have 80. How does he do that? How is he going to convince the neighbors that this is better for them? How is he going to convince you that this zoning change from residential to multi-family is somehow in the best interests of Fountain Hills? How does he do it? At a private meeting with us and Councilwoman Brenda, the developer said he just wanted to make it nice for the neighbors, that's why he wants this other lot. He can spread it out and have a lot more open space. Otherwise, he said to us, he's going to cram 70 units onto his multi-family lot and it's going to look horrible. By the way, that's muddying the waters. All this has nothing to do with what he claims he can do on his multi-family lot. It has nothing to do with whether he can put 30, 70, or a hundred units crammed on that lot, which is going to be horrible. Because in the end, it's just about the rezone from residential to multi-family in our residential neighborhood. That's why the neighbors and many other people in other parts of town who fear that a rezoning here could mean a rezoning in their neighborhoods are asking you as representatives to support us and just say no. Thank you. EVANS: Hello, councilmembers and the Mayor, my name is Gale Evans. I live on TOWN OF FOUNTAIN HILLS Page 43 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 43 of 78 Palisades, straight across from the development. As I look out the door every day, I see traffic going by. What bothers me more now, even tonight, is the fact that nobody has mentioned the entirety of residents, all single-family, from the corner of Fountain Hills Boulevard to the high school, okay? They're all lined up. We can't even get out of our driveways now. The headlights coming off of Mountainview are directly into my neighbors' and my house, directly into the bedrooms. Okay? That's bad enough, just as it is. But the traffic problem is right there at that corner, and if they are limiting it to one driveway coming out of that new development to Palisades, it's going to be a nightmare. It just is, because I've invited several people to come and sit one hour on the front porch of my lot and watch, and nobody has. Because the developers come in, they develop, they're gone. The builders come in, they get it done. Just like Havenly. They did it, they got almost 90 percent occupancy. They turned around and sold the whole thing. So now we've got new owners and we have new rules there. It's bad enough right there by the post office. All right, we're sitting across the street. Nobody has mentioned the people on Palisades, which is still single-family residences. And none of us, none of us, from all the way to the high school is for this. Nothing. That's basically all I have to say, because it really changed my mind from a lot of other things. But the traffic is insane, too, so it's going to be worse, especially with one driveway. Thank you. MENDENHALL: Okay. Next, we have Senator John Kavanagh and on deck, I can't read your last name, but it looks like Rick Sugg. KAVANAGH: Thank you. Thank you, Mayor and Council. And let me preface my remarks by saying like Joe, I agree with everything that my wife said, as I should. I am state senator John Kavanagh. My family lived here since 1993 in the Lost Hills neighborhood, about a block and a half from this development, and I also served six years on this Town Council until I was demoted to the legislature where I've been for the last 17 years. TOWN OF FOUNTAIN HILLS Page 44 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 44 of 78 Zoning is a sacred trust. Zoning represents an agreement that defines and maintains the character of a community. Zoning is used by people to make the biggest investment of their life, the purchase of their home. They choose an area because that's what they like. It could be urban. It could be large rural lots. It could be somewhere in between. But you buy your lot because that's the way you want to spend your life. It's a big decision. And because of that, zoning is important because zoning also preserves the character of that community, so that the investment is the way that they made it to begin with. Zoning should only be changed for very important reasons and zoning should only be changed when there is overwhelming support for the change by the community. In this case, there is no overwhelming reason, important reason to change this zoning and this is not overwhelmingly supported by the community. This change is overwhelmingly opposed by the community. I have been in the legislature for 17 years. During that time, I have spent a lot of energy to protect zoning. I was one of the few senators to oppose the short-term rental fiasco, which overturns local zoning and allows people to have hotels in residential neighborhoods. Decentralized, spread out hotels. That's a violation of zoning and it had horrible consequences. More recently, for the last two years I've been battling an attempt by one senator to overturn local zoning and allow people to cram many, many more units into a residential zone or build very much taller buildings or apartments. So far, we've been able to fend off that fight. What I'm asking you here today is to join me in the fight to preserve local zoning by voting this down. Thank you. SUGG: Good evening. Madam Mayor, Councilmembers, my name is Rick Sugg and we are at 16050 East Ponderosa and I have served as a public servant. I did for almost 15 years as a planner and that was in northern Nevada. So I have a little bit of idea of what you're going through right now. It's not ever fun, but we are against this also. The Planning Commission asked for a traffic study, or the Planning and Zoning Commission. It was never done. When the developer came back, they brought a traffic TOWN OF FOUNTAIN HILLS Page 45 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 45 of 78 engineer who just came up and said you know, we drove the road and we looked at it, and walked off. They didn't -- we think this might be what it is, but there was no study. I agree with the senator a hundred percent. General and master plans are very important and I think they're sacred and there has to be an extraordinary event in your master plan in order to change zoning. So if you go back and read that, it will tell you that. Striping. Striping won't work at that intersection. It's going to have to be widened if this goes through and there should be like a right turn only exit out of that property if it does go through. Otherwise, everybody's going to turn left and distribute themselves through the neighborhoods. And if that happens, there needs to be traffic control in the neighborhoods. I know the senator doesn't support that, but I would -- I don't mind a speed bump right in front of my house. It's fine. Let me see. The pie charts were pretty. They brought in nice little maps with all these people that were supposedly in favor of this when they represented to the Planning Commission, or Planning and Zoning Commission. And ours was shown as neutral, and many other people were shown as neutral and in favor. And what we heard from the people those nights was that's not true; we are not in favor. So there has been misrepresentation. The Planning Commission did ask for a vertical curb along Mountainside to try to -- in an attempt to keep people from parking out there. That hasn't been discussed. And the other thing is, I just want to just go right back to how important it is to support the people of the community and the promises made by the master plan and the general plan. Thank you. MENDENHALL: Next, we have Betsy LaVoie and then on deck is April McCormick. LAVOIE: Good evening, Mayor and Council. For the record, Betsy LaVoie, Fountain Hills resident for 45 years and I represent the Fountain Hills Chamber of Commerce as the CEO and President. I represent the Board of Directors tonight. As the zoning attorney mentioned, the Fountain Hills Chamber of Commerce Board of Directors did offer a letter of support. Because we rarely do so and because it's difficult to obtain, I wanted to read it to you. TOWN OF FOUNTAIN HILLS Page 46 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 46 of 78 To Mayor and Council, the Fountain Hills Chamber of Commerce Board of Directors recently heard from Snell & Wilmer regarding rezoning application and following a comprehensive and thoughtful presentation, the Board engaged in a lengthy discussion about the project. Ultimately, the Board voted in favor of providing an official letter of support for the rezoning. The original rezoning -- I'm sorry, the original zoning was based on the idea that our town would achieve a population of 77,000. The proposed rezoning aligns with typical like for like rezoning with numerous multi-family complexes in close proximity to the project. The rendering presented to the Board would result in a more visually appealing final product and maintain the neighborhood's views. The Fountain Hills Chamber of Commerce believes that approving the rezoning application for Senderos at Fountain Hills would provide more housing and increase our community's population, which has remained stagnant for more than two decades. I'll just repeat that. Our population has remained stagnant for more than two decades. Our town's commercial vitality will not experience significant improvement without allowing our population to reach its full potential of 37,000 to 38,000, which is less than half of the population that original zoning was planned for. And I do just want to share -- our scope of work at the Chamber of Commerce is commerce, right? We are only going to offer a letter of support as it pertains to commerce. By advocating for the necessary zoning changes, we hope to contribute to creating an environment that allows our town to expand and thrive. The voice and perspective of our business community is crucial in demonstrating the positive impact that such growth can have on our community. And I just want to thank you for your consideration. Let's continue to foster the growth and development of our community and since your staff, your Planning and Zoning Commission, and your Chamber of Commerce have recommended approval, we hope you do, too. MCCORMICK: Hello, again. So I'm kind of in shock at what I've heard from the developer's lawyer this evening. TOWN OF FOUNTAIN HILLS Page 47 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 47 of 78 I was on a planning commission for a 500-square-mile county. My husband and I have been in commercial and residential construction for 30 years. We've built roads to state standards, (indiscernible) main sewer, graded golf courses, you name it. The way they're coming up with 70 lots is they're simply taking the number of acreage that they currently have, they're multiplying that by 43,560 square feet per acre, and then they're dividing the minimum lot size allowed under their current zoning, and that's how they're coming up with 70 units. I would bet a large amount of money they have not taken out the impervious surface spaces in their calculation, which are the parking lot, the roadways, and the sidewalks. Once you take out the square feet for all your impervious surface areas and your sensitive areas, drain buffers, what have you, it's probably what everyone else is saying, under 30 lots. The last gentleman that spoke, he was very on the money. How in the -- how has the traffic study not been required with this number of homes? It is beyond all comprehension. In fact, that traffic study should be done when the snowbirds come back. And that study will tell you exactly how many cars are going up and down Palisades every day, how many are going on Mountainside, and how many are cutting up through Tumbleweed down to Lost Hills and getting out that way, because that first Mountainside and Palisades intersection's horrible. My grandson is in Lost Hills. We moved to Lost Hills to be closer to him. I walk that area every single day with a baby in a stroller. Those intersections of Tumbleweed and Lost Hills -- it is a blind intersection. I'm scared every single day I have to turn left there. Mountainside is nothing but a wildlife preserve. I would bet a large amount of money that if they're required, which they should be, to do an environmental assessment, you'll find an endangered species there where they would not be allowed to do what they want to do. I think a traffic study would dictate and I've done traffic studies for an 882-lot subdivision and 27-hole golf course. A competent independent traffic study would dictate stoplights and a turning lane at both Mountainside and Palisades, and Lost Hills and Tumbleweed, period. So you need much more information. And you can demand a traffic study. This needs to be tabled. They need to produce an independent traffic study. TOWN OF FOUNTAIN HILLS Page 48 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 48 of 78 They need to do a phase one environmental assessment. They need to find out if they have any sensitive endangered species on that property, because I have to stop every day for a quail crossing. I mean, I was protecting a bunch of baby quail from even crossing with the stroller the other day (indiscernible) going to get hit by cars. There's coyotes (indiscernible) there's every wildlife you can imagine in that parcel. Thank you. MENDENHALL: And then next we have Barry Wolborsky and on deck is Crystal Cavanaugh. WOLBORSKY: Good evening, Council, Mayor. I'm Barry Wolborsky, as you all know, and I am the Chairman of the Lesser Fountain Hills Committee and as far as I know the only member. And I am delighted to hear that the population is not growing. That was the best news I've heard tonight. And Madam Mayor, you said that we shouldn't accuse them of threatening us, but when somebody says if you don't let us rezone we're going to build this monstrosity instead, what would you call that? I would call it a threat. And you know, I've only lived in Fountain Hills for four years, but I think I've been an Arizona spirit my whole life, because I don't respond well to threats. Threats don't encourage me. They discourage me, and I think they ought to discourage everyone in this town. You know, my wife has a friend that says, if you could live anywhere in the world, anywhere you wanted to, what part of Fountain Hills would you live in? You know? I think that's true, you know? I love it here. I think this is as close to heaven as God lets us be on earth. And you know what? I don't think -- the one thing that they didn't talk about, the lawyer from Phoenix didn't talk about, was how many square feet on the one lot versus how many square feet on the other lot. I don't know, maybe he just forgot that. The other thing he didn't talk about is, what's the rent roll for 70 one-bedroom units or 70 studio units versus 80 multi-bedroom units? And I think that's probably what's driving this development. TOWN OF FOUNTAIN HILLS Page 49 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 49 of 78 I don't think that the developer is trying to make Fountain Hills a prettier town. I don't think that's the main goal of this development, nor should it be. The main goal of his development should be to make a profit for himself. On the other hand, I don't think there's any reason, any driving reason, that this Council should change the rules that all the people in that neighborhood bought houses to believe in because somebody wants to make money. That's all I got. CAVANAUGH: Good evening, again. Most all has been said. I was at both the Planning and Zoning meetings and I was actually at the Town Council meeting where it was originally supposed to be presented and at that time, I made a lot of comments which were similar to tonight's and I haven't changed my mind. And it's clear that this rezoning would negatively impact this neighborhood and not just that neighborhood, the surrounding areas. We're not that big. I live in Sunridge Canyon. I drive by there every single day, every time. So it impacts more than just Lost Hills, but in particular those neighbors. But what I noticed tonight is that, just like in a courtroom -- and I got to tell you, I might get you as an attorney sometime because you are very good. It's not that you're not good. But I did notice from the earlier presentations, if you have a court case but then you have to go back to trial a different time, you learn from all the evidence you've heard. And in the early meetings, a lot of the residents were like, let's take our chances. Don't rezone this and let's just see. If they can't get 70, perhaps he won't build. If he can't get 50, perhaps he won't. I mean -- and he might still build, but they were ready to roll the dice. And I'm thinking the first thing they came out with tonight was, well, no matter what, we're building. And I too perceived it as a little bit of a threat because it was if you don't rezone, we're going to give you this ugly, big, urban blight. Well, right away that contradicts all this good neighbor policy that I was hearing earlier. It shows me a little bit about the character. That we can -- can we trust the rest of the things that they said they would do? You know, blocking the pool and putting in this and putting in that. TOWN OF FOUNTAIN HILLS Page 50 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 50 of 78 So I'm against the rezone also for all the reasons listed. It could happen to any one of us. There's no good reason to rezone this. Thanks. MENDENHALL: That's it for public comment on this item. MAYOR DICKEY: Thank you so much. I'm going to close the public hearing and then we can discuss. So any discussion, questions? Yes, Hannah? TOTH: I did -- MAEROWITZ: Mayor, if I may -- MAYOR DICKEY: Oh, I'm sorry. MAEROWITZ: -- could I have a rebuttal to the public comments? MAYOR DICKEY: Let us go first and then -- he can -- MAEROWITZ: We don't get a rebuttal. (Indiscernible). MAYOR DICKEY: Do you want me to recess? We'll be here all night. You will have a chance. Let's just see what some of the Council has to say first. MAEROWITZ: Thank you. MAYOR DICKEY: Thank you. GRZYBOWSKI: Well, I actually am ready to make a motion. I do have some questions. Shall we start with my questions? MAYOR DICKEY: Sure. GRZYBOWSKI: Okay. I had made a note that I was going to start with John, but Farhad, since you're the one that did the presentation I'll start my questions with you. I think my questions are going to cover a lot of the notes that I made about -- as you guys were talking about complaints or confusion. I'm not sure, but I tried to make notes as you guys talked. My first question for you, Farhad, is what -- as the town employee, what can the applicant build on that southern lot that they already own? For example, what are the restrictions, the height restrictions, the number of units, and the setbacks, period? TAVASSOLI: Okay. Madam Mayor, Councilmember Grzybowski. As you mentioned, the property is zoned for multi-family, but single-family TOWN OF FOUNTAIN HILLS Page 51 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 51 of 78 would be allowed, as well as multi-family. A height limit of 30 feet. A setback from Mountainside Drive required to be 30 or the height of the wall plane facing Mountainside, whichever's going to be greater. And I'm not entirely certain, I have to refer to the ordinance about the side setbacks, but as for the side facing the street, it's at least a 30-foot setback or the height of the wall plane. GRZYBOWSKI: Has the applicant in question submitted a site plan for the southern property and just the one lot? TAVASSOLI: Yes, they have submitted a tentative development plan should the rezoning not pass. GRZYBOWSKI: And it's probably 70 units? TAVASSOLI: They've shown 70 units and from a zoning standpoint only we did a cursory review and we've determined that it does have the potential for the 70 units that they are proposing should the rezone not pass. GRZYBOWSKI: It makes sense that they're not going to go to the extravagance that they did for this particular presentation for that just yet. TAVASSOLI: Right. GRZYBOWSKI: If the applicant were to go just the one lot, the southern property, is there a requirement for public hearings either through us or through our friends and P&Z? TAVASSOLI: The answer is no. GRZYBOWSKI: So if the applicant builds their 70-unit, 30-feet tall buildings on Mountainside, is there any way to force them to agree to the stipulations that you guys listed in the staff report for us, like preserving the views and the traffic mitigation? TAVASSOLI: No. GRZYBOWSKI: Just to reiterate, the current property will hold 70 units. We've seen a drawing for it that looks tentatively like it's doable. They are requesting only an increase of ten units by combining the two properties. Technically as it's zoned now, there could be 13 units on the northern property. Granted, it's a steep slope. It would be a pain. It would probably be very expensive, but technically, as I understand it, can it be 13 units? TAVASSOLI: Only if topography was not a factor. But I must say, it would be unrealistic to fit 13 units on that. GRZYBOWSKI: I think I've heard five to seven is probably realistic, depending upon TOWN OF FOUNTAIN HILLS Page 52 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 52 of 78 what we're going to sell -- the value of the home and the amount of money they want to put into it. One more question for you, I think. All right, I got to read what I wrote because I typed this as they were talking. Okay. So part of the traffic mitigation that I don't know -- that I thought we were doing that I don't know that I picked up on in the writing, on the corner of Mountainside and Palisades, specifically the southwest corner, I think I remember talking about we're going to work with them to cut back the land a little bit, so it's an easier view if you're on Mountainside to take a left onto Palisades? Or no? TAVASSOLI: I am not aware of that particular discussion about -- GRZYBOWSKI: Okay. I -- TAVASSOLI: -- (indiscernible). GRZYBOWSKI: -- maybe that was a conversation that I told them was on my wish list. I'm not sure. Okay. So that's all the questions that I have for you. I'd like to have the developer come up, if I may. Am I allowed to do that? MAYOR DICKEY: Um-hum. GRZYBOWSKI: Okay. Please introduce yourself, since you haven't had a chance to come up yet. CUTLER: Yeah. Mayor Dickey, Councilmember Grzybowski, councilmembers, my name is Ron Cutler. I represent the development team for the proposed project for the rezoning. Whatever questions you have, we're prepared to answer. GRZYBOWSKI: The first thing I want to do is thank you guys for contacting the entire Council and allowing us the opportunity to meet with you after the P&Z meetings, because there was great conversation that I saw on the recordings of the P&Z meetings, but it gave -- it actually led to other questions that were easier to address with you, as we did in our meetings that has been referred to as private council meetings. And I just wanted to say to everyone that it was not. I received -- we all received the same email from the company through our town email to suggest if you would like to meet with us, TOWN OF FOUNTAIN HILLS Page 53 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 53 of 78 let us know. And I actually planned this meeting with their assistant through Angela, through our assistant, so she worked on the details for us. So there was nothing private happening. We've already established that you own the southernmost property of the two properties on Mountainside. There are people that I have personally spoken with that are ready to call your bluff and yes, I said call your bluff. And that might be one of the reasons why Mike was so insistent when he started out, because I have said a number of times to you guys, call your bluff. I have used that term myself. So there are a number of people that are ready to call your bluff on building on the one piece of property that you own. If we vote no today on rezoning the other property, is your plan to go forward with the one lot? CUTLER: Councilmember, yes, that is definitely -- our plan is to develop -- we bought the property with the intent of developing it. We did our own analysis. We didn't rely on any MLS listings or realtor comments, but we did our own analysis of the lot and are fully prepared to develop the one lot with the 70 units as we proposed and submitted some preliminary plans to the Planning Department. The plan to add the additional land came later, where we approached the church and entered into an agreement with them to enhance our property by adding that additional land for the additional ten lots because it would spread out the proposed development, make the units larger and I think make it a better development for the community. But the answer is yes. GRZYBOWSKI: Okay. CUTLER: We will be moving forward it. GRZYBOWSKI: Okay. Continuing on that thought, let's say you lose today and we're going to work with what you've got. We have a fabulous list of stipulations that you and our Development Services Department have worked together. If we approve the zoning, you will do this list of stuff that we've already seen that we could probably pull back up again if the people wanted to see it. If you build on the one lot, will you do those things for us still? CUTLER: The answer to that, Councilmember, is no. We are limited by what we're able to do on that single lot and we wouldn't be able to abide by those stipulations. TOWN OF FOUNTAIN HILLS Page 54 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 54 of 78 GRZYBOWSKI: So back to just working with the one lot, the driveway for the one lot. There will be one driveway -- sorry, I must steal this back from you. There will be one driveway and it looks like it's going to be in pretty much exactly the same spot that the southernmost driveway would be, if you got both lots, correct? CUTLER: Correct. GRZYBOWSKI: So as I understand Mike's presentation, the southern driveway -- if it's two lots, the southernmost driveway is intended to be for emergency use only. So as one lot with the driveway in the same spot, we're talking in and out for everybody and the two lots, the in and out would be at the northernmost driveway -- and I point like you guys can see what I'm pointing at -- but the northernmost driveway with reserving the southernmost driveway for the emergency use. CUTLER: Correct. GRZYBOWSKI: How many properties have you personally developed in Fountain Hills? CUTLER: In Fountain Hills, I've been involved with the development of three properties, the largest of which was Thunder Ridge, which is Palisades and Avenue of the Fountains, 81 townhome-style condominiums that were built there between '99 and 2002 -- 2001. GRZYBOWSKI: One other question before I make some comments. Somebody talked about reviews of another development that you built. So my question as a tenant of another apartment -- whatever you want to call it -- the Havenly -- you as the developer, do you develop and manage? Or is there another management organization? CUTLER: Councilmember, yeah, we do have a professional management company. I also heard the comments with respect to their Yelp reviews. I would point out also that our community, Senderos at South Mountain, has Google reviews as well. A significant number of Google reviews, and it's reviewed at a 4.7 out of 5 under the Google reviews. And I would encourage all the Councilmembers to look at all the reviews, the positive and the negative. I mean, every community will have negative reviews. It's actually a lot easier to find a negative review on anything online than it is a positive review, so the fact TOWN OF FOUNTAIN HILLS Page 55 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 55 of 78 that we have 4.7 on a Google review on average and if you look at the remarks and the comments on those reviews, I think it speaks to the efforts that we put forth in, you know, managing a really nice community, a well-managed community. GRZYBOWSKI: Those are all the questions I have of you. Like I say, I have some comments that I want to make. You want me to go ahead and do that now, or do you want me to hold off for other questions? MAYOR DICKEY: Does anybody have questions? FRIEDEL: I do. MAYOR DICKEY: Okay. Let's -- GRZYBOWSKI: And then I am ready to make a motion. MAYOR DICKEY: Okay. Hannah had her thing on before. TOTH: Thank you, Mayor. I did have -- most of my questions aligned with Sharron's, actually, so I'm kind of -- GRZYBOWSKI: Sorry. TOTH: No, no, that's a good thing. One question I had regarding the traffic mitigation, another concern that I had heard very, very often were the blind hills. And I say that as plural because I was -- full disclosure, I did some homework yesterday. After work, I went down Mountainside. I checked out the area. I went up the hill. I kind of like was holding my phone while I went up the hill, so I could see in video format. But you cannot see a car coming from the other side of the road when you're going up that blind hill, I mean, at all, either of those hills. And yes, there's a stop sign there, but during the half hour or so that I was actually outside looking at the road, I saw someone run that stop sign. So I know that it happens, because I watched it yesterday. My question is, is there anything with your traffic mitigation -- it looked to me as though it was focused on that Palisades, Mountainside intersection. So is there anything that I missed that deals with that issue? CUTLER: Yeah, I think I'll let Michael talk to that point specifically. He's more in tune with it. But I will say we have done -- there was talk about traffic studies. We actually have done traffic studies and traffic counts on both Mountainside and Palisades, so those were submitted to the town as well, so -- TOWN OF FOUNTAIN HILLS Page 56 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 56 of 78 I'll stay here. MAEROWITZ: Mayor, Vice Mayor, Councilmember Toth. Thank you for the question and it's a very good one because that was a concern that throughout this process that we heard about the lack of visibility at that intersection, which is why our traffic engineer, who is also here, spent a lot of time working with the Town Engineer on designing what we can do to that intersection to make it better because it's certainly -- it's an existing problem now and it's one that exists now and will certainly be a problem if you have that 70-unit development. But we wanted to see if we could resolve it or be a solution to it with a stipulation. And so what we've done is, you can see that we converted that intersection into three lanes and then we've converted that median that's there. So right now, when you're making that left and you don't -- you have that lack of visibility, you have to look at both ways of traffic and find a way to make that left. What this median does -- and we're actually cutting into the median, it's not just striping, we're creating a lane there -- allow you to have that refuge. But as far as improving the visibility, we've talked about this a lot with Planning staff and we absolutely want to do that. The challenge that we have is that what's blocking the visibility is a retaining wall and most of it is actually located on town-owned property. And so with the permission of the town, we would absolutely be willing to do work to grade it down and make sure we improve that visibility. But we do need the permission of the town to do that. GRZYBOWSKI: Sorry -- TOTH: I -- GRZYBOWSKI: -- to interrupt, but that's actually what I was trying to talk about earlier that I just couldn't get out, so thank you for doing that. TOTH: So I apologize that I was the one that wasn't very clear in my question. I actually mean when I'm heading northbound on Mountainside, way before I'm at even the zone that we're talking about rezoning. So I even kind of mean the south parcel. When I'm approaching either of those two stop signs on my way to that north parcel, there's two blind hills and, I mean, I don't think I can show you the video on my phone. But on Mountainside as you're heading up north, those two hills, I can't see who's on the other side of that hill. TOWN OF FOUNTAIN HILLS Page 57 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 57 of 78 So that was more what I was referring to. I think you were still talking about the Palisades and Mountainside intersection. MAEROWITZ: Mayor, Vice Mayor, Councilmember Toth. Yes, thank you. I understand your question now. I was referring to the intersection. That is also a concern that we heard, that as you're kind of towards our southern property, you know, this topography doesn't just slope to the east. It actually kind of has a -- you know, it's -- further down, it goes up and then comes back down again on that roadway. It's one of the reasons that the concern that we heard in particular was we at first had our primary entrance and exit as that southern driveway, and that is where you would face that concern the most because our residents that are pulling in there, there's not a lot of visibility, particularly for other vehicles that are coming down Mountainside. And so restricting that to emergency only and for solid waste collection means that you won't have that traffic conflict, at least with our residents, because they won't be using that driveway. So I think that helps. As far as improving it, again it is city right of way and I'm not sure there's something we can do to flatten it out, but we have certainly mitigated that problem and made it a non-issue for our development by restricting that driveway. TOTH: Thank you so much and I have one more follow-up to that. So to be clear, that southern driveway would be emergency only, so we would have effectively only one driveway for residents and guests in that apartment building, save for an emergency circumstance? MAEROWITZ: Mayor, Vice Mayor, Councilmember Toth. Yes. So when we initially submitted our application, the intent was to have both driveways. And in fact, at first we viewed that as a benefit, because you can have traffic go in and out of two driveways. But we heard over and over again as (indiscernible) things like what you had mentioned, the lack of visibility here. And we also very much heard residents on Mountainside not wanting vehicles near their home. Because if you use that driveway, because it's on a slope and as a vehicle is moving up that slope, their headlights would be shining into some of the homes there. And so hearing that concern, we thought it would TOWN OF FOUNTAIN HILLS Page 58 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 58 of 78 be better to limit that to emergency access only and for solid waste collection. And in fact, it's not just our word for it. That is one of the stipulations that is written in the staff report and if you were to approve this rezoning application would be a stipulation that attaches to the rezoning, so we'd be required to do that. Thank you. MAYOR DICKEY: Councilwoman? MCMAHON: Did you want to go first? MAYOR DICKEY: Oh, I'm sorry. FRIEDEL: That's all right. MCMAHON: Go ahead. FRIEDEL: Are you sure? A couple questions for the developer. You mentioned you had developed three other properties in Fountain Hills? CUTLER: Correct. FRIEDEL: Did any of those require a zoning change? CUTLER: Councilmember, the Thunder Ridge project was part of the Town Center, so there -- it wasn't a zoning change. It was a special use permit -- FRIEDEL: Okay. CUTLER: -- to allow the residential within the town's core. FRIEDEL: And the management company that manages your properties? CUTLER: The name of the company is MEB Management. FRIEDEL: Do they report to you, though? CUTLER: They report to me, correct. FRIEDEL: Okay. Thank you. Mayor, I have a statement here that I was asked to read by one of our businesses in town, so I'd like to read that. But I also want to make sure that people know in this room that I've never talked to this gentleman about this project at all. Why he's got my name in here is probably because I do frequent his establishment, so he probably knows me from there. So this was by Chris Heath from Sipps Eatery. He said he was approached by Senderos Development at his business establishment and he learned about the project and TOWN OF FOUNTAIN HILLS Page 59 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 59 of 78 what he learned. Subsequent to that, he was misrepresented and he asked me to make sure that I was -- that I would acknowledge his statement publicly and that went to all the Councilmembers, so that's why I'm doing that. So he felt that he was misled in his conversations with you folks. I also have major concerns about the traffic going onto Palisades. No matter what you do to that intersection, you can't improve the sight lines there, period. I know that because I go through that intersection probably a hundred times a month. My dad lives on Tumbleweed. I think this is a very simple, simple land use decision. Why do we want to change zoning for all those people that bought their properties there, knowing what that zoning was and being zoned that property all these years? I am not one that would be in favor of this change at this present time. I still believe that the traffic has not been dealt with properly and I don't think you can because coming down Palisades, sometimes it's like a raceway even though it's one of our zones. So again, I'm all for preserving the local zoning as it was mentioned before. And the people that came in here to talk tonight and also that sent emails, it was like 15 to 1 against this, so we have to listen to residents. I heard that mentioned here before tonight as well. So again -- so I have major concerns about sight lines on Palisades and again, this is a simple land use decision for me and I'm not in favor of it. Thank you. MCMAHON: Good evening, and thank you very much for your thorough presentation. I appreciate it. Another thing, too, is like Sharron mentioned. We've had a lot of developers come in and request various things before Planning and Zoning and also the Council. And I have to be honest with you, I have yet to have been invited to sit down and have a talk with the developer and his team prior to presenting before Council. And I must say that I really appreciate that because it provided a lot more information and education for me, in order to consider the rezoning request. So I appreciate that. And basically the same things that you expressed to me and to other councilmembers are what you're presenting tonight. TOWN OF FOUNTAIN HILLS Page 60 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 60 of 78 As for rezoning, this is what the Council does. We review and consider requests for rezoning different parcels of property in town. It is not unusual. In fact, it is the norm. We have also considered other rezoning requests from multi to single, from commercial to combination, et cetera, and we have granted most of those requests. I had the opportunity also and was invited along with Mayor Dickey to the neighbors' homes and listened to their considerations and I don't take them lightly. I haven't taken any of this lightly. However, I've also listened to the developer. The developer owns one of the lots and just like any of us who own a lot, if we want to build a home on it or whatever, we can do that by right. He can build by right. He's never changed and said that he wasn't going to build 70 units, regardless of what a realtor's piece of paper said. Based on other rezoning requests and development requests we've heard, I appreciate the significant changes that you made out of consideration for what you have heard from our community and the councilmembers. I really do. The very fact that you have spent the time and money having your buildings rezoned -- I mean, refigured if the Council approves the rezoning, I think was amazing. It's like night and day. I mean, you take from building a three or four-story building or two on a smaller lot that's going to block views and not be as aesthetically pleasing in the neighborhood as the proposal that you're putting forth. I mean, you have lowered the buildings. You've spread them out. You've mitigated the -- you put step by step lowering it, which I thought was amazing. I was really surprised you could do that, actually, but I'm not a developer. And in preserving the views. And even, you know, right there, there's Four Peaks condominiums. To me, they didn't take that into consideration for the neighborhood there. You've also added a pool, family amenities. You're treating it more as a family neighborhood unit versus plugging 70 units on one of your lots. No offense, I don't mean that negatively. I also appreciate the traffic mitigation that you have considered and are willing to do, because we have approved other condominiums and townhouses that have refused to do any type of traffic mitigation. For example, there is -- and this is no offense to the developer if he's in the audience. There's a townhouse being developed over across from TOWN OF FOUNTAIN HILLS Page 61 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 61 of 78 the Fountain Hills Hospital and McDonald's. That is a crazy busy intersection and making a lefthand turn -- and right there at the corner where he wants to build, making a lefthand turn is going to be almost impossible. There is no traffic mitigation consideration going into that. So I appreciate your significant changes. I also appreciate the fact that you've taken into consideration the topography and the natural habitat of the church lot and that you have designed the buildings to accommodate and recognize that and have less of an impact on that than might be otherwise by another developer. You know, Fountain Hills is growing. Like Betsy said from the Chamber, our population has stayed constant. There's a big housing demand and we need that. I also -- one of the things I thought about in considering the rezoning is the fact that if it's not granted -- if you think about this, that lot is zoned for single-family. But say that the 70 units are put on one lot and later on, the church sells that lot. There's no guarantee that that person who purchases that lot isn't going to be right here just like you, asking for a zoning change. Because they'll look at the neighborhood and they'll see there's 70 units right here. There's Four Peaks units. So why do I have to -- why should I stay and build single-family units when I can build an apartment building and make more money, et cetera? So my concern is looking forward to that, is that that is a concern of mine that it would make the neighborhood more choppy and more of a development of apartment units, multi-family, that would not fit into the neighborhood. So for all those reasons, I -- and per all the questions that Sharron asked and Councilmember Toth did, I'm for this zoning change. I don't think it's an unusual request and I think that given what I've seen from your prospective building that it does fit within the neighborhood and that it would -- and I do think that the traffic will be mitigated the best that it possibly can be because that street is that street. So thank you very much. MAYOR DICKEY: Thank you. Councilman? SKILLICORN: Thank you, Madam Mayor. I would actually, if it's allowed, I have a question for staff? Yeah. TOWN OF FOUNTAIN HILLS Page 62 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 62 of 78 Now, this development, the plans here, are they going to be codified into the zoning if this is approved? So really the question is, are they limited to 80 if this zoning change is approved today? Or is it 140 units? TAVASSOLI: Madam Mayor, Councilmember Skillicorn. Yes, the stipulation includes a maximum number of 80 units, as well as a number of other stipulations, so -- SKILLICORN: Okay. And then I'm kind of curious -- TAVASSOLI: -- (indiscernible) codified in the ordinance, should it be approved. SKILLICORN: Thank you. TAVASSOLI: Yeah. SKILLICORN: And Madam Mayor, and actually maybe the developer, what is the square footage? I see one-bedroom, two-bedroom, and three-bedroom. What is the square footage on those three models? MAEROWITZ: Mayor, Vice Mayor, Councilmember Skillicorn. So in the development that's being proposed, if the rezoning application were approved, it's a mix between one-bedrooms, two-bedrooms, and three-bedrooms and the square footage of those units, and I'm actually going -- so I get it correct, I'm going to turn to my sheet -- is for the one-bedrooms it's between 700 and 800 square feet, and then for the two-bedrooms 930 to 1250 square feet, and then the three-bedrooms 1300 to 1400 square feet. Whereas in the studios and one-bedrooms in the other site plan that we had submitted for just the south parcel, those are 500 and 600 square feet. SKILLICORN: Thank you. And just, you know, my comments on this, I've walked up and down the street. I have walked the property. Back in the spring when we had some rain, I was trying to monitor how much runoff water was in the wash there. Actually, I know that the Town Planner and I've talked a little bit about the -- you know, if there was a tension there and how the -- you know, actually where the water went. I have some concerns because of the geography of those two lots. It's very steep. You know, you can't even really walk down to the bottom of the wash. It's very hard to develop. I think it would be very challenging if the one lot, the southern lot that's zoned high density to be developed to the degree that this proposal is. I just think it would be TOWN OF FOUNTAIN HILLS Page 63 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 63 of 78 very difficult to do that and still comply to code. You know, we still have rules on retaining walls. We still have rules on, you know, how much -- you know, dirt you can move. I just don't see that working. So I'm very concerned about that. Even when I see the two together, there's a lot of rooftops. There's a lot of sidewalks. There's a lot of road there. That is all, you know, water runoff that, you know, we have to deal with and I just see that being an issue and I just see that that's not going to work so well. So I have very much concerns. And then we get into the actual structural issues of zoning. I do look at zoning as a promise. I don't like to willy-nilly change zoning rules. I have a very specific test that I would ask to change zoning rules and this doesn't meet it. And frankly, if I was going to change zoning rules, I would rather have the high density lot, a single-family lot. And if I made a motion now to do that and it was approved, I'm sure that the owners of that lot would sue us because that's not something that's the way you work. So why would I willy-nilly change the single-family lot to high density? I can't do that. So I'm going to -- I'm curious what the motion's going to be. But I'm not going to support changing zoning on this because zoning's a promise. KALIVIANAKIS: Thank you, Ms. Mayor. I think we earned our monthly pay tonight because this is a really tough one. This has been the most difficult decision I've made since being seated on Council. It was suggested earlier by state senator that we don't change zoning laws unless a compelling reason. I think that's sound. I'm not sure the developers address it from that angle, about a compelling reasons. I think the person that made the best case for that was Betsy LaVoie from the Chamber. When you say that this town hasn't grown for 20 years -- you know, Lou Holtz said if you ain't growing, you're dying. That bothers me. Sorry, Barry. We've got to grow. We've got to get up to that population density level where we can sustain businesses, and projects like this, I think, have a lot of merit. I like their sight lines. And the one thing I'd like to say, too, is that I went to the neighborhood residents and I went to their home and we discussed this with them, and then I did discuss this with the developers, too. And any of this -- notions about people aren't acting in good faith and people are trying to do something untoward really bothers TOWN OF FOUNTAIN HILLS Page 64 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 64 of 78 me. They're trying to put a really good development here. They've taken an extraordinary amount of time to try to get everything right. And, of course, the people that live in the neighborhood. You know, I get it. They've been there a long time and they said we didn't envision multi-family housing being built next to our home. And so there's no way that we're all going to go away happy and content tonight. But we have to apply logic and we have to apply reason to come up with a good decision so we can at least walk away saying a good decision was made tonight. Again, you look at the sight lines. I like the parking, the street access with the merge lanes. I think that's a wonderful idea. I think the aesthetics of this project are so much better than just developing the R-4. The neighborhood integrity is good. The church congregants have literally asked us, please sell the property because we could use the money for our outreach and our church. And so that's there. On the other hand, the developer, you do have a remedy, okay? And that's you sold this to our town as well, we can do 70 plus maybe six or seven, but we're very concerned to make this a better project for Fountain Hills. And is the developer the one that should be making that decision? Or should the residents be making that decision? What they want there? When I ran for office, there's two forms of governance, the trustee form and the delegation form. The trustee where you vote for me and I'm going to do what's best for you. The delegation is you vote for me and I'm going to be your mouthpiece. I've always subscribed to that and I will subscribe to that tonight, too. But with this fair warning, okay, that -- be careful what you wish for. Because if we let them develop the six acres, it's going to be a pretty nice project, I think. You said you didn't want it. I'm willing to go there with you. But in the future years, when they do develop it, a bunch of studios and ones -- we've talked about putting our own Fountain Hills Police Department together. Well, five years from now they could be spending all their overtime hours over there, because of problems with the urban style development that we've just approved tonight by not approving the suburban project. TOWN OF FOUNTAIN HILLS Page 65 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 65 of 78 So I don't think a compelling case has been made why this has to be done and all the people -- I know you've done a great outreach -- and all the people I've personally talked to they've been against it, pretty categorically. And I just can't ignore that fact. So unfortunately, I'm going to vote against a good project and I'm going to be a no on this. MAYOR DICKEY: Thank you. Anybody else before I speak? SKILLICORN: Madam Mayor? MAYOR DICKEY: Yes, sir? SKILLICORN: I just have a question for our attorney. Is this a simple majority or is this a super majority? ARNSON: In response to your question, of course if the matter fails, then it's a moot issue. If the matter passes, then the surrounding property owners have submitted a petition that meets the requirements under town code, which would require a super majority. My understanding is that it does not meet requirements under state statute. So which one of those controls is a different discussion for a different day. But regardless, yes, if it passes, we'll need to determine which one is in control and we should figure out if we have the votes in the affirmative. MAYOR DICKEY: Thank you very much. I agree with both sides of everything that everybody has been saying. It really makes a lot of sense. I definitely don't like the idea that there's suspicion or casting dispersions on the fact that we actually met and wanted to hear about this project, or questioning the motivation of people who, yeah, that's their living. It doesn't mean that what they're trying to do has a negative motivation to it. However, as you've witnessed in the past here, I am an advocate for residents that live in the area. And has been mentioned, most of the people that live in the area are opposed. I understand the, you know, some of the businesses and I get that. But I also, you know, voted no on Daybreak and some of the people here against this voted and wanted and supported Daybreak, so across the board saying you don't like zoning changes doesn't really resonate with me very well. But I do understand taking some of these projects one at a time. But again, I do default to the people, what they thought when they bought their TOWN OF FOUNTAIN HILLS Page 66 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 66 of 78 homes, when they invested in their homes. And I guess I appreciate being reminded that I lived there for 13 years. And I got to tell you that if I lived there now, I would've been asking my neighbors to be supportive of this project because living closer to the El Lago side, I would've much thought that this was a better project. But again, I default to the neighbors. I was hoping that they would change their minds before we got to this point, but rezoning is something I have been very hesitant to do and I guess I'm not going to be able to do it tonight, either. Are there any other questions or comments? GRZYBOWSKI: Yes, ma'am. MAYOR DICKEY: Anybody want to make a motion? GRZYBOWSKI: Before I make the motion, I would like to remind -- while Betsy stood up as a single person, she didn't represent one voice. She represented the entire Chamber and they've got a slew of people on the Chamber Board. It's like 17 or 19 or something like that. I'm not exactly sure of the number. So she didn't speak just for her. She spoke for the entire Chamber Board and they were unanimous. That being said, one of the things that didn't come up today that has come up to me a number of times is yes, traffic, but the number of people coming and going at the same time. So I live in a 95-unit rental place. I warned the admin staff that I was parking myself in the middle of the parking lot. I had my little umbrella and a chair and a cooler and I sat there for a couple of evenings and a couple mornings, during what we would consider rush hour. And during the evening hours -- so oh, I should tell you, I have 95 units and there's 168 total parking spaces. That being said, during the evening hours, we averaged -- so 4:45-ish to 5:45-ish, we averaged three people walking and 23 people driving. During the morning rush hour, between 7:45 and 8:45, we averaged three people walking and 31 people driving. One of the other things I wanted to be sure and talk about is our average apartment occupancy in town is officially 90.3, but that was based off a (indiscernible) 93 percent occupancy and they are now at over 97 percent. So it's actually higher than that. It's unrealistic to hope that nothing gets built on these lots and I've had a number TOWN OF FOUNTAIN HILLS Page 67 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 67 of 78 of conversations with people that are like, we just don't want anything there. Hope is not a strategy. Something eventually will go there. These are somebody's assets, so to be hopeful that we're not going to put something there is not realistic. No matter what goes in on these two lots, we are going to have the same exact traffic concerns that you have today. The plan for the 80 units on two lots is more in line with the look and feel of Fountain Hills. There's no doubt in my mind. It's an attractive building with room for landscaping and maintains views. With this 80-unit development, we will get traffic flow on the corner -- traffic mitigation on the corner of Mountainside and Palisades. If it goes in as a 70-unit, we're only going to get one driveway out. They're not going to spend the money on the corner to help with traffic mitigations. While a 70-unit complex on the one lot would be studios and single-family homes, honestly, it would be nice to have. It would be workforce housing for us. Your retail workers, your waitstaff, your firefighters will have a place to live because they will be able to better afford studios and one-bedroom homes. But I think from what I hear talking to y'all, you would rather have the larger, further down, not blocking views, it's more aesthetically pleasing, there's more landscape -- so I'm a yes on this. And I am ready to make a motion. As written, move to approve ordinance 23-03 with the stipulations listed in the staff recommendation. MAYOR DICKEY: Is there a second? MCMAHON: I'll second. MAYOR DICKEY: Thank you. If there's no further discussion, could we have a roll call, please? MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: No. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Nay. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS Page 68 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 68 of 78 SKILLICORN: No. MENDENHALL: Councilmember Toth? TOTH: No. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: No. MENDENHALL: The measure fails. MAYOR DICKEY: Thank you very much. I appreciate it very much. It was very difficult, the whole thing, and we appreciate your professionalism. SKILLICORN: Madam Mayor, might I suggest a four-and-a-half-minute recess? MAYOR DICKEY: We'll take five. Clerk’s Note: The Council recessed at 8:19 p.m. and reconvened the meeting at 8:31 p.m. MAYOR DICKEY: Thank you. We're back and our next item is another public hearing. We'll hear from John and then I'll open the public hearing. Thank you. WESLEY: Mayor, Council, I just want -- this one should go a little faster than the last one, I hope. So we are looking at a request for a special use permit at the southeast corner of Glenbrook and Fountain Hills Boulevard. This property is currently zoned C- C, which is a common commercial zoning. It's a lower end retail commercial that allows for common parking lots and 100 percent lot coverage in this district. It's been platted since 1973. There's been really no new construction in this area since about 2004. So this area is set vacant, looking for some development for quite a while. The lot in question, here at the corner, highlighted in the blue, was used as a playground for a number of years for adjacent school that's since been closed. So it's currently not being used. The new owner is suggesting, would like to build apartments on this property. The C-C zoning does not allow for residential use by right. So they're options include either to rezone, and there's three options listed there that could be chosen. Or to get the special use permit in the C-C. They have chosen to maintain the consistent zoning pattern in the area and request a special use permit for the residential use. TOWN OF FOUNTAIN HILLS Page 69 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 69 of 78 So looking at it a little bit further out, you can see again the corner property highlighted in blue. The C-C zoning on this tract. And so the tract here, just to remind the council, about a year ago, maybe it's been now, approved a special use permit for residential mixed use building at the southeast corner of this total block down here at Ivory and El Pueblo. Also, previously a special use permit was approved for residential second floor use of that building located here. You can see the surrounding zoning of mix, single family and commercial zoning districts in the area. The general plan encourages a range of housing types and densities in the community. It also encourages we protect and maintain existing neighborhood character and support mix of residential employments and commercial uses. In this particular area designated a plan is a mixed use neighborhood. So it does allow for a little bit higher density residential as well as a combination of residential and commercial uses. When you look in the zoning ordinance, in Section 2.02 F 1 d, it provides the criteria for the Planning and Zoning Commission to use as they review special use permit requests in their making a recommendation to council. So we're looking at its impact on the adjacent neighborhood and the community. Planning and Zoning Commission reviewed this at their meeting last month. As they looked at it, they determined that the request did meet the criteria in the general plan and in the zoning ordinance. And so they have recommended approval, as well as staff. With that, I'll see if you have any questions. MAYOR DICKEY: Thank you. Do we have any speaker cards? MENDENHALL: Not for this item, Mayor. MAYOR DICKEY: Thank you. Any comments or questions from the council? No? Somebody want to make a motion? GRZYBOWSKI: Move to recommend approval of case number SUP23 -- like, six 0's and then a 1. TOTH: Second. MAYOR DICKEY: Thank you. Roll call, please. MENDENHALL: Councilmember Friedel. FRIEDEL: Aye. TOWN OF FOUNTAIN HILLS Page 70 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 70 of 78 MENDENHALL: Councilmember Kalivianakis. KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn. SKILLICORN: No. MENDENHALL: Councilmember Toth. TOTH: Aye. MENDENHALL: Councilmember Grzybowski. GRZYBOWSKI: Aye. MENDENHALL: Vice Mayor McMahon. MCMAHON: No. MENDENHALL: Mayor Dickey. MAYOR DICKEY: Aye. Thank you. Closing two public hearings at the same time. Our next items is about our trails. Who's that, Rachael? GOODWIN: Yep. I see a number of our McDowell Mountain Preservation folks back there. It looks like our chairman, Scott Grzybowski as well as Bill, Bill Craig is going to be joining us as well. SCOTT GRZYBOWSKI: Good evening, Mayor, Vice Mayor, Councilmembers and distinguished, award-winning staff -- [LAUGHTER] SCOTT GRZYBOWSKI: -- so we are here tonight -- see a presentation, let me get into presentation mode. There we go. So good evening. So I'm Scott Grzybowski, Grizz Grzybowski, long last name. I'm the chairman of our McDowell Mountain Preservation Commission. And with me is Bill Craig. He is the, one, he's the Commissioner on the MMPC. He's also a board member of the Sonoran Conservancy of Fountain Hills. And he is our illustrious trail blazer leader. So what are we here for today? Well, we're here to talk about trails. So this is a beautiful, panoramic view we took from one of the potential new trail advantage points. And Bill's going to talk us through what those trails will look like. But I figured it'd be very nice to have some nice pictures. We all like pictures. Worth a thousand words. I also will point out that in your packets on page 408, you will have, you do have a bunch of frequently asked questions. We already tried to be proactive and answer questions that TOWN OF FOUNTAIN HILLS Page 71 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 71 of 78 we think we'll have at the town council level. And again, that's on page 408 in your agenda packet. So again, we'll do this quickly. So in the presentation we have a lot of supporting information that I hope we don't have to get to this evening. But why we're here. One, the first agenda item is to ask for some new trails. And the second agenda item, once we get through the first one, would be to ask for some trail renaming request. Again, more pictures. So this one is pretty cool. I call this one Saguaro Valley. This is, again on our Sonoran Trail. Just a beautiful vantage point. I love it. It's' just really cool. I had to take a picture of it. So this is the Cliffs Notes version, why are we hear? First we're here to request three new trails in the coming years in the McDowell Mountain Preservation or the Preserve. So with that, we vetted numerous options with many hours of working groups and discussion to present you with our final recommendation. Number one, I think we'll all like this, is zero cost to the town, zero, seriously. And with that we actually have a savings in one of the supporting slides, about $73,000 a year we save the town with all of us volunteers. And again, both trails that we're going to see above the Sonoran have zero impact on homeowners. They're very high on the Preserve and the land we already own. And just like that picture shows, we have breathtaking views. And then the second item would be here to ask for some renaming of three existing trails. So some of you've seen these slides before. But number one, how do we build trails? It's all done by hand. So everything is done with hand tools. I have to point out, this picture, because this is very cool, so Bill, being our illustrious leader, whenever we see a big rock, right here, it's probably going to need to get moved because that's what Bill does. So as you us here, we are doing this all by hand. This is the before, this is the after. They like having me around because I'm the rock mover, right? I do a lot of rock moving. It is nice to be somewhat of the younger of the crew, which is awesome. But I do a lot of rock moving. Again, so this is another beautiful before picture. At some times it's very hard to visualize what a trail is going to look like until it's actually done. And then this is the after picture. Which to me, these are just amazing. So this was actually, you know, what TOWN OF FOUNTAIN HILLS Page 72 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 72 of 78 we did on part of the North Leg Trail just this past year. So again, how do we build trails? Very much all manual. So in this case, the rock actually won. You can see that the pick axe is bent. So it only one temporarily, we came back with a bigger pick axe and we won. We got that rock. And here's our lovely trail blazer crew here, very happy to open the north leg of the trail, which is another, about .8 of a mile on that trail. So with that, I'm going to pass this over to Bill. I'm going to be his backup with the pointer. CRAIG: Good evening. As Scott mentioned, we are asking for three new trails. In this picture here, just to orient you as to where we are relative to the Preserve, some of you have been there. Some of you have just been to the trailhead. The parking lot that you see listed here is the trailhead. If you come up Adero Canyon, past Adero Resort, that's where you get to the trailhead. And orientation-wise, this is the North Leg Trail that we completed this last season. This is the Prominade Trail. This is a cheap road that, just interestingly, was originally built by a former owner of the land who wanted to build a house at the end of that. But his wife had a different idea and it never got built. Back to the trails, this is Shadow Canyon. And I have tried to use this to give you an idea of how close or how far away the actual trail will be. The line that you see here is an approximation of where the boundary is between Shadow Canyon Homeowner's Association and our Preserve. From the parking lot, there is the Overlook Trail, which I am representing now, which comes up to a peak right at this point. This is a trail which was there originally. And if I can get back here, this was a trail which was there originally, one of the first trails. It's about a half-mile long. This is the trail which is most often suggested by our trailhead hosts for people that come up that are not familiar with our preserve or are new hikers. Coming off of this, right in this area is another trail called the Easy Access Trail. It was originally built as a trail which was the easiest trail there is here. And we often, back in the early days, took people with wheelchairs up on this trial. Now, the Overlook extension is what we are proposing here. This goes in the white here from the peak of the Overlook Trail, down to the end of the Easy Access Trail. This shows it in a little more detail. This being the peak of the Overlook Trail. This being the TOWN OF FOUNTAIN HILLS Page 73 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 73 of 78 end of the Easy Access Trail. The design here is meant to go through a lot of the rock structures, make it an interesting looking trail. It will be developed to the extent of the same ability, the same degree of difficulty or lack of difficulty as the Overlook Trail itself. Why I didn't think of that beforehand, I don't know. This was meant, or this was suggested by a hiker. And we started looking at this and to us, it made a lot of sense. A loop trail is the most often sought-after type of trail throughout the states. This will make a loop out of the Overlook Trail. So instead of just up and back, up and back, it will give some variety and being another nice terrain. Going ahead to the next two trails, once again you see the trailhead over here, the parking lot. And this is the Prominade Trail, coming along here, passing the North Leg Trail once again, going to the end of the Prominade Trail. I have shown the Eagle's Nest development here to give you the relationship of that. So this is Eagle's Nest. Over in here is Shadow Canyon. This is the Sonoran Trail that you see me trying to take the path of here. At the end of the Prominade is where the first new trail, or the second one relative to all three, of these two trails, the red and the lime green here, this is a trail which I think will be an extremely nice, enjoyable addition to the fine trails that we do have. There's two elements of this which are outstanding to me. Right around in this area I purposely took the trail through here because of a saguaro field that is in there. Many enjoyable, nice, young saguaro, but also a number of 100, 150 year old saguaros that I have taken it by in designing this trial to make it interesting. Also, over in this area there is a little, quiet, peaceful area, grassy area, level, back in that doesn't have views of the town but is bordered on one end by this old Mesquite tree, which you don't often see out in the Preserve or other areas. And on the other end of this, about 20 yards away, is a 12-foot rock wall with rocks down at the bottom that are flat that you can sit and rest on next to the wall itself. The other trail is also unique in a different way. This trail, once again, came from a number of hikers, a number of my trail blazers. They wanted something which was a little more difficult. Something that was a challenge. So this was designed a lot by some of the trail blazers themselves. It starts up the Western Loop Trail. Right up in here, at TOWN OF FOUNTAIN HILLS Page 74 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 74 of 78 an elevation about 350 feet higher than the end of the Prominade Trail. It goes in and out some of the arroyos at a much steeper angle to make it much more of a challenge. The white here is the border with Scottsdale. So it goes up quite high, this will be up around the 4,000-foot elevation. Both of these trails come down and end on the Sonoran Trail, about a half a mile before the place where the Sonoran Trail meets McDowell Mountain Park. And with that, as Scott mentioned, we tried to anticipate some of the questions you might ask and have put out a sheet to you. And I'm going to turn it back over to Scott and we can both answer questions that you might have relative to these three trails. MAYOR DICKEY: Thank you. Do we have any speaker cards? MENDENHALL: Yes, we do. So what I'm going to do is have the person who is here in person to speak, come up first. And that would be John Thompson. And then rest will be written. THOMPSON: (Indiscernible). MENDENHALL: Okay. All right. He's for it. And so -- MAYOR DICKEY: The shirt gave you away. [LAUGHTER] MENDENHALL: He's against it -- no, I'm (indiscernible). And so we have quite a few, and it's in your packet under 9F. And you'll read all their comments as well. But I'm just going to go through and say if they're for or against it. Clifford King is for it. Kyle Bardet is for it. Pam Bardet is for it. Mary McDonald is for it. Rebecca Collman is for it. Ted Blank is for it. Carmen Thompson is for it. Barbara Weist is for it. Dennis Weist is for it. DJ Willard is for it. Janice Tim (ph.) -- can't say that right. So she's for it. Stan Johnson is for it. Denice -- Denise Clark is for it. Peter Herstein is for it. Karri Michell is for it. David Bell is for it. Fred James is for it. Derrick Brewster is for it. Jeff Esposito is for it. Nathan Sorenson is for it. Gary R. Goodell is for it. Nancy Marie Whitton is for it. Janice Holden is for it. Laryn Arvidson is for it. James Kanya is for it. Sharon Kanya is for it. And John McCurdy is for it. MAYOR DICKEY: Thank you very much, appreciate it. Any comments or questions? Yes, Hannah. TOWN OF FOUNTAIN HILLS Page 75 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 75 of 78 TOTH: I just want to say thank you so much for your time and for everything you guys do. I am so excited to see the new trails, hopefully. And just thank you for coming to share with us today. You guys do great work. So with that, I move to approve the new trails. KALIVIANAKIS: Second. MENDENHALL: Okay. So we have Councilmember Kalivianakis. KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn. SKILLICORN: Yes. MENDENHALL: Councilmember Toth. TOTH: Yes. MENDENHALL: Councilmember Grzybowski. GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel. FRIEDEL: Without question. And thank you. MENDENHALL: Vice Mayor McMahon. MCMAHON: Aye. MENDENHALL: Mayor Dickey. MAYOR DICKEY: Aye. Thank you. Thanks a lot. You're up next, aren't you? GRZYBOWSKI: Right, we are. So I have to point out this slide, this is really cool. This is a quad of trail cactuses. So four cactuses growing together. Just very rare in the wild, to see so many growing together because they're fighting for resources. So to see four together, I just thought it was cool, so I put that in there. We have -- oh, went through questions, right. UNIDENTIFIED SPEAKER: Cool is the world. CRAIG: It is, it is. I don't know if it's the cool word or the word of the day, right? But I'll use that. And the next item on the agenda is the trail naming -- renaming request. So again, we discussed this and we think these three name changes make a lot of sense. So as Bill said, one of the trails is called the Western Loop, and that's where one of the new trails is going to start from. We would like to rename that to the Western Trail. It's really not a loop. So we want to just be consistent and name it Western Trail. TOWN OF FOUNTAIN HILLS Page 76 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 76 of 78 The second one is, we have this trail coming off the Prominade called the Alternate Bike Path. And it really connects to the Andrews-Kinsey Trail. So we would like to just name that part of the trial, all of it to be Andrews-Kinsey Trail. And then the other one is the Easy Access to the Overlook. Especially with the new extension, it just makes sense then, instead of having this Easy Access separate trail name, we just call it the Overlook. So any questions on that? MAYOR DICKEY: Any questions? Any speaker cards? MENDENHALL: Yes. We have two, just written, John Thompson's here and -- and he's for it. And then we have DJ Willard, he's for it. And that was in your packet. MAYOR DICKEY: Thank you. MENDENHALL: And that is it. FRIEDEL: You want me to make a motion? Move to adopt resolution 2023-25 approving the renaming of the trails as proposed. KALIVIANAKIS: Second. MAYOR DICKEY: Thank you. Roll call, please. MENDENHALL: Councilmember Skillicorn. SKILLICORN: Yes. MENDENHALL: Councilmember Toth. TOTH: Yes. MENDENHALL: Councilmember Grzybowski. GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel. FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis. KALIVIANAKIS: Aye. Thanks, guys. MENDENHALL: Vice Mayor McMahon. MCMAHON: Aye. MENDENHALL: Mayor Dickey. MAYOR DICKEY: Aye. Thank you. Thanks a lot. GRZYBOWSKI: Thank you. TOWN OF FOUNTAIN HILLS Page 77 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 77 of 78 MAYOR DICKEY: Our last regular agenda item is about the Legislative Bulletins. Anybody have anything? You know, they've been off. So they've been off since -- and they're coming back on the 12th. There's increased urgency for the passage of the Bill that allows Maricopa County to ask its voters if they would like to continue funding transportation in what has been described as he fastest growing area in the country. So Prop 400 (e), efforts to continue, and I have recently picked up a lot of assistance from organizations, business, cities, the county, big article in The Arizona Republic. And we're trying to mitigate the economic damage of the halted RFPs, all of the projects that aren't moving forward and the hesitation of some of the businesses that were planning to come to the Valley. Fountain Hills has been at the table to create it. And benefitting from funding programs through decades of county transportation sales tax. The other two items that are still important that are still out there is the rental tax. That's still on the table. You know, that's an over $560,000 or so hit on us if that goes through. But there are some compromises for that. And last, they are close to an agreement on the housing zoning Bill which was brought up earlier. And as I've said before many times, if this passes, almost everything we did tonight was moot for the future. So let's just hope that we keep our zoning and our local decision making in place. And I don't, you now, I don't know what else could happen. When they come back, some people are saying they'll immediately quit. And others are saying they're going to October. So I don't know. Your guess is as good as mine. Do we have anything from the council discussion? Anything from the Call to the Public that we have to follow up on or anything? I don't think there was. I think everyone are, you know, it's all the 5G and that kind of thing. Future agenda items, anybody? SKILLICORN: Madam Mayor, I'd like to actually make a quick motion. Because inflation is so high and summertime sales tax pretty low, I would love to suspend the grocery tax for the month of July, which is traditionally the lowest of the year. Last year, it was about $130,000. I think this would be a worthy break for our residents. MAYOR DICKEY: Well, you know, we can't make a motion now or talk about this. So TOWN OF FOUNTAIN HILLS Page 78 of 78 JUNE 6, 2023 TOWN COUNCIL REGULAR MEETING MINUTES Page 78 of 78 did you have any future agenda items? SKILLICORN: Well, I'd like to add that (indiscernible). MAYOR DICKEY: You'd like to add suspending our food tax for a month to our next agenda. Does he have any support to do that? TOTH: I'll give him a second if I can get the numbers on how much we typically get from the food tax in the month of July. MAYOR DICKEY: I guess for the whole year, it's over a million, so anything? MCMAHON: That's our revenue. MAYOR DICKEY: Any -- because when they were talking about eliminating it, it was a chunk of change. FRIEDEL: (Indiscernible). MAYOR DICKEY: Pardon me? FRIEDEL: (Indiscernible). SKILLICORN: Well, out of fear, it'd be out of order to discuss, but I mean, I do have the number. But I think it is out of order to discuss it. This is just a motion for the next meeting. UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: Well, she already seconded it. So I think it's something that we can definitely discuss. Thank you. Anything else? All right. We're adjourned. [MEETING ADJOURNED AT 8:58 P.M.] Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on June 6, 2023, at 8:58 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 6th day of June 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 22nd Day of August 2023. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL June 20, 2023 A Work Session of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 4:02 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Peggy McMahon; Councilmember Gerry Friedel; Councilmember Sharron Grzybowski; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth Attended Telephonically: Councilmember Allen Skillicorn Staff Present: Interim Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately nine members of the public were present. TOWN OF FOUNTAIN HILLS Page 1 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 1 of 28 Post-Production File Town of Fountain Hills Town Council Work Session Minutes June 20, 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 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 2 of 28 MAYOR DICKEY: Hello everyone. Thanks so much for coming. We're having our work session on streets. And could we do a roll call, please? MENDENHALL: Yes, Mayor. Mayor Dickey. MAYOR DICKEY: Here. MENDENHALL: Vice Mayor McMahon. MCMAHON: Here. MENDENHALL: Councilmember Friedel. FRIEDEL: Present. MENDENHALL: Councilmember Grzybowski. GRZYBOWSKI: Present. MENDENHALL: Councilmember Toth. TOTH: Present. MENDENHALL: Councilmember Skillicorn. SKILLICORN: Present. MENDENHALL: Councilmember Kalivianakis. KALIVIANAKIS: Here. MAYOR DICKEY: Thank you all, so much. I guess, do you want us to kick it off, Justin, for us? That would be wonderful. Thank you. WELDY: Thank you, Madam Mayor. Madam Mayor, councilmembers, first, welcome to this year's last work session. I know everybody's excited about that. There's going to be two presentations tonight. The first one is going to primarily focus on the results of the most recent pavement analysis. The second one is going to concentrate or provide direction and information related to the all-volunteer Streets Committee that have worked for the last 20 months to support their community. It's important to note that what's going to be discussed tonight is arguably one of the town's most valuable assets, also one of the most expensive to own and maintain, which is our streets. The first presenter tonight is Zac Thomason from Roadway Asset Services. I've had the privilege of working with this young -- intelligent, young man for the last several years TOWN OF FOUNTAIN HILLS Page 3 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 3 of 28 through two different companies. He does what he does incredibly well. And oftentimes, and I'm only bringing this up because you may have to do so as well, have him slow down a little bit. He's so well-versed, that he rolls and rolls and rolls and I have challenges keeping up with him. With that, Zac. THOMASON: Justin, thank you for the introduction. Madam Mayor, Town Council, it's a absolute pleasure to be here today. I do love pavement management. This is what I do. We take our work seriously. We don't take ourselves seriously. So what we're going to talk about today is the state of the roadway network here in Fountain Hills. So we're going to start with some basic terminology. I know that everybody is not pavement experts, so we're just going to talk about what some of that terminology you're going to hear me say today is. The first thing is centerline miles. We talk about that a lot. Think about centerline miles as if you were walking down the centerline of a road, smack in the middle, and you walked for a mile. That is a centerline mile. Irregardless of number of lanes or width of road, you're walking for a centerline mile. The town maintain approximately 166 centerline miles of road here in the town. Now, if we take into account area in those lanes and the width of road, the town maintains approximately 3.5 million square yards of pavement. That's a lot of pavement. It's enough pavement to pave a small two-lane road all the way from here to Las Vegas, if you so desire. So it's no small feat to maintain and manage this network on a daily basis. When we talk about network replacement value, what would it take to replace this asset on the books if we had to today? If we're just looking at pavements, surface and subgrading, not sidewalks, drainage, or anything else, just pavements, you're nearly a quarter- billion-dollar asset just with the pavements alone. So this is a big deal that we're talking about from a financial perspective. PCI, so pavement condition index, that is simply a 0 to 100 score that ranks the health of a roadway. 0 is absolutely horrible, turning back to gravel. 100 is a perfectly brand new road that was paved this morning. TOWN OF FOUNTAIN HILLS Page 4 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 4 of 28 Preservation. We talk about preservation techniques on road. These are light-weight, cost-effective treatments that we can apply to roads in an effort to extend their design life at the absolute lowest cost. So we'll talk more about that here in the next couple slides, too. You're not going to hear mention it often because it's very technical, but ASTM D6433, these are the rules that we adopted to measure the pavement distresses in the field and calculate the PCI score. It's the closest thing to a national standard that most folks adopt when doing a pavement condition assessment. So with that, let's kind of jump into some basic topics. What's the purpose of pavement management? Let's break it down very, very simply. The purpose of pavement management is to pick the right road at the right time with the right treatment. That's the whole philosophy of pavement management and prioritizing and financially optimizing what you've picked. Now, roads are no different than any other asset we maintain, our houses and our vehicles. We change the oil, flush the coolant, in an effort to maximize the life of our vehicles. We consciously do not defer this routine maintenance because we know it's going to cost us later in extensive maintenance on our vehicles. Roads are the same way. So we know if we can capture roads before they kind of fall of that cliff that you see there on that first slide, if we can capture them early, we can spend roughly $4 a square yard maintaining roads as opposed to $40 a square yard rebuilding them later. This is the van that drove all of the town streets. My kids call this the ghostbuster's van. It's got a lot of high-tech equipment that's on it. The meat and potatoes is that fan on the backend. That is a laser-crack measuring system. It's a very high resolution camera with laser-line illumination. It is responsible for measuring the width and depth of all the cracks and all the distresses that fall beneath us. So it's a very objective and repeatable assessment that we conducted. The big boon that you see on top there, that is a panoramic camera. So we collection full right-of-way imagery in addition to that downward pavement imagery. And the town is going to get TOWN OF FOUNTAIN HILLS Page 5 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 5 of 28 access to all of this imagery. It is yours as the town. So we captured all this information. You can see there in the upper left-hand side of that picture there, it might be difficult, but we take all of these images from the van and we process it using a piece of software called Road TRIP. And its job is simple. It takes the imagery, it draws in all the cracks, it measures the cracks, it classifies the type of distress that it is, and then it calculates that PCI score for every block or every segment in the town. One of the things that we also do on all of our assignments is we do an onsite field pilot. So an onside field pilot is where we select a sample of ten miles of road and we come onsite with the town and we walk these roads. We've already processed the data. And the purpose is really twofold. It's to insure that everyone's interpretation of distresses are the same. We're adhering to a set rule, that ASTM that I referenced earlier, but if I ask you what a good road is versus what I think a good road is based on my rules, we could be different in that perception. So the pilot is really to bring that together and to address that perception there. And we conducted that with town staff, as well as the Streets Committee, as you can see there in some of the pictures. We took a sampling of roads, poor roads, good roads, fair roads, arterial roads, local roads, collector roads, a full sampling of roads as a part of that pilot effort. Then, of course, we evaluated any changes to historical data that may have resulted from the evolution of technology or processing of software as well. So with that, let's kind of start digging into some of the data. So every bit of data that we captured is linked to the city's GIS interline file. So every block, every segment has data tied to it. As you can see here in these imageries, we captured the data in the town, it had breadcrumbs across all town maintained roads. The condition data itself, you can see here in several different formats. The map on the left-hand side of the screen, that is simply a map that is plotting the PCI conditions and color coded using the same descriptive terms that I believe were adopted by the town back in 2018. So terms like excellent and fair and marginal and whatnot. TOWN OF FOUNTAIN HILLS Page 6 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 6 of 28 Map in the middle, just a zoomed-in picture there where you can see a number in the middle of each segment. That is the PCI score for each segment. But more importantly, when we look at things from a 30,000-foot view, that table shows you the PCI or the condition distributions for each category. So at the end of the table there, you see the percent of network by centerline miles for that particular table. And it can start giving you a good indication of what the condition -- or what the data tells us about the town's network. If I put that in graph form with what you're seeing here, this is a typical PCI distribution graph. But now, instead of percentage of centerline miles on the y axis, we have percent of area. We always want to look at things on a percent-by-area basis. This can ell us a lot about an agency before we even run an analysis. So a couple of metrics that I use to access the health of any given agency is the network average PCI score. Your network average at the time of the survey was a 69. So everything averaged together, weighted average 69. Typically, the average we see across the country is between about a 60 to 65. Less than one in ten agencies will score above a 75, just to put that into context. So it's not a bad score. However, just looking at PCI alone can be a little deceiving. There's more to it than just that and we'll get to that here in a minute as well. Percent of good roads is important. So typically the average we see is about 15 percent of an agency's network will fall in the excellent category. That tells us if an agency has an active, ongoing pavement management program and if they've been reinvesting in the network. We can clearly see the town has. Now, the big question is, is it enough? Is it enough investment to maintain existing conditions in the town? And we'll answer those questions here, too. Backlog is the last metric that we address. Backlog is all the big ticket work. It's your expensive four-way construction and partial reconstruction activities. So basically, everything below a 40 there, the poor and very poor roads that you see in the graph, that's backlog. Now, we can take it at face value and look at the graph, the town's backlog at the time TOWN OF FOUNTAIN HILLS Page 7 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 7 of 28 of the survey was 5.44 percent. It's a wonderful number. Anything less than 10 percent is considered financially ideal from a pavement management perspective. But one thing I want to caution you on that you'll see in the analysis results, too, is that the roads in marginal, fair and good represent roads that are at the steepest part of their pavement deterioration curve and are degrading at their most rapid rate. So they are quickly degrading into backlogs. So as you move forward and forecasting, every year something else falls into backlog, even as you fund money do it. So our forecast and modeling are going to review what that backlog looks like over time. Very quickly, typical distresses that we found in Fountain Hills, this is no different than most other agencies we work with in the southwest. The most common distress we see is weathering and block cracking, which are all environmental distresses. The roads get basically, a sunburn. They oxidize over time. They become rigid, that's a very common distress distribution that we see throughout the state, so nothing really major to report there. Something that I do want to point out that will become evident in the analysis results as well is the distribution by pavement type. So the town has basically, two different asphalt roads that we've categorized in the analysis. You've got pre-incorporation asphalt. And then you've got just asphalt roads, which are roads built after incorporation according to town design standards. Okay? And the pre-incorporation roads, by area, only represent 34 percent of the town's roads. So it's a large portion, but it's not the largest portion. The majority is the asphalt roads. I make that point, which you'll see here in the next couple slides as to why. Let's look at condition. So here you're seeing another PCI distribution graph. This time I've broken it out by pre-incorporation and post-incorporation. You can see a noticeable difference. So pre-incorporation roads have an average PCI of 56, and the backlog is at 14 percent. Okay, 14 percent from a backlog perspective tends to become alarming. That becomes a maximum ceiling point that we recommend as consultants because as backlog exceeds and approaches -- as it exceeds 15 percent and approaches 20 percent, TOWN OF FOUNTAIN HILLS Page 8 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 8 of 28 it can spiral on you faster than you can pump capital into the pavement management program. You just can't fund fast enough to keep up. So for the pre-incorporation roads, they're at 14 percent now. The biggest worry though is, look at those marginal and fair roads. Those are a whole bunch of pre-incorporation roads that are coming due at the fastest rate of degradation for the pre-incorporation roads. So 14 percent, that's going to grow a lot larger than that very quickly in the not-too-distant future. So your margin and fair roads for pre-incorporation make up 51 percent of that pavement type. If you look at the asphalt roads, network average 75, backlog 1 percent, margin and fair only represent 11 percent. That's a beautiful distribution of pavement conditions on post-incorporation roads there. So we worked with the town. So we met several times to develop the maintenance and rehab strategies that the town uses and that the town wants to use. And there was extensive conversation over, what are those activities and what are they costing the town? So there was a lot of thought and a lot of effort put into those costs, such that we could model using those existing costs as defined. So we loaded all of that information into the pavement management system. I'm going to skip a couple of these slides for the sake of brevity, but just know the pavement management program prioritizes and it optimizes selections. And everybody always wants to know, well, why is that road picked and not mine. So the system uses sound logic. And one of the biggest constraints that we learn on is called financial optimization. We look at the cost of deferring every segment of road in the town. And if the cost is too large, then it behooves us to capture that roadway now before it costs more next year. So that's some of that financial logic that goes into that equation. Of course, we use other constraints, too. So we don't only look at financial optimization, we look at traffic volume on roads, arterial roads are going to have a higher priority over collectors, over locals, based on traffic volume and sound pavement management. Pavement type, asphalt is generally a higher priority than concrete because of rate of degradation and whatnot as well. So these are all the different priorities that we use to sequence selections that start TOWN OF FOUNTAIN HILLS Page 9 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 9 of 28 answering the questions, well, why was that one picked and this one wasn't? So there's a detailed matrix that gets involved there. I'm going skip over this slide just for the sake of brevity. Apparently, I've been talking too slow, Mr. Weldy. Let's talk about today's needs of the pavement network. So right now, today, if we calculate today's cost and if you were to write a blank check to fix all roads in like-new condition, that magic number would be about $64 million, based on the unit rates that we've programmed into the system. That means every road gets what it needs. Some only need lightweight preservation, a slurry seal, a micro surface, something of the sort. Others need a mill and overlay or a full-depth reconstruction. Okay, so that's just based on that fix-all need as of today. Couple things that are interesting within those numbers. I mentioned it earlier. Pre- incorporation roads are only 34 percent of the network by area. However, 77 percent of the fix-all cost that you see here are related to the pre-incorporation roads. And then, also, 75 percent of the fix-all costs is related to full reconstruction of those pre- incorporation roads. So we can see, the pre-incorporation roads make up a large portion of the town's needs. Not so by area, but based on condition and cost of remediating those particular roads. So if we look at some of the budget analysis numbers, what you're seeing here, this is a zoom-in snapshot of the town's budget. First thing you're going to notice, that the town's budget is listed at 2.125 million. You know that is not the town's budget. The town's budget is 2.5 million. However, we have removed 15 percent of that budget for miscellaneous costs. So things like engineering and inspection and striping, other costs that the town incurs that don't go to the pavement -- for pavement modeling purposes. So that's why you see 2.125 there. Another couple of things that are interesting. If you look at that graphic on the right. That green line in the middle, second from the bottom, represents the town's existing budget. You notice the first two years there's an increase in PCI. There's an upward slope, upward momentum to it. That is a result of the CARES Act funding that has been TOWN OF FOUNTAIN HILLS Page 10 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 10 of 28 programmed into these models. So this model already accounts for the $10 million expenditure that is being programmed for FY '24 and FY '25 for the CARES Act funding. So with the CARES Act funding and the town's $2.125 million budgeted, we could expect current conditions to drop from a network average of a 69 to a 67 over the five-year analysis horizon. Another way to look at it, too, this is a typical budget graph. Looks at things from a different perspective. On the x axis there, you've got an annual budget each year for five years. On the y axis is the network average PCI score at the end of the five-year analysis. The red line represent all of the different models that we ran to establish the trend between funding and outcome of PCI. And we ran 12 different scenarios to establish that trend. The vertical lines are the ones that we wanted to display for you folks today. And I'll go through those fairly quickly. The green line is your current budget. We know network PCIs will drop to a 67 in five years. The more alarming fact is that backlog increased to 15.3 percent. That's a big jump in a five-year horizon, to go from 5 percent that it was at, or the 4 percent that it was at to 15 percent. So we know there's a disparity if we're just looking at PCI alone. The gold line in the middle is to maintain existing network PCI. So the funding required to maintain a 69 is on the order of 3.2 million, plus 15 percent for miscellaneous expenses because that is not included in these models. But here again, we're in a situation where backlog is still crept up largely to 12.5 percent. It's not controlling those fair and marginal roads that are at that steepest rate of degradation. So if you look at the purple line, this is what we'll a target backlog. I mentioned earlier that anything less than 10 percent is considered financially ideal and healthy. So if we were to control it at, say 8 percent, control the growth and backlog, that would require $5 million a year, plus 15 percent to get that done. The net benefit is the network average PCI jumps to a 72. And the last one there on the right, someone always asks, well, what would it take to TOWN OF FOUNTAIN HILLS Page 11 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 11 of 28 maintain our existing backlog? That number is $6.5 million per year is needed to maintain the existing backlog at roughly 5 percent. I think I already hit all these topics. We talked about 15 percent PCI and controlling for PCI. I get ahead of myself sometimes. I'm not going to go through this graph. This is a very similar graphic. We already touched on all those profiles. The difference here, though, is on the y axis is the network backlog percentage. So you see the line inverse. So you can see, as funding is decreased, backlog begins to increase in the network. So the scenarios that are highlighted here are the same scenarios that we just stepped through, but this graphic is available for anybody to review such that you can see what happens to backlog over time at different funding levels. And with that, I'd be happy to answer any questions. MAYOR DICKEY: Thank you. Yes, councilman. FRIEDEL: Thank you, Mayor. Have we done any work at all, and maybe this is a Justin question, on pre-incorporation roads at all in the history of the town? WELDY: Madam Mayor, Councilmember, all of the roads within the town's network that are not gated have received some type of treatment since incorporation. That includes pre-incorporation roads. Quick back history, so the town for many, many years inherited a zone approach from the road district. That was a program that applied treatment every year over seven zones. And so every single road in the town primarily received a little bit of asphalt repair and some slurry. So yes, maintenance was done on the pre-incorporation roads and some of it was extensive, where they cut and removed the intersection pavement to repair it. FRIEDEL: All right. I have another question then, too. Do we have any concrete roads in this town? WELDY: No, sir, we do not. FRIEDEL: Okay. I know it's always cheaper, generally speaking, to go with asphalt over concrete. Is there ever a time where that might change do you see or -- TOWN OF FOUNTAIN HILLS Page 12 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 12 of 28 WELDY: The initial cost for concrete is extremely high. But in the long term, it's probably the best bet because it has a life span of 75 years or more, depending on the climate conditions of temperature fluctuations of freeze/thaw. FRIEDEL: Thank you. MAYOR DICKEY: Vice Mayor. MCMAHON: Justin. He just mentioned that $5 million is the minimum to keep up the backlog, whatever. Even if you have that money or more, would you be able to contract out for that? And if so, what year would that be able to start? WELDY: Madam Mayor, Vice Mayor, we would certainly need to do some planning using the Road Way Asset Services modeling and put together a multiyear, most likely a three- to five-year horizon. Planning beyond that is very difficult because of price fluctuations, inflation. It would probably take all of 18 to 24 months to put together a comprehensive plan and put together modeling that would show an estimated number of lane miles that could be completed in that timeframe. The challenge that we face, primarily, and we're about to face that, the new year is coming up, is $5 million is a lot of money. And because we have several very narrow local roads, it requires the removal, completely, of those roads and digging down about a foot or so, replacing the base and putting new asphalt. That is very disruptive to the neighbors, the homeowners, trash, mail, you name it. So all of those activities have an impact and all of those impacts take time. Prior to, we reach out to every utility that may or may not have an interest or a utility in that location. The ideal situation, while we're in there, allow them to replace their facilities with updated facilities, increased time. So there are challenges. And we're about to face one of the biggest ones next year. So while we're certainly going to accomplish the goal that the Mayor and Council have set forward, it's going to be a challenge. MAYOR DICKEY: Any other questions or comments? Mr. Thomason, you mentioned the cost of deferral and I'm really glad that you brought that up. Thank you, Justin, because again, and I love that graphic that you had because people often see the roads TOWN OF FOUNTAIN HILLS Page 13 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 13 of 28 that are kind of in bad shape and they're, like, well, why did we spend, you know, $1 million on Saguaro last year when it's like the best one, but this cost of deferral comes into play in preserving roads that we had really just completed. And so I'm glad that you mentioned that because it helps give a little rationalization for why you do those things. So the 64 million, that is -- is that how you look at the 5 million a year? Or do you see a scenario where we would be to a point of maintenance in five or six years, given, maybe, some of the challenges of spending that much money per year. THOMASON: Sure, so it all comes down to funding, So that fix-all scenario, just be very clear about what it is, it's a snapshot in time as of now, using today's base rates as we know them to be. So that's a $64 million fix everything, give something what it needs. To get to a maintenance state, meaning maybe even elevating PCI, and controlling backlog, is probably going to take a large influx of capital. Whether that's a bond initiative or sale tax or something, there's going to have be where -- or if it comes from the general fund, those are all things that I don't have purvey to. But funding is going to have to be acquired in some manner to get to that maintenance point where we have a higher PCI and a lower backlog. Now, as you mentioned, and as Justin just mentioned, too, the challenge is getting that work done, having the contractors on staff and available to do that. And also, not disrupting the entire town all year long. So those are challenges that go with it. Is it possible? Sure, anything is possible. But the critical thing is that funding source. Without the funding source, nothing happens. MAYOR DICKEY: Thank you. We started with pavement management what, 2008 or maybe, but like you said, when we had the road districts, we had the zones. So now I think we have come to the conclusion through experts like you and a couple others that we've had in the past, that got us to the point of where -- at least where we need to go. The getting there has been a challenge for us. We've had, probably five elections to try to get there. Right off the bat, 1989 was when the road districts went away. They had two attempts at property taxes that did not pass. Then we had some bonds, we tried a larger bond package several years ago. Then we did Saguaro, which was a wonderful TOWN OF FOUNTAIN HILLS Page 14 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 14 of 28 thing that did pass. So the problem isn't new to us. And we still will have to figure out how to get to that maintenance point because, again, it is something that we've known about and have struggled with for many years. Again, though, I appreciate so much your input. One other question about percentages, and this is a discussion that we've had pretty much every year also, when you have, like, Shae Boulevard involved, or Saguaro now, and they're in good condition, that can make the percentage look better than what most people would think when they look through our town. So just so that they know that. They're, like, well, this road I don't like, this road I don't like, but those are large roads in good condition. So that -- our PCI, when you say, hey, it's 69, it's going to be 67, but, you know, you look at it as a comparison, you know, it's not that bad. But we're living with the reality of what we're living with every day, which are these mostly neighborhood roads, I would say, that people notice and that concern them. So I really appreciate that you were able to point all that out. And I -- oh, and all the pre-incorporation roads, they don't all need total reconstruction. I think you had, like, a 78 -- THOMASON: Correct, yeah -- MAYOR DICKEY: -- percent. Or something like that. THOMASON: --- they do not all need total reconstruction. The vast majority of them do, though. MAYOR DICKEY: Yes. Okay. THOMASON: So as you saw by that distribution that's in there specifically for the pre- incorporation asphalt roads, there is a large majority of them that fall below a PCI of 60. MAYOR DICKEY: Okay. THOMASON: As soon as it falls a PCI of 60, there's just not a whole lot you can do to -- MAYOR DICKEY: The numbers don't work out -- THOMASON: -- operate at that time. MAYOR DICKEY: -- as far as what the -- THOMASON: Right. You get both ends. TOWN OF FOUNTAIN HILLS Page 15 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 15 of 28 MAYOR DICKEY: -- treatment is. But there are times that it does. And we recently had someone that was talking about how we had repaired a road in a way that they felt was inadequate, but there are times that you do do that because you're not ready to do the reconstruction, but it does help. It helps to fill the cracks. It helps to do that over, you know, the sealing and such. So we have been doing that a lot and trying to prolong it. I think some people my age can relate to getting the shot in the hip instead of the hip replacement right away. And that's what we're trying to do here. And we've been trying to do it for a couple decades. So really appreciate it. THOMASON: Yeah. And that's very common. In the industry we call that a stopgap. You can't always do what you need to do. We know that the sound engineering decision is to do x rehab on a particular road, but sometimes a stopgap does need to be employed as a result of that. So those are decisions that have to be made, for sure. MAYOR DICKEY: Thank you so much. Allen, did you have any questions on the phone there? Maybe not. MENDENHALL: Mayor, he's having difficulties. So we're trying to work out something we can do for him so he can hear. MAYOR DICKEY: Oh, thank you, Linda. So I -- just before we go to the next, I want to thank you, Zac Thomason, and the -- Bart Williams (ph.), Scott Gordan (ph.), Raphael Rivera (ph.), Mark Kramer (ph.), who were all on the team and we appreciate all of your input and help with this. THOMASON: Thank you so very much -- MAYOR DICKEY: Thank you. THOMASON: -- for having us. Thank you. MAYOR DICKEY: Thank you. WELDY: Thank you, Zac. Madam, Mayor, the next presentation is going to be from Mark Graham. He's part of what I would describe as an incredible volunteer group of 12 men that have spent the last 20 months working with town staff, Roadway Asset Services -- let me make sure I get the correct one here. That's it -- and pouring over an TOWN OF FOUNTAIN HILLS Page 16 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 16 of 28 incredible amount of data to bring to you their recommendations and their findings tonight. It would be difficult for me to explain how grateful I am as the Public Works Director and the Town Manager for the amount of time these individuals have contributed to their community. And that's what it's about. These gentlemen are all volunteers that answered an ad from the town manager to help town staff and the mayor and council, with this challenge that we've been wrestling with for many, many years. I could name all of them, and we have done that in the past. Several of them have asked that we not do that because they're not looking for the recognition. For anybody that is interested, just need to go back a few council packets. Each one of them are listed individually. With that, I would like to introduce Mark Graham. He'll do the next presentation. MAYOR DICKEY: Welcome. GRAHAM: Welcome. MAYOR DICKEY: Thank you. GRAHAM: Thank you for allowing us to be here, Mayor and Council, Interim Town Manager, thank you very much. Zac has gone over some of the things that I want to touch on. Justin has touched on some things. You have asked intelligent questions that will surely come up. And so what I want to do, excuse me, what I'd like to do is to just sort of run through the presentation. I know that -- is this being recorded? I think residents will -- probably will watch this. And so some of this information I may say, is more for the benefit of the residents, to understand how they fit in to this equation as well. Because it's their streets, right? And so we need to make sure that we take care of everybody. So just a real quick introduction about us. And this isn't the agenda item, I'm just going to blow by this. So the citizens are who make up this committee. And I think -- I don't think I can stress that enough. We're not politically motivated. We're not agenda motivated. We're people that drive on the streets that everybody else drives on. And so if you wanted an TOWN OF FOUNTAIN HILLS Page 17 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 17 of 28 impartial group of people to take a hard look at it, these are the folks that live here, they pay their taxes, they expect the best out of everything that the town has to offer. And the town does offer quite bit. And what's really unique, and when I joined this committee, I though, poof, boy I came to the wrong committee. Because we have some very talented, educated people here. You can see, civil engineers, municipal engineers, transportation people, road construction, they were talking about stuff I had no clue what they were talking about. However, I figured I could hang in with these guys for a while and maybe give a two- cents worth. And so we met regularly as Justin had mentioned, for over a year and a half. And we did it also in person. We did it through subgroups that we had because there's a lot of information to dive into. A lot of information. And some of us had expertise in some areas and others in others. And so again, I just really want to emphasize that we, we work for the community and our interests are for the community. And the assignment that was really given to us was, as Justin mentioned, to report back to the council with recommendations and funding options. And there were times when we wondered how we were ever going to get there because it's so complicated. It's so complex. It's so frustrating to try to get through all of this. But yet, it was very rewarding and we enjoyed -- most of us enjoyed every minute of it. But we think it's really good work that we've done. And so we look at the -- I wanted you guys to understand the process. So we studied and learned the history of our streets. How we got here. We analyzed previous studies, one being the one that Zac just talked about. We physically inspected streets. We analyzed standards that we had. We -- and the mayor had mentioned some funding options that were before the citizens and town past. So we've looked at all of these things. And it was really a challenge to try to figure out where we go. But what we learned and what the streets are telling everyone that lives here is that they're full of crack sand bumps and potholes. And we know that they need attention. And they need the attention, not only in the work, but the attention of TOWN OF FOUNTAIN HILLS Page 18 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 18 of 28 money to get us there. And so that's -- that was a simple thing to understand. But yet, we fell back on to those reports that were previously done, going back to 2008, Stantec, IMS, and now RAS. And they, in a nutshell, have told us one thing. And that is, we need more money. We don't have the luxury of a lot of money. So we have to think creatively. We had to think outside of the box. And the challenge for all of us on the committee was to say, okay, what can we do that we haven't done before. And we think that it's really important that we take a creative look at this. How did we get here with our streets? Well, it's been partly underfunding for years. It's no fault of any councilmember or mayor or anything like that. It's just, money only goes so far and you have to allocate it. And you can't take so much away from one bucket to put it in another. And sometimes, those buckets don't intermix. And that's important to understand. Certain monies are allocated for certain things. It can only be spent for that. So why waste money on this when we could use it for our streets? Well, we have to use it for that. And so that's part of the learning process that we went through as a committee, to understand those things. The early streets, as was mentioned, were not built great. They were built to the standards at that time. Those standards have since changed, and they've been upgraded. And as just -- Zac mentioned, the streets deteriorate. As soon as they're completed, they start to degrading and they need attention on a regular basis. The citizens have not approved several past proposals that have been before us. That's a -- delayed the process. And how the funds have been prioritized, I think it's really interesting because Justin and his team have really done a great job. And I've got a map that I want to show you here in a little bit. And I think it'll strike home, just how good of a job that they've done in managing it. Are some of our streets back? Yeah, absolutely. But they've done a really good job in minimizing and working with what they had. Unfortunately, the bad news is that a lot of the money has been allocated to some of our major streets, which raises our PCI, as was TOWN OF FOUNTAIN HILLS Page 19 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 19 of 28 pointed out. But we realize that it's time for -- it's time for some action. It's time for a different plan. And so part of the -- and this is where I want to refer to a map here. I'm going to take you on sort of aerial view of the town. Zac had brought up, you saw this map, but I'm going to -- woops. And we go here. All right. I'm going to take you on sort of a fly over. So we talked about -- and Zac had mentioned all the various levels of PCI ratings. And again, PCI is the quality of the streets, right? But we found that, once you start digging in too deep, it gets really complicated. And then it's just mind-numbing. Because we're simple people, at least I am, on the committee we said, okay, let's simplify this. Let's look at the town -- I'm going to scroll out here and move this way. So we said, instead of looking at all these different PCI's, let's look at -- see if I can raise this up so you can see it -- really three levels. The PCI of 70 and above, which happened to be about the grade I would strive for in school, was okay. They were good. They didn't need a lot of work. We can manage those. What we really need to pay attention to are those fair to poor, and that's the fairest kind of in a category of 40 to 70 to keep it simple. And I'm going to make it even simpler. We said, everybody understands street lights. Green is great, we all love green. Yellow is, I can beat that, maybe. And then there's the red, which we know are problematic. So let's just kind of zoom over here to where we kind of all started building roads here in Fountain Hills. And just for a reference point, we're at the corner here of Saguaro and Shae. And you can see Shae is great. It's beautiful. Over in this part of Fountain Hills, there's some really questionable streets that really need attention. And the purpose of me going through this, is for you to try to get a sense on a little more local level, little more area level, what streets we need to be concerned about. So down around Desert Canyon Golf Course, you can see a lot of old roads that are starting to really come into question and as their viability and what can we do to save them. You see a lot of -- quite a few numbers of red roads in here. All the way up to around the town lake. And this is something that was pointed out, that I think is really TOWN OF FOUNTAIN HILLS Page 20 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 20 of 28 interesting. And it goes to Councilmen's Friedel's point about saving streets. This is kind of a northeast segment of Fountain Hills. And you can see a lot of green up in this area. And many of those were pre-incorporated streets. And Justin, if I'm wrong on any of this, throw something at me. But a lot of these early streets were saved. And so the interesting thing about throwing money into a sort of a borderline street, these yellow streets, is once you've done that, a funny thing happens. The PCI rating goes up. So what -- these would probably be yellow at some point or maybe even reds. With a little attention, a little work, they've come up to a level that we don't really to worry about these street too much. That make sense? Okay. And so you can kind of see as we fly over more towards the school area, we still see quite a bit of yellow. And so what I'm leading towards here is -- this is kind of the northwest area, which is a fairly new area. But you can see areas like Golden Eagle -- this is Golden Eagle going up here. Golden Eagle is getting in trouble and we need to pay some attention to it. It's a big street, needs a lot of attention. But you can see some of the newer areas down through SunRidge. You know, those streets are okay. So again, If you look at a big map and you look at it all, it can be a little confusing. And so what we tried to do is to break it down. And so our plan -- excuse me -- our plan was to say, what can we do -- I don't know if I want this, Justin. Do we want this? WELDY: No. GRAHAM: All right. I see. I didn't do it anyway. I think I want up here. A little help here, Justin. I'm a Mac guy, so I hate PCs. There we go. Okay. So again, we tried to look at it and say, okay, what if we take a different approach here. What if we look at not paying attention that much, we still need to service and maintain the 70 plus roads, but let's really kind of look at these 40s or the -- everything below 70. And that's purely kind of the strategy that we started looking at. Excuse me. In 2020, he town had incorporated -- or had undergone some changes to how they looked at roads and analyze it. And they basically put them into the bucket of arterials, collectors, and locals. And these are the acceptable PCI ratings that we'll have for these. TOWN OF FOUNTAIN HILLS Page 21 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 21 of 28 And while this was pretty good, it helped -- and as you saw from the map, there's a lot of green on that map. And this strategy really helped bring some of those questionable streets up to a PCI level that was helpful. But we're treading water and we're not treading water very well because we're going under. We're taking big gulps of water in here. So what we really had to do was to say, okay, let's go back. Let's look at what the PCIs really mean, A, B, C, D, and F, and we'll kind of go from there to come up with a plan of action. And again, I think that one of the things that helped drive our PCI up on the total networks is the attention that we gave to some of these long arterials and collector streets that overall helped our PCI rating quite a bit. So we said to ourselves, as Henry Ford said, if we always do what we've always done, we're always going to get what we always got. We can't keep avoiding the fact that our streets need work and we need the money to do that. And it's just going to get worse. We can't keep doing that same plan. And so what we did then, was to recognize that money is only part of the story. We needed to have that plan. We can't continue to do the status quo. We have to come up with something that's unique. Understand that the money for our streets come from sales tax, general funds, et cetera, right? We've had an influx, fortunately, this past year or year and a half, of federal funds. Sometimes we get some state funds and grants. And county can throw some monies. But these are not sustainable. We don't know how long they're going to last. We don't know if we're ever going to get one again. We can look to cut town services. That's always an option. It costs us in other ways by cutting those. And it's a slower process. We just don't feel like, and we'll talk about it in a minute, we just don't really feel like we can catch up by cutting, you know, a million or a million and a half or two dollars, we're talking big, major bucks as Zac had referred to here. It's like, we're out of time in talking about what we may be able to do on our budget. We need to think outside he box. We need to get some more money. And incidentally, as -- the importance of this backlog, I want to emphasize, and again, a TOWN OF FOUNTAIN HILLS Page 22 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 22 of 28 backlog is one of those streets with a 40 or below. Well, that's great if you don't live on that street. But if you live on that street, if you use those streets, backlog streets are not acceptable, right? So why should we tolerate, really, any kind of a backlog? Ah, it's probably going to happen because streets are always declining, but our goal shouldn't be to have an acceptable backlog level. Our goal should be to have great streets, the best that we can provide to our citizens, whenever we can, and in an affordable way. And so that's the other area that we looked and said, we've got to do more than what we've just been doing. So our committee's report, and it's in a packet of information that you've gotten or you will receive -- god, there's my high school education coming out. The committee's recommendation is to fix all, now. So what does that mean? And Zac sort of referred to it. But what it really means is that we're taking this a little different approach. We're thinking differently. And we said, okay, we're not going to repair anything above 70 as I talked about, and let's throw our money at getting everything up to a 70. So everything from 0 to 69, let's throw money at that. And it's a much more realistic proposition than fixing everything up, rebuilding every street that needs to be rebuilt. And so how are we going to do that? And you know, we can do this in -- over a five-year period starting in 2015 -- or 2025. So I throw this up to you for your consideration. What we're looking at on this chart are a couple things. The C, D, and F streets, which are the 70 and below, this is what, based on the RAS information -- let me rephrase something -- this is really important. We think that not only do the pre-incorporated streets, not all of them need to be completely rebuilt. We think that we can save those. That quadrant up in the northeast area of Fountain Hills, a lot of the C, D, and F type of work was done on those. And suddenly they're now much better streets. And the citizens will be a lot happier, for sure. But this is a breakdown of what we estimate the cost would be to repair the C, D, and F streets with the service that we would put on them, or the repair that we would put on TOWN OF FOUNTAIN HILLS Page 23 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 23 of 28 them. Still a big price tag. And they factored in the $8 million of the federal funds as well. So we're looking at a price tag of $36 million. If we go in and we fix our streets, I would say for understanding, it would be kind of the El Lago type treatment. It was really bad. And now it's really good. And the PCI rating on that is probably much, much higher. And we think it's going to last. So the idea is, get them up to 70 and then, with the $2.125 million maintenance budget that we have, we believe that on an annual basis, that would not need to change. We think that we can maintain the streets once they're up to a good level. We think that we've got the data to prove it. And Mr. Butler (ph.), a member of our committee, has tons of data if anybody wants to see. And some of the data is included in your packet here as well. So the other thing I want to point out on this particular slide, and one of the conversations that we started having towards the end of the committee's work was, what about our intersections? And this isn't just paving the intersections. This is fixing those intersections that ultimately, probably need to be addressed with street lights, four-way stops, round abouts, twirly Q's, whatever they might need, let's try to figure out how we can address some of these major intersections and stop using the money on capital expenditures out of the town budget. Maybe these are possibilities for funding sources and take care of that. We estimate that there's $9 million worth of intersection work, redesigning, and all of that. We add in inflation, we're looking at a $50 million package. Now, you can keep all of these. We could take some out. The other thing I want to point out is the graph or the chart below that breaks it all down by the types of streets. And one of the conversations that -- and the reason for that is, some of these -- some of the -- depending on the funding source or how we come about getting money, it might be more palatable for people to vote on smaller packages than a big $50 million package. The downside to that is, if you don't get the whole enchilada, you know, you're going to be a taco short of a full meal, right? TOWN OF FOUNTAIN HILLS Page 24 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 24 of 28 And so you know, you almost have to spend this kind of money. So the important thing here, or the really variable in this particular slide is the $9 million for intersections. And we feel strongly that that's something that Council ought to consider. And none of these things, obviously, we not going to be making decisions on tonight, but we want you to have all the information that you need. I want to make sure I don't run over too far on time here. So what are the options for funding this sort of thing? And these are really the only -- the three or four things that we can come up with. We can cut to the town budget. As Zac showed you on that one chart, you can throw $7 million a year for the next five years and you're still going to end up with a 12 or 15 percent backlog. And I don't think we can find $7 million in our annual budget for the next five or six years. We can look at sales tax increases. Well, nobody likes to have a sales tax increase. We already have kind of a high rate. We estimate, as a committee, we estimated it would have to go up to over 4 percent starting now, in order to allocate enough funds on an annual basis to pay for, like, $9 million worth of repairs that we would need for the next five or six years to get to that $45 million. Property taxes is always something that the town has never -- or town residents are not fond of. Nobody likes to pay any kind of taxing. You know, the upside to the property tax is that there's no interest involved for the residents. It's a little cheaper on an annual basis for them. And the third funding, and the funding that we're recommending is that we look at some bond funding. And we put it up, you know, we could go back and look at, you know, what 36 million is, 50 million, 45 million, there's a couple different options here. But you know, the advantage for bond funding is that it goes away after a certain period of time. And RAS, I know, can work with us and work with the town on telling us what some options are for annual cost, both for residential and commercial properties. Let's see, and I think that's, you know, that's pretty much all that I wanted to say. I know I'm running short on time. And I know you've got your regular meeting to attend. TOWN OF FOUNTAIN HILLS Page 25 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 25 of 28 Let me go back. And then, I just wanted -- just retouch, Zac touched on it. You've seen this slide before. The pavement life cycle. The important thing to keep in mind here is that every six to seven years, you need maintenance on a street. And what this particular slide sort of emphasizes is, you start with the PCI here, it goes down over a six or seven year period of time, you do the maintenance and then, boom, it bounces back up again. So this is what reinforces our plan. To get our streets up to a certain level with this bond issue. Get the streets done. Then maintain them at the level that we can afford. Hopefully, as we go forward, the town will grow and even more funds will come in. But I think it's a very good strategy. Something that we haven't done before or haven't considered. And that's pretty much it. We think it's -- we feel strongly. It's really the only realistic way that we're going to catch up on our streets. We can't keep doing what we're doing because we know it's not working. And ultimately, we'll end up with a town with excellent streets. And I've mentioned in previous presentations to council that I came from a town that'll remain nameless, large town in southern Arizona, that has really crappy streets. I mean, it's just awful. But they've done what most cities and most towns do, and that's afraid to take action. And I just don't -- I didn't move to Fountain Hills to sit here and watch it decline. So I think the time is now I think the appetite for our citizens who now recognize that our streets are decaying, I don't think a counsel meeting has erupted without somebody talking about our streets and when are we going to fix our streets. And again, the only streets that people care about are the streets that they live on and use. However, we've got to sort of change that because the streets are a vital part of the community. And whether you use a particular street or not, that's the price you pay for living in a town like Fountain Hills. We got to have good streets. You've got to get your mail delivered. You got to get your Amazon deliveries made. Those all require good streets that you all have to use. And so with that, I'll be happy to answer any questions or defer them to somebody a lot TOWN OF FOUNTAIN HILLS Page 26 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 26 of 28 smarter than me. MAYOR DICKEY: Thank you so much. Questions or comments, council? Any questions? THOMASON: No? MAYOR DICKEY: Is Allen there? Allen, do you have any questions? Clerk’s Note: Due to technical difficulties Councilmember Skillicorn missed a few minutes of the work session. SKILLICORN: I'm going to hold back since I missed a few minutes of that. I don't want him to go over something that has already been gone over. I had a couple questions, but I can just run them by Justin. I'm fine. MAYOR DICKEY: Oh, okay. Thank you so much. I know you don't want names mentioned, but how about 45 years of business management, 40 years of transportation planning, 36 years of design construction industry, 33 years of civil engineering, 28 in road construction, 25 in project consulting, 20 years of home building industry, 15 in project management, and 8 in design and roadway management. Those are our citizens and I don't know how to thank you for all of this work. I'm sure we'll be contacting you more, I mean, you're probably -- THOMASON: Sure. A few are in the audience, I could ask them -- MAYOR DICKEY: -- free for the summer, I see you all out there and these are anonymous heroes. And but I think all of us would agree, and we're probably trying to absorb it all -- a lot of this information right now -- that we are so grateful and to RAS for getting all the information. And in a way that they could use and that they can communicate to us. This is the first crack, the first bit of communication out to our folks. And this is, I mean, timewise, we've got some time, you know, 5 million. And the 5 million really did us a huge favor this time. And I'm grateful to the previous council that decided that we would put the huge bulk of that into streets. And grateful so much to Justin for doing what he has been able to do up until this point. And also, Grady Miller, Rachael Goodwin, Justin, of course, David Genover (ph.), Andy (ph.), Jeff Pearce (ph.), and Angelo (ph.), and all who have helped so much over 20 months, whatever it's been, because it's been a wonderful piece of work that you put in front of us. And TOWN OF FOUNTAIN HILLS Page 27 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 27 of 28 more to come. Any other comments or questions from anyone? No? THOMASON: And I think -- MAYOR DICKEY: Oh, I'm sorry. THOMASON: -- a number of the committee members have said, hey, if you guys need more help, if we can do some other activities, you know, related to around the streets, you know, we can, we can try to step forward and do some of those things. So it's a good group of -- MAYOR DICKEY: Oh, we will. Yes, councilman. FRIEDEL: Thank you again for all your effort and your work and your experience. Mayor, I have a question for us. What's the next step here for us now? MAYOR DICKEY: I'll defer to Rachael if you'd like, but in my opinion, we are -- we've got months, we've got time, Rachael, do you want to kind of wrap it up? GOODWIN: Sure. And it's a good question. I think the ball is in the court of council to decide if there are questions that need their further -- is there further research? Is there further need from the committee? If so, what is it? What does that look like? And then, it's a matter of, if we want to move forward with a plan, which plan is it? And which funding mechanism do you want to use? There probably needs to be further discussion. If we go with the recommendation of the committee, which is to bond, there is a timeline associated with that. We have already missed that timeline for this Fall's election. So the soonest that could happen is next Fall. And that's again, and a big assumption at this point, if we even wanted to do that. So there would need to be a timeline put together. We would need to work with Linda Mendenhall on some, again, those different benchmarks. How we would need to hit those. And if that's not our funding mechanism, if we're going to explore other options, we'll need to look at what that is. Is that deferring more from the general fund? Is it looking at a combination of things? How do we want to do that? But I imagine this items will probably need to come back in the Fall when the council resumes session for discussion and further direction at that point. TOWN OF FOUNTAIN HILLS Page 28 of 28 JUNE 20, 2023 TOWN COUNCIL WORK SESSION MINUTES Page 28 of 28 THOMASON: And I think I mentioned that RAS has mentioned that they can run a bunch of different business models as well, or financing models as well. So do this, don't do that, what happens here. And so you've got that -- I don't know if that's part of their contract or an additional fund. But that's a resource that you may want to use. And there's committee members who will be interested in helping promote whatever it is that we want to the community, you know, in a nonpartial way. So that's available as well. Thank you. MCMAHON: All right. Thank you. To me, wouldn't we want to take a look at real property tax because it would be constant influx of income and allocate it to the streets, even though it might -- it would take a while to do that. At least that would be continually funding our streets at the long term. But I guess, before that, we may have to look at doing a small bond or something, you know, to start off having more than -- you know, another $10 million or so to start out while real property tax monies build up. But as we know from past experience, our town complains about the town's incessantly, however, they're not willing to pass what I think is a reasonable property tax in order to fund that. So it's like a catch 22. So the income that we get from in the budget, et cetera, we're never going to have enough money. So I think it's something that, yes, we have to start a real hard decision -- discussion right now and really look at the hard facts. And then, look at how we're going to approach our community and how to realistically resolve it before it gets worse and not better. That's my input. MAYOR DICKEY: Thank you, Vice Mayor. Yeah, those will be the topics of discussion that will come up, for sure. Anything else for the -- for this part of our evening? MCMAHON: Also, thank you to the committee. I really appreciate it. I know it's a lot of hard work and a lot of time went into it. So thank you. MAYOR DICKEY: And their spouses. All right. Then, I think we'll -- you can adjourn. We'll adjourn and we'll be back at 5:30, thank you -- 5:25. [MEETING ADJOURNED AT 5:03 P.M.] Having no further business, Mayor Ginny Dickey adjourned the Work Session of the Fountain Hills Town Council held on June 20, 2023, at 5:03 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 held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 20th day of June 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 22nd Day of August 2023. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL June 20, 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 5:27 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Peggy McMahon; Councilmember Gerry Friedel; Councilmember Sharron Grzybowski; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth Attended Telephonically: Councilmember Allen Skillicorn Staff Present: Interim Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately forty members of the public were present. TOWN OF FOUNTAIN HILLS Page 1 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 1 of 94 Post-Production File Town of Fountain Hills Town Council Regular Meeting June 20, 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 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 2 of 94 MAYOR DICKEY: Now, we'll start a couple of minutes early, our regular meeting. Welcome everyone. Please stand for the pledge. If you'd like, remain standing for the invocation. ALL: I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. MAYOR DICKEY: Thank you so much. We have Steve Gay from the Fountain Hills Democratic Club and former airline pilot to do our invocation tonight. Welcome. GAY: Good evening. Through the millennia, we, as a society, have learned that the best way to govern the people is for the people to govern themselves. In 1835, Alexis de Tocqueville, author of Democracy in America remarked in amazement on this tendency of Americans to participate in local government. He wrote, "How does it happen that everyone takes as zealous an interest in the affairs of his township, his county, and the whole state as if they were his own? It is because everyone in his own sphere takes an active part in the government of society". It's been almost 200 years and we; the people, have not let Tocqueville down when it comes to our passion for self-governance at every level. Today, in this tradition, we travel from our homes and businesses across the city to participate in this vibrant and animated laboratory of democracy. Citizens, staff, and elected officials converge on this chamber to work as one community, united and indivisible by nearly every measure. Each of us arrives as individuals with unique ideas and experiences and we all have a desire, in the spirit of goodwill, to accommodate the needs of others. Citizens request assistance and offer their concerns. We are ever grateful for their interest and for their trust in the process. Our staff provides expert advice in their particular field and we truly appreciate their continued service. Elected officials listen, debate, and choose the path forward for all of us out of a sincere desire to serve and honor the people of Fountain Hills , all while shaping its future. TOWN OF FOUNTAIN HILLS Page 3 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 3 of 94 We offer our thanks to these public servants in that often thankless task. When we leave this chamber tonight, let us carry with us this same spirit of service and goodwill tomorrow and every day that follows. This is how we assemble to serve and to govern ourselves. Thank you. MAYOR DICKEY: Roll call, please. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor McMahon? MCMAHON: Here. MAYOR DICKEY: Councilmember Friedel? FRIEDEL: Present. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MENDENHALL: Councilmember Toth? TOTH: Present. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Present. 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 agenda 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 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 future council agenda. TOWN OF FOUNTAIN HILLS Page 4 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 4 of 94 MAYOR DICKEY: Thank you, Linda. We'll start with our reports by the town manager and councilmembers. Town manager? GOODWIN: Thank you, Mayor. Tonight I have two updates and they both are recommendations and kudos to our staff. Our first goes to our planning staff. By state statute we have to do an update on our general plan and its status. And that's part of our consent items tonight. It's not something we're going to talk about, but I do want to commend staff on doing a fantastic job on that report. And recommend, if anyone is interested, it is in our packet so you can find it online. Again, it's a report that talks about the progress and the implementation of our general plan. It's a ten-year plan. It's easy to, sort of, put a plan on the shelf. That is not what we do with this and staffs done a great job putting that together. So I commend them. I also want to pause. I know we're going to talk about parks and recreation month a little bit. But I wanted to commend our community services staff on a number of successful programs this summer. We get told that there's not a lot to do here in the summer, it gets quiet. And both our rec staff as well as our community center staff put together a lot of programs to fill up that void to make sure that we have a lot of activities. So we just had our pizza party. We're getting ready to have our ice cream social over at our community center. And then Saturday night we just hosted our party in the park, where we had almost 200 residents out at our parks, enjoying some games and activities and stargazing. And then we have a number of programs, including our wacky wet Wednesday and our splashpad summer series. So if you're not familiar with those or if you're looking for something to do this summer, I highly suggest hopping online and checking those out. They're really fun. MAYOR DICKEY: Thank you. GOODWIN: Thank you. TOTH: I have no report this week, Mayor. Thank you. MAYOR DICKEY: Okay. TOWN OF FOUNTAIN HILLS Page 5 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 5 of 94 GRZYBOWSKI: I attended the Arizona Alliance for Livable Communities meeting. They define themselves as a group of volunteers that work at the intersection of planning and public health. They just won the 2023 Trails for Health award from American Trails in the advancing trails awards program. So that was kind of cool; it's also a mouthful if you have to write it down. We had the Arizona League budget finance and economic development committee meeting where we discussed resolutions that we think makes sense to follow and hope that our state legislators take a hold of. And I think we've got a couple of good ones that are coming before your committee at the league conference this year. Also, I had an opportunity to meet with Jen from Cox Communications, where we talked about some of the things that Cox is working on, including their grant program and any upcoming system upgrades. And that was my past however many weeks that was. MAYOR DICKEY: Councilmember. FRIEDEL: Thanks, Mayor. Just a couple of updates from around town. I've been out to Golden Eagle Park a couple of times this week and watching them replace the lights out there. So it's kind of exciting to see that project progressing. So good job on that, Rachael, and your parks people. And also had the opportunity to go by the skate park again, which isn't officially open. However, it's been very busy down there. And also, just a little reminder that our grand opening is this Saturday night, right? 6:30 at the skate park. So the town did a great job of renovating that and it looks great and it's going to be an exciting night out there. So if you're not doing anything, pop on by. Also, staff and I met out at Adero Canyon. We received -- well, I received several comments from people about parking out there at Adero Canyon, at the trailhead. So I met with staff out there and we went over a couple of different options out there and the staff is, right now, gathering some data and will come back with some options as to addressing that issue out that. So I appreciate the staff’s time and patience with me out there. TOWN OF FOUNTAIN HILLS Page 6 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 6 of 94 So that's all I have Mayor. MAYOR DICKEY: Thank you. KALIVIANAKIS: Thank you, Ms. Mayor. Thanks everybody for coming out this afternoon to support your Cottonwoods maintenance district and your town council. We really appreciate this. Fountain Hills is blessed to have such an engaged citizenry. And I also would like to thank everybody in Cox Channel 11 in livestreaming it on YouTube, for attending our meeting tonight; very important. Two weeks ago I attended the League of Arizona Cities and Towns public safety military affairs and courts policymaking committee. This committee is to revive an opportunity for the city and town officials to form across the state to provide expertise and direction on the policy issues that come before the league. This week we discovered body scanning machines. They're currently prohibited by state law from being in jails, even though it's in prisons and other forms of coverage, and so we voted unanimously to include body scanning machines in jails for the protection of the corrections officers and the intake staff. And so that will go -- that will wend its way through the system now. I also was fortunate enough to attend the state of the chamber breakfast this past week with our CEO and president Betsy LaVoie. It was a very good event. She described the state of the chamber for the past year and what's coming up in the future. It was a very interesting, very fascinating presentation. I also had a chance to meet with Attorney General Kris Mayes, the Attorney General of Arizona, a very fascinating woman, and I had very good conversation with her. She's very interesting. I also had a chance to go to Sheriff Joe Arpaio's 91st birthday last week. And no matter what you think of Sheriff Joe, I think we all aspire to get to be 91 years old. So congratulations, Sheriff, on that. And apparently, in the Fountain Hills Times today they had a report on a racehorse that was named after Sheriff Joe. So I'll have to track that progress and maybe place a wager or two to see how his racehorse does. So anyway, that's all I have for you this week. Thank you very much. TOWN OF FOUNTAIN HILLS Page 7 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 7 of 94 MAYOR DICKEY: Thank you. Councilman Skillicorn? SKILLICORN: No report at this time. MAYOR DICKEY: Thank you. There was a behavioral health fraud meeting with the governor's office on the phone with AHCCS also. It was very informative as was the Chamber breakfast. Kris Mayes talked about that and the crackdown on that. And then also fentanyl, border, and senior fraud, and AI issues. So there was a lot going on. I'll get to be part of what they call an, "experts within presentation" representing the Town of Fountain Hills, to visitors at our Dark Sky's nationally recognized exhibit at the Smithsonian in D.C. next month. I'm going to be bringing brochures and t-shirts. And Beau (ph.) has been getting a lot of town stuff together, for me to bring. I'll have like a kiosk and so I'll be pushing for Fountain Hills and our dark skies. While we're there, we'll go to the National Museum of African American History. I want to mention, Abraham Lincoln gave the emancipation proclamation on January 1st, 1863, which freed the slaves under Union control. But slavery remained in Confederate states until the Union troops arrived. So on June 19th, 1865, they went to Texas which was the westernmost state and on that day, 250,000 enslaved people were freed by executive decree and that's the celebration that became known as Juneteenth, and that was yesterday. So I have three proclamations. I'll point them out and then I'll come down one by one. The first one is the parks and rec month proclamation. And I think I'll be giving that to Kevin Snipes and some other folks from the department that I see and Sruti Peddi, who is on our community services advisory commission. Next, I would be giving one for professional engineer's day proclamation and I have to say the language, when I got it sent to me was on an email with graph paper stationery. So I'm wondering who sent that to me, David. It's a very, very -- well, it was nice. The last proclamation is going to be the Coast Guard Auxiliary. I'll be presenting that to some folks, Division Commander John Dootson, and I'm going to ask Councilman Brenda TOWN OF FOUNTAIN HILLS Page 8 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 8 of 94 Kalivianakis to come down and join us for that one because she is a member on the Auxiliary, so. Parks and rec, come on up. I'll read it; you hold it. With the big writing here. So come on, come on, guys. Very nice. All right. Whereas parks and recreation is an integral part of communities throughout the country, including the Town of Fountain Hills, and whereas parks and rec promotes health and wellness, improving the physical and mental health of people who live near parks, and whereas parks and rec promotes time spent in nature, which positively impacts mental health by increasing cognitive performance -- really? And well-being, alleviating illnesses such as depression, attention deficit disorders and Alzheimers; and parks and rec encourages physical activities by providing space for popular sports, hiking trails, swimming pools, and many other activities designed to promote active lifestyles and ensures the ecological beauty of our community. Providing a place for children and adults to connect with nature and recreate outdoors. And whereas parks and rec is a leading provider of healthy meals, nutrition services and education and parks and rec programing and education activities, such as out-of-school time programing, youth sports and environmental education are critical to childhood development. And whereas parks and recreation increases a community's economic prosperity through increased property values, expansion of that local tax base, increased tourism, the attraction and retention of businesses and crime reduction -- it's quality of life, right? And parks and rec is fundamental to environmental well-being of our community and to the essential and adaptable infrastructure that makes our community resilient in the face of natural disasters and climate change. And whereas the U.S. House of Representative designated July as Parks and Rec Month, therefore let it be resolved that the Town of Fountain Hills council, July is recognized as Park and Recreation month, recognizing the benefits derived from parks and recreational resources. TOWN OF FOUNTAIN HILLS Page 9 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 9 of 94 There you go. SNIPES: Thank you. MAYOR DICKEY: Well you have to say something. SNIPES: Well, this is just some of our staff that's here tonight, but I wanted to bring them up. And I can't tell you how hard all these people work to provide the fantastic parks, rec, community center, senior services, volunteers; they do it all. So it's definitely a team effort. We're a small group but we do a lot for the town. As Rachael was saying earlier, there's a lot to do. You just have to take a look on our website and you'll see that there's plenty to do all summer long. Come on out and join us. MAYOR DICKEY: Thank you. You have a picture? Next, I think we'll have David come up and yes. Andy? All righty. You can do the honors there. Whereas licensed professional engineers have impacted our world in extraordinary ways from the clean water we drink, to the roads we travel, the energy we use, the food we eat, the clean air we breathe, and the cars we drive. And whereas, Arizona licensed professional engineers have made significant contributions to our town, our state, and our nation; and whereas the economy has grown, in part, because licensed professional engineers have been and continue to be instrumental to our community through application of their engineering knowledge and skills. And whereas August 2nd, 2023, has been declared Professional Engineer's Day by the national society of professional engineers, an organization of 35,000 that represents the interest of licensed professional engineers in all 50 states and three territories. And since 1949 the Arizona Society of professional engineers has actively promoted and advanced the interests of licensed professional engineers for the betterment of public health, safety, and welfare through ethical conduct and professionalism. So now therefore, I, Ginny, Mayor of the Town of Fountain Hills, proclaim August 2nd, 2023, as Professional Engineers Day in Fountain Hills and call upon citizens, parents, public and private agencies, businesses, hospitals, and schools in the town to join with the Society of Professional Engineers in supporting efforts to increase public awareness TOWN OF FOUNTAIN HILLS Page 10 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 10 of 94 of the valuable service that licensed professional engineers provide to our community for the betterment of public health, safety, and welfare for all. Thank you. You have to say a few words. JANOVER: Thank you. Thank you. On behalf of the National Society of Professional Engineers, the Arizona Society of Professional Engineers, and all licensed professional engineers, thank you for this recognition. Personally, it has been a privilege to serve our citizens, the Mayor, and council with our prime responsibility to keep the Town of Fountain Hills safe, operational, and beautiful. I, along with our director of public works, Justin Weldy, assistant town engineer, Andy Whistler, PE, our street superintendent and street crew, our facilities manager and our engineering inspector, value the opportunities to collaborate with the town manager, other town departments, and professional engineering consultants to design and oversee town projects that not only enhance the Fountain Hills experience for our citizens and visitors, but most importantly, protect the health, safety and welfare of the public. As a licensed professional engineer, I have a solemn obligation to do so, which I proudly submit to. So I thank you for your trust in us and the continued opportunity to utilize our experience, knowledge, and skill in discharging the duties as your town engineer and assistant town engineer. And for the recognition of Professional Engineers Day. So thank you. MAYOR DICKEY: All right. And thank you. JANOVER: Thank you. MAYOR DICKEY: Thank you, guys, so much. All right. Now, National Guard folks, come on up. Coast Guard. All right. I'm sorry about that. There you go. So Mr. Dootson, correct? DOOTSON: Yes. That's right. MAYOR DICKEY: All right. Come on up here. TOWN OF FOUNTAIN HILLS Page 11 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 11 of 94 DOOTSON: Thank you. MAYOR DICKEY: You're the division commander, correct? DOOTSON: Division commander. This is Penny Goode, she's our flotilla commander. MAYOR DICKEY: Welcome. I'll read this now. Whereas, on June 23rd, 1939, the United States congress authorized the formation of the coast guard's volunteer reserve and whereas the Coast Guard Auxiliary has -- You're supposed to come down here. KALIVIANAKIS: Oh. MAYOR DICKEY: I said the word "auxiliary" and it reminded me. Coast Guard Auxiliary has grown and evolved remarkably over the last eight decades as an organization of enthusiastic volunteers dedicated to the promotion of recreational boating safety throughout the United States and its territories. The men and women who serve in the auxiliary have selflessly devoted time, skills, and expertise across an increasingly diverse array of roles and missions to assist the coast guard and to preserve and protect our nation's maritime interests. And whereas the Coast Guard Auxiliary and its 127 members throughout Arizona dedicated in 2022, in excess of 18,600 volunteer hours, performed over 400 vessel safety checks, and assisted in distributing over 800 life jackets. And whereas the Coast Guard Auxiliary's service and strength are defined by its core values: honor, respect, and devotion to duty and their motto is semper paratus. DOOTSON: Always ready. MAYOR DICKEY: Always ready. And whereas the Coast Guard Auxiliary part of Team Coast Guard, actively patrols Arizona waterways, along with performing shoreside public affairs and recreational boating safety missions in the interest of recreational boating safety. So therefore, I, Ginny, recognize Friday, June 23rd, 2023, the 84th birthday of the U.S. Coast Guard Auxiliary as Coast Guard Auxiliary Day in the Town of Fountain Hills and call the observance to the attention of our citizens. Thank you. We're going to clap and then you say something. DOOTSON: I want to give big thanks to Fountain Hills resident Jack Pauly who is the TOWN OF FOUNTAIN HILLS Page 12 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 12 of 94 immediate past vice division commander for organizing this and doing the first -- this will be on Friday. The 23rd will be the first time that we've celebrated a Coast Guard Auxiliary Day. About two years ago we did Coast Guard Day, which was August 4th, the birthday of the Coast Guard. But this is the birthday of the Coast Guard Auxiliary and it started 1939 as boaters helping boaters. And a lot of people think, what is the Coast Guard doing in Arizona? Everyone always asks who do you fly for? No, we're not pilots, we're the Coast Guard Auxiliary. So there's three branches, or three legs of the Coast Guard. One's the active duty folks, one's the reserve, that you're familiar with. And then we're the civilian component, non-uniformed component; we help out. There's only five active duty Coast Guard people in the entire State of Arizona. So we go ahead and we do the things like the boating safety patrols and give our life jackets and whatnot. But one of the neat things we do is I'll have Ms. Goode talk about it. She's the head of the band flotilla and we're going to have a performance on Friday. GOODE: Thank you, Commander. Yes, I'm Jenny Goode and I'm the flotilla commander of 10-03. We are the Arizona band flotilla, and we perform throughout the Valley and even in places like California. We serve our veterans and we perform at patriotic events; and we're proud to do so. So -- DOOTSON: So come out this Friday. GOODE: Yes. DOOTSON: 8 o'clock. GOODE: Yep. You'll see us there. MAYOR DICKEY: Anything you want to say, Brenda? KALIVIANAKIS: Just thank you, Ms. Mayor, for your participation in this beautiful ceremony. We really appreciate it. And for the 21,000 Coast Guard Auxiliaries out there, we give you our thank you. MAYOR DICKEY: Thank you. Vice Mayor will be at that event. I'm going to be away. So looking forward to hearing about it. TOWN OF FOUNTAIN HILLS Page 13 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 13 of 94 All right. Our next -- we have no presentations. Next is call to the public. Do we have any speaker cards? MENDENHALL: Yes, we do, Mayor. We have three speaker cards at this moment. First up is Crystal Cavanaugh. And on deck is Matthew Corrigan. CAVANAUGH: Good evening, Mayor Dickey, Vice Mayor McMahon, Councilmen Friedel, and Skillicorn on the phone. Councilmember Kalivianakis and Toth, and of course, our sis, Councilwoman Grzybowski. Thanks to those of you who did put residents first, whether you really wanted to or not, by voting to oppose the mountainside rezone. Although, a biased, inaccurate article in AZ Becks (ph.) followed, which mischaracterized our town as antidevelopment by the developer, his attorney, our own councilwoman who spoke of fixing it with a revote, and from our own chamber leadership who used the word "stagnant" to describe Fountain Hills. When I last looked, there were several ongoing projects and developments here. And no problem selling our beautiful homes to newcomers here in Fountain Hills for a nice price. Maybe we just like selective development for our unique topography and scenic views, instead of towering urban studio apartments that diminish our neighborhoods. So on this topic, regarding the Sendero's property, the town needs to stick to its existing regulations without waiving any requirements or making special deals. I certainly wish Mr. Wesley would have been more concerned with the impact on residents in my neighborhood before approving the rooftop pergola monstrosity on Catclaw, that sits at least 30 feet into the air in Sunridge Canyon. I expected that a request to rezone the Fountain Area hotel into apartments would be on the agenda tonight when I left last month's P&Z meeting along with a request to expand the number of people in a neighborhood community residence. The operators there want an SUP to allow 16 people plus staff. This would actually double what our current ordinance allows. This simply lines the pockets of the operators with excess money but would not improve the care of the current ten elderly residents in this residential neighborhood home. At ten, they were already TOWN OF FOUNTAIN HILLS Page 14 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 14 of 94 grandfathered in from the current code. Hopefully, when either issue comes before you, you will again put residents first. With regards to any hotel rezone, look down the road at the consequence of getting rid of the only downtown hotel, while at the same time bringing in a Dark Sky observatory tourist destination all while striving to accrue economic development. Stand strong against any developer that threatens the hotel could be used to house illegals or the homeless if apartments aren't approved. We do, indeed, need to monitor that issue though, because hotel vouchers for the homeless was already a topic by our state government. The governor actually vetoed a house bill that tried to protect our tourism industry from these vouchers. Please continue to consider our residents and unique community first. Just because other places allow things to happen does not mean it's right for Fountain Hills. We do not need to unnecessarily bring the insanity of other locations here. Thank you very much. CORRIGAN: Madam Mayor, Councilmembers, Matthew Corrigan, home owner of Fountain Hills. Really two subjects or topics tonight, and one is, rezoning or zoning. And let me start with the first. So later tonight the council will hear from a rezoning applicant who wants to expand a single-family residence, which I applaud. But they do so wanting the council to set a precedent by changing open space to single family housing for the purpose of enlarging the property. Does this then open the door to others who expect similar rezoning preference for home additions? Just a question. Second topic, number two. The council plans to discuss the problem of vagrancy under the misnomer of homelessness. I would caution the council from aligning with MAG human resources program and their new director and former Phoenix city manager, Ed Zuercher. I do not know and have not met Ed Zuercher, but I do know the failed history of Phoenix lawless, crime-ridden, massive city government approved, slum encampment known as The Zone in Phoenix. This increased under the watch of Ed Zuercher. Please align and support organizations that have success with substance abuse and mental illness. Phoenix Rescue Mission, for example, might be one that comes to mind. TOWN OF FOUNTAIN HILLS Page 15 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 15 of 94 They are a 501(c)(3) crisis center charity with a 91 percent charity star rating. Government solutions offer a carrot without a stick. In other words, all participants are rewarded for failure to change, rather than rewarded for success. That's a problem. This is all done at taxpayer's expense. MAG human services' goal, according to their website, is "support progress in creating an equitable human services delivery system for marginalized populations, incorporating perspectives of people with lived experience as well as perspective reflecting diversity and inclusion of race, ethnicity, religion, sex, disability, age, gender identity, and sexual orientation". I have noticed a consistency with government program solutions on any issue. Number one, success is measured by the number of participants in the program. Number two, if the government program fails, more taxpayer money is poured into it. Number three, government programs never get smaller or go away, they only grow and create more bureaucracy. Four, government officers in bureaucracies are not elected and not accountable, really, to anyone. I've also noticed that cities and towns that create ordinances to discourage vagrancy and then enforce these ordinances, have less vagrancy, panhandling, loitering, and illegal camping. Thank you. MENDENHALL: Next we have Lori Troller. TROLLER: Hello. Mayor, council, Rachael, Aaron. Rachael, you mentioned general plan. I just want to bring this up real quick. There is a state requirement that telecommunication-type ordinances comply with our general plan. And our general plan has zippo in it for telecommunications. Doesn't mention towers, anything. There's nothing in there. So it's not in the seven strategic plans either. So those need to be updated. The other item is: can we get an update on the actions taken from the interview, the lawyer interviews for the broadband stuff? I know I'm not going to get an answer, I'm just putting the question out there. Thank you. TOWN OF FOUNTAIN HILLS Page 16 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 16 of 94 MAYOR DICKEY: We will be -- GOODWIN: I think a press release just went out. MAYOR DICKEY: A press release? GOODWIN: Um-hum. MAYOR DICKEY: Okay. It already was put out? GOODWIN: Um-hum. MAYOR DICKEY: Okay. That it? MENDENHALL: Yes. That is it. MAYOR DICKEY: Thank you. So Lori, there was a press release put out. Okay, thank you. All right. Our next is our consent agenda. Can I get a motion, please? MCMAHON: Move to approve the consent agenda. FRIEDEL: Second. SKILLICORN: Madam Mayor? MAYOR DICKEY: Oh, yes. I'm sorry. Yes, Allen? SKILLICORN: Yes. Madam Mayor, there is an item that I would like to take off of it, to discuss. It's the one about transit. MAYOR DICKEY: Okay. So we can approve the consent agenda, items A, B, and C. And we have a second. All those -- roll call, please. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. TOWN OF FOUNTAIN HILLS Page 17 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 17 of 94 MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. So as per our rules, the first item will then be -- what was the previous consent agenda, Item D, which is about approving our IGA with our PTA, Valley Metro. Rachael? GOODWIN: Thanks, Mayor. I'm actually going to ask David Trimble to join us. He kind of is our liaison for our Valley Metro relationship and I think he can probably outline this pretty quickly for us. MAYOR DICKEY: And Allen, step in if you have any, like, specific questions, please. TRIMBLE: Sure. Yes. This is to kind of continue with the status quo from what we've been doing since approximately 2014/2015. And really, we updated the bus service in 2021, kind of as a pilot program. So the town has their two essential transportation services. One's the express bus service. It travels in the morning, twice; and then brings folks back in the afternoon. And then the other program that the town has is the RideChoice program. That's the on-demand service where folks with either disabilities or over 65 can request a ride through either Uber or Lyft or the contractors that Valley Metro has. Currently, these programs are funded through PTF monies and that's the Prop 400 monies, and then through the Arizona Lottery Fund. So there's no general fund monies that are outgoing at this time. Down the road, if the RideChoice program continues to increase, we may want to look at that because it will potentially outstrip the monies that are coming in from those sources. I project that would be about, maybe, four years from now. But that assumes everything stays the same. If more people play the lottery, maybe we'll get more income. But -- that was a joke. I don't think there'll be that many people playing the lottery. Yeah, as status quo, probably, we'd want to look at things in three years to see what, if anything, we want to do differently there. That's kind of the background in a TOWN OF FOUNTAIN HILLS Page 18 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 18 of 94 nutshell. MAYOR DICKEY: Councilman, did you have a specific question about this item? SKILLICORN: Well, I think Director Trimble, he did answer one of the questions. But I just want to confirm, especially based on our previous town manager saying like lottery funds fund these. And I'm a big fan of the RideChoice. I think it provides a good service. But the bus line, I have not seen a whole lot of use of it. I personally have tried it three times and I've been the only person on there. Frankly, I think those busses sit there and idle for a couple of hours every morning. But I see here that it was estimated that there was 36 people that were going to ride it and it turns out there might be one. So the question I have is -- and this might just be an accounting -- how this was accounted for. But under the headline of the PTF it mentions the town amount is approximately $82,000 a year. Now, is that just a passthrough from the PTF funding or what is that? TRIMBLE: Mayor, Councilmember, the town does receive a total -- again, it can vary. But year-to-year it's been approximately 82,000. 65,000 or so, is allocated to the 515 bus service. And then the balance of that goes toward the RideChoice program for that total of approximately 82,000 that's coming in. So that can be used for both of the two sources or the two programs. MAYOR DICKEY: Councilman, when we -- SKILLICORN: So just to clarify -- MAYOR DICKEY: Go ahead. Go ahead. SKILLICORN: Madam Mayor, Director Trimble, just to clarify that. $82,000 total and it's all PTF. And the bus amount of that is 65,000; is that correct? TRIMBLE: Yes. That's correct. SKILLICORN: And Madam Mayor, Director Trimble, can we use that $65,000 to anything else? TRIMBLE: It gets a little complicated. I would ask Valley Metro -- we might want to contact them. I reached out via email. It does sound like we can potentially redirect that towards, potentially, the RideChoice program. As long as the RideChoice program TOWN OF FOUNTAIN HILLS Page 19 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 19 of 94 continues to have the ridership that it does or the usage that it does. So I think -- and it gets a little murky with the different funding sources. But I believe that that could be done. MAYOR DICKEY: I wanted to mention, Allen, that when we first had this -- well, for years the route was going into Scottsdale over by the library. But then, we tried this not that long ago, to try to have it go to the Park-and-Ride, hoping that that would increase some of the ridership. I think some of it is that people don't know about it and obviously, it's one of chicken and egg things too, when you only have the couple of trips in and out. But it's something that we should take a look at. I think that we can do that. TRIMBLE: And we also -- if I may. We implemented it -- I think we started it during COVID. And I think a lot of the transportation, public transit stuff, ridership decreased during that time frame. So probably a combination of things. I don't know but that could be a contributor too. MAYOR DICKEY: Councilwoman? MCMAHON: Thank you very much. Being on Valley Metro board we have a brand-new CEO, Jessica Mefford-Miller. She has been really, really proactive with Valley Metro. Getting it out there and getting more advertising, letting communities know what services they have, what's available in their community, allocating funds, et cetera. So I think that there's going to be a lot more information out there and a lot more of our community will become aware of the public transportation services that we provide. Plus, as a growing community, I think that the bus ridership will change based on that too. And also, I know that the rideshare program is really, really appreciated and I have to say that I'm impressed because Jessica rides the bus transit into work whenever she can and that's -- she does it almost every day. So she walks the walk and talks the talk. So it's good. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: Councilman Skillicorn, can I ask -- can I ask Councilman Skillicorn a question? When you tested your bus did you test from -- where did you start? Did you start from here in the morning and travel out? How did you travel? TOWN OF FOUNTAIN HILLS Page 20 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 20 of 94 SKILLICORN: Madam Mayor, Councilwoman Grzybowski, I went twice from the library to the Mesa Park-and-Ride and once, in the evening, took the Mesa park and ride back north to the library. GRZYBOWSKI: My fear is that's against traffic. Before we make a decision to pull this kind of thing, I think we need to talk to our local businesses because our local retail workers and restaurant staff cannot afford to live here. Remember that time I stalked my neighborhood and watched the cars and the people come and go. There are two people that I know took the bus, that walked into my neighborhood in the mornings and out of my neighborhood in the afternoons because they had to go catch their bus. So I kind of feel like that's against traffic. That maybe it's more people coming into town in the morning and going out of town in the afternoon, is my guess; just based off of my very brief surveys in the heat of the day stalking my neighbors. So I do feel like we should talk to our local businesses to see how their staff commute in and out before we make this kind of decision. Not that we're planning on doing it now. I'm just saying we need to keep that in the back of our mind because I do know of two people that live in my little, tiny hood that use it regularly. MAYOR DICKEY: Thank you. Councilwoman? Vice Mayor? MCMAHON: Isn't there a time frame in order to change anything? Like a year or something like that? It takes a while to make a change, correct? TRIMBLE: I asked that question of Valley Metro and have experience when we changed the route last time. They say a six to eight-month time frame. They do the changes -- implement changes twice a year: April and then October. And you really kind of have to have it set up more or less a year in advance. You kind of want to have those decisions made around a year in advance. So it's a topic, maybe we can bring back at another time or maybe at the retreat or whatnot, to get some more information on that if we want to look at that. KALIVIANAKIS: Thank you, Ms. Mayor. Thank you very much for your presentation. My question is brief. I'm a little hesitant to rely on anecdotal evidence as far as ridership is concerned because I think you can TOWN OF FOUNTAIN HILLS Page 21 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 21 of 94 pretty much prove anything you want to prove with anecdotal evidence. Do we have any hard data on ridership for both programs? And particularly in light of the fact that we could be on the hook financially in say, four years from now, that we could actually track this data and find out who's riding it, how many are riding it, what are the costs going to be eventually to our community? TRIMBLE: Yeah. The bus is a fixed cost for the community. So it doesn't matter how many, obviously, ride that one. The RideChoice varies per ride. It's what the town pays a portion of. And Valley Metro, to answer your question, does have those numbers. Again, the bus ride is very -- the bus ridership is very low. It was averaging one person riding that. RideChoice, on the other hand, seems to be increasing. Five-year average on that has been about 750 rides, that's one-way rides. Now this past year, it's doubled, it's 1,500. So people are learning about that program. It's affordable. They changed the terms on the RideChoice program over the past few years and now it's more or less $3 each way, limited to, I think, 50 miles. So for $6 you can go to, say, a medical facility on 90th and Shea or even, we have people that go over to Mayo off the 101. So they can do that now for $6. Whereas the program before, that would have cost 30 or $40. So I think people are catching onto that. MAYOR DICKEY: Councilwoman? TOTH: If you could just clarify. Those numbers were not specifically for our Fountain Hills stop; is that correct? TRIMBLE: That is the numbers that I -- TOTH: That is for Fountain Hills? TRIMBLE: Yeah. TOTH: Okay. I'll have to keep a better eye, because that number surprised me. Thank you. MAYOR DICKEY: It's not the bus. You saw -- SKILLICORN: Madam Mayor -- TRIMBLE: I'm sorry. Did you mean the bus? MAYOR DICKEY: Yeah, I think so. TOWN OF FOUNTAIN HILLS Page 22 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 22 of 94 TOTH: You know what I did? Something I -- TRIMBLE: Okay. MAYOR DICKEY: Yes, Councilman Skillicorn? SKILLICORN: Thank you. I just want to -- before we go ahead and make a motion here. I just want to point out that if it's one person, it's $65,000. We can buy that person a Tesla and it will be cheaper. And if it's just two out of Havenly, we could buy each one of them a Prius and save money. So we just want to make sure that point is taken. I think in the future we really want to go to that RideChoice, it's such a better program. It helps people get to doctors' appointments and things like that. I think it's a very useful. And the days of mass transit, it's just not very popular. People don't like it and it's failing all over the country. And really only works in really high density areas and we don't live in a high density area. So I would like to make a motion to approve these. MAYOR DICKEY: Thank you. Can I get a second, please? FRIEDEL: Second. MAYOR DICKEY: Thank you. Roll call. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: I just want to make sure. Is the motion to approve? FRIEDEL: Yeah. MENDENHALL: Yes. GRZYBOWSKI: Aye. TOWN OF FOUNTAIN HILLS Page 23 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 23 of 94 MENDENHALL: Vice Mayor McMahon? MCMAHON: I still want to know what the motion is for, exactly, please? MAYOR DICKEY: Move to adopt resolution 2023-24, correct? MCMAHON: As it is right now? MAYOR DICKEY: Yes. MCMAHON: Aye. Thank you for clarification. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you all very much. Okay. Our next item is approving the fourth amendment to a purchasing agreement with Tanner. Justin? WELDY: Madam Mayor, Councilmembers, I put together a short presentation for tonight, just as a refresher about the level of investment in the town's streets and infrastructure over the last eight years leading up to and asking for your consideration about approving this amendment to this contract. It should be noted that with little to no exception the M. R. Tanner companies have been involved in the payment management program for the last eight years. And have worked with the town's staff, manager, and council to reduce the overall cost. And I think that part right there is very, very important. Earlier this evening, you heard two reports: one paid for, that provided an assessment and a group of dedicated volunteers that provided some recommendations and their findings. It should be noted that during that process, and I'll single myself out at this time; at least, one or more of them were angry at me because when they asked for pricing I gave them the unit prices per the contract. And they argued that we were not paying anywhere near that amount of money for the services we were receiving, and it was misleading. My argument to those individuals was that at any time, the individual at M. R. Tanner's that is extending this price to the town, for less than the unit price in which they were the low bidder for a multi-million dollar contract, could be gone and we will TOWN OF FOUNTAIN HILLS Page 24 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 24 of 94 be paying unit prices. And I was concerned about any reflection that was not accurate with the unit. The numbers that you saw tonight were a happy medium between unit prices and what we've actually been invoiced for and guidance from the town manager in those numbers. With that said, going back eight years to '15-'16, this is what was allotted and spent. You've seen some of these images before. This is for '16-'17. As a reminder, all of those little red dots in there were the intersections where the pavement was in such poor condition there was nothing that could be done for it except to remove it and replace it. This is '17-'18. You were here earlier tonight. One of the presenters noted that the northeast corner of town had a lot of green lines in it. This is some of the reason why. This is '18-'19. This is '19-'20. '19-'20 has two slides. One of them was primarily the town center and the rest of them was residential. This is '20-'21. You'll note that some of the downtown is shown in this. The reason for that is we intentionally waited until a roundabout was done to pave the streets leading up to it or the primary access to the roundabout, so it will all be one new, big project. This is the remainder of '21-'22. Again, two slides. This is what we are doing this year. Earlier tonight you saw a lot of green from past decisions that were good in regards to pavement management and maintenance. All of that investment needs the right treatment at the right time. We are at the five- to seven-year mark, some cases a little over; closer to eight. We are doing the first treatment, which is crack filling and preservative seal to protect that investment that was made nearly eight years ago. This is a really big number right here over the past eight years. I think it's important, and I did not include these numbers to avoid confusing anyone. During the past eight years, $8 million was spent, about 8.6, to totally reconstruct Saguaro. That was a bond initiative that was paid off in five years. Also back a little bit, to eight years and a little bit more, the intersection of Saguaro and Shea was completed. Just for boundary references, that is Saguaro just south of the Senor Taco and it was on TOWN OF FOUNTAIN HILLS Page 25 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 25 of 94 Shea from Technology to the State Route 87 right of way. $2.7 million that was Prop 400 money. Also during this time frame, Shea was repaved from Technology to the Scottsdale border for a little over a $1 million. That was also Prop 400 money. I didn't include those last three, and they're really big numbers because I don't want people to get confused with the money that we use for pavement management and maintenance that's allotted by this council through the budget that's available and other funding sources that pay for those other types. Tonight we are asking you to consider approving an amendment to a contract that we've been using for several years to spend, primarily, federal government monies on the streets that are listed up here. With little to no exception, the majority of these are pre-incorporation roads that are in that backlog that you saw that are primarily unsavable by any other treatment besides full-depth reconstruction or a minimum of two-inch mill and overlay reconstruction. It's a lot of money. It doesn't look like very much surface until you get down deep and dig deep into that map. But it's a considerable amount of work. Any questions in regards to the exhibits that I just showed you? I'll do my best to answer them. MAYOR DICKEY: Thank you. Did we have any speaker cards on this item? MENDENHALL: No, Mayor, we do not. MAYOR DICKEY: Thank you. Any questions, comments? FRIEDEL: Go to motion. MAYOR DICKEY: Okay. FRIEDEL: Move to approve the fourth amendment to the cooperative purchasing agreement, C2020-065 with M. R. Tanner, in the amount of $5 million and any required budget transfers? MCMAHON: Second. MAYOR DICKEY: Thank you. Roll call, please. TOWN OF FOUNTAIN HILLS Page 26 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 26 of 94 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. Thank you. Thanks, Justin. WELDY: You're welcome. MAYOR DICKEY: A night for roads and streets. Our next item is our discussion on issues surrounding homelessness. And this is for discussion only and to learn a lot. A lot is going on. I'll ask Rachael to please kick it off, if that's okay? GOODWIN: Sure. Happy to. Yes, this is a lot. It's a big conversation. Staff has worked for a number of weeks now, trying to get our arms around how to guide this conversation. So we have two presentations tonight. They're not light, and they are not easy, but I imagine there will be a lot of questions and a lot of conversations. So I want to encourage the council to ask those questions. We may not have answers, but we do have a number of stakeholders in the room with us tonight. First it's going to be Amy St. Peter with MAG. She's going to talk about homelessness in the context of the regional discussion. And then following her we will have Capt. Kratzer TOWN OF FOUNTAIN HILLS Page 27 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 27 of 94 talk about some of the peripheral things and the secondary things associated with our community here. So with that, Amy? ST. PETER: Excellent. Thank you very much. MAYOR DICKEY: Thank you. Welcome. ST. PETER: Rachael, Madam Chair and Mayor and members of the council, thank you very much for having me here tonight. I've been here before. We deeply appreciate our partnership with you. It is critical, as we strengthen the regional response to homelessness, that we work very closely with communities. Homelessness looks different in different communities. It manifests differently. It's to a different scale. And as such, any kind of solutions around homelessness really need to be very closely and intentionally aligned with the priorities, the preferences, the attributes, the capacity of each and every community. So solutions inherently have to be customized. They have to be different for each community. So we really appreciate the leadership that you've shown in this space. The opportunity to work with you in a really collaborative way. My purpose here tonight is to share with you some data about homelessness throughout the region and to be able to share with you some of those regional efforts. And then to highlight some of the local activities underway as well. But we stand here in partnership with you. We are eager to help you in this conversation. It is multi- faceted. It is very complex. But we know that by communicating really constructively and closely on an ongoing basis with each other, we'll have a better response, we'll have a better outcome. So thank you very much for that partnership and I do invite your direction, your questions, your feedback, your ideas, throughout this presentation and as we move forward. So with that, I did want to call to your attention, a lot of the data that I'll be sharing tonight is from the homelessness management information system. We are mining this data, particularly on a quarterly basis, to be able to very transparent and to hold ourselves accountable, to be able to share their progress that's being made, and if TOWN OF FOUNTAIN HILLS Page 28 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 28 of 94 progress is not being made, then we use this data to help us to realign our actions and to make any mid-course adjustments as needed. All of this data is available to you on the MAG website. It's available to your residents and to the residents throughout the region. So I encourage folks to go to the MAG website and there you can see the quarterly report, showing the trends in this homelessness data. And if you have questions about that data, please don't hesitate to reach out to us and let us know and we'd be happy to walk through that with you. So in terms of the data that we've polled from the report for your information for your discussion tonight. When we talk about how many people are experiencing homelessness right now, in our region we have just over 8,000 people. Those are people who staying in shelters, as well as those who are not in shelter but who, otherwise, don't have a place to call home. So it may be on the streets, or in the riverbeds or in their cars. Many of them are working. They're working full-time jobs and they simply are not earning enough money to be able to afford a rent or a mortgage. And so this is how it's broken out right now. You'll see that the total number of households, again, in individuals, it's over 8,000 people. But in terms of households it's just over 6,000. We have about 5,000 people who are single and on their own experiencing homelessness. And then we have families that are down at the bottom. We do want to share two -- we ask people what is contributing to their homelessness? Because the solutions to ending homelessness or addressing homelessness, reducing it, really have to be intentionally formed around the reasons why people are experiencing homelessness. Very often it's a multitude of different reasons. It's not always any one single thing. A lot of times it's because they don't have that support system. So if you or I were to lose our jobs, we likely would be okay. We'd land on our feet. We would be able to recover from that. When people don't have a support system, they aren't able to recover as well. And so we see the economic factors are the number one reason cited. And this data is from the Phoenix Rescue Mission. They're a very good partner in this base. We TOWN OF FOUNTAIN HILLS Page 29 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 29 of 94 work with them very closely. They worked on this gaps analysis and they interviewed more than 700 -- nearly 800 different people experiencing homelessness. So that's where this data is from, before you today. So when somebody loses their job, they don't have -- they're underemployed. They might be working part-time, when they really need to be working at least full-time but they simply can't find that job. So finances, money, they just don't have enough of it for various reasons. Health issues: substance use addiction is an issue, absolutely. As well as mental health issues, medical issues, disability. When people aren't able to work for a variety of reasons, they simply aren't able to maintain their housing. Also we find that there are family issues involved. We see, unfortunately, all too often, particularly among youth who are on their own. So minors who are experiencing homelessness on their own, most often is because they've been kicked out by their families. And very often they've been abused or neglected and then they were kicked out. So they've experienced a very hard time, while they still had a home. And they're experiencing an even harder time now that they do not have a home. Lack of affordable housing, lack of affordable rents or mortgages. This is absolutely critical. We find that, for example, older adults are disproportionately impacted by this as well. We find that there has been a 34 percent increase in older adults, people 65 and plus. If they're renting, they are living on a limited and fixed income and they cannot afford the significant increases in rent that we're seeing across the region in a very significant way. Other responses: people have been evicted because of landlord issues, the legal system. We do have some people who report losing their homes as a result of COVID. Often that's because they lost their job. We lost a number of lower paying jobs during the pandemic and we have not recovered those jobs yet. Also, again, if there's a disaster, an accident, we call it sometimes a flat tire syndrome. You get that flat tire, they get into a car accident, they incur those bills, they lose their job, they lose their housing, and then they're in this very fast spiral downward into TOWN OF FOUNTAIN HILLS Page 30 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 30 of 94 homelessness, that's very difficult to recover from and to pull themselves out. I'm asked a lot, actually, well, what about the people who choose to experience homelessness? And four percent actually cited that as their reason. They said, yes, I'm choosing to experience homelessness. I'd like to offer that as a very temporary choice. Sometimes they aren't able to enter shelter, say for example, with their significant other and they don't want to split up. Other times, they don't fit the demographics of people who are being screened into that program. So it's a temporary choice, but some people do say, yes, I want to homelessness, basically. So we're finding that there is an increase in the number of people entering the system who are new to the system. They've never needed help before but they're needing help now. 34 percent of people entering the system right now are experiencing homelessness for the first time. So they don't know where to turn and they are new to this whole situation. And they're struggling. They're struggling to get back on their feet. They're struggling to access health care, and they're struggling to be able to obtain the housing and the stability that comes along with that housing. I would like to point out too, that when we're looking at homelessness, we find that if we're looking at that from a per capita basis, that for every 25,000 people we have in the region, about 27 are experiencing homelessness. So that gives you an idea in terms of the scale and the scope that we're looking at right now. And this is really important to look at too. Our inflow is greater than our outflow. We cannot build enough shelter, or for that matter, housing, to be able to end homelessness right now in our region. So to bring this down into more of a bite-sized piece, for every 21 people that we have entering the system -- now, keep in mind if there's 21 entering the system, about seven of them are new to the system. They don't know where to go, they don't know where to turn. We only have ten percent leaving in a positive exit, and a positive exit is that they're going into housing. So if you think of like a funnel, we have all these people coming into homelessness, we aren't helping enough people to leave the system in a really positive way. And so they're recycling back into homelessness. They're staying in shelters for an extended period of time. TOWN OF FOUNTAIN HILLS Page 31 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 31 of 94 They're leaving on their own but they're not leaving for housing. And so that's very much an issue and something that we're tracking pretty significantly right now. When we look at where are people experiencing homelessness, it really is all throughout the region. It is in varying degrees. We see greater densities in some parts of the region, such as in some communities. We see very little visible homelessness in other parts of the region, but as you can see, throughout just about the whole region, there is some level of people experiencing homelessness. Now those blue dots are people who are experiencing homelessness on a chronic basis. That means that they've been experiencing homelessness for a long time. They generally also do have some kind of qualifying disability. So they're physically or mentally not able to hold down a job and they're not able to access housing because of that. The blue dots are people who are perhaps coming into homelessness for the first time or they've been experiencing homelessness for a very short time period. Now, I do want to point out that all of these interactions are from the outreach teams. So if there's not an outreach team serving a particular area, we don't have data on that particular area. So it is really critical to partner with outreach teams. Not only do they give us better data in terms of where are people experiencing homelessness, but they also build those relationships that can help move people into housing. Sometimes we'll hear from folks that they get very frustrated because they'll say, well, this person was offered housing and they said no. But they might not say yes the first time round because of the trust issues and because of the severe trauma they have likely experienced as they've experienced homelessness. And so maybe they say no the first time, but maybe they'll say yes a fifth or the sixth time. And in order to have that level of communication and engagement you have to have outreach teams. And so outreach teams are really critical to addressing homelessness and bringing them in to housing and helping them to maintain that stability. I do want to make sure that you're aware of all of the great data analytics that we have online on the MAG website. We have a lot of data about homelessness but also about housing. Because when we're talking about homelessness we have to be talking about TOWN OF FOUNTAIN HILLS Page 32 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 32 of 94 housing. Shelters are wonderful. They're an important part of the solution. They're not the end goal though. If we put somebody in shelter, they can start to stabilize, we're not ending their homelessness though. So housing is a really critical factor on the back end as people are leaving homelessness. It's also critical to look at housing on the front end to try and prevent someone from experiencing homelessness as a result. So I'd like to offer some data that's a little bit more local in nature. So when we look at housing, across the entire region, not specific at all to Fountain Hills. We know that we've experienced a serious decline in affordable rents and mortgages for people. And that is not always, but can very much be, a precursor to them experiencing homelessness. Keeping in mind that if they're severely cost burdened, if they're paying more than say 50 percent of their income every single month just on housing; if something happens, an unexpected medical bill, an unexpected car repair bill, for example, someone loses their job and it takes them a while to find another job, they're more likely to experience homelessness. And so when you look at home sales that are for $300,000 or less, you've lost about half of that since 2011. The picture, though, gets more stark when you look at rents. So when we look at rents under $1,000 a month, that used to be the majority of your market back in 2010. You haven't seen rents under $1,000 a month for the past few years now, to any significant degree. We are seeing rents that are $2,000 or more per month. And when people are spending that much every single month, just on housing, it puts them in a precarious financial situation and makes them more vulnerable. And you can see what happens. Renters are the most cost burdened and they're cost burdened throughout the entire region. So that red color, that's more than 45 percent of the households living in that area, are cost burdened. It means that they're spending more than 30 percent of their income every single month just on housing. There's almost 300,000 people across the region spending more than 30 percent of their income every single month just on their housing. When we look at severely cost burdened households, they're spending more than 50 percent. And we have almost 150,000 renter households spending more than 50 TOWN OF FOUNTAIN HILLS Page 33 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 33 of 94 percent of their income every single month just on housing. That leaves very little money for anything else, including food and medical care. And some populations, for example, older adults, we often see the older adults are choosing between: do I pay for my rent or do I pay for medication? I need my medication to live. I can't pay my rent this month, and then they're experiencing homelessness as a result. So for all these reasons and more, we started to strengthen the regional response to homelessness back in 2020. We worked very, very closely with you, with our other local and tribal governments throughout the entire region, to develop a regional homelessness action plan specific to local and tribal governments. In May of 2021, we had 14 strategies that were adopted that were broader in nature and very inclusive of a number of different sectors. In December of 2021, our regional council unanimously approved Pathways Home. Thank you very much for your support with that. We're excited to highlight that was a unanimous vote because that meant that every single community throughout the region was part of this process and they supported this plan. And they continue to support the plan in terms of its implementation moving forward. These are the three main areas of activity that are highlighted in this plan. Committing to work regionally, we recognize that we can do better and more together than we can do on our own. Homelessness is truly a regional issue. It's not up to any one sector and it's not up to any one community. And so it's being able, for example, to share data, to share resources, and we're doing that more now than we have before because of all of our local and tribal governments coming together. We can't stop homelessness without housing and so we have a goal of increasing safe housing options that includes temporary housing, such as shelter and rapid rehousing, as well as permanent supportive housing. We track our housing targets each month. The number of housing units needed to address the current need changes every month. And so we're updating that. We're working very closely without stakeholders. I do want to point out something concerning about the housing options right now. For temporary housing we've just about doubled TOWN OF FOUNTAIN HILLS Page 34 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 34 of 94 out shelter beds since the pandemic. So that's good news because more people now are able to access shelter and they're able to start putting their lives back together. What's concerning is that many of those beds, the majority of those beds, are funded with COVID federal dollars which means that that funding will be eliminated in about two years. So we only have two years to come up with alternative funding or solutions to house people who are in those shelter beds right now and who will be in those shelter beds over the next two years. So we're working very closely with a variety of funding partners: public, private, nonprofit to try and make sure that we have a good plan in place so that we can continue to meet the needs that only continue, unfortunately, to increase. This work inherently involves multisectors and so we're working with very diverse partnerships to address homelessness. That includes health care, the criminal justice system, just a variety of different stakeholders, because again, it takes everybody working together to make progress in this space. And so communities across the region are responding. Some of them are enhancing the work that they've had maybe underway for a number of years. We have a lot of communities though, stepping into this space for the first time and trying new things. And we're seeing some really good progress there. We have some communities who are working very closely with our nonprofit partners, for example, to provide really critical shelter housing and services to people. Sometimes the local or tribal government is very directly involved, other times they might, for example, give the funding to another partner who can then contract with nonprofit agencies to provide those services. What's showing particularly good progress right now is that flexible funding to help people avoid eviction and to be able to acquire prevention resources. So sometimes people don't necessarily need support with housing but they might need help, for example, with daycare for a month until they can get their first paychecks and set up really good care. And then they're able to proceed on their own. So sometimes if people can just get a little bit of help at the right moment, it's enough to keep them TOWN OF FOUNTAIN HILLS Page 35 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 35 of 94 from entering the system in the first place. And I do want to thank you in regard for your support, particularly for that last bullet point: home is where it all starts. That is our new public education campaign. You helped to provide funding to support those regional media buys. Homeiswhereitallstarts.org is a website where you can go to access the information. We do have a toolkit available. We encourage people across all sectors to go to that website, to download the toolkit, and then really to use that. You can use that with social media, with your website, in your communications. We need to reshape the narrative around affordable housing; instead referring to affordable rents and mortgages, homes within reach, homes that meet our needs. Because we need to be able to have this conversation about homelessness, about housing; and we can do that if we develop a shared language that is more inclusive and really brings more people into that conversation. I do want to highlight a current program that's underway right now that's lifesaving. Our regional heat relief network is activated. That always starts with the first day that it hits 100 degrees. None of us are happy when it gets that hot and when people are experiencing homelessness, it's even less so, because they're very much exposed to the elements and many people lose their lives each summer, whether they're experiencing homelessness or they're working outdoors. Or sometimes, for example, they're living on a fixed income, they have a home but they don't have enough money to turn on those utilities and they die because they get so hot in their homes. So thank you very much for participating in the regional heat relief network. We are tracking who's able to offer water and to collect. So both to give water out to people who need it as well as to collect water donations and to be able to disburse that to agencies who can provide that support. Also the cooling centers, the refuge locations, those are really critical. Sometimes people just need to be able to come in out of the heat during the day and then they can make it through the summer. But this is a critical program that's only possible because of the support that's received from local and tribal governments like Fountain Hills as TOWN OF FOUNTAIN HILLS Page 36 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 36 of 94 well as from nonprofit agencies and faith-based partners throughout the region. That is my contact information. That is my direct line. That is my email address. I encourage anyone to reach out to me if you have questions, ideas, comments, feedback. Would love to be able to continue this conversation with you and I would encourage you to go to the MAG website, check out the data that we have on this work through our homelessness team, as well as our data analytics, that are available thanks to our regional analytics division at MAG. That concludes my presentation. I'd be happy for any questions or feedback that you might have. Thank you. MAYOR DICKEY: Thank you, Amy, so much for coming. Do we have any comments or questions at this time from council? I'm going to wait on the other presentations because I think we have some more presentations, correct? And then we'll go with the cards. Yes. Councilwoman? TOTH: I did just have one question for you. Earlier in your presentation you had mentioned that many of them are actually working full-time jobs. I was wondering if you had the exact number in Arizona of how many are working full-time jobs but still homeless? ST. PETER: Right. Absolutely. So I can give you one example. The area surrounding the human service campus in downtown Phoenix, it's known as The Zone, 40 percent of the people who are living in The Zone have jobs. And that statistic surprises people because it's -- you know, sometimes it's hard enough to get up and go to work but even harder when you've been living in a tent in a situation that's really not ideal for folks. TOTH: So just to get a grasp on that. When you say have jobs, you mean full-time jobs for 40 percent? ST. PETER: They have a range of employment. It's at least part-time if not full-time. TOTH: Okay. And do you know what the number that correlates to that 40 percent is? ST. PETER: So in The Zone last time I heard, there were about 1,000 people, so it would TOWN OF FOUNTAIN HILLS Page 37 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 37 of 94 be 40 percent of that number have jobs. TOTH: Okay. Thank you. ST. PETER: Thank you very much. MAYOR DICKEY: I wanted to -- I just was reading about Maricopa County getting $2 million in funding for homelessness services and they are directing some of that to A New Leaf which is fairly close to here, it's only 12 miles or so, and they're for shelter. And then the Community Bridges, U Mom, a bunch of others. Do you know about -- I know we have continuum of care, but something that's more like a -- we called it, I think, at one of our meetings, a one-stop shop where there's -- and I think San Antonio has that sort of a model, where -- and you kind of touched on it with the childcare, but they do resumes and haircuts and all kinds of things that is not just here's a place for you to stay for one night, but it's more of an overall area for services. Do we have anything like that in Phoenix or in our region? ST. PETER: Madam Mayor and members of the council, thank you very much for that question. The human services campus is one example of that. That's where you have a number of different nonprofit agencies with different areas of expertise who are co- located in one area. And that model was designed so that we could treat people's needs in a very holistic and more effective way. Also we'll find that there are smaller centers like that. So for example, there's one located within the city of Glendale. Often other nonprofits will offer either -- they'll offer those services directly or their case managers are able to refer out for those services. Case management is a really critical component of being able to offer those wraparound services. So we're moving more and more to that and most often, if someone is providing any kind of housing, whether it's shelter or permanent housing, they're also providing those wraparound services. MAYOR DICKEY: So probably you would expect that might have a better success rate than when you were talking about how more is kind of coming in rather than going out. And going out in a way that's sort of a permanent solution or some success there. So would you think that, I mean, they haven't been in existence enough to know if that would have a better outcome? TOWN OF FOUNTAIN HILLS Page 38 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 38 of 94 ST. PETER: Madam Mayor and members of the council, absolutely. When people receive case management, they are more likely to be able to stabilize and to retain that stability. MAYOR DICKEY: And one last thing. So we have -- there are different levels and I know we're going to talk about different ordinances and such that have to do with law enforcement or code enforcement or those kind of things. Is there a contact that -- so say, somebody's not doing anything along those lines, but just to offer -- and I know we have cards from New Leaf and other things like that. Is there somebody even from MAG that would be a good contact. I know you are, but to say -- and none of these situations are the same, so say somebody's here. They can't go to New Leaf because it's after hours or such. Is there something that might be available even, no matter what time it is for us to get that information that might be helpful and maybe the law enforcement isn't always have to be the one that is dealing with it. Maybe it's some other group or some other folks or organizations? ST. PETER: Absolutely. Madam Mayor and members of the council, there are a number of resources available and sometimes, particularly with so many new people coming into the system, they don't know where to go. And so we're working really hard to make sure that people have access to the information 24/7. So for example, one tool that's available to you as a local government, is called HANDUP. It's Homelessness And Needs Data For Unified Planning. It's an interactive online tool. We'd be happy to provide that password to you and with that tool you can see where the need is in terms of people experiencing homelessness according to the outreach teams. But then also where are the resources that can be used to address the needs of people. And those resources cover a variety of different topics. Everything from food boxes to medical care to legal assistance, clothing, employment assistance, mental health treatment, substance use treatment. So that resource is available to you. Also being able to call or to go onto a website for 211, community information referral. They're a great resource and they have information, again, across a whole variety of different kinds of needs. Also if you ever did want to contact me, and I can also put you TOWN OF FOUNTAIN HILLS Page 39 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 39 of 94 in touch with our human services staff at MAG. We can help you to connect with the outreach team who's serving that particular area. Because the outreach teams they can help to meet very immediate needs, but they can also, again, build up that relationship that's often so critical to people accepting services, that will result in them obtaining housing. MAYOR DICKEY: Thank you very much. And before you go, I wanted to just touch on MAG a little bit. MAG is a metropolitan planning organization and the NPO for this region. And it's, I don't know, about 25 cities, towns, tribes, and other organizations that are part of it. And a metropolitan planning organization is federally mandated, that is the only way to get the federal funds that we get for, well, these kind of programs. And I wanted to also mention that a typical council will address regional and municipal planning, economic -- I wrote it down. Community development, pollution control, transit administration, transportation planning, streets, human services, workforce development and water use. They also play a huge role in regional hazard mitigation emergency planning and as you can see, with all of the information you have, collection analysis, distribution of demographic and GIS data. You had a huge role in the census. And then, just from a Fountain Hills point of view, we pay, I don't know, 3 to -- I think it might be $5,000 dues to say, to join and to be part of this thoroughly mandated organization. In the last five years, our public works and for various projects, we've taken in more than $8 million just for the Town of Fountain Hills. So I just wanted to get a little bit of an overview because sometimes we say these acronyms and people don't always know what MAG is or NPO's or anything like that. And again, I want to thank you very much for coming tonight and if you can possibly stay, though. I'm sure we might end up with some questions. Thank you. ST. PETER: Thank you. SKILLICORN: Madam Mayor? MAYOR DICKEY: Yes. Councilman? SKILLICORN: Yeah, Madam Mayor I just have a question. I had heard about the cooling TOWN OF FOUNTAIN HILLS Page 40 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 40 of 94 centers. Where is the closest cooling center in Fountain Hills? ST. PETER: Madam Mayor, Councilmember Skillicorn and members of the council, I don't know offhand but I'd be happy to get that information for you and follow up. If you go to our website you can access the map and that includes it as well. But I'd be happy to follow up with you directly. SKILLICORN: And Madam Mayor, is this the same for the other care items? You know, you mentioned a little bit about -- in terms of from the helping create resumes and things like that. Where are these located in geographic terms to Fountain Hills? MAYOR DICKEY: One of them, at least the one that I was talking about was A New Leaf and you know a lot about that, and that's just right at the -- well, it's close. Yeah. I don't know whether you can say where these places are but that one is close. The other -- it's not the Bridges. There's on with the word bridge in it though, that we can use that they can -- ST. PETER: New Bridges, Mayor? MAYOR DICKEY: Yeah. I think that any time of day you can use that one. I think A New Leaf -- and A New Leaf has other services also but they do have hours. I know that vice mayor knows a lot more about that. And then we just got -- and I know Capt. Kratzer will be up here. And we have a good information sheet from MCSO about that, Allen. So maybe we can get more of that information and the actual locations to you. But they're in the proximity. ST. PETER: Madam Mayor and members of the council, I'd be happy to provide the information for HANDUP, for that interactive tool and then you can go into very specific geographies on the map. And you can see all of the resources that are right around you. MAYOR DICKEY: Very good. Very good. That will be helpful. Thank you. Anything else? Thank you very much. ST. PETER: You're welcome. MAYOR DICKEY: Rachael? GOODWIN: All right. That brings up our next presenter, which is Capt. Kratzer. I'm TOWN OF FOUNTAIN HILLS Page 41 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 41 of 94 going to -- in advance, he put a -- there was a lot of time and effort pulling data and putting together quote a bit of comparative analysis. So I know there's going to be a lot of graphs and a lot of information in this. So I want to encourage, if there's questions about it, what we're looking at and understanding it. This took a lot of time so I expect it will be very informational, but also it's a lot of information in and of itself. So in advance, Thanks, Captain. KRATZER: You're welcome. Let me get this open and then I will -- Rachael, I know you said you were going to spoon-feed this to me. There's two PowerPoints open at the bottom and neither of them are mine. GRZYBOWSKI: Madam Mayor, while he does that. I'm playing around on what I think is what Amy was referring to, the 2023 heat relief network. If I understand this correctly it looks like the library is considered a cooling center and that's all we have in Fountain Hills. Anyway, the library is considered one in Fountain Hills. MAYOR DICKEY: Thank you. Thank you, Captain. And again, I want to confirm what Rachale said. To thank you for putting all this information together for us. KRATZER: You're welcome. Good evening Madam Mayor, vice mayor, members of the council. I first want to give credit where credit is due. Our criminal research analysis unit put this together for the town and for me, at my request, based on the upcoming conversation. So I can't say that I spent a lot of time behind the computer doing this because I don't' really have the knowledge or ability to do that. And so with that being said, as we go through this presentation, if there are questions that are more technical in nature of where the data came from, specifically, and I'm not able to provide the answer, I will definitely get that back to you after speaking to the analyst who created the crime report. So I want to start off by saying thank you for having MCSO as part of the discussion. We are definitely a part of the issue and the topic here and I just want to reiterate that we are a part and not the solution. And I know a lot of times there's some frustration when people call MCSO about an individual who might be homeless who they think might be TOWN OF FOUNTAIN HILLS Page 42 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 42 of 94 trespassing or loitering and there are times where we are not able to take action due to a laundry list of things. But one of the big problems is, is some of the requirements in the law is that we have a victim and that victim has to be willing to head the prosecution. So if someone's on private property, there's some hurdles there. That person, that business, that establishment, the property owner has to be willing to, and want that person removed. So one of the things, some of our efforts that we did do and when some of this discussion was coming up a year or two ago, was meet with a handful of the local businesses around town, some of the local churches, where we knew some of the problems were a little more persistent and we discussed with them some of the things that they had the ability to do. That they could call MCSO if they had a subject there that they didn't want on the property, or that were bothering patrons. And we just ensured that they had the knowledge and understood what their rights were or what they could do. Because I think some businesses or some people were not aware of what they could or couldn't do. So anyways, let's get into this. And some of this information is a little technical, so if there's some of the things -- some of the things in here we won't spend a lot oof time on but if there are questions I'm happy to answer. So we're going to cover the uniform crime report comparisons. And so uniform crime reporting, that's an FBI program where police agencies share data of their crimes committed in their areas. And that's how this report was used to compare Fountain Hills to some of the other jurisdictions in the Valley. Because a lot of those jurisdictions share crime report data to the FBI. We'll talk about some policing activities and then some police contacts. So the first slide we have here, this is a three-year lookback of crime, 2020, 2021, and 2022. We're comparing Fountain Hills to Scottsdale and what you'll see is population across the years for the Fountain Hills to the city that's being compared, so Scottsdale, in this slide. And then you'll see violent crime. That's the first column after population. You'll see that violent crime is made up of homicide, sexual assaults, robbery, and aggravated assault. Per the uniform crime reporting, that is what makes up violent crime and then the next category is property crime. And that is made up of burglary, TOWN OF FOUNTAIN HILLS Page 43 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 43 of 94 thefts, auto thefts, and arson. So again, you'll see the three years for Fountain Hills. You'll then see the three years for Scottsdale. You'll see the total number of incidents, homicides, sexual assaults, robbery, aggravated assaults, and so on. And then, at the bottom to make it more of a comparison of apples to apples, where it's not -- when we're comparing Fountain Hills' population of under 25,000 to a city like Scottsdale, with a population of about 240,000 it's not easy to compare what that looks like unless you do some other form of analysis. So that's what our analyst did. She broke it down. Thank you very much. She broke it down by rate per 1,000. So these crimes occurring per 1,000 residents. And that's the number you see there. So you'll see the three-year breakdown again and then you'll see the three-year average in the yellowish column below. So looking at Scottsdale compared to Fountain Hills you'll see that the homicide per 1,000 in Fountain Hills, fortunately we had zero homicides in the three-year period from 2020 to 2022, whereas Scottsdale had 17. When you look at that breakdown below it looks a little bit, it doesn't make a lot of sense, because it's showing zero for Scottsdale, zero for Fountain Hills. Again that's a rate. That's because the mathematical equation and the way that works out when you divide it. It goes to the 100's mark and you can't put a one there or even a ten spot. When you look at sexual assaults, you'll see Fountain Hills compared to Scottsdale, pretty much it's the same being -- not broke down into its full decimal. Robberies, .1 in Fountain Hills, compared to .3, Scottsdale. Aggravated assault, we look at .7 in Fountain Hills per 1,000 and 1.1 for Scottsdale. And then when we get to property crimes, total 12.1 in Fountain Hills, compared to 21.3 in Scottsdale. And then your breakdown of burglaries, theft, auto theft, and arson as you can see on the slide. The next one we look at: this is just a graph that makes it a little bit easier to visualize. Comparing each of the crimes and the rate. You'll see, it's hard to see from the slide but under homicide, even though it shows zero for both, there is a tiny bit of shade under TOWN OF FOUNTAIN HILLS Page 44 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 44 of 94 Scottsdale in the orange column for homicide, just to indicate it's not one, but it's less than. So that just gives the visual. We're going to do the same now with Gilbert. Same exact model here. We look at the three-year crime stat comparisons. We were quite a bit closer with Gilbert. And a lot of this talk came from some of the safe city discussion we have and the safe zip codes. And we're unable to do a comparison of safe cities, safe zip codes, other than this, the data collection. There are some private industries out there, real estate companies, who will do some level of analysis and come up with some sort of statements of this is the safest zip code or the third safest zip code. It's not something that law enforcement does. But comparing Fountain Hills to Gilbert, you could see where we compare against them in terms of looking at the bottom reports per 1,000 people, violent crime overall in the three-year average is a 1.2 to a 1.2 to Gilbert. Same thing with homicides. We had zero. They had 17. Sexual assaults, we're at a .4, they're at a .3. robbery, .1, .1, equal. Aggravated assaults we're slightly under them with a .7. They're a .8 per 1,000. Property crime, we're a little bit above Gilbert, 12.1 per 1,000 compared to 10.5. and then there's the breakdown associated with that. If there's any questions as we go, feel free. This isn't going to all be numbers like this. We'll start getting into a little bit of different topics. This is just giving a snapshot. Here's the graph that shows just the more -- it's easier to visualize in this area. And then we did some additional analysis with some westside agencies, cities. We didn't put those in here just for the sake of -- we have the data, if council is interested in seeing the raw numbers. This just kind of cuts it to the graph part where he can see the visualization there. So here's the comparison from Fountain Hills to Peoria on crimes for 1,000 people. You could see we're quite a bit lower in most categories than Peoria per 1,000. The same for Glendale. This is Glendale. You could see how Fountain Hills compares to Glendale in the uniform crime reporting stats. And then, Anthem is a area that MCSO covers. So this incorporate -- they're an unincorporated town but this compares crime TOWN OF FOUNTAIN HILLS Page 45 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 45 of 94 stats to them as well. And then we'll move to police activity. Was there any questions on any of those? I know it was a lot real quick. But if there's any questions on that comparative data, I'll be happy to answer, else I'll just continue on. MAYOR DICKEY: I just want to thank you because I know that we did talk about this and there are those things you see online about they want people to move to the top safest communities and whatever in whatever states and they are mostly, like you said, they're private. They're maybe even trying to get you to move somewhere or not move somewhere. So I just wanted to tell you that I appreciate that. And also that at least, to me, it doesn't look like there's too much of -- nothing really stood out with any of that except the status quo. KRATZER: Yeah. I agree. I think the three-year crime stat picture of Fountain Hills, especially when you compare it to other cities and towns, places like Gilbert, Scottsdale, I know, Fountain Hills is oftentimes compared to Scottsdale for a bunch of different reasons or categories, we felt like that would be an important one to kind of show what that picture looks like per 1,000. MAYOR DICKEY: Yeah. Appreciate that. KRATZER: Okay. We're moving to policing activities. This is just over the same three-year period, calls for service versus deputy-initiated calls. So this is just a graph that shows -- in the green you'll see the calls for service. So those are the calls that people actually initiate to our, either 911 system or our non- emergency number. Year over year, not too much of a change in calls for service. And then the blue is the on-view activity by deputies. So that's during their downtime, the things that they're initiating themselves. You could see over the three years what those numbers look like. It went from 7,132 events, dropped down to 6,660 in 2021, and then, in 2022, last year it went up to 7,508. The analyst says basically, from no significant increases occurred in calls but there was an increase in initiated deputy activity. Then we move over to total reports by call for service. So the difference here is calls for TOWN OF FOUNTAIN HILLS Page 46 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 46 of 94 service that we receive or that deputies initiate that result in a report. So we go on plenty of calls where there is no crime committed or there was no reason for a report to be generated. Our policy dictates what reports will be written; basically, it's any allegation of a crime being committed. We'll take a report and deputies will sometimes err on the side of caution and take an informational report for other things. So the three-year picture of that, you can see how the reports for calls for service went. It dropped by about 300 over 2021, compared to 2020, and a little under that for 2022. However, deputy-initiated activity; the reports for those calls increased. And those would be like the deputy did a traffic stop and the driver had a suspended license or a warrant, then that would initiate a report on-view activity. Or if a deputy was driving through a business complex, saw a broken window, stopped and investigated and determined there was a burglary; that would then initiate a report. MAYOR DICKEY: I wanted to point out that -- and we always had this conversation when we get our monthly reports about cases and such, that these that are deputy initiated actually reflect maybe a different -- more stepped up one way or the other. So like, we saw this huge -- and I don't think you do reports for speeding tickets, necessarily. But we did see like this huge jump in that. But that was a reflection of what we had asked to go out and be more active when it comes to that. So it's always hard to interpret when you see numbers go up whether that's good because you're actually finding more and taking action on them, rather than increased activity. It's almost like, more of an outcome -- of a good outcome. KRATZER: That's a good point because I just kind of assumed that people would have understood that it was initiated by request for additional enforcement or when we did the study and we saw the amount of downtime that was being reported deputies and the push for okay, we've got increase our downtime on-view activity. So those are in direct correlation with that. I wouldn't necessarily say it was in correlation to increased crime or anything. I don't' have that official breakdown to say that for certain but it was definitely responsive to the request of increased enforcement. We're moving on to -- these are the top ten report types. So these are calls for service TOWN OF FOUNTAIN HILLS Page 47 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 47 of 94 that have resulted in a report. These are the top ten calls that resulted in a report over a three-year period combined. So our number one call for service that resulted in a report over the last three years is vehicle crash with no injuries. You see how high that kind of compares to everything else. Next, followed by criminal damage. You'll see that the criminal damage is in yellow and then a couple for the other ones are in yellow. We'll delve into those just a little bit more because those ones had an increase over the three-year period than the other ones did. Found property, theft, fraud, or a con game, assault, identity theft, attempted suicide, traffic violation, and then burglary from vehicle. So it says a comparison of 2022's top ten report types from previous years, noted an increase in 2022 in the area of criminal damage, attempted suicide, and burglary from vehicle reports. So this is a criminal damage yearly report count that was one we saw an increase over the three years, criminal damage. You'll see that the peak of that was in July 2022, with 20 incidents. And then, so green is 2022; orange is 2021; blue is 2020. It might be hard for the audience to see that. One of the notes that the analyst made was criminal damage reports peaked in June and July of 2022. A review of these reports did not find that specific criminal pattern or trend. The event types were a mixed result of residential property damage, vehicle damage, graffiti, and political sign damage. Over across all years, graffiti and criminal damage calls were greatest in July of 2022. All right. We next move to a map of incidents, of graffiti and criminal damage -- criminal damage graffiti reports. So it broke it down more into graffiti calls. 29 reports from 2020 to 2022. The frequencies of these incidents appear nearest to parks, Fou Peaks Park, businesses along east Avenue of the Fountains. I think Rachael, in her time as the park and recs director, can attest to the damage that occurs at the parks and the graffiti calls. Kevin as well. July peaks, possibly related to summer break with students being out and there's been a lot of those graffiti-damaged things at the park tend to be done by juveniles. Then, they break down the increase in the attempted suicides. So from 2020 to 2022, TOWN OF FOUNTAIN HILLS Page 48 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 48 of 94 attempted suicide reports increased. So you can see that increase on the first column on the left there. Green being 2020, blue being 2021, and then, the orange being 2022. And we had 54 reports of attempted suicide compared to 33 and 34 the years prior. When you break it down to -- so a suicide attempt is just that. It's not a successful. It's an attempt. It could be someone ingesting pills or other means. But then the actual suicides, you can see the increase there as well. Three, then five, and then eight in 2022. The next slide shows the total attempted suicide report on a graph. It says spring and holiday seasons have increased reports for attempted suicide. The good news is the current 2023 preliminary report shows a decrease in both: suicide attempts and suicides. So we're on a trend where that's coming down for the year of 2023. Then it breaks down vehicle burglaries and this shows, kind of, the hotspots. Burglary from vehicle reports did not have any significant change by month in 2022. From 2020 through March 31st of 2023, burglary from vehicle reports were mapped. Frequency of the activities occurred most at business districts as well as apartments and along the main outlet roads. And that's consistent with what we know and see and try to share with the public. And then one of the notes the analyst made was that nationally catalytic converter thefts were still an ongoing problem and we continue to see an increase across the country. And then, on this one, it just shows the breakdown of how they're mapped. And that one to three incidents are in the smaller circle, four to five, and then it goes up to eight to nine; which shows you where those incidents are occurring at. What we're going to move into now is probably more in line with the topic of conversation we're having tonight. MCSO, and as far I know, no other agency in the Valley, tracks crimes by transient or homelessness individuals. It's just not something we do as an agency. It's not anything I'm aware that other agencies do. The best we could do in trying to find some data that might correlate to crimes that might be more often occurring by those who are homelessness, the way our analyst was able to search this, she looked at the three-year period, 2020 to 2022, just like the rest of the data. TOWN OF FOUNTAIN HILLS Page 49 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 49 of 94 And she listed it as arrested persons who listed a residence -- so we call them a resident, 94.6 percent, compared to arrested persons who listed no residence, by 4.3. So what that's saying in a nutshell is that people who provided an address when they were arrested, this is the total arrests over three years where they were formally booked into jail or charged with a crime; whether it was through citation or a long form submittal. 94 percent of those people provided an address. And so we assume with that that they were not transient, not homelessness. 4.3 percent of the people who are arrested out of those total arrests, didn't provide an address. Now the disclaimer to that is, that could be that the person decided just to not give the deputy an address or it could be that they were transient or homelessness. The data included anything in the report that did say transient and/or no address provided or refused. And so we make some assumptions there. And it's not uncommon, at times, for someone to refuse to provide an address when they get arrested. They don't have to provide that. There might be some ramifications down the road in terms of being released by a judge on your own recognizance or your bond; but people do have the right to refuse that. So that's the closest we could come to an analysis. We're going to move to -- this is going to probably really challenging to see for the audience, but this breaks down the arrest over those three-year periods and it breaks it down by the address provided versus no address provided. And what you could see is the green are -- when it's coded green over the years, so 2020, 2021, 2022, and then she did go into 2023, the current date; what percentage. So again, our percentage that we found over all arrests for the three years was a 96 percent for those that had a residential address provided and only 4 percent for those that didn't. So we tried to see was there any kind of correlation between crimes that were being committed by, you could say, transient folks or homelessness individuals. And you could see in the red -- that's indicated by red -- there were some crimes in here that warrant arrest in 2023. 27 percent of those arrests were by folks who didn't provide an address, whether that meant they were transient or not, 27 percent was the number for that year compared to what the norm was, was 4 percent. So there was an increase in that. TOWN OF FOUNTAIN HILLS Page 50 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 50 of 94 Assaults in 2022, there was an increase compared to the norm of 4 percent, up to 13. We saw criminal damage in 2022 be a little disproportionate to the number, and so on. And then the ones that are in green, excessive speeding, those were 100 percent across the board throughout the three years, plus 2023, of those who provided an address. So there was no four percent of individuals committing those crimes. And that happens in a couple of other areas. Driving with a license suspended or revoked, it's close on drug violations for them being people -- three out of the four years of people who have an address, that you're presuming aren't transient. So this is just a breakdown and you can delve into those a little bit more as you look across. And the threshold that she provided was, there had to be more than four arrests in those three-year periods for those crimes for it to be analyzed and be included in this. So there were some crimes that had less than that, that weren't included in the breakdown. And even four is pretty non -- it's a small number, so it's hard to say. And you can see how small some of these numbers are where we provided breakdowns. I mean, we're talking 11 arrests on the warrant arrests, and there's some that are even fewer in there. So I don't know how helpful that is to this conversation, but it was the analysis that we could provide that looked at overall crime data for three years, where we tried to give a breakdown of maybe some of those crimes that were being committed by folks that you could deduct from this that, potentially, may be homeless. So if there are questions on this, I'd be happy to take them and then I would like, after this, to just bring up our behavioral health co-responder. It's a new program MCSO is doing. Tarryn Mingey (ph.) is here tonight and she's the head of that program. And she can just talk for just a couple of minutes. And I think she could answer some of the questions that some of the council had or even talk on some of the things that that program does and provides to deputies and the community, but also resources that deputies can use. So one of the things we always talk about is like, homelessness alone is not a crime. So there's not anything that law enforcement can do if someone's just homelessness. We TOWN OF FOUNTAIN HILLS Page 51 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 51 of 94 get calls that there's a homeless person on the sidewalk with a sign. And if they're not on private property and they're on public property, there's not much we can do. A lot of times we will still go out and talk to those individuals, if someone has a concern or depending on what the call says. And there's times where they want resources and there are times where they don't want resources and there's times where they don't even want contact from law enforcement. So those are all kind of the challenges we deal with when dealing. But I think when I'm done and you guys have the opportunity to ask some questions, I could bring Tarryn up here and she might be able to just talk for a minute and introduce herself and answer a few more questions. MCMAHON: Thank you very much for the report. It's a lot of information. But given your knowledge about the homeless in town, et cetera, you really can't pinpoint that homeless people are criminals or automatically look at them as criminals, et cetera. Or that there're like a lot of criminal activity going on in town due to homelessness, right? KRATZER: Yeah. I don't know that. I don't think that I'm qualified to say that. I don't know that the data show that that's the case. I mean, again, it's the data that was collected and we were able to run it, not completely thorough and adequate but with the way we're able to run it we were looking to see if there was any trends for this conversation, because of some of the talk and the discussion and belief that maybe there are some crimes that are occurring more frequently by that population. We were trying to see if the data supported that or not. And I think in that four-year picture, it's three and a half, because this year is not fully over. That breakdown, I think, was kind of telling in that. And again, just to be fair on the topic, there could be individuals who did commit some crimes that provided an address and we wouldn't know whether they were homeless or not. So it's not a foolproof way of vetting out that system, but in the data and the way we were able to look at it and review it, that's not what jumps out at me. MCMAHON: Okay. Thank you. Because if somebody's staying with a friend or a relative or something, for some reason they get arrested, they may not want to give that TOWN OF FOUNTAIN HILLS Page 52 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 52 of 94 information out, et cetera. So it's not necessarily that they're homeless. But as you can see, and take from your report, it's not an exact science. It's very complicated. So thank you very much. I appreciate it. KRATZER: You're welcome. MAYOR DICKEY: Councilwoman? TOTH: Do you currently have explanations for the increase? So while I understand that that four percent back in the day also didn't necessarily include homeless people but that increase from 4 percent to 27 percent is a lot. KRATZER: So -- TOTH: You had mentioned earlier, when we were looking at that larger graph, so that slide right there. KRATZER: Yes. TOTH: You had mentioned that the previous number of no address provided compared to the new number was a 27 percent as opposed to 4 percent. KRATZER: Councilwoman Toth, while I think I succeeded at thoroughly confusing, probably, a lot of people; I was specifically talking about in the year 2023 where it's talking about warrant arrests. The standard -- what we found in total arrests was 96 percent of arrests, total arrests for that whole three-year period, that was -- the 96 percent were by those who provided an address. Four percent were those who didn't provide an address or were listed as transient. In this one, specifically, warrant arrests for 2023, year-to-date of all warrant arrests, 27 percent of those arrests have been by folks who don't have an address. So is that what you're speaking to? TOTH: Yes. And let me actually clarify that question. So if you have a warrant but they didn't provide an address once arrested, how did you find them in the first place? KRATZER: Well, that could be for -- I mean, if we get a call for service and we go and we have contact with an individual, we run that individual to see if they have a warrant. If they come back with a valid arrest warrant, then we take them down and book them. We then have to provide all of that information in the new booking: their name, their TOWN OF FOUNTAIN HILLS Page 53 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 53 of 94 date of birth, any address that they're willing to list. So that would be new information provided during that arrest; does that make sense? Am I -- TOTH: Yeah. Absolutely. So the increase that I originally asked about. In 2022, we have 95.2 percent versus 4.8 percent. KRATZER: Okay. TOTH: And 2023, we have 72.7 percent, versus 27.3 percent. That 4.8 to 27.3, in one year's time, seems like quite the increase. KRATZER: Yeah. And it's hard for me to speak to that just because of all the nuances that are in the data, in terms of MCSO not collecting tracking data for homeless versus transient versus nontransient individuals, with all the flawed data. I mean, this is just a snapshot. I can't explain that increase. I don't know how to answer that. I don't know if truly there are more individuals out there who are currently homeless, who have more warrants than the year before. Or if it's some of the other nuances where the person is like, well, I'm not going to give you my address. Or one of the other things, that when we talked about this, one of the things I had written down was, if a deputy failed to put that in the booking paperwork, the address for a person. That probably wouldn't happen in 2023, because we've corrected those issues where deputies maybe failed to put down a listed address. So it probably wouldn't be what would happen in 2023. Now, if you're looking back at 2020, that's possible, where quality control maybe wasn't as focused on. TOTH: Okay. Well, thank you, Captain. If you don't mind, I have one other question. Captain, as you know, we are here today to figure out a possible update to our town ordinances. Something you mentioned in the very beginning of your presentation was that a lot of times there's not necessarily a victim. In which case, in some cases, is because the town doesn't have an ordinance that would allow you to act. Specifically speaking, what are some things that maybe you've seen in other communities or ideas that you've come up with that you would suggest to empower you to be able to act more often? And I understand that still wouldn't affect when private property is the case. TOWN OF FOUNTAIN HILLS Page 54 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 54 of 94 KRATZER: Councilmember Toth, we've talked to some other local law enforcement agencies about how they're addressing some of the homelessness issues and enforcement within the communities. And I know, Aaron has talked about an aggressive panhandler ordinance that, I think, Glendale has. I can't remember what city has that. But I mean, it depends on the verbiage that is put in the ordinance and what the ordinance addresses. There's plenty of laws right now that we utilize when dealing with certain crimes, like littering, loitering, criminal trespass. There's a town ordinance for criminal trespass. Most deputies usually use the state revised statute for criminal trespass. But we have those tools there. I don't know of specific ordinances. We haven't had a lot of conversation, yet, about what an ordinance might look like by the town if they were to create one. Are we talking about panhandling? Are we talking about -- I don't know of an ordinance or a law you could pass that just says someone -- that deals with homeless individuals. I don't know what that might look like in terms of outside of the typical violations you might have of someone being on property that they shouldn't be on or don't have permission to be on. Someone littering or loitering. I think in the past we've talked about individuals being in the median with signs, panhandling, and whether or not the town could adopt an ordinance that would allow us to not let them be in the median and if they are, then we could move them along. But there's plenty of case law on public property where I don't know if the town has the ability to prevent folks from being on public property and public places. MAYOR DICKEY: I think Aaron might have something to say. KRATZER: Yeah. And I'll try not to step on Aaron's toes too much. But we enforce the ordinances. We don't come up with the ordinances. So we can assist in that process, if asked. But we don't sit back and write the ordinance and say, hey, pass this so we can go enforce it. If that's decided by the town, and it's determined to be applicable and constitutional by the agency and the Maricopa County Attorney's Office, we'll enforce that ordinance for the town. TOTH: Thank you, Captain. TOWN OF FOUNTAIN HILLS Page 55 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 55 of 94 KRATZER: You're welcome. MAYOR DICKEY: Aaron. ARNSON: Thank you, Mayor and Councilwoman. To your question, I think Capt. Kratzer said it right. You're not going to find in any other municipality an ordinance that deals with homelessness specifically, and that's kind of because of what Capt. Kratzer said at the beginning. That status crimes, like the regulating someone based on their sheltered or unsheltered status, don't exist in the United States. What you'll typically see in the vast majority of cities and towns, including here, are ordinances that apply, sort of neutrally, to all individuals. But that may be crimes or may be civil citations that you commonly find in the unsheltered context like, for example, obstructing the right of way or overnight camping prohibitions within the right of way or on public property. You might find loitering ordinances. You might find public urination ordinances. Those types of things that whether citable under state or local law, do typically bleed into the homelessness space. So when we're looking at those kind of ordinances, there won't be and cannot be anything that specifically says homelessness is not allowed in this space. Because that's not how we regulate homelessness in the U.S.; we regulate it based on a person's conduct as opposed to their status of existing. So I don't know if that was helpful as a follow up. TOTH: Right. Thank you, Aaron. Just to clarify, I mean, in cases where there's a call and there's an issue, when -- if we can explore ways to ensure that that conduct is being properly -- ARNSON: Yes. And if I can add, and Larry, you've certainly -- Capt. Kratzer, you're certainly able to respond to that as well, of course. This is something that we hear, and I'm sure MCSO hears across the board, of the tools all being there but sometimes the difficulty being once MCSO, or once the law enforcement agency respond, who's there and who was a witness to it, and is the person even still on site and present, and is someone willing to serve as a complainant, you know what I mean? So you do deal with those enforcement issues on the backend and that is not unique to Fountain Hills. That TOWN OF FOUNTAIN HILLS Page 56 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 56 of 94 is going to be universal throughout whatever community you're in. It's a challenge. But we can work on those ordinances that get us to a spot where it gives us greater tools to respond. Whether we can actually get all the pieces to line up at the end of the day is a different story. But we can work toward that end. Yeah. KRATZER: And Councilmember Toth, if you don't mind me responding? I think that a lot of times when we go to calls where we are dealing with homeless individuals and someone has called, whether it's a criminal trespass or littering. Some of the challenges we have are kind of what Aaron talked about, about having someone who has standing on that property, who doesn't want that person there or it being private property. We had a recent incident where there was a subject in a wash. We got a call. Deputies went out. They talked to the subject. Deputies are aware of the town ordinances about the use of the town washes. We have a map now from Justin Weldy with the town. And that's almost like mathematical equation trying to figure out which washes are privately owned, which washes are town owned. And we did cite that individual for being in the town wash, only to find out that he was on a private wash and we had go to back and resend that citation because we had that wrong. And so those are just some of the challenges. And basically, what I'm getting to is I don't know of a situation we've ran into where if there was an ordinance that was written in a certain way it would have given us the ability to charge that person with something because the state law wasn't comprehensive enough or there wasn't something that was there in toolbag that allowed us to take a different approach. Specifically, I can't think of a scenario that would happen with, other than maybe, if there was something that was passable for the median. Someone being in the median and blocking that. Because we do have if someone's going into the roadway, stopping cars and getting money, we could enforce that. There's a state law for that. The number of times that's happened, we've had reports of that but actually getting there, having the person say, hey, I've seen them. We talked to the person. They said, yeah, I did stop traffic and I did go -- I mean, that's a perfect scenario that really never happens unless a deputy witnesses it. So just all those points. TOWN OF FOUNTAIN HILLS Page 57 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 57 of 94 And then, just in this conversation. Bringing the court into it and the town prosecutor, because they do have some challenges as well. And that's no to say we wouldn't look at it or the town shouldn't look at passing an ordinance that the council gives them direction to, but they have to be onboard, especially for a town ordinance and the prosecutor being onboard to say, okay, MCSO is good at enforcing this. We are good at charging this or going to trial on it if we need to, with all of those parties involved. And I know that this discussion is getting to the point to see if there's any ordinances that the town can pass or desires to pass that is then workable for everyone and makes sense. MAYOR DICKEY: Thank you. I wanted to jump in on the numbers thing and then I think Ms. St. Peters had something to add. The 27 percent, that's three people. So what kind of a -- this chart has percentages but then it has actual instances. So it's not the easiest thing to follow because you could have one warrant one year and two the next year, and that's a 100 percent jump. So I think we have to keep that in mind. There's 11 total warrants and three of them were people that didn't give their address. So not only do we not know does that mean that they're transient but it's three people. So I don't think we need to overreact or -- I don't mean that you did. But all of these percentages are a little bit difficult when you look one over at the number. So you got a 100 percent are with an address provided, okay. So the drug violation 100 percent, but it's one person. So I think when we're dealing with Fountain Hills and the number of actual incidences, then they get skewed, almost like the roads did, by using percentages. So we almost have two different ways of measuring here and one chart. Also, if you look down there's a lot of black, and so it's a little bit hard to know what that means. There's some red, there's some green, but there's a lot of black. So on the top, like, say, for example, the drug violation, 100 percent. I mean, I'm sorry. Aggravated assault, 100 percent, in black, two people. But that should be in green, I think. So I think that maybe this particular chart, we could do some more analysis of it. But I don't' want to overreact to what this chart is saying percentagewise. Same goes with all those zeroes. If you add all those zeroes up, you're not going to get that 8.7 percent TOWN OF FOUNTAIN HILLS Page 58 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 58 of 94 number there at the bottom. So this is the kind of thing that -- what we're trying to do is not easy to do, which is drill down on what we're reading, what we're hearing and say no, this is the reality. There's one incident or two incidents. And I think we have to try and figure that out in a way that is exact, and we can't. I wanted to ask Amy to come up because she had given me -- I think, it had to do with what Hannah had asked about and then, go ahead after that, Gerry. ST. PETER: Mayor and council, thank you very much for the opportunity. I was going to point out too -- and it's tough with looking at the data to look at big percentages increases, but then it's going from one person to three people. So yes, it's important to really dive a little bit more deeply into those numbers. I did also want to comment though. We've had some really good and seen some really, really good progress being made with law enforcement, particularly when they're paired with nonprofit agencies. Because for law enforcement, they weren't hired to be social workers. Right? They're here to keep us safe and they do a very, very good job of doing just that. And so sometimes they're often the first point of contact with someone experiencing homelessness, which means that that's our first opportunity maybe to engage with them and to bring them into really lifechanging services and housing. But that doesn't mean that they have to be social workers in that process. And so we've seen some really good successes when we're pairing law enforcement, say with Community Bridges. We had talked about them before. It's a nonprofit. They have great services. They also have peer support. So it's people who have experienced homelessness themselves, and then, their employed to help other people experiencing homelessness, they can kind of speak their language, they can relate to them, they're very approachable, and they're very, very good at building that trust and building that rapport. And so Community Bridges is just one agency, it's one option. Phoenix Rescue Mission also has very, very good outreach teams. But when we compare law enforcement with nonprofit agencies who specialize and who are the social workers, then law enforcement can do what they need to be doing and the nonprofits can step in with the expertise and they provide that connection. And so that's a really, really good TOWN OF FOUNTAIN HILLS Page 59 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 59 of 94 strategy. Another strategy that we're seeing too, more so on a kind of, that carrot and stick. Is that sometimes when people experiencing homelessness have been charged with an offense, we have a regional community court system. And so, again, sometimes it can be tough to get people to engage in services. And so the community court can say, well, if you enter this say, treatment program or if you enter this shelter, then we'll drop these other charges. And it's kind of that extra leverage sometimes that's needed and that's very useful in getting people to engage. And also in helping them too, because the social service system is much more cost effective. It's much more affordable than the criminal justice system, for very good and valid reasons. We have to invest in public safety. But it gives us another avenue, another option to be able to work with people that isn't always available otherwise. And so we do have that regional community court system. Some communities have partnered with neighboring communities to set up a community court just for their participating communities. So there are a number of different options for that. As part of Pathways Home, our regional homelessness section plan for local and tribal governments, we did develop a toolkit for communities who are interested in that community court model. And we'd be happy to help provide any technical assistance around that. And we find that often, training is really critical to helping people to fully leverage all available options that could be at their disposal. And so any help that we can provide in connecting you with those resources and those training opportunities we'd be happy to do. MAYOR DICKEY: Thank you. Thank you. Gerry? FRIEDEL: A couple of points on your information, Larry. One, Fountain Hills doesn't really compare with Scottsdale and Gilbert. And two, a lot of these categories don't apply to a homeless person, like, auto issues and traffic violations, traffic citations, speeding, that kind of thing. So we could probably drill that down a lot more. But I do have a question. And this is dealing with performance metrics from these TOWN OF FOUNTAIN HILLS Page 60 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 60 of 94 agencies that we help support. Do you know, have we had any social worker from New Leaf or from Community Bridges or MAG come out and actually talk to the people that are in our town? KRATZER: Councilmember Friedel, I am understanding your points on some of the statistics there and that is the challenge with kind of coming up with some statistical comparisons with other towns. There's not a lot of towns that we can run comparable data to to say, okay, well, this town also has 24,000 people and looks like Fountain Hills or has the same dynamics. So that was probably the best crack at trying to find something that made sense. In terms of Community Bridges or some of the other nonprofits coming out, they haven't come out that I know of and rode with us or met with people. I do know, and I think this will lead perfectly into Tarryn coming up and just talking briefly. I don't want to take up too much time on the agenda with the other topics that need to be talked about. But we have taken individuals to Community Bridges. We have taken -- I don't know that we've taken anyone yet since the town has partnered with New Leaf. We've talked about some challenges with that that are different things. But Tarryn and our behavioral health co-responder program, since that's come onboard, and I want to say in around April; she can correct me if I'm wrong when she comes up. She's already outlined a bunch of resources, additional ones that we have. And I don't know that they're direct ones that the town has partnered with or pays money to. I don't know otherwise that works. But there are resources available to us that a lot of deputies didn't know that I didn't know that we can now call her in that program and they'll help us when we're out with somebody, find resources. So I do know we have taken people to Community Bridges. New Leaf, not so much. We visited New Leaf. My two lieutenants went there to see how that program could help with potential homeless issue in town and they met with some of the staff and sat down with them for a while and they learned a lot about what they offer, could offer. Some of the hurdles in just bringing something there or dropping them off, whether it was or wasn't an option. TOWN OF FOUNTAIN HILLS Page 61 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 61 of 94 FRIEDEL: And then I have two other questions -- this might be for staff. Do we have a littering fine or ordinance, right now? And what I'm thinking about is Denny's, Wells Fargo, and the medical center are three areas where there's an awful lot of littering; because you brought that up. I don't know if we've addressed that. Now, that's probably private property, but do we fine those businesses for that stuff sitting there? It's an eyesore to the town and it doesn't look good at all. And then the other question that I had is, does our current ordinance address camping in our parks? ARNSON: With respect to littering, we do have a litter ordinance in place. Certainly, no property owner can maintain a property in a condition that causes a nuisance, which is what we're looking at. So yes, those are on the books and those are readily enforceable. Councilman, your second question, I apologize, was? Oh, camping -- FRIEDEL: Camping in our parks. ARNSON: Yes. We do have that prohibition on the books in Chapter, I believe, 9 of our code. FRIEDEL: Thank you. MAYOR DICKEY: Well, thank you. Any other questions? Yeah, we'll have her come up and then we'll ask for -- SKILLICORN: Madam Mayor? MAYOR DICKEY: Oh, yes. Allen? Yes, Councilman? SKILLICORN: Madam Mayor? There we go. Yeah. I just had a question and both the Captain and our attorney might be able to comment on this. I've been asking by email, the last couple of days, about that situation where we have a town-owned park that's leased out. It sounds like, as of yesterday, attorney was saying that that is enforceable for the town but I still think there's a little bit of confusion there. What is the answer to that question? Can we enforce that or do we need the complainant to be the -- MAYOR DICKEY: Got it. Aaron's going to answer. ARNSON: Mayor and Councilman, I remember your question. And for a little bit of elaboration. The question had to do with a property that's town-owned property that's TOWN OF FOUNTAIN HILLS Page 62 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 62 of 94 leased to Kiwanis. Rachael, is that correct? Okay. So the answer that I gave yesterday was under the assumption that it was a town park and I've since been corrected by the interim town manager that it's not a park. So we're not dealing with prohibitions on overnight camping or sleeping in a park. Regardless, to the extent an individual is on the property that's leased by a private organization, we would need the individual to actually complain about that. That's the type of situation where if someone's trespassing on property that they're leasing and they want to remove that individual from the property, we need Kiwanis to do that. So I think that's the answer to the question. Rachael, do you have anything to add or Capt. Kratzer, do you have anything to add? Clerk’s Note: Mayor Dickey left the Dais at 7:46 p.m. and returned at 7:48 p.m. KRATZER: Thank you, Aaron. I did see the emails. I did respond to some of them. We view it as though it would be no different than a residence that someone owns and is leasing out or renting out to someone. That person would -- the homeowner would not be able to say I don't like who that tenant is bringing by, I want to trespass that person. It would be the person who is renting the home from them, who would have to make the decision that they didn't want this person on their property. So that's how we viewed it. And then some of the conversation, through email, that's what I took from it. And that was the last response. And Councilman Skillicorn, I do see how that was confusing because it was a little confusing for us as well. But I think in the end, it sounds like we've got some clear understanding of that and maybe we can -- I'll let the town manager decide how to communicate that back to you. But I think we have an answer now. SKILLICORN: And Madam Mayor, as a follow up, can we amend the lease to include an anticamping provision? ARNSON: Councilmember, the Mayor actually stepped out for a second. But in response to your question, I'll go ahead and look at that lease and see what it says. I don't have the lease handy in front of me. But can you amend a lease to say that you will prohibit camping? Not that I'm TOWN OF FOUNTAIN HILLS Page 63 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 63 of 94 independently aware of. I mean, I'm thinking about if I lease a property and decide to allow somebody, whether it's me or a family member or somebody, to stay on the property, I mean, unless they agreed to that in the terms of the lease then sure. But that would be really uncommon. WELDY: Madam Mayor, in regards to the particular property in question, by default I'm the town's landlord and I have read the lease in great detail. I have also reached out the lessee's representative, which is Sunset Kiwanis and I have left him a voicemail and asked that he contact me so we can discuss this in more depth. I will certainly report back to the town manger the results of that meeting after it takes place. MAYOR DICKEY: Okay. Thank you very much. Anything else, Allen? SKILLICORN: I think I'll wait for the attorney's presentation for any questions. But thank you so much. MAYOR DICKEY: Thank you. All right. We're ready. KRATZER: All right. MINGEY: Hi. MAYOR DICKEY: Hi. MINGEY: My name is Tarryn. Thank you so much, council, for having me. And for Capt. Kratzer for bringing me over. So I can speak a little bit about what MCSO is doing to kind of work towards meeting the members of your town about how, if they're in crisis, we're working on getting them connected to resources. So I am a licensed professional counselor. I've been working with Maricopa County Sheriff's Office in the jails and now on the patrol side. So we're working on getting deputies up to speed on what local resources are available to them when they're encountering individuals in crisis. With the goal of diverting people into mental health care, into substance use care, into housing services, rather than incarceration. TOWN OF FOUNTAIN HILLS Page 64 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 64 of 94 So what my role is, is to be kind of the expert in the field so that I can connect the deputies when, say, they encounter someone that is experiencing homelessness. What shelters are available, what's that's process like. What are the -- even though there are a lot of challenges with getting someone into housing, we want to be able to meet those requirements where they're at. So say someone's in crisis and they need mental health care, the deputies have lists of all the inpatient facilities that are available to them. They have lists of all the homeless shelters that available in Maricopa County, and we've also developed resources local to Fountain Hills for district 7 so that they know what foodbanks, what homeless shelters, what psychiatric emergency centers are available. So I think you guys have copies of those. Basically, deputies also have access to a resource line so they can call and receive consultation about any crisis that they're experiencing with members. And this is the goal, is to incorporate more of that mental health care and more of a trauma-informed approach when they're interacting with members of the public. So as Amy was saying, law enforcement is often encountering people in crisis but we are looking at incorporating for all of MCSO ways to connect people to services rather than incarcerate. MAYOR DICKEY: Any questions? Comments? No. So why don't we go to the cards? Thank you so much. There may be more questions coming. MENDENHALL: Okay. First we'll do the one written comment. It's at your station and Dianne E. Price is against it. But you probably should read her comment and what she means by that. And then we have our in-person comments. We have four speaker cards. The first up is Crystal Cavanaugh. And on deck is Liz Gildersleeve. CAVANAUGH: Well, let me just start by saying I'm going to be a little less warm and fuzzy with my words. And I think we have a quality life here and I'd like to just keep it that way. So I'm thinking a tight ordinance with consequences is needed to prevent TOWN OF FOUNTAIN HILLS Page 65 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 65 of 94 Fountain Hills from having zones with littering, loitering, and panhandling. If we actually designated littering as a crime, because I'm not really sure what it's designated as now, like some cities have, it could be useful. A stiff penalty of $500 for the first offense. A second offense, perhaps 2,000 or even 180 days in jail. Now, this might actually solve a few other problems. Whether you like it or not, being incarcerated can achieve effective rehabilitation results from addiction, even if just for a while. The person's no longer homeless. He gets meals, a place to sleep and hopefully, restricted from drugs. In those six months services can be set up to help the individual back on track. Just something to think about. In some locations, businesses and all private property owners get fined if they don't turn in the litterbugs on their property or if they don't clean it up themselves. Sounds harsh, right? But does it help the right this ship? As noted by many in Fountain Hills, the homeless issue definitely creates litter. Citizens can turn in the litterbugs. This provides a pathway to getting law enforcement involved. Same with loitering. Stiff fines for loitering are needed and businesses must discourage it too. If it is against the law then law enforcement can be involved and businesses have a place to turn. Right now, I think, some businesses feel they have no options. Still panhandling fines should be implemented for violations if that person does not have a business permit to operate. Not $50 permits, either. How about $250 permits to panhandle in Fountain Hills? Violators can then be given $500 fines for panhandling without a permit. Even though the U.S. Supreme Court previously ruled that panhandling is protected under free speech and it can't be outlawed outright, local municipalities should be able to set up their own ordinance listing specific guidelines: not being on medians for safety concerns, or on sidewalks, or too close to the curb near traffic, or within so many feet from specific locations. Those hanging out on the streets may need to be transported to existing services elsewhere for drug abuse or mental health issues. Fountain Hills, like we said, already contributes financially to some of these programs. Or some on the streets are actually fully capable humans that panhandle instead of TOWN OF FOUNTAIN HILLS Page 66 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 66 of 94 going to work each day, because it can be pretty lucrative in some areas and tax free. So next time any people around here, who feel like being compassionate, just don't do it. The cash you give that individual may go to buy a bottle of booze, cigarettes, lottery tickets, or drugs. Or consider, you may be getting scammed by an able-bodied person using sad signs, children, or pets. But you get to feel better about yourself for being a giver. Either way -- MAYOR DICKEY: Your time is up. CAVANAUGH: -- a tight ordinance will help Fountain Hills. MAYOR DICKEY: Time's up. CAVANAUGH: Okay. Thank you. Clerk’s Note: Vice Mayor McMahon left the Dais at 7:52 p.m. and returned at 7:55 p.m. GILDERSLEEVE: Good evening, everybody. Liz Gildersleeve, Fountain Hills resident. Thank you, all of you, for addressing Fountain Hills' need for a stronger ordinances tonight. My questions and comments center mostly though, around A New Leaf. Our town has done some promotion regarding A New Leaf to which Fountain Hills taxpayers have extended financial support of around $50,000. But it should be noted that there are many other agencies that also deal with homelessness, addiction counseling, job training, and housing. Agencies like Cast, East Valley Men's Shelter, Phoenix Rescue Mission, Thrive, Homeless Haven, Phoenix Dream Center, and New Mom; not to mention churches like St. Mary's and St. Vincent de Paul as well as countless governmental departments and agencies whose sole focus is supposed to be to help guide the vulnerable. So how is it that we have A New Leaf? Who chose A New Leaf for Fountain Hills? Because A New Leaf appears to be forming a quasi-partnership with Fountain Hills, I'm curious as to how the vulnerable in Fountain Hills, needing their services find out about them? Do counselor from A New Leaf proactively make contact with some of the individuals we see regularly at Shea and Saguaro, outside the Safeway, outside the Target, under picnic ramadas at the parks, even the makeshift homeless encampment TOWN OF FOUNTAIN HILLS Page 67 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 67 of 94 behind the middle school that occasionally pops up. Are they offered transport to the Mesa facility? How is A New Leaf being held accountable for the taxpayer dollars that they've received from Fountain Hills? I do believe that a strong ordinance, based on conduct is necessary and certainly not heartless. In fact, a strong ordinance would benefit the vulnerable as much as it would benefit residents and business owners. People experiencing crisis should be made aware of the many services and I'm actually quite pleased tonight, to learn from Capt. Kratzer that there's the woman -- the behavior health woman who does now assist MCSO. It appears, however, that A New Leaf is the answer, I'm guessing, simply because we've provided financial support to them. However, if anyone in crisis chooses to not avail themselves of services, they should not be enabled by being allowed to aggressively panhandle or erect makeshift housing that is in fact, the pressure point where I see this new ordinance or ordinances, as being proactive and a necessary tool to protect the town. Thank you. MENDENHALL: Next we have Barry Wolborsky and on deck, Kim Wolborsky. WOLBORSKY: That's wrong. She should go first. MENDENHALL: Your card was submitted first. B. WOLBORSKY: I'm Barry Wolborsky. I live here in Fountain Hills. And I just wanted to talk -- for 40 years I was a psychologist, licensed psychologist, PhD from the University of Washington. And my specialty was chemical dependency. And I noticed, when that chart was presented up there that less than 21 percent of those people were addicts and alcoholics. And I think that's really wonderful because that's about the same percentage in the population. so I guess, no more than that, huh? I would like to talk about statistics a little bit because I spent two years at the university teaching statistics. I would like to be your statistical evangelist if I could. Because I think that the Town of Fountain Hills is the statistical anti-Christ. Number one, thank you, Mayor, for pointing out that the difference was three people. TOWN OF FOUNTAIN HILLS Page 68 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 68 of 94 Small number statistics are meaningless. Okay? They mean nothing. They’re just random events. Number two, the work that was done to determine that those less than 21 percent were alcoholics and addicts was self-report. This city loves to do self-report surveys. They're meaningless. There are psychometric tests that can be given to tell whether somebody is an alcoholic or an addict or not. They're pretty reliable, in the high 90 percent. Self- report is pretty unreliable. Somebody comes up to somebody on the street that's loaded out of their minds and say, are you an addict? No, of course not. They're not going to admit that. I would like to know how they got the numbers on how many of those people were employed? Was that self-report also? Self-repot statistics are meaningless. Okay? What I see is people crafting things to make things look a certain way with statistics. There was prime minister of England named Benjamin Disraeli, and some of you might know what I'm going to say. He stood before the House of Commons and the House of Lords and he said there's three kinds of lies: lies, damn lies, and statistics. We're getting a lot of statistics here to try to prove a point but are meaningless. That's all I've got to say. K. WOLBORSKY: Hello, Madam Mayor, council, and Linda, and everyone else. I'm Kim Wolborsky and I'm a resident of Fountain Hills and I'm eternally grateful for that. I love this town. I'm so glad to have been welcomed here. I also take issue with Ms. St. Peters' statistics on the number of alcoholics that are in the homeless population. One of the main -- I have personal experience in my family with alcoholism and mental illness. I live a very comfortable, happy life now. I have a lot of information. I got a lot of information about that. I personally don't live in that disease, but I have seen it. I have experience with it. I have experience with not being wealthy. And I know what it's like to be on the edge of homelessness. It's not pretty. And I would like to commend you for the work that you're doing with the elderly and with single parents. I think that's important. I think some people do become homeless because of issues with medical and that kind of thing. But one of the main symptoms of TOWN OF FOUNTAIN HILLS Page 69 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 69 of 94 alcoholism, both in the alcoholic and in the family is denial. People don't think that they're alcoholics. They don't think that's the problem. They could be at death's door. They could be losing their liver and they don't think they're that bad. They think it's all these other things that were listed on the list. And I think -- so the words that came to mind were well-meaning and enabling. And I think in Fountain Hills we have to be really careful not to be enabling people who are addicts and alcoholics. My husband is a specialist in this field. He has two things he says that I love. Well, don't love, but I think are very accurate. He talks about people enabling people into the grave. Parents enabling their children into the grave. He also says, how do you know that addict is lying? His lips are moving. So that's all I have. And again, thank you for your time. MAYOR DICKEY: Thank you. MENDENHALL: That's it for public comment. MAYOR DICKEY: So further discussion with council? Or staff? Or anything to add? No? I think -- SKILLICORN: Madam Mayor? MAYOR DICKEY: Yes, Councilman, go ahead. SKILLICORN: Did the attorney have some sample language for us to consider passing? ARNSON: We do. I would be -- not here tonight. I know that based on the council's discussion, and some of the input we've received from the public, I think what we can do is take some of what's been done in some of our other municipalities, even one where MCSO is the law enforcement agency, and try to bring back a number of potential options for the council to adopt. Some of those may include prohibitions on blocking or loitering right of way. They may include expanding areas within which tents and structures can be located. There may be another couple of options that are included there and I think that will help the council to have a little bit of a firmer grasp on the types of ordinances we're dealing with. But that's what you'd be seeing, coming back to. TOWN OF FOUNTAIN HILLS Page 70 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 70 of 94 SKILLICORN: Madam Mayor, may I ask the attorney, in some emails that went out to council about both the Queen Creek ordinance and the Glendale ordinance -- ARNSON: I'm going to -- SKILLICORN: -- what's the difference in those. ARNSON: Sorry. Go ahead and finish. I don't want to intrude on anything that's privileged. That's' my only caution. SKILLICORN: Well, I am curious of what the difference is between the Queen Creek and Glendale ordinances? ARNSON: You mean the Queen Creek and Glendale ordinances that both regulate aggressive panhandling? Are those the two ordinances that you're referring to councilmember? SKILLICORN: Yes, that is correct. ARNSON: Sure. So Mayor and councilmember, I'm happy to pull them both up about the ordinances are fairly similar in nature, to my recollection. They both prohibit panhandling and try to regulate aggressive panhandling within certain locations, at bus stops, within a certain number of feet of ATM's. There are a number of other locations where they do that. Glendale's was a little bit more aggressive in that it was adopted around Superbowl time so I think they drew a bigger zone around the stadium and other areas in their downtown entertainment district. Sot that's probably the primary difference. Otherwise, they draw on the same language. SKILLICORN: Madam Mayor, if I just -- my one comment on this is -- and I thank you for bringing in speakers, very informative. But I just have to say and I think this is what the people of our town are trying to say, is that these soft on crime policies, like Portland, and Seattle, Phoenix, California have, just have not worked. Taxpayers spent millions and millions, and probably millions more, and these issues have only gotten worse. Of the money you spend have not made things better. With all this money that we spent; we could have bought homes for these people. You know, a moment ago, I said that these policies haven't worked. No, I misspoke. These soft-on-crime policies have been a colossal failure. If we had a housefire, the first TOWN OF FOUNTAIN HILLS Page 71 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 71 of 94 thing we would do is put it out. Then we would research why. And today, we need to put out this fire. So I have two motions that I want to make. The first one is going to be an ordinance banning standing in one place or sitting on the median. Actually, I should restate that. Ban on standing in one place or sitting on any median for any road with a speed limit higher than 35 miles -- or 35 miles an hour or higher. MAYOR DICKEY: So Allen, we're not -- you can make that for future consideration but this isn't an action item tonight. So -- SKILLICORN: Well, Madam Mayor, this is on the agenda. It is agendized. I believe it is completely in order to make a motion to propose a specific language for an ordinance. MAYOR DICKEY: Okay. Hold on a second. Aaron? ARNSON: Yeah. So Mayor and councilmember, it's not agendized for action. That said, the whole idea is to take direction from the council just not in a formal motion fashion. So if there's a collective direction from the council to pursue those types of ordinances which would be included in that list of what I discussed earlier, we're happy to bring that forward. SKILLICORN: So kind of a point of order here, is that council has specifically changed roles so items like this could be put on the agenda. And this motion was made months ago. Why wouldn't this be an actual action order? It actually seems like this is a violation of council rules to have it as something that we cannot make a motion and actually pass an ordinance on. MAYOR DICKEY: Well, we often have items that we don't take action on but if you want to make a motion and Aaron says it's okay that you do, then it's okay with me. ARNSON: Yeah. MAYOR DICKEY: I mean, it says suggested motion here, motion to direct staff to take steps. So -- ARNSON: Oh, okay. If it has -- MAYOR DICKEY: If you want to direct -- TOWN OF FOUNTAIN HILLS Page 72 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 72 of 94 ARNSON: -- language for a suggested motion, great. Let me scroll down and find it. "Move to direct staff to take appropriate steps as identified". Good. Okay. Sorry. I thought this was a discussion only. If you want to move to direct staff to do X, Y, and Z, it's agendized that way, that's great. MAYOR DICKEY: Yeah. SKILLICORN: So Madam Mayor, I would love -- MAYOR DICKEY: Would you restate -- SKILLICORN: Yeah. Absolutely. I would love to make a motion to direct staff to draft an ordinance -- actually, two ordinances. The first one would be on standing in one place or sitting on any median for any road with a speed limit of 35 miles per hour or higher. That would be my first motion. MAYOR DICKEY: Is there a second? TOTH: Second. FRIEDEL: Second. MAYOR DICKEY: Okay. So there's a motion and second. That says that no person at all whatever their status, cannot be on the median of a street that has a 35 mile an hour speed limit and they can't be on the curb? Was that correct? SKILLICORN: Madam Mayor, I think, the intent of this is that someone is not loitering in one place. So if a town employee was doing landscaping or a contractor or something, that's fine. They're doing something that they need to be there for. But if someone is literally just loitering on a median on a higher speed road, that would be a safety hazard. That's a different situation. And if they're not supposed to be doing something there, they could definitely be a safety issue and that's what the intent would be. MAYOR DICKEY: So Saguaro Boulevard is a 35 mile and we have one crosswalk that's not in an intersection. So whatever we decide to pass applies to every single person. SKILLICORN: Madam Mayor, in response to that, I think the intent is not someone that is going across the crosswalk but again, someone that is stationary or sitting. They're -- I mean, if someone is taking the crosswalk and waiting for a car, I don't think that would be considered loitering, and that wouldn't be the intent of what I'm asking for either. TOWN OF FOUNTAIN HILLS Page 73 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 73 of 94 MAYOR DICKEY: Vice Mayor? MCMAHON: It sounds to me like you're trying to target homeless people. I think that, while I appreciate what you're; saying, it's so broad I don't even know how it would be enforceable. I just don't think it would be enforceable. It's way too broad. How can even put that in an ordinance? MAYOR DICKEY: Aaron? ARNSON: Mayor and councilmember, let's direct staff to do what we need to do and we'll bring something back. See what happens. TOTH: So my understanding of the motion is for someone loitering in a median for an extended period of time, not just trying to cross the street or something. And the reason that I seconded this motion is because this is a safety issue I've actually brought up in the past in medians with Rachael or with Grady before. This is a safety issue. If we have individuals that are loitering in the median, there's a very high potential for them to be interfering with traffic and that could be injury to them. That could opening up to collisions. That is something that I have spoken about in the past and I think is a valid concern. This isn't something that's attacking someone based off status. In some ways, it's actually looking out for their safety as well. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: I feel like this deserves more thought. So I'm trying to place myself in those situations where I would be standing on the median or what have you. A lot of conversation happens when you're walking down the street, down the sidewalk. What happens on parade day? What happens: the developer can't put a sign out on the side of Shea, so he usually hires somebody to stand and spin the sign or whatever. So I understand the concept, but I'm a little concerned that this is so blatant against one particular kind of person that I don't like something that is not -- it's too subjective. Oh, we won't worry about the sign guy because he's holding the sign and he's helping our developer make money. How is -- I just -- I have a problem with that. I just see issues. I mean, I'm going to have to rely on Aaron for that. ARNSON: Well, I think you raise a decent point. We have to make it facially neutral and TOWN OF FOUNTAIN HILLS Page 74 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 74 of 94 apply it neutrally and that's the best we can do with that type of an ordinance, right? And that's the best answer that I could give, right now. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Although I find myself in some agreement with time, place, and manner restrictions, I think that the ordinance that Allen's proposing doesn't pass constitutional muster. I think we have to protect our town, first and foremost from lawsuits. There's a gentleman that's in our town right now and he has very offensive signs that he holds up. And he goes all over the town. I think we're all familiar with people that live here. He may be the smartest person in Fountain Hills, because I think he's trolling, okay, for an illegal arrest where he'll be richer than Bart Shea, eventually. We have to watch out for that. I've done a great deal of legal research on what we're discussing tonight and we have to proceed with great caution. And I don't think that coming up with an ordinance in a quick fashion, that hasn't been really reasoned out with our legal team is not going to bode well for us. So I would not be for this ordinance tonight. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Mayor. This will be my last comment on the topic. First of all, once again, this is a safety concern. I wholeheartedly disagree with the comments of my fellow councilwomen. However, I do understand the concerns that were brought up by Councilwoman Grzybowski. When we talk about special events, like that Thanksgiving Day parade, maybe staff can say except for special events days where it's kind of obvious people are going to be hanging out in the median. I'm sure that staff is fully capable of organizing this in a way that is facially neutral. That understands that there's going to be the Thanksgiving Day parade or other things where the majority of the town is out on a median. Aside from special event circumstances, I personally am not aware of an instance that I have just hung out in a street median. However, I can understand maybe a concern of well, this is going to apply to people that are potentially well-meaning. But that's where TOWN OF FOUNTAIN HILLS Page 75 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 75 of 94 we talk about that wonderful part of law enforcement where there's human consideration there. I'm not saying that someone standing in a median needs to be thrown in jail. I'm just saying, hey, this is against a town ordinance. This is potentially a safety risk for you. Get out of the median. And then, if they don't, then we have a conversation about punishment. But from there, there's other issues. So at risk of rambling on this topic too much, I want to very clearly clarify that this is primarily a safety concern and then, secondarily, trying to prevent other issues from arising from that point. FRIEDEL: I think we all need to remember we're just -- SKILLICORN: Madam Mayor? MAYOR DICKEY: Hold on, Allen. I mean, yeah. Gerry’s going to speak first, thanks. FRIEDEL: I think we all need to remember that we’re just here tonight to give direction to the staff. They’ll bring something back and then we can chew on it. So we’re not passing an ordinance tonight. We’re just giving staff direction. So I think they’ve got it. I think they’ve got the safety issue and that should be addressed when they bring it back. MAYOR DICKEY: Thank you. I agree with that. The idea of whatever can be across the board and safety median wise. Allen, you said you had another – well, you had something to say and then you had another suggestion? SKILLICORN: Yeah. Thank you, Madam Mayor. Yeah, my only comment on that is that I specifically said median and not the right of way. I know that there are some issues. I think, legally you probably can stand on the right of way and that is legal. There’s some places that say that it’s not because the right of way is usually moving, not just kind of blocking or loitering. But I specifically used the word median, because that is not the part of the right of way. That’s not some place that is normally someplace you’re traveling or walking and such. And that’s why it is a safety issue. And you are right there next to traffic. So thank you, Madam Mayor. I don’t know if we need to have a vote for this or this is TOWN OF FOUNTAIN HILLS Page 76 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 76 of 94 just a direction for staff? MAYOR DICKEY: I think that would be great, Allen, because I think we can come up with something that would absolutely address median safety. Right? Okay. Did you have another separate item, though, Allen? SKILLICORN: Yes, Madam Mayor. And actually, I wanted to direct staff to give us an opportunity to vote on word for word Glendale's ordinance. If we want to amend that during the meeting, or with discussion, that's fine. But I want to have an opportunity to actually vote on and discuss the Glendale aggressive panhandling ordinance. MAYOR DICKEY: So I know that we had a confidential memo on that. And I would not want to do that right now. I'm not prepared to go line by line with the Glendale ordinance, because there are issues with that. But I think it's along the same lines of giving direction to where we want to go. Where some of us might want to go. Because there were definitely parts of that that did not pass legal muster. But I don't feel prepared to go line by line now and determine that ourselves. Brenda? KALIVIANAKIS: Thank you, Ms. Mayor. As far as guidance is concerned, Aaron, I know it's been held by the Supreme Court that panhandling for charity is protected speech. If we went down the road of commerce, being that these people are -- it's like job. It's like a paycheck, could we regulate this as commerce? So the First Amendment protections wouldn't be so stringent? ARNSON: Mayor and Councilwoman, there are cases that deal with that. The results from those cases are mixed. I think you have a more reasonable chance of success with that type of a regulation. So if that's the path that council's going to go down collectively, I would encourage exploring an avenue like that as opposed to a strict panhandling prohibition. Which, frankly, has not -- there has not been a single panhandling ordinance that survived constitutional muster since -- constitutional scrutiny rather since Reed v. Town of Gilbert. They don't pass constitutional smell test anymore. So if we went down that direction, I would encourage the council to go the direction that Councilwoman Kalivianakis is suggesting. TOWN OF FOUNTAIN HILLS Page 77 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 77 of 94 KALIVIANAKIS: Yeah. Thank you, Aaron. And I've discussed with Councilman Friedel, possibly getting a permit. And this was Gerry's idea. Or some kind of medallion that they could establish, they could apply for a permit. They could take a training video. Maybe wear a safety vest and then, since it is going to be commerce, again, time, place, and manner regulations, I think, would kick in. And then we could control something that otherwise we couldn't if we just -- again, and Hannah's concern about safety is paramount. We're doing it because we want to keep everybody safe. And I also think it would not be a bad idea for us to have some kind of a ad hoc committee to study the safety implications of our ordinance. I think that that would be reasonable. So it's just less of what we think and we could point to a study or we could point to people that have researched this and how this is going to make Fountain Hills a safer place to live. ARNSON: Mayor and council, without getting too deep into to prolong the discussion, the cases where those loitering or standing in the median ordinances have survived have relied on the data and not on the more nebulous ideas of what places are safe and what aren't. So I would also encourage the council to go that direction. But ultimately, we've received -- we'll take whatever direction we're given tonight. SKILLICORN: Madam Mayor? MAYOR DICKEY: Yes, Allen? SKILLICORN: Thank you for the time. One item that I'd like to address is that Reed v. Gilbert, that decision was made in 2015. And the makeup of the Supreme Court is quite different now. We could probably expect a very different ruling. Now, I'm not suggesting that we want our town to be a test case and go all the way to the Supreme Court, even though I'm sure Aaron would love to argue in front of the Supreme Court on our behalf. But that's not my intention. I don't think that that's necessary. But I do think we should realize that, is that the nature of the Supreme Court has changed the -- what is constitutional, what is not. Even though it will (indiscernible) ruling would be binding until another court says otherwise. I think it is not unfair to say that we can have something that will protect our town from a situation. And also we take the legal advice for granted, but it is the council's job to actually craft the policy. TOWN OF FOUNTAIN HILLS Page 78 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 78 of 94 That's why I would argue for this type of ordinance. I'd like to -- I think we go with what Glendale has word for word and then we can make some changes here and there to fit our town. But I think we want to have a strong solution to this problem. Because again, our house is on fire right now and we need to put out the fire. GRZYBOWSKI: I'm sorry. I don't understand, "our house is on fire". I don't get that. I don't think it's a great analogy. I think it's very short-sighted. I -- yes, we have homeless people. When you leave Fountain Hills, there's a hell of a lot more. If you look at the -- sorry, statistics. As a country, we average 18 homeless per 10,000 people. Arizona as a whole is at 18.42 percent, and that's according to USAFacts.org. I just I don't see that our house is on fire. I don't understand that analogy. I'm sorry. I just had to say something. MAYOR DICKEY: Thank you. And I also -- it's not a sudden thing at all. We talked about Kiwanis earlier. Talked about the state trust land. These things have been status quo for a couple of years. I don't understand all of a sudden, now, it's like this house on fire situation. The people at Sunset Kiwanis, if they're not pursuing it, it's because it's been -- like I say, this is not new. And yes, we want people safe. Yes, we want most people to get what they need to get back on their feet. But we're getting both stories here. Let's put them in jail, I mean, that will help them get out of drugs. But we don't want to put them in New Leaf or any other place. So we don't want to pay for that. But we certainly don't want them here. So okay. This is just a very complex situation that a lot of cities are going through. We have that much of it here. We're trying to address it. Tonight was to move forward so that we come back with something legal, reasonable, safe, respectful of everybody. And that's the intention of this tonight. Not to tell people to go to jail or that we wish they were having their interactions with law enforcement. I mean, if they are a bigger percentage that are on drugs or alcohol, then that needs to be addressed on that level. And it sounds to me like Capt. Kratzer and -- I'm sorry, Tarryn, are on the right track there. I mean these generalizations that none of these things are working, that MAG's been doing that, all these mayors have all -- of all parties TOWN OF FOUNTAIN HILLS Page 79 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 79 of 94 and all feelings about this issue, come together and realize that it's not black and white. It's not easy to fix. So I'm not in favor of going for Glendale after we have memos telling us exactly how that's not going to work. I don't want to be in the public eye as the town that took the stand and went to the Supreme Court. We have Reed v. Town of Gilbert. That's what we have right now. That's what exists. Anything that we enact is for everybody in this town, as it should be. Yes, ma'am? MCMAHON: We sit here in the public talking about this. We're talking about homelessness and now we're talking about an ordinance based on safety. Which it's obvious to me, that you're targeting homeless people. We may have a couple of homeless people in town. I think one of the statistics that Amy said today is per 25,000 people there's 27. I think we might have three or four, et cetera. I don't' think it's out of hand. I don't appreciate what I'm going to say. I think it's the mob mentality reaction to this. I think if we really want to look at our ordinances about washes, et cetera, that's more realistic than sitting here pretending like we're not talking about homelessness and then enacting an ordinance to prevent them from being in Fountain Hills. There's no gate to the city here. Anybody can come in and out of our town. And I don't know how, realistically, we're going to sit here and stop people who might be unsheltered from coming into our town. I think it's unrealistic. GOODWIN: Mayor, if I can -- there's been a lot of discussion and I just want to make sure. I've been taking a lot of notes. But at this point -- FRIEDEL: Vast amounts. Copious. GOODWIN: Copious amounts, indeed. And I do want to try to bookend where -- and I realize this conversation has sort of meandered. But staff is willing to take a start of drafting something. Again, it is a draft so that it is reviewable. It is editable. It is a draft so that the council can use it as a starting point. It can be word smithed from there. It can be, again, addressed but we'll use, as our guiding tools is the idea of safety and a commerce oriented, as I heard you say, commerce oriented approach. And then if we TOWN OF FOUNTAIN HILLS Page 80 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 80 of 94 can work towards, if an ad hoc committee is the right tool to use to create that data point. I also think we need to include MCSO in this conversation and what they've had success implementing in terms of enforcement and things like that. Because ultimately, whatever we do draft and adopt, they're going to be that enforcement arm for us, so they need to be part of that conversation too. So what I'm hearing is the direction to staff to start on this process. We'll be bringing it back again as a draft for future consideration. Does that sound accurate to everyone? Okay. Great. MAYOR DICKEY: Thank you. Any other comments? Our next item is a consideration of reviewing and possible direction to the staff on sign code ordinance. John, thank you. WESLEY: Just a second here, Mayor. MCMAHON: Thank you, Amy, for coming. WESLEY: Okay. Mayor and council, good to see you this evening. Just a very quick background here. February 9th, the council reinstated the sign ordinance. During discussion of that there was also discussion about relaxed enforcement of the sign regulations with regard to temporary signs. Based on the discussion and the motion at the council meeting, the staff initially did not enforce any rules with regard to temporary signs but over time we had started to pick up some of the enforcement. First of all, with some of the sign types that really weren't allowed in the ordinance. And then, based on some issues that came up with regard to certain yard signs, sometimes to abandoned signs, we started more enforcement there. But because we can't really single out one sign versus another based on message, it really turned into all yard signs and directional signs. The motion that was made at the council meeting was not entirely clear and so we're back this evening seeking, kind of, further direction now that we've had several months of trying not to enforce it or enforce it on a more limited basis. Just also as a note, the TOWN OF FOUNTAIN HILLS Page 81 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 81 of 94 P&Z commission is still reviewing an update to the sign ordinance. We had a good discussion at their meeting this month. They gave me several things to work on, given some of the vacations and such that the commission members are taking we weren't really going to have another full commission meeting until September. So there won't be any further action by the P&Z commission until September. So it will be several months past that before we can get it to council. So given that's the reason we're back here this evening to make sure we're enforcing the regulations as the council would really like. So we've listed here some options, from one end to the other end of extremes. So one would be to clearly direct the enforcement of the type that you want to have starting with basically, no enforcement. So make it clear you really don't want us to enforce any sign regulations. And then from there there's some steps in-between where we could have limited enforcement based on some of the characteristics, the type of sign, the location of signs, or material of signs. But again we can't really regulate based on message. Or we could go back to full enforcement of the sign ordinance with regard to temporary signs. MAYOR DICKEY: Thank you. Do we have any speaker cards on this item? MENDENHALL: No, Mayor, we do not. MAYOR DICKEY: Thank you. Councilwoman? TOTH: John, if you could clarify for me? Your first slide mentioned that the council's motion was unclear. I remember the motion being extremely clear that temporary signs were not to be enforced. We were then kind of announced to that there'd be some enforcement. And I think that's where there's been some confusion and I have to be honest, I predicted -- part of the reason I voted against reinstating in the first place was because I knew this would end up on an agenda soon. So frankly, I'm a little insulted that we're trying to just put the sign ordinance back in as it is without something ready to put in as the changes that we suggested. I'm a no vote on any of this. But I just want to ask you, specifically, John -- I apologize TOWN OF FOUNTAIN HILLS Page 82 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 82 of 94 for getting ahead of myself. But specifically, what was the confusion with the council's motion on temporary signs? WESLEY: Mayor, Councilmember, I went back and relistened to the full meeting to make sure I understood what we were to enforce or not. There's a lot of debate back and forth about what the motion meant and what was really covered in the motion. And I couldn't get, really 100 percent clear, understanding of what the council really meant with the motion. And again, so we started with the idea, okay, then we really aren't enforcing anything with regard to any temporary signs. But again, from then, as some situations have occurred, we've been asked to enforce some pieces of it. TOTH: Thank you, John. I have a follow up to that. The kind of announcement that we received that there would be some enforcement on temporary signs after the motion and vote to not enforce temporary signs, how did that come about and why was that not required to be a vote? The email was pretty much just letting us know that that would happen. GOODWIN: I'm happy to chime in on that one. At this point, we're getting challenged as to -- we have an ordinance. Why are we not enforcing it? And that leaves staff in a very grey area of, if we have an ordinance we have a responsibility to enforce it. So in conversation the area that we're getting the most complaints about at the temporary signs are about signage. And to John's point, and to the confusion of the last meeting, there was lot of discussion about not just the type of sign but the material the sign was being use -- or the material that was being used and what was considered durable and what was considered not. And are cardboard yard sale signs okay? Yes, they are; no, they're not. Well, I don't think they should be. There is a lot of discussion in there and it definitely leaves staff in a no-win situation in that regard. So we took the most common complaint that we're having. We just said, let's start talking about how we can use this. And at the end of the day, we're going into a summer break where we need to have some clarity if we're going to enforce everything, if we're going to enforce nothing, or if we're going to enforce something in-between. We'd like to make sure that we are on that same page with you guys. TOWN OF FOUNTAIN HILLS Page 83 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 83 of 94 TOTH: Sure. So -- sorry. One more time. That meeting where we had plenty of discussion, that was regarding the new sign ordinance; is that correct? The changes that we're going to make. Because the last time that we voted on this current ordinance, there was a vote where we said no enforcement of temporary signs but we'll bring it back. And then, from there, we discussed changes for a new ordinance. So is that where the confusion is? Is the discussion for the new ordinance, rather than how we're enforcing this current one? WESLEY: Mayor, Councilmember Toth. No. It's with the discussion that happened on February the 9th, to reinstate the ordinance. TOTH: Okay. WESLEY: There was lots of discussion there that left the motion unclear in my mind. TOTH: okay. Thank you, John. So in that case I would suggest that we go off of the vote that occurred. There was a majority vote for bringing the ordinance back but with no enforcement of temporary signage, so. MAYOR DICKEY: The suggestion of -- well, when we repealed it and then we realized that was not something we should have done, was not a legal action. So we reinstated it in February and there was some discussion about what the signs could be made out of and such, because we realized that by not enforcing anything, we left ourselves open. And it was a little hard to figure out what we -- where we landed on that. As far as the rest of that decision, the original decision to repeal it, was with an understanding that we were going to get this reformulated sign ordinance back in like a month. So we were like, okay, when's planning and zoning meeting? We have to have 15 days of a hearing. So this whole time frame was very, very short. So then we reinstated it and said okay, we're going to get this thing back right away. Well, they've discussed it a few times. And I don't blame them. I mean, I watched a little bit of the last meeting and Commissioner was there and I appreciated your comments and such, to know that they weren't going to get anywhere as far as like TOWN OF FOUNTAIN HILLS Page 84 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 84 of 94 coming forward that night. Besides it was on the 12th, so it was too late for us anyway. So now that it's going to be September, we find ourselves in the position of tether signs, box signs, signs on boxes, and election is going to be in -- we have center district and a bond election. We have for rent signs with no vacancy strapped across them. We have sidewalks being blocked. We have multiple signs in a row. So it's proliferating. You just sent us this memorandum from last December, so you can pretty much say it wasn't an election anymore. You had 88 sign activities. Whether they were removed or returned. And now we have zero, of course, or we started to pick up a little bit because of the decision to do a little bit. So 88 much more before that, but that was an election, so I want to be fair and not use that. But this is the road we're on and we've got June, July, August, September. So by the time we get one back here, we're going to have a lot of months of no enforcement of temporary signs. And so it's not an insult to bring it back. It wasn't meant to be an insult to bring it back. What it was, was to clarify where are we right now and when these signs start coming for November, what are going to be? We're going to start seeing them on Shea again. We're going to start seeing them in medians again, which we already have; and all these other violations. And I don't think we want to look at that for the next six months. Councilwoman? KALIVIANAKIS: Thank you, Ms. -- SKILLICORN: Madam Mayor? MAYOR DICKEY: Hold on. Brenda's going first. KALIVIANAKIS: Okay. Thank you, Allen. I'll be brief. Yeah, I do recall that. I think our message was fairly clear to staff at the time. And so I do concur with Hannah. On the other hand, since then, and speaking with our town manager and with town staff, I'm convinced in good faith that there was a lack of guidance that, at least, they received. And so I think it's tricky. We thought that the message was conveyed properly, and I don't think at this point, it was. Because I've heard too many complaints from staff to say we don't have any guidance on this. I live here and I've noticed a proliferation of a lot of signs that we originally thought TOWN OF FOUNTAIN HILLS Page 85 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 85 of 94 about the proliferation of, and it was distressing. And so I specifically remember what the Mayor said that this is going to take a month or two, it will go through planning and zoning, it's going to get bumped up here. We're going to have a new sign ordinance. And now it's languishing. It's going to be in September now before it's done. I've sat in on the planning and zoning or watched them on YouTube and it's a very slow, tedious process, of them trying to cobble together our new sign ordinance. I'm okay with instructing the staff to resume the full sign ordinance enforcement as of tonight. With the only adjustment or amendment to that would be, I would like for it to be to a time certain. A shot clock, if you will, that we would reinstate the sign ordinance until probably, maybe November? On the second meeting of November. That would give planning and zoning a chance to take a look at it in September, possibly kick it back to council and then we can have a vote on it at that time. If we need additional time, we could also just bump it to January and do a second extension. So what I would like to do is move to instruct staff to resume the full sign code enforcement up until a date certain, that date to be determined tonight by council. MAYOR DICKEY: Thank you. I would -- I mean, do I have a second? GRZYBOWSKI: I second. MAYOR DICKEY: Okay. Councilman Skillicorn? SKILLICORN: Thank you, Madam Mayor. I distinctly remember that February meeting is that there was a compromise made. And who knew that signs would be so controversial. But that compromise that was made was to allow us to have an ordinance but not have enforcement. And I still think that was clear. So I have a contrary motion is to table this until we have something from planning and zoning that we can work on. MAYOR DICKEY: I know we have a motion and a second on the floor. ARNSON: I'm checking. MAYOR DICKEY: We're checking. ARNSON: Okay. Thanks for your patience, Mayor and council. I was making sure we handle this correctly. So I'm looking at Rule 6.6(c)(2) of our council rules of procedure TOWN OF FOUNTAIN HILLS Page 86 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 86 of 94 which govern precedence of motions. We have a motion and a second on the table. Under Section (c)(c)2, motions to table are postponed to a certain date and time take precedence over the main motion. Did we get a second on the motion to table though? That's the question. Okay. FRIEDEL: I'll second that. ARNSON: So then that would -- so then we would vote on the motion to table first. And so if you want to table, vote yes. If you don't want to table, vote no. And then, if that motion fails, we will proceed to vote on Councilwoman Kalivianakis' motion. That make sense? MAYOR DICKEY: Yes. ARNSON: We're voting on the motion to table. MAYOR DICKEY: There's a motion to table on the floor. Roll call, please? MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: No. MENDENHALL: Councilmember Friedel? FRIEDEL: Yes. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: No. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Yes, to table. MENDENHALL: Councilmember Toth? TOTH: Yes. MENDENHALL: Vice Mayor McMahon? MCMAHON: No. MENDENHALL: Mayor Dickey? MAYOR DICKEY: No. MENDENHALL: It fails. Four to three. MAYOR DICKEY: So we have a motion on the table to enforce the ordinance -- full enforcement of ordinance on temporary signs until our second -- TOWN OF FOUNTAIN HILLS Page 87 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 87 of 94 KALIVIANAKIS: Second meeting in November. MAYOR DICKEY: How about -- FRIEDEL: It's too long. MAYOR DICKEY: How about the first meeting in November? FRIEDEL: That would be better. MAYOR DICKEY: Because I'm not sure about our second meeting because of Thanksgiving things. FRIEDEL: I still think that's too long. Why can't we do it in October? GRZYBOWSKI: Well, I think the key is, John, is that going to give planning and zoning enough time? I mean, that's the key. We need them before we can do our job. WESLEY: Mayor and council, we'll be back to P&Z in September with revisions to the ordinance as they've been looking at it. If they would approve it that night, then we could have it at your second meeting in October. If they're still not ready to approve it, then we go to your next meeting in October and keep going till they're ready to take action. MAYOR DICKEY: I think we're fine with what you said. KALIVIANAKIS: Thank you, Ms. Mayor. I think that if planning and zoning bumped it up in September and then we were to vote on it in October, it would replace that one that we're resuming tonight. It would, by necessity, it would obviate the need for this old sign ordinance to be applied. The new sign ordinance would then go into effect. MAYOR DICKEY: So in other words, if she still keeps it on the first meeting in November, if we got it sooner, we can always do it. KALIVIANAKIS: Right. MAYOR DICKEY: Yeah. There's a motion on the floor. MCMAHON: Second. MAYOR DICKEY: And a second for full enforcement of the ordinance of temporary signs until our first meeting in November. We have a motion and a second. Can we have a roll call, please? TOWN OF FOUNTAIN HILLS Page 88 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 88 of 94 MENDENHALL: Councilmember Toth? TOTH: Madam Mayor, may I explain my vote? MAYOR DICKEY: Sure. TOTH: Thank you. I'll be brief. I ran on changing the sign ordinance. I understand that it's taking longer than necessary. But as Councilman Skillicorn pointed out, we had made an agreement in that last meeting and I voted against that because I predicted this exact moment. And I have a couple of Councilmen that are aware of that as well. I knew this would happen. My vote is no. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: No. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: No. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you all. MENDENHALL: It passes. MAYOR DICKEY: Motion passes. Our next item is a public hearing. I shall open the public hearing and talk about a zoning change. Hi. TAVASSOLI: Madam Mayor, just give me just a second. Madam Mayor, members of the council, what you have before you is a rezone request for little over eight-tenths of an acre, dual-zone property in the Firerock subdivision. The proposal is to rezone it from R1-35H, which is a single family residential and OSR to TOWN OF FOUNTAIN HILLS Page 89 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 89 of 94 a uniform R1-35H, uniformly zoned property. So the property which I'll just go ahead and show you here on the next slide is a little over 37,000 square feet. It's one parcel. It was actually replatted late last year. The vast majority of it about 20,000 acres or so is -- I beg your pardon. More like 30,000 acres -- or square feet, pardon me. It's a little late. Is zoned R1-35H and about 7,700 acres is zoned OSR, or open space reserve. So what the applicant again, is proposing a uniform zoning, R1-35H. Now you may ask what is the purpose of this rezoning? The applicant wishes to make an addition to the existing primary residence that's on the property. However, with the previous lot configuration those additions would have bust the 20 percent lot coverage limit. So what the applicant did with the agreement from the Firerock HOA, is to basically transfer a portion of the Firerock Country Club's property to the owner of the lot, so that basically it was an expansion of the lot at 37,000 square feet. So the recommendation before you from staff as well as the planning and zoning commission is to approve the zone change request to create a uniformly zoned R1-35H zone parcel, which would allow the applicant to make additions without exceeding the lot coverage limit. And with that, I'll open it up to questions. The applicant is here, waiting patiently, I might add. And I'll turn it back to you. FRIEDEL: Question for you. Did Firerock just give him that land? TAVASSOLI: Madam Mayor, Councilmember Friedel, I'm not sure exactly what the arrangement was but I don't think it was just a simply -- FRIEDEL: It wasn't just a donation? TAVASSOLI: Yeah. FRIEDEL: Okay. MAYOR DICKEY: Do we have any speaker cards? I'm sorry. MCMAHON: This is just for a private residence, correct? TAVASSOLI: Correct. MCMAHON: Okay. Thank you. MENDENHALL: No, Mayor. We don't. TOWN OF FOUNTAIN HILLS Page 90 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 90 of 94 MAYOR DICKEY: Thank you. Okay. Any other comments or questions? GRZYBOWSKI: I'd like to make a motion. MAYOR DICKEY: I want to close the hearing. GRZYBOWSKI: Oh, sorry. MAYOR DICKEY: I remembered this time. Now, make a motion. GRZYBOWSKI: Move to adopt ordinance 2308? TOTH: Second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Kalivianakis? TOTH: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Yes. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Vice Mayor McMahon? MCMAHON: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our next item is to change the name of the -- how should I say it? The Historic and Cultural Advisory Commission. Who's doing this one? Rachael? GOODWIN: Yep. I can take this one. The commission was founded, I want to say the first of the year, give or take. And at the inception of the commission a number of the commissioners wanted to reevaluate the TOWN OF FOUNTAIN HILLS Page 91 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 91 of 94 name because it is in a resolution, it does require council direction and approval to do so. Again, I think they take exception with the -- creating a grammatically correct commission title. And actually, I think what they would prefer, and I could be wrong, and I believe we have a comment card on it. Is they would prefer the Historic and Culture commission? MCMAHON: No, history. MAYOR DICKEY: No, history. GOODWIN: History and culture. GRZYBOWSKI: History and Culture. GOODWIN: See that's why you shouldn't ask me this, why I should read something. GRZYBOWSKI: History and Culture. GOODWIN: History and Culture Advisory Commission. So it still keeps the same initials, it's just a semantics tweak. MAYOR DICKEY: Thank you. Do we have any speaker cards? MENDENHALL: Yes, Mayor, we do. But they're -- it's just written comments and you have one from Dianne Price. She's for the name change, but she's the one who points out that it should be History and Culture. And then Rory Wilson is for the name change. MAYOR DICKEY: Thank you. Any further discussion? Can I get a motion? TOTH: Not discussion. Just a motion. Everybody can let out their breath. In that case, I move to change the name of the commission to the History and Culture Commission as per Ms. Price's comment. FRIEDEL: Second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Okay. Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS Page 92 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 92 of 94 SKILLICORN: Yes. 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. Thank you. So our last regular item is relating to the legislative -- the Leagues Legislative Bulletin. I want to thank everybody for reporting from their policy committees. I look forward to see what moves forward. I do have some things to say. So there are 162 bills that have been signed into law. They adjourned last Monday and will reconvene July 31st. they were off for about five weeks earlier until June 12th. And I know people have been asking this and they do get paid their per diem. And the bills will not become law now in a timely manner because the effective date for legislation is 90 days post sine die. And they won't be back until July 31st. Last week, two league resolutions did pass the legislature with strong bipartisan majority. So what you're doing now is formulating that for next year. Lawmakers debated the 1246, which is the election for the transportation tax. And the governor's announced her intention to veto it. It was the one that was negotiated by mayors and such, but the bill was a lot different from that. So I don't know if she actually did or not, because I wrote this yesterday. 1131, which was the residential leases municipal tax exemption, was approved. The Governor had vetoed a similar measure earlier this year and again would have an estimated impact of $230 million to the 75 cities and towns that levy this tax. In Fountain Hills it would be about $500,000, a little bit more, every year, in revenue. TOWN OF FOUNTAIN HILLS Page 93 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 93 of 94 All three of the zoning preemption bills, they did not get voted on. They all failed to move. And then, yesterday, the Governor signed Senate Bill 1432 which sets up the Standpipe district that will enter into an agreement with the City of Scottsdale to allow Rio Verde Foothills community members on wild water to draw from the standpipe. And I asked Aaron earlier, and this bill will have no impact on the Town of Fountain Hills. So that's good. And hopefully, they will get that solution up and running. Anything else on that? KALIVIANAKIS: I just very quickly. MAYOR DICKEY: Yes, ma'am. KALIVIANAKIS: Is that going to offer the Rio Verde a temporary solution in addition to a permanent solution? I mean, are they going to get water this summer; from what your understanding is? I'm trying to figure that out. MAYOR DICKEY: Yeah. I think the biggest thing that might take a while is to form the group there that's going to be the layer of government for it. But once they do that it will be temporary, leading to permanent. So it shouldn't be that much different from what they were getting as far as getting the water and they're trying to do it as quickly as they can,. KALIVIANAKIS: Okay. Thank you. MAYOR DICKEY: You're welcome. Gerry, did you have any more news about that? FRIEDEL: No. MAYOR DICKEY: Okay. Any other direction to the town manager or future agenda items for August 22nd? KALIVIANAKIS: I don't think so. MAYOR DICKEY: Thank you. Did someone say we have no future? GRZYBOWSKI: I said, way future. Way future. MAYOR DICKEY: So again we're at the skate park on Saturday. Thank you, Vice Mayor will be there on my behalf. And I'm sure you guys will be there. TOWN OF FOUNTAIN HILLS Page 94 of 94 JUNE 20, 2023, TOWN COUNCIL REGULAR MEETING Page 94 of 94 Fourth of July, music starts at 7:30, fireworks at 9. Have a fun, safe, summer. We're here though. We're not going anywhere. You can always reach us and again, have a great summer. Thank you. TOTH: Thank you. MAYOR DICKEY: We're adjourned. [MEETING ADJOURNED AT 9:02 P.M.] Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on June 20, 2023, at 9:02 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 20th day of June 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 22nd Day of August 2023. _____________________________ Linda G. Mendenhall, Town Clerk ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Community Services Prepared by: Ryan Preston, Recreation Manager Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application by the Fearless Kitty Rescue for a wine garden in conjunction with Wet Your Whiskers on October 14, 2023. Staff Summary (Background) This is a special event liquor license application submitted by Christine Fixico-Silver representing Fearless Kitty Rescue for submission to the Arizona Department of Liquor. The special event liquor license is being obtained for the purpose of holding a wine garden in conjunction with the Fearless Kitty Fundraiser event, Wet Your Whiskers. This fundraiser is located on private property (Fearless Kitty Rescue). The special event liquor license application was reviewed by staff for compliance with Town ordinances and staff unanimously recommends approval of this special event liquor license application as submitted. Related Ordinance, Policy or Guiding Principle A.R.S. §4-203.02; 4-244; 4-261 and R19-1-228, R19-1-235, and R19-1-309 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to approve the Special Event Liquor License. Attachments Fearless Kitty Special Event Liquor License  Form Review Inbox Reviewed By Date Finance Director David Pock 08/02/2023 05:19 PM Town Attorney Aaron D. Arnson 08/03/2023 09:06 AM Interim Town Manager Rachael Goodwin 08/08/2023 10:14 AM Form Started By: Ryan Preston Started On: 07/31/2023 01:48 PM Final Approval Date: 08/08/2023  ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 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: Request to apply and take receipt of Prop 202 Grant Funding from Salt River Pima-Maricopa Indian Community. 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 202 Grant Funding from the Salt River Pima-Maricopa Indian Community in the amount of $50,000 for FY2023/24.The Economic Development and Community Services Departments have undertaken significant marketing and advertising efforts to encourage visitors to come to the Town. Previous marketing efforts include scoreboard advertisements during spring training and in the past year the grant funding assisted in production and entertainment costs for the annual Music Fest. If awarded the grant funding this year, the funds would support efforts to enhance and elevate the Music Fest. Please note the Town was invited on Wednesday, July 26, 2023 to apply for Prop 202 grant funding and applications were due on Monday, August 14, 2023. Due to the deadline constraints and the summer council break, Staff has applied for the grant however Council may direct staff to withdraw the application if deemed necessary.  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, special events 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 202 grant funding from the Salt River Pima-Maricopa Indian Community to support the Town's economic development and tourism efforts. Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 08/03/2023 08:34 AM Finance Director David Pock 08/03/2023 08:52 AM Town Attorney Aaron D. Arnson 08/03/2023 09:07 AM Interim Town Manager Rachael Goodwin 08/08/2023 10:10 AM Form Started By: Amanda Jacobs Started On: 07/27/2023 10:50 AM Final Approval Date: 08/08/2023  ITEM 8. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  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: Approval of grant applications submitted to the Water Infrastructure Finance Authority of Arizona. (AZWIFA) Staff Summary (Background) During the Town Council summer recess, staff was made aware of a grant opportunity through the Water Infrastructure Finance Authority of Arizona. Staff reviewed the application and confirmed that Fountain Hills met the criteria of the Water Conservation Grant Fund, which exists to provide financial resources to eligible entities for the purpose of conserving Arizona’s water supply.  Adhering to the July 31 deadline, staff submitted a grant funding application package for two specific projects. Project one considered for funding is a “turf conversion” project. The proposed project Is located on the northwest and northeast corners of Fountain Hills Blvd and Shea Boulevard. The proposed work for the first project consists of removing approximately 30,000 total square feet of irrigated grass and non-drought tolerant trees and shrubs. The grant provides funding to convert the area into a natural desert landscape, that includes trees and various xeriscape drought-resistant landscaping plants and shrubs. The proposed project is entirely located within existing Town of Fountain Hills Right-Of-Way. The estimated construction cost for Project one is: Turf and Tree Removal - $39,400 ¾” Decomposed Granite (preparation, materials and labor) - $52,500 Proposed Xeriscape Landscape (materials and labor) – $13,300 Irrigation Conversion - $25,000 Other Materials and Labor - $ - 5,000 Project One Estimated Construction Cost - $135,200   Project two considered for funding is a “turf removal” project. The proposed project is located in Fountain Park, adjacent to the splash pad. The proposed work for the second project consists of removing approximately 8,100 total square feet of irrigated grass. The grant funding will help to offset the cost of a Capital Improvement Project approved by Council as part of this years’ budget. The project will also involve converting the existing approved by Council as part of this years’ budget. The project will also involve converting the existing irrigated grass into a splash pad picnic area and includes funding for irrigation improvements, trees, shrubs and plants.  The estimated construction cost for Project two is: Removal of Existing Turf - $4,000 ¾” Decomposed Granite (preparation, materials and labor) - $14,175 Proposed Xeriscape Landscape (materials and labor) – $3,500 Irrigation Installation - $10,000 Other Materials and Labor - $ - 5,000 Project Two Estimated Construction Cost - $36,675   Staff worked diligently within Department Directors and Division Supervisors as well as our contracted landscaping company to produce the grant application package. These proposed projects fall in line with several goals and policies presented in the 2020 adopted Town of Fountain Hills’ General Plan, Fountain Hills' Environmental Plan 2022, and The Arizona Department of Water Resources 4th Management Plan for the Phoenix Active Management Area Non-Per Capita Water Conservation Program. The water conversion projects are estimated to save 7.33 acre-feet (approx. 2.4 million gallons) of water annually between the two project locations. The estimated water savings is based on the number of gallons of water needed for grass landscaping compared to natural desert landscaping. The two project’s estimated cost is $173,709 (which includes a 5% contingency).  The Town’s matching funds will be $43,427, and the remaining $130,282 would be covered by the Water Conservation Grant Fund. This project is planned to be completed within the 23-24 Fiscal Year. Once completed, the water savings will be immediate within the first billing cycle. Staff requests retroactive approval for the grant application as well as approval to receive the grant and take all necessary steps to implement the grant, if awarded. Related Ordinance, Policy or Guiding Principle Fountain Hills’ General Plan, Fountain Hills' Environmental Plan 2022,  Risk Analysis If approval is not granted, staff will withdraw the application and will not proceed with the grant effort Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends Council approval to proceed with the grant application process.    SUGGESTED MOTION MOVE to approve applying for grants from the Water Infrastructure Finance Authority of Arizona, and if the grant is approved, authorize the associated projects and necessary budget transfers. Fiscal Impact Fiscal Impact:$43,427 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 Grant Application  Projects budget  Project one location map  Project two location map  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 08/07/2023 05:45 PM Finance Director David Pock 08/09/2023 11:05 AM Public Works Director (Originator)Justin Weldy 08/09/2023 11:17 AM Finance Director David Pock 08/09/2023 01:14 PM Town Attorney Aaron D. Arnson 08/09/2023 02:28 PM Interim Town Manager Rachael Goodwin 08/10/2023 01:51 PM Form Started By: Justin Weldy Started On: 07/26/2023 06:52 AM Final Approval Date: 08/10/2023  A ll that is A r i z o n a F O U N TAIN HIL L S TOWN OF INC. 1989 TOWN OF FOUNTAIN HILLS PUBLIC WORKS SHEA BLVD. AND FOUNTAIN HILLS BLVD. - TURF REMOVAL PROJECT FOUNTAIN HILLS, AZ 85268 WATER CONSERVATION GRANT FUND EXHIBIT A TOWN OF FOUNTAIN HILLS A ll that is A r i z o n a F O U N TAIN HIL L S TOWN OF INC. 1989 PUBLIC WORKS FOUNTAIN PARK - TURF REMOVAL PROJECT FOUNTAIN HILLS, AZ 85268 WATER CONSERVATION GRANT FUND EXHIBIT B 2023 Water Conservation Grant Fund (WCGF) C3 Town of Fountain Hills, Arizona Non-Functional Turf Removal on Fountain Hills Town Property Water Usage Calculations Existing Meter Calculations: EPCOR Meter Number Location Landscaping Type Total Area (sf)Annual Water Use (gal)Annual Use (gal/sf) 52798314 Fountain Hills Blvd - East Side Landscaping Grass 20900 1427000 68.28 60820405 Median along Golden Eagle Blvd Natural Desert 58807 328000 5.58 Note: These two values are the assumed water usage values for calculating the grass landscaping vs. desert landscaping. (Baseline water demand rates) Water Usage for Project Area Fountain Hills Blvd and Shea Blvd Area (sf)Existing Annual Usage (gal)Proposed Annual Usage (gal)Annual Savings (gal) 30,000 2048325.36 167327.02 1880998.34 Fountain Park Area (sf)Existing Annual Usage (gal)Proposed Annual Usage (gal)Annual Savings (gal) 8,100 553047.85 45178.30 507869.55 Total Annual Savings (gal)Total Annual Savings (Acre-Ft) 2388867.89 7.33 Note: While calculations utilize actual EPCOR billing and usage information, actual water conservation are approximated and may vary. 2023 Water Conservation Grant Fund (WCGF) C3 Town of Fountain Hills, Arizona Non-Functional Turf Removal on Fountain Hills Town Property Project Budget Estimation Quantities are for estimating purposes only, engineer makes no guarantee of accuracy Description of Item Unit Quantity Unit Cost Total Cost Removal of Existing Grass Turf (30,000SF)LS 1 25,000.00$ 25,000$ Removal of Existing Palm Trees EA 12 1,200$ 14,400$ 3/4" Decomposed Granite (Preparation, Materials, Installation)TON 300 175.00$ 52,500$ Pistache Trees, 15 Gallon EA 28 100$ 2,800$ Desert Shrubs, 5 Gallon EA 150 30$ 4,500$ Irrigation Conversion LS 1 25,000$ 25,000$ Planting Labor LS 1 6,000$ 6,000$ Extra Materials and Labor LS 1 5,000$ 5,000$ 135,200$ Removal of Existing Grass Turf (8,100SF)LS 1 4,000.00$ 4,000$ 3/4" Decomposed Granite (Preparation, Materials, Installation)TON 81 175.00$ 14,175$ Pistache Trees, 15 Gallon EA 4 100$ 400$ Desert Shrubs, 5 Gallon EA 50 30$ 1,500$ Irrigation Installation LS 1 10,000$ 10,000$ Planting Labor LS 1 1,600$ 1,600$ Extra Materials and Labor LS 1 5,000$ 5,000$ 36,675$ 0.05 1,834$ 173,709$ 173,709$ 0.75 130,282$ 0.25 43,427$ FOUNTAIN HILLS BLVD. AND SHEA BLVD SUBTOTAL FOUNTAIN HILLS BLVD. AND SHEA BLVD. FOUNTAIN PARK SUBTOTAL FOUNTAIN PARK CONSTRUCTION CONTINGENCIES (%) MUNICIPALITY MATCH COST SHARE (25%) CONSERVATION ACTIVITY TOTAL COST ESTIMATE NON-FUNCTIONAL TURF REMOVAL ON FOUNTAIN HILLS TOWN PROPERTY TOTAL COST ESTIMATE TOTAL COST SHARE AMOUNT REQUESTED FROM THE WCGF (75%) 2023 Water Conservation Grant Fund (WCGF) C3 Town of Fountain Hills, Arizona Non-Functional Turf Removal on Fountain Hills Town Property Project Budget Estimation Quantities are for estimating purposes only, engineer makes no guarantee of accuracy FOUNTAIN HILLS BLVD. AND SHEA BLVD Description of Item Unit Quantity Unit Cost Total Cost Removal of Existing Grass Turf (30,000SF)LS 1 $25,000.00 $25,000 Removal of Existing Palm Trees EA 12 $1,200 $14,400 3/4" Decomposed Granite (Preparation, Materials, Installation)TON 300 $175.00 $52,500 Pistache Trees, 15 Gallon EA 28 $100 $2,800 Desert Shrubs, 5 Gallon EA 150 $30 $4,500 Irrigation Conversion LS 1 $25,000 $25,000 Planting Labor LS 1 $6,000 $6,000 Extra Materials and Labor LS 1 $5,000 $5,000 SUBTOTAL FOUNTAIN HILLS BLVD. AND SHEA BLVD. $135,200 FOUNTAIN PARK Removal of Existing Grass Turf (8,100SF)LS 1 $4,000.00 $4,000 3/4" Decomposed Granite (Preparation, Materials, Installation)TON 81 $175.00 $14,175 Pistache Trees, 15 Gallon EA 4 $100 $400 Desert Shrubs, 5 Gallon EA 50 $30 $1,500 Irrigation Installation LS 1 $10,000 $10,000 Planting Labor LS 1 $1,600 $1,600 Extra Materials and Labor LS 1 $5,000 $5,000 SUBTOTAL FOUNTAIN PARK $36,675 CONSTRUCTION CONTINGENCIES (%)0.05 $1,834 NON-FUNCTIONAL TURF REMOVAL ON FOUNTAIN HILLS TOWN PROPERTY TOTAL COST ESTIMATE $173,709 TOTAL COST SHARE CONSERVATION ACTIVITY TOTAL COST ESTIMATE $173,709 AMOUNT REQUESTED FROM THE WCGF (75%)0.75 $130,282 MUNICIPALITY MATCH COST SHARE (25%)0.25 $43,427 Shea Blvd. Multi-Use Path Shea Boulevard in Scottsdale, AZ and Fountain Hills, AZ Project Readiness - Project Schedule Tuesday, February 28, 2023 ID Task Name Duration (Days)Start Finish 1 Project Award Notification 0 6/28/2023 6/28/2023 2 Kick-off Meeting with ADOT and Municipalities 0 7/5/2023 7/5/2023 3 IGA with Appropriate Municipalities and Agencies 30 7/5/2023 8/4/2023 4 Procurement for Design Services 60 8/4/2023 10/3/2023 5 Engineering Design 6 30% Plan Preparation 120 10/3/2023 1/31/2024 7 30% Plans - Municipal Submittal/Review 30 1/31/2024 3/1/2024 8 30% Plans - ADOT Submittal/Review 30 1/31/2024 3/1/2024 9 60% Plan Preparation 120 3/1/2024 6/29/2024 10 60% Plans - Municipal Submittal/Review 30 6/29/2024 7/29/2024 11 60% Plans - ADOT Submittal/Review 30 6/29/2024 7/29/2024 12 90% Plan Preparation 120 7/29/2024 11/26/2024 13 90% Plans - Municipal Submittal/Review 30 11/26/2024 12/26/2024 14 90% Plans - ADOT Submittal/Review 30 11/26/2024 12/26/2024 15 Final 100% Plan Preparation 30 12/26/2024 1/25/2025 16 Final 100% ADOT & Municipal Submittal/Review/Approval 30 1/25/2025 2/24/2025 17 Environmental Impact Study 360 3/1/2024 2/24/2025 18 Utility Coordination 90 11/26/2024 2/24/2025 19 Utility Clearance Letters 30 2/24/2025 3/26/2025 20 Procurement for Construction Services 60 2/24/2025 4/25/2025 21 Construction 360 4/25/2025 4/20/2026 22 Project Closeout 360 4/20/2026 4/15/2027 Shea Blvd. Multi-Use Path - Project Schedule Start Duration (Days) Shea Blvd. Multi-Use Path - Project Schedule Start Duration (Days) A ll that is A r i z o n a F O U N TAIN HIL L S TOWN OF INC. 1989 TOWN OF FOUNTAIN HILLS PUBLIC WORKS SHEA BLVD. AND FOUNTAIN HILLS BLVD. - TURF REMOVAL PROJECT FOUNTAIN HILLS, AZ 85268 WATER CONSERVATION GRANT FUND EXHIBIT A TOWN OF FOUNTAIN HILLS A ll that is A r i z o n a F O U N TAIN HIL L S TOWN OF INC. 1989 PUBLIC WORKS FOUNTAIN PARK - TURF REMOVAL PROJECT FOUNTAIN HILLS, AZ 85268 WATER CONSERVATION GRANT FUND EXHIBIT B ITEM 8. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  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):  CONSIDERATION AND POSSIBLE ACTION: Adoption of Resolution 2023-27, Accepting Gila River Indian Community Grant Funding on behalf of the Fountain Hills Chamber of Commerce.  Staff Summary (Background) Proposition 202 (Gaming Compact with the State of Arizona) was a ballot measure passed by the Arizona voters in the 2002 state general election and codified in A.R.S. § 5-601.02.  This legislation allows for distribution of funds to cities, towns, and counties for their programs from Arizona Indian Tribes for government services that benefit the general public, including public safety, mitigation of the impacts of gaming, and the promotion of commerce and economic development.The Gaming Compact permits the Nation to allocate 12% of the fees it pays to the State to cities, towns and counties in the State of Arizona. Many non-profit organizations also request Proposition 202 funding as "pass through dollars" from cities, towns, and counties to support programs within their communities. Since the legislation required funds to be solicited by a municipality or county, the Town Council approved Resolution 2004-34 on July 1, 2004, which adopted the Town's policy and procedures relating to the Proposition 202 application process for the procurement of funds on behalf of various entities (i.e. as a pass through for funds). The Gila River Indian Community has awarded the Fountain Hills Chamber of Commerce a total of $12,500 for the Young Entrepreneur and Student Internship Program. The Town will serve as the "pass through" in accordance with Prop 202 and the administration of the grant will be the sole responsibility of the Fountain Hills Chamber of Commerce. 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; Section 12 of the Gaming Compact 2002 and A.R.S. § 5-601.02; Fountain Hills Resolution 2004-34.   Risk Analysis If the resolution is not approved, the Fountain Hills Chamber of Commerce will not receive $12,500 for their Young Entrepreneur and Student Internship Program.   Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the resolution. SUGGESTED MOTION MOVE to adopt Resolution 2023-27.   Attachments Resolution 2023-27  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 08/08/2023 05:55 PM Finance Director David Pock 08/09/2023 10:45 AM Finance Director David Pock 08/09/2023 10:45 AM Town Attorney Aaron D. Arnson 08/09/2023 10:49 AM Interim Town Manager Rachael Goodwin 08/10/2023 09:41 AM Form Started By: Amanda Jacobs Started On: 08/08/2023 09:19 AM Final Approval Date: 08/10/2023  PAGE 1 RESOLUTION NO. 2023-27 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, PROVIDING “PASS THROUGH” SUPPORT FOR THE FOUNTAIN HILLS CHAMBER OF COMMERCE FOR GILA RIVER GRANT FUNDING RECITALS: WHEREAS, the Town of Fountain Hills, being a qualifying entity, acts as a “Pass Through” agency for the Fountain Hills Chamber of Commerce by accepting any dispersed funds intended for the Fountain Hills Chamber of Commerce from the Gila River Grants Review Committee and in accordance with the terms and conditions of said grant. ENACTMENTS: BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The recital above is hereby incorporated as if fully set forth herein. SECTION 2. The Town hereby authorizes the acceptance of funds. SECTION 3. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to cause the execution of the grant funding 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, Arizona, this 22nd day of August, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: Ginny Dickey, Mayor Linda G. Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: Rachael Goodwin, Interim Town Manager Aaron D. Arnson, Town Attorney ITEM 8. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Fire Department Prepared by: Dave Ott, Fire Chief Staff Contact Information: Dave Ott, Fire Chief Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of a Cooperative Purchasing Agreement (C2024-013) with L.N. Curtis and Sons for the purchase of new structure and wildland firefighter personal protective equipment (PPE). Staff Summary (Background) The current firefighter PPE is supplied and owned by Rural Metro, not the Town. The staff did due diligence in reviewing PPE options in making their selection. All options selected meet NFPA requirements. L.N. Curtis and Sons is a member of the Sourcewell Group Purchasing Cooperative, Contract #032620PPE. This is a competitive contract with around 20 vendors submitting for inclusion in the contract. The average serviceable life of the PPE is seven to ten years.  Related Ordinance, Policy or Guiding Principle This equipment is necessary to help provide for the health and safety of the town residents, visitors, and firefighters.  Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) NA Staff Recommendation(s) Staff recommends the approval of the proposed PPE purchase.  SUGGESTED MOTION MOVE to Approve the Cooperative Purchasing Agreement (C2024-013) with L.N. Curtis and Sons for the acquisition of new structure and wildland firefighting PPE in an amount not to exceed $250,000.00.  Attachments 2024-013  2024-013A  2024-013B  Form Review Inbox Reviewed By Date Fire Chief (Originator)Dave Ott 08/09/2023 02:34 PM Finance Director David Pock 08/10/2023 08:08 AM Town Attorney Aaron D. Arnson 08/10/2023 03:58 PM Interim Town Manager Rachael Goodwin 08/10/2023 06:12 PM Form Started By: Dave Ott Started On: 08/09/2023 01:48 PM Final Approval Date: 08/10/2023  1 Contract No. 2024-013 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND L.N. CURTIS & SONS, INC. THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), L.N. Curtis & Sons, Inc., a(n) California corporation (the “Contractor”). RECITALS A. After a competitive procurement process (RFP#032620), a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statues Section 123A.21) that offers cooperative procurement solutions to its members, entered into contract No. 032620-LNC dated May 5, 2020, as amended, (the “Sourcewell Contract”) for the Contractor to provide Firefighting Personal Protective Equipment, Apparel, and Accessories, with Related Cleaning and Maintenance Equipment. A copy of the Sourcewell contract is attached hereto as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the Sourcewell Contract, at its discretion and with the agreement of the awarded Contractor, and the Sourcewell Contract permits its cooperative use by other public entities, including the Town. C. The Town and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging their cooperative contractual relationship under the Sourcewell Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide Firefighting Personal Protective Equipment, Apparel, and Accessories, with Related Cleaning and Maintenance Equipment (the “Materials and Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. 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 Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date of execution 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 May 7, 2024 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the Sourcewell Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the Sourcewell Contract has not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any 2 price adjustments approved as part of the Sourcewell Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. Contractor shall provide to the Town the Services under the terms and conditions of the Sourcewell Contract and according to the specifications set forth in the Contractor’s Proposal attached hereto as Exhibit B and incorporated herein by reference. 2.1 Inspection; Acceptance. All Materials and Services are subject to final inspection and acceptance by the Town. Materials failing to conform to the requirements of this Agreement and/or the Sourcewell Contract will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of non-conforming Materials or Services, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring Materials or Services into compliance and withhold the cost of same from any payments due to the Contractor. 2.2 Cancellation. The Town reserves the right to cancel any work order within a reasonable time after issuance. Should a work order be canceled, the Town agrees to reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor due to and after issuance of the work order. The Town will not reimburse the Contractor for any costs incurred after receipt of the Town notice of cancellation, or for lost profits, shipment of product prior to issuance of a work order or for anything not expressly permitted pursuant to this Agreement. 3. Compensation. The Town shall pay Contractor an amount not to exceed $250,000 (including all renewals) for the Materials and Services at the rates set forth in the Sourcewell Contract and as more particularly set forth in Exhibit B. The aggregate amount per renewal term shall not exceed $50,000 in any case unless the Agreement is affirmed and ratified via an executed amendment. All remaining terms and conditions of the Agreement shall remain in full force and effect. 4. Payments. The Town shall pay the Contractor monthly (and the Contractor shall invoice monthly), based upon acceptance and delivery of Materials and/or Services performed and completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the Sourcewell Contract and (ii) document and itemize all work completed to date. The invoice statement shall include a record of materials delivered, time expended, and work performed in sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the Sourcewell Contract will be subject to rejection and may be returned. 5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, 3 records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor 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 audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor 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 Contractor pursuant to this Agreement. Contractor 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 Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor 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). Contractor’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. 7. Israel. Contractor 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. 8. 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. 9. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 10. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 11. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that 4 the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 12. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Sourcewell Contract, the Proposal, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in conformity with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the Sourcewell Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any work order or invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the Sourcewell Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 13. Rights and Privileges. To the extent provided under the Sourcewell Contract, the Town shall be afforded all of the rights and privileges afforded to Sourcewell and shall be the “Sourcewell” (as defined in the Sourcewell Contract) for the purposes of the portions of the Sourcewell Contract that are incorporated herein by reference. 14. Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to the Sourcewell to the extent provided under the Sourcewell Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor 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 any and all 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, in connection with the work or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 15. 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. 16. Notices and Requests. Any notice or other communication required or permitted t0 be given under this 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 5 If to Contractor: L.N. Curtis & Sons, Inc. 4687 South 33rd St. Phoenix, Az. 85040 Attn: Gary Norton reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Rachael Goodwin, Interim Town Manager With Copy to: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney 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, (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. [SIGNATURES APPEAR ON FOLLOWING PAGES] EXHIBIT A TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND L.N. CURTIS & SONS, INC. [Sourcewell Contract] See following pages. 032620-LNC 1 Rev. 4/2019 Solicitation Number: RFP #032620 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and L.N. Curtis & Sons, 185 Lennox Lane, Suite 100, Walnut Creek, CA 94598 (Vendor). Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members. Participation is open to all levels of governmental entity, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Vendor desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and its Members (Members) in the United States only. 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires May 7, 2024, unless it is cancelled sooner pursuant to Article 24. This Contract may be extended up to one additional one-year period upon request of Sourcewell and with written agreement by Vendor. C. SURVIVAL OF TERMS. Articles 11 through 16 survive the expiration or cancellation of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Vendor will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. Vendor’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. All Equipment and Products provided under this Contract must be new/current model. Vendor may offer close-out or refurbished Equipment or Products if they are clearly indicated in Vendor’s product and pricing list. Unless agreed to by the Member in advance, Equipment or Products must be delivered as operational to the Member’s site.             032620-LNC 2 Rev. 4/2019 This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. WARRANTY. Vendor warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, and are free from defects in design, materials, and workmanship. In addition, Vendor warrants the Equipment, Products, and Services are suitable for and will perform in accordance with the ordinary use for which they are intended. Vendor’s dealers and distributors must agree to assist the Member in reaching a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that is effective past the expiration of the Vendor’s warranty will be passed on to the Member. C. DEALERS AND DISTRIBUTORS. Upon Contract execution, Vendor will make available to Sourcewell a means to validate or authenticate Vendor’s authorized Distributors/Dealers relative to the Equipment, Products, and Services related to this Contract. This list may be updated from time-to-time and is incorporated into this Contract by reference. It is the Vendor’s responsibility to ensure Sourcewell receives the most current version of this list. 3. PRICING All Equipment, Products, or Services under this Contract will be priced as stated in Vendor’s Proposal. Regardless of the payment method chosen by the Member, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Member at the time of purchase. When providing pricing quotes to Members, all pricing quoted must reflect a Member’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Member’s requested delivery location. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Vendor must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Members. Members reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. Vendor must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.             032620-LNC 3 Rev. 4/2019 Sourcewell may declare the Vendor in breach of this Contract if the Vendor intentionally delivers substandard or inferior Equipment or Products. In the event of the delivery of nonconforming Equipment and Products, the Member will notify the Vendor as soon as possible and the Vendor will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Member. B. SALES TAX. Each Member is responsible for supplying the Vendor with valid tax-exemption certification(s). When ordering, Members must indicate if it is a tax-exempt entity. C. HOT LIST PRICING. At any time during this Contract, Vendor may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Vendor determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Members. 4. PRODUCT AND PRICING CHANGE REQUESTS Vendor may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Contract Administrator. This form is available from the assigned Sourcewell Contract Administrator. At a minimum, the request must: x Identify the applicable Sourcewell contract number x Clearly specify the requested change x Provide sufficient detail to justify the requested change x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change) x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Request Form will be become an amendment to this Contract and be incorporated by reference.             032620-LNC 4 Rev. 4/2019 5. MEMBERSHIP, CONTRACT ACCESS, AND MEMBER REQUIREMENTS A. MEMBERSHIP. Membership in Sourcewell is open to public and nonprofit entities across the United States and Canada; such as municipal, state/province, K-12 and higher education, tribal government, and other public entities. The benefits of this Contract should be available to all Members that can legally access the Equipment, Products, or Services under this Contract within the United States. A Member’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Vendor understands that a Member’s use of this Contract is at the Member’s sole convenience and Members reserve the right to obtain like Equipment, Products, or Services from any other source. Vendor is responsible for familiarizing its sales and service forces with Sourcewell membership requirements and documentation and will encourage potential members to join Sourcewell. Sourcewell reserves the right to add and remove Members to its roster during the term of this Contract. B. PUBLIC FACILITIES. Vendor’s employees may be required to perform work at government- owned facilities, including schools. Vendor’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Member policies and procedures, and all applicable laws. 6. MEMBER ORDERING AND PURCHASE ORDERS A. PURCHASE ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, Member must clearly indicate to Vendor that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Vendor. Typically a Member will issue a purchase order directly to Vendor. Members may use their own forms for purchase orders, but it should clearly note the applicable Sourcewell contract number. Members will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Member. B. ADDITIONAL TERMS AND CONDITIONS. Additional terms and conditions to a purchase order may be negotiated between a Member and Vendor, such as job or industry-specific requirements, legal requirements (such as affirmative action or immigration status requirements), or specific local policy requirements. Any negotiated additional terms and conditions must never be less favorable to the Member than what is contained in Vendor’s Proposal. C. PERFORMANCE BOND. If requested by a Member, Vendor will provide a performance bond that meets the requirements set forth in the Member’s purchase order.             032620-LNC 5 Rev. 4/2019 D. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Member requires service or specialized performance requirements (such as e-commerce specifications, specialized delivery requirements, or other specifications and requirements) not addressed in this Contract, the Member and the Vendor may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. E. TERMINATION OF PURCHASE ORDERS. Members may terminate a purchase order, in whole or in part, immediately upon notice to Vendor in the event of any of the following events: 1. The Member fails to receive funding or appropriation from its governing body at levels sufficient to pay for the goods to be purchased; 2. Federal or state laws or regulations prohibit the purchase or change the Member’s requirements; or 3. Vendor commits any material breach of this Contract or the additional terms agreed to between the Vendor and a Member. F. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Member’s purchase order will be determined by the Member making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Vendor will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: x Maintenance and management of this Contract; x Timely response to all Sourcewell and Member inquiries; and x Business reviews to Sourcewell and Members, if applicable. B. BUSINESS REVIEWS. Vendor must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to members, pricing and contract terms, administrative fees, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Vendor must provide a contract sales activity report (Report) to the Sourcewell Contract Administrator assigned to this Contract. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Vendor must submit a report indicating no sales were made).             032620-LNC 6 Rev. 4/2019 The Report must contain the following fields: x Customer Name (e.g., City of Staples Highway Department); x Customer Physical Street Address; x Customer City; x Customer State; x Customer Zip Code; x Customer Contact Name; x Customer Contact Email Address; x Customer Contact Telephone Number; x Sourcewell Assigned Entity/Member Number; x Item Purchased Description; x Item Purchased Price; x Sourcewell Administrative Fee Applied; and x Date Purchase was invoiced/sale was recognized as revenue by Vendor. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Vendor will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Members. The Vendor will submit a check payable to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Members under this Contract during each calendar quarter. Payments should note the Sourcewell-assigned contract number in the memo and must be mailed to the address above “Attn: Accounts Receivable.” Payments must be received no later than forty-five (45) calendar days after the end of each calendar quarter. Vendor agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Vendor is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Vendor in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than thirty (30) days from the cancellation date. 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Vendor’s Authorized Representative is the person named in the Vendor’s Proposal. If Vendor’s Authorized Representative changes at any time during this Contract, Vendor must promptly notify Sourcewell in writing.             032620-LNC 7 Rev. 4/2019 10. ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. ASSIGNMENT. Neither the Vendor nor Sourcewell may assign or transfer any rights or obligations under this Contract without the prior consent of the parties and a fully executed assignment agreement. Such consent will not be unreasonably withheld. B. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been fully executed by the parties. C. WAIVER. If either party fails to enforce any provision of this Contract, that failure does not waive the provision or the right to enforce it. D. CONTRACT COMPLETE. This Contract contains all negotiations and agreements between Sourcewell and Vendor. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. E. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, master- servant, principal-agent, or any other relationship. 11. LIABILITY Vendor must indemnify, save, and hold Sourcewell and its Members, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees, arising out of the performance of this Contract by the Vendor or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by some defect in the Equipment, Products, or Services under this Contract to the extent the Equipment, Product, or Service has been used according to its specifications. 12. AUDITS Sourcewell reserves the right to review the books, records, documents, and accounting procedures and practices of the Vendor relevant to this Contract for a minimum of six (6) years from the end of this Contract. This clause extends to Members as it relates to business conducted by that Member under this Contract. 13. GOVERNMENT DATA PRACTICES Vendor and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Vendor under this Contract.             032620-LNC 8 Rev. 4/2019 If the Vendor receives a request to release the data referred to in this article, the Vendor must immediately notify Sourcewell and Sourcewell will assist with how the Vendor should respond to the request. 14. INTELLECTUAL PROPERTY As applicable, Vendor agrees to indemnify and hold harmless Sourcewell and its Members against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Members by any person on account of the use of any Equipment or Products by Sourcewell or its Members supplied by Vendor in violation of applicable patent or copyright laws. 15. PUBLICITY, MARKETING, AND ENDORSEMENT A. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Vendor individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. B. MARKETING. Any direct advertising, marketing, or offers with Members must be approved by Sourcewell. Materials should be sent to the Sourcewell Contract Administrator assigned to this Contract. C. ENDORSEMENT. The Vendor must not claim that Sourcewell endorses its Equipment, Products, or Services. 16. GOVERNING LAW, JURISDICTION, AND VENUE Minnesota law governs this Contract. Venue for all legal proceedings out of this Contract, or its breach, must be in the appropriate state court in Todd County or federal court in Fergus Falls, Minnesota. 17. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 18. SEVERABILITY If any provision of this Contract is found to be illegal, unenforceable, or void then both Sourcewell and Vendor will be relieved of all obligations arising under such provisions. If the             032620-LNC 9 Rev. 4/2019 remainder of this Contract is capable of performance, it will not be affected by such declaration or finding and must be fully performed. 19. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Vendor will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Vendor may escalate the resolution of the issue to a higher level of management. The Vendor will have thirty (30) calendar days to cure an outstanding issue. 3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Vendor must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Vendor fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, any additional costs incurred by Sourcewell and/or its Members as a result of such failure to proceed will be borne by the Vendor. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Member order under this Contract, in default: 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. Written notice of default and a reasonable opportunity to cure must be issued by the party claiming default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may: x Exercise any remedy provided by law or equity, or x Terminate the Contract or any portion thereof, including any orders issued against the Contract. 20. INSURANCE A. REQUIREMENTS. At its own expense, Vendor must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:             032620-LNC 10 Rev. 4/2019 1. Workers’ Compensation and Employer’s Liability. Workers’ Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2. Commercial General Liability Insurance. Vendor will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition). At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2,000,000 aggregate for Products-Completed operations $2,000,000 general aggregate 3. Commercial Automobile Liability Insurance. During the term of this Contract, Vendor will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer). Minimum Limits: $1,000,000 each accident, combined single limit 4. Umbrella Insurance. During the term of this Contract, Vendor will maintain umbrella coverage over Workers’ Compensation, Commercial General Liability, and Commercial Automobile. Minimum Limits: $2,000,000 5. Professional/Technical, Errors and Omissions, and/or Miscellaneous Liability. During the term of this Contract, Vendor will maintain coverage for all claims the Vendor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Vendor’s professional services required under this Contract. Minimum Limits: $2,000,000 per claim or event             032620-LNC 11 Rev. 4/2019 $2,000,000 – annual aggregate 6. Network Security and Privacy Liability Insurance. During the term of this Contract, Vendor will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Vendor’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service. Minimum limits: $2,000,000 per occurrence $2,000,000 annual aggregate Failure of Vendor to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Vendor must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Contract Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. All policies must include there will be no cancellation, suspension, non-renewal, or reduction of coverage without thirty (30) days’ prior written notice to the Vendor. Upon request, Vendor must provide to Sourcewell copies of applicable policies and endorsements, within ten (10) days of a request. Failure to request certificates of insurance by Sourcewell, or failure of Vendor to provide certificates of insurance, in no way limits or relieves Vendor of its duties and responsibilities in this Contract. C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Vendor agrees to name Sourcewell and its Members, including their officers, agents, and employees, as an additional insured under the Vendor’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Vendor, and products and completed operations of Vendor. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. D. WAIVER OF SUBROGATION. Vendor waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Vendor or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance             032620-LNC 12 Rev. 4/2019 maintained by the Vendor or its subcontractors. Where permitted by law, Vendor must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. E. UMBRELLA/EXCESS LIABILITY. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies). F. SELF-INSURED RETENTIONS. Any self-insured retention in excess of $10,000 is subject to Sourcewell’s approval. 21. COMPLIANCE A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold. B. LICENSES. Vendor must maintain a valid status on all required federal, state, and local licenses, bonds, and permits required for the operation of the business that the Vendor conducts with Sourcewell and Members. 22. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Vendor certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Vendor declares bankruptcy, Vendor must immediately notify Sourcewell in writing. Vendor certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota, the United States federal government, or any Member. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Vendor further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 23. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Members that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Members may also require additional requirements based on specific funding specifications. Within this Article, all references to “federal” should be interpreted to mean the United States federal government. The following list only applies when             032620-LNC 13 Rev. 4/2019 a Member accesses Vendor’s Equipment, Products, or Services with United States federal funds. A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60- 1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference. B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Vendor must be in compliance with all applicable Davis-Bacon Act provisions. C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. § 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction             032620-LNC 14 Rev. 4/2019 work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Vendor certifies that during the term of this Contract will comply with applicable requirements as referenced above. F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency. G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Vendors must file any required certifications. Vendors must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award             032620-LNC 15 Rev. 4/2019 covered by 31 U.S.C. § 1352. Vendors must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Vendors must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352). H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Vendor must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Vendor further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of three (3) years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Vendor must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act. J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Vendor must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition. K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Vendor agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Vendor that are directly pertinent to Vendor’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Vendor’s personnel for the purpose of interview and discussion relating to such documents. L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.             032620-LNC 16 Rev. 4/2019 24. CANCELLATION Sourcewell or Vendor may cancel this Contract at any time, with or without cause, upon sixty (60) days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Vendor’s Proposal. Termination of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to termination. Sourcewell L.N. 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Curtis & sons             Table 14: Industry Specific Questions Line Item Question Response * 66 If you are awarded a contract, provide a few examples of internal metrics that will be tracked to measure whether you are having success with the contract. Per our standard operating procedures, Curtis tracks Key Performance Indicators (KPIs) to make sure our business is tracking per plan. KPI-related data is extracted from our Enterprise Resource Planning platform, Oracle- NetSuite. Oracle-NetSuite, a cloud ERP solution that automates front and back-office processes enable the Company to track all critical business functions including financial management, revenue management, fixed assets, order entry/management/tracking, billing, and inventory management. Oracle-NetSuite enables Curtis management to generate real-time performance and status reports (e.g., sales (orders and frequency) fill rates vendor performance returns due to improper shipments and defective items and back-orders). * Using Oracle-NetSuite, Curtis tracks performance of all orders, awards, contracts, and programs, including, should Curtis be honored with a contract, the Company's performance in support of Sourcewell. 67 Describe the unique design and feature attributes of the products and/or equipment offered in your proposal. As the largest stocking distributor of firefighting equipment in the West and one of the largest distributors of firefighting equipment and services in America, Curtis is offering the premium brand of products in the defined categories along with on-site product support and customer service. * In addition to products being offered at best pricing, Curtis offers the membership a full suite of Integrated Logistics Support and Services product specialists who are trained and certified by manufacturers to provide deployment support and, product training in use, care, maintenance and repair, and safety. 68 Describe available options for customization of the products and/or equipment offered in your proposal. Typically, PPE are highly customized products, based on the requirements of each department, and sometimes, each firefighter. Curtis' Sales and Product Support teams provide the market with pre-sales product training and education to help define the best materials and optimal design requirements required to meet each department's unique Risk Assessment. * 69 Explain your processes for sizing, fitting, and the alteration of the products and/or equipment offered in your proposal, as applicable. Curtis' Sales and Product Support Teams provide on-site sizing, when required, for PPE orders at no additional charge. Sizing is accomplished using actual sizing sets. Each firefighter dons sizing samples until a proper fit is identified. * Additionally, ECMS (a Curtis wholly-owned subsidiary) provides NFPA 1851-compliant PPE inspection, repair and cleaning services. ECMS is included in this Curtis proposal. 70 If you provide on-site or in-person sales, service, training, and/or support, explain how those activities are handled and the unique attributes of your process. All on-site services are coordinated and mutually agreed upon with appropriate agency personnel prior any work performed. * 71 Describe your compliance with applicable national standards for the products and/or equipment offered in your proposal, such as: National Fire Protection Association (NFPA), Occupational Safety and Health Administration (OSHA), and American National Standards Institute (ANSI). All products included in this Curtis proposal comply to the related and associated national standards and industry segment requirements, including NFPA, USFS/NFES, ANSI, ASTM, and 29 Code of Federal Regulations (CFR) 1910 (OSHA). * Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text. Bid Number: RFP 032620 Vendor Name: L.N. Curtis & sons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³0DUNHWLQJ3ODQ´ )LQDQFLDO6WUHQJWKDQG6WDELOLW\,WHP&XUWLV)LQDQFLDOVSGI7XHVGD\0DUFK 0DUNHWLQJ3ODQ6DPSOHV,WHP&XUWLV5HVFXH7RROV0DUNHWLQJ3ODQGRF7XHVGD\0DUFK :0%(0%(6%(RU5HODWHG&HUWLILFDWHV RSWLRQDO :DUUDQW\,QIRUPDWLRQ,WHP&XUWLV7HUPV &RQGLWLRQVRI6DOHVSGI:HGQHVGD\0DUFK 3ULFLQJ6RXUFH:HOO5)3)LUHILJKWLQJ33(3URGXFW&DWDORJ&XUWLV[OV[:HGQHVGD\0DUFK $GGLWLRQDO'RFXPHQW,WHP&XUWLV0XQLFLSDO$UHD6DOHV0DQDJHUVSGI:HGQHVGD\0DUFK Bid Number: RFP 032620 Vendor Name: L.N. Curtis & sons             3URSRVHUV$VVXUDQFHRI&RPS   352326(5$6685$1&(2)&203/,$1&( 352326(5¶6$)),'$9,7  7KHXQGHUVLJQHGDXWKRUL]HGUHSUHVHQWDWLYHRIWKHHQWLW\VXEPLWWLQJWKHIRUHJRLQJSURSRVDO WKH³3URSRVHU´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¶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³FRQILGHQWLDO´ RU³QRQSXEOLF´HWF HLWKHU VXEVWDQWLDOO\RULQWKHLUHQWLUHW\8QGHU0LQQHVRWD6WDWXWH†6XEGDOOSURSRVDOVDUHFRQVLGHUHGQRQSXEOLFGDWDXQWLOWKH HYDOXDWLRQLVFRPSOHWHDQGD&RQWUDFWLVDZDUGHG$WWKDWSRLQWSURSRVDOVJHQHUDOO\EHFRPHSXEOLFGDWD0LQQHVRWD6WDWXWH† SHUPLWVRQO\FHUWDLQQDUURZO\GHILQHGGDWDWREHFRQVLGHUHGD³WUDGHVHFUHW´DQGWKXVQRQSXEOLFGDWDXQGHU0LQQHVRWD¶V'DWD 3UDFWLFHV$FW 7KH3URSRVHUXQGHUVWDQGVWKDWLWLVWKH3URSRVHU¶VGXW\WRSURWHFWLQIRUPDWLRQWKDWLWFRQVLGHUVQRQSXEOLFDQGLWDJUHHVWRGHIHQGDQG LQGHPQLI\6RXUFHZHOOIRUUHDVRQDEOHPHDVXUHVWKDW6RXUFHZHOOWDNHVWRXSKROGVXFKDGDWDGHVLJQDWLRQ %\FKHFNLQJWKLVER[,DFNQRZOHGJHWKDW,DPERXQGE\WKHWHUPVRIWKH3URSRVHU¶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id Number: RFP 032620 Vendor Name: L.N. Curtis & sons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id Number: RFP 032620 Vendor Name: L.N. Curtis & sons             Sourcewell Contract #032620-LNC| Amendment #1 Page 1 of 1 AMENDMENT #1 TO CONTRACT #032620-LNC THIS AMENDMENT is effective upon the date of the last signature below by and between Sourcewell and L.N. Curtis & Sons (Vendor). Sourcewell awarded a contract to Vendor to provide Firefighting Personal Protective Equipment, Apparel, and Accessories, with Related Cleaning and Maintenance Equipment, effective May 5, 2020, through May 7, 2024 (Contract). The Vendor’s business address listed in the Contract contains a scrivener’s error. The correct address is: 185 Lennon Lane, Suite 110, Walnut Creek, CA 94598. Except as amended above, the Contract remains in full force and effect. Sourcewell L.N. Curtis & Sons By: By: Jeremy Schwartz, Director of Operations/CPO Angela Mackey Date: Title: Approved: Date: By: Chad Coauette, Executive Director/CEO Date: DocuSign Envelope ID: C2FF1FA8-F1A3-4DF4-9C2B-2C08B36B2E3A 6/22/2023 | 5:12 PM CDT Director of Customer Service6/22/2023 | 5:14 PM CDT 6/22/2023 | 6:10 PM CDT L.N. Curtis #032620-LNC Pricing for contract #032620-LNC is provided at discount range of 2% - 40% from MSRP price list to Sourcewell participating agencies. EXHIBIT B TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND L.N. CURTIS & SONS, INC. [Quote or Work Order] See following pages. Ph: 602-453-3911 TF: 877-453-3911 Fax: 602-453-3910 azsales@lncurtis.com UEI#: DDLSADSWN7U7 Southwest Division 4647 South 33rd Street Phoenix, AZ 85040 www.LNCurtis.com Quotation No. 269704 Page 1 of 4 Quotation CUSTOMER:SHIP TO: Fountain Hills Fire Department 16426 East Palisades Boulevard Fountain Hills AZ 85268 Fountain Hills Fire Department 16426 East Palisades Blvd. Fountain Hills AZ 85268 QUOTATION NO.ISSUED DATE EXPIRATION DATE 269704 07/26/2023 08/25/2023 SALESPERSON CUSTOMER SERVICE REP Gary Norton gnorton@lncurtis.com 480-296-5202 Gary Norton gnorton@lncurtis.com 480-296-5202 REQUISITION NO.REQUESTING PARTY CUSTOMER NO.TERMS OFFER CLASS Chief Dave Ott C34488 Net 30 SW-PPE F.O.B.SHIP VIA DELIVERY REQ. BY SP Standard Shipping SPECIAL INSTRUCTIONS Pricing in accordance wihth our Sourcewell Group Purhcasing Cooperative contract. #032620PPE NOTES & DISCLAIMERS Thank you for this opportunity to quote. We are pleased to offer requested items below. If you have any questions, need additional information, or would like to place an order, please contact your Customer Service Rep as noted above. Safety Warning Notice: Products offered, sold, or invoiced herewith may have an applicable Safety Data Sheet (SDS) as prepared by the manufacturer of the product. Any handlers or users of product should refer to applicable SDS prior to handling or utilizing the product. Applicable SDS are included with shipment of products. For other important product notices and warnings, or to request an SDS, please contact Curtis or visit https://www.lncurtis.com/product-notices-warnings LN QTY UNIT PART NUMBER DESCRIPTION PL UNIT PRICE TOTAL PRICE 1 33 EA G-XTREME 3.0 JACKET - GLOBE CUSTOM As follows: WARNING: This Product Contains PFAS to achieve liquid repellency and/or meet current applicable NFPA performance standards. Globe G-xtreme 3.0 Jacket Dark Gold Agility Outer shell Titanium SL2i thermal liner Crosstech Black moisture barrier ScotchliteLime yellow Triple trim Cuff reinforcements Nomex Hand/wrist guards Radio pocket w/mic strap above $1,999.50 $65,983.50 Ph: 602-453-3911 TF: 877-453-3911 Fax: 602-453-3910 azsales@lncurtis.com UEI#: DDLSADSWN7U7 Southwest Division 4647 South 33rd Street Phoenix, AZ 85040 www.LNCurtis.com Quotation No. 269704 Page 2 of 4 LN QTY UNIT PART NUMBER DESCRIPTION PL UNIT PRICE TOTAL PRICE 2 33 PR GPS GLOBE CUSTOM As below: WARNING: This product contains PFAS to achieve liquid repellency and/or meet current applicable NFPA performance standards Globe GPS Pant system Pant - 4 fits Dark Gold Agility Outer shell Titanium SL2i therma liner Crosstech Black moisture barrier Scotchlite lime yellow triple trim around lower leg Pockets, Cuff and Knee reinforcements Padded knees Belt closure Padded RipCord Suspenders included. $1,599.00 $52,767.00 3 33 PR 1501420-10-M GLO Size 10M 14" Shadow XF Pull-On Regular Calf Structure Boots, Meets NFPA 1971, NFPA 1992 * This PPE Product Contains PFAS Chemicals for Water and Oil Repellency OM $580.00 $19,140.00 4 33 EA G200001D GLOBE Globe Guard Hood OM $164.24 $5,419.92 5 33 PR FC-C1000-L FIRECRAFT Large 76W INFERNO Gloves, Gauntlet OM $140.60 $4,639.80 6 33 EA 360SFSY CAIRNS Yellow 360S MSA Cairns Modern Helmet: * 4" Standard Faceshield * Economy Flannel Headband Liner * Yellow Nomex Earlap * 2-Point Removable Nomex Chinstrap with Quick Release & Postman's Slide * Lime/Yellow Reflexite Tetrabar Trim $335.00 $11,055.00 Ph: 602-453-3911 TF: 877-453-3911 Fax: 602-453-3910 azsales@lncurtis.com UEI#: DDLSADSWN7U7 Southwest Division 4647 South 33rd Street Phoenix, AZ 85040 www.LNCurtis.com Quotation No. 269704 Page 3 of 4 LN QTY UNIT PART NUMBER DESCRIPTION PL UNIT PRICE TOTAL PRICE 7 33 EA LAKELAND INDUSTRIES CUSTOM As Below: Lakeland Dual Cert Blue Nomex Overpants Per standard specification. #EMSPTM13 Waist sizes Small, Med, Large, Xlarge and 2XL Add 15% for 3XL and 4XL waist sizes $265.00 $8,745.00 8 33 EA FH911HRLY BULRD Lime-Yellow Wildfire Helmet, Hat Style, with Ratchet, Cal-OSHA, NFPA Labelled $74.00 $2,442.00 9 33 EA R222 BULRD Yellow Nomex Ripstop Ear/Neck Face Protector $48.00 $1,584.00 10 33 EA 7400283 ESS Striketeam XTO Rescue Goggles with Wraparound Strap and Face Padding $35.00 $1,155.00 11 33 EA WLS0335-XXL CREWBOSS 2XLarge Yellow 5.8oz Tecasafe Plus Hickory Brush Shirt $145.00 $4,785.00 12 33 PR 18051-10.5-D DANNER Size 10.5D Black 8" Modern Firefighter Composite Toe Work Boots * Meets NFPA 1977 for Wildland, NFPA 1999 for EMS OM $236.45 $7,802.85 Ph: 602-453-3911 TF: 877-453-3911 Fax: 602-453-3910 azsales@lncurtis.com UEI#: DDLSADSWN7U7 Southwest Division 4647 South 33rd Street Phoenix, AZ 85040 www.LNCurtis.com Quotation No. 269704 Page 4 of 4 LN QTY UNIT PART NUMBER DESCRIPTION PL UNIT PRICE TOTAL PRICE Small Business CAGE Code: 5E720 SIC Code: 5099 Federal Tax ID: 94-1214350 UEI #DDLSADSWN7U7 This pricing remains firm until 08/25/2023. Contact us for updated pricing after this date. Due to market volatility and supply shortages, we recommend contacting your local L.N. Curtis and sons office prior to placing your order to confirm pricing and availability. This excludes our GSA Contract and other Fixed Price Contracts which are governed by contract-specific prices, terms, and conditions. Subtotal $185,519.07 Estimated Tax Total $17,067.75 Transportation*$0.00 *(to be added when order ships) Total $202,586.82 View Terms of Sale and Return Policy ITEM 8. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Fire Department Prepared by: Dave Ott, Fire Chief Staff Contact Information: Dave Ott, Fire Chief Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of a Cooperative Purchasing Agreement (C2024-012) with SHI International Corp. for the purchase of new computers and associated equipment for mounting the fire apparatus. Staff Summary (Background) The current vehicle mounted computers are supplied by Rural Metro. Computers are needed for computer aided dispatch (CAD) for emergent and non-emergent calls, as well as mapping and emergency pre-plans. Staff from the FD and Information Technology evaluated the options and selected SHI International. SHI is a member of the Sourcewell Group Purchasing Cooperative, Contract #081419-SHI. The pricing includes warranty and extended warranty for the computers.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis Non-computerized systems within fire vehicles greatly impacts response times and the safety of residents. Recommendation(s) by Board(s) or Commission(s) NA Staff Recommendation(s) Staff recommends the approval of the proposed computer and related equipment purchase.  SUGGESTED MOTION MOVE to Approve the Cooperative Purchasing Agreement (C2024-012) with SHI International Corp. for the acquisition of new computers and associated installation equipment in an amount not to exceed $65,000.00.  Attachments 2024-012  2024-012A  2024-012B  Form Review Inbox Reviewed By Date Fire Chief (Originator)Dave Ott 08/09/2023 03:27 PM Finance Director David Pock 08/10/2023 08:06 AM Town Attorney Aaron D. Arnson 08/10/2023 03:59 PM Interim Town Manager Rachael Goodwin 08/10/2023 06:12 PM Form Started By: Dave Ott Started On: 08/09/2023 02:43 PM Final Approval Date: 08/10/2023  1 Contract No. 2024-012 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SHI INTERNATIONAL CORP. THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and SHI International Corp., a(n) Utah corporation (the “Contractor”). RECITALS A After a competitive procurement process (RFP#081419) Sourcewell, a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members, entered into Contract No. 081429-SHI, dated November 11, 2019 (the “Sourcewell Contract”), as amended, for the Contractor to provide Information Technology Solutions & Services. A copy of the Sourcewell Contract is attached hereto as Exhibit A and incorporated herein by reference, to the extent not inconsistent with this Agreement. B. The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the Sourcewell Contract, at its discretion and with the agreement of the awarded Contractor, and the Sourcewell Contract permits its cooperative use by other public entities, including the Town. C. The Town and the Contractor desire to enter into this Agreement for the purpose of acknowledging their cooperative contractual relationship under the Sourcewell Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide Information Technology Solutions & Services (the “Materials and Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. 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 Contractor hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date of execution 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 October 30, 2023 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the Sourcewell Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and appropriation of funds for renewal in each subsequent year, (ii) the term of the Sourcewell Contract has not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any 2 price adjustments approved as part of the Sourcewell Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2. Scope of Work. Contractor shall provide to the Town the Services under the terms and conditions of the Sourcewell Contract and according to the specifications set forth in the Contractor’s Proposal attached hereto as Exhibit B and incorporated herein by reference. 2.1 Inspection; Acceptance. All Materials and Services are subject to final inspection and acceptance by the Town. Materials failing to conform to the requirements of this Agreement and/or the Sourcewell Contract will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of non-conforming Materials or Services, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring Materials or Services into compliance and withhold the cost of same from any payments due to the Contractor. 2.2 Cancellation. The Town reserves the right to cancel any work order within a reasonable time after issuance. Should a work order be canceled, the Town agrees to reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor due to and after issuance of the work order. The Town will not reimburse the Contractor for any costs incurred after receipt of the Town notice of cancellation, or for lost profits, shipment of product prior to issuance of a work order or for anything not expressly permitted pursuant to this Agreement. 3. Compensation. The Town shall pay Contractor an amount not to exceed $65,000 (including all renewals) for the Materials and Services at the rates set forth in the Sourcewell Contract and as more particularly set forth in Exhibit B. The aggregate amount per renewal term shall not exceed $50,000 in any case unless the Agreement is affirmed and ratified via an executed amendment. All remaining terms and conditions of the Agreement shall remain in full force and effect. 4. Payments. The Town shall pay the Contractor monthly (and the Contractor shall invoice monthly), based upon acceptance and delivery of Materials and/or Services performed and completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the Sourcewell Contract and (ii) document and itemize all work completed to date. The invoice statement shall include a record of materials delivered, time expended, and work performed in sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the Sourcewell Contract will be subject to rejection and may be returned. 5. Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ books, 3 records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor 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 audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor 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 Contractor pursuant to this Agreement. Contractor 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 Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6. E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor 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). Contractor’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. 7. Israel. Contractor 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. 8. 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. 9. Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 10. Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 11. Agreement Subject to Appropriation. The Town is obligated only to pay its obligations set forth in this Agreement as may lawfully be made from funds appropriated and 4 budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 12. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the Sourcewell Contract, the Proposal, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in conformity with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the Sourcewell Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any work order or invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the Sourcewell Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 13. Rights and Privileges. To the extent provided under the Sourcewell Contract, the Town shall be afforded all of the rights and privileges afforded to Sourcewell and shall be the “Sourcewell” (as defined in the Sourcewell Contract) for the purposes of the portions of the Sourcewell Contract that are incorporated herein by reference. 14. Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to the Sourcewell to the extent provided under the Sourcewell Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor 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 any and all 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, in connection with the work or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 5 If to Contractor: SHI. International Corp. 290 Davidson Ave Somerset, N.J. 08873 Attn: Danny Mirsky 15. 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. 16. Notices and Requests. Any notice or other communication required or permitted t0 be given under this 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: If to the Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Rachael Goodwin, Interim Town Manager With Copy to: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney 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, (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. [SIGNATURES APPEAR ON FOLLOWING PAGES] EXHIBIT A TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SHI International Corp. [Sourcewell Contract] See following pages. 081419-SHI 1 Rev. 4/2019 Solicitation Number: RFP#081419 CONTRACT This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and SHI International Corp., 290 Davidson Ave., Somerset, NJ 08873 (Vendor). Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to its members. Participation is open to all levels of governmental entity, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. Vendor desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and its Members (Members). 1. TERM OF CONTRACT A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below. B. EXPIRATION DATE AND EXTENSION. This Contract expires October 30, 2023, unless it is cancelled sooner pursuant to Article 24. This Contract may be extended up to one additional one-year period upon request of Sourcewell and with written agreement by Vendor. C. SURVIVAL OF TERMS. Articles 11 through 16 survive the expiration or cancellation of this Contract. 2. EQUIPMENT, PRODUCTS, OR SERVICES A. EQUIPMENT, PRODUCTS, OR SERVICES. Vendor will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above. Vendor’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract. “Equipment” and “Products” shall mean the third party software, computer peripherals, computer hardware, and associated IT services resold by Vendor and provided by third parties. “Services” shall mean all professional services provided by Vendor under a Scope of Work. “Scope of Work” or “SOW” shall mean a document mutually agreed upon between the Vendor and the Member that references these terms and conditions and describes the Services DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 2 Rev. 4/2019 to be provided the associated schedule and price and any special conditions applicable to that SOW. All Equipment and Products provided under this Contract must be new/current model. Vendor may offer close-out or refurbished Equipment or Products if they are clearly indicated in Vendor’s product and pricing list. Unless agreed to by the Member in advance, Equipment or Products must be delivered as operational to the Member’s site. This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed. B. LAWS AND REGULATIONS. All Equipment, Products, or Services must comply fully with applicable federal laws and regulations, and with the laws of the state or province in which the Equipment, Products, or Services are sold. C. WARRANTY. Vendor warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances. Vendor warrants that the Services are free from material defects for ninety (90) days commencing with final acceptance of the Services unless otherwise specified in a SOW (the “Warranty Period”). Member agrees to look solely to the manufacturer to reach a resolution in any dispute over warranty terms with the manufacturer. Any manufacturer’s warranty that is provided to Vendor from the manufacturer of the Product will be passed on to the Member. EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT AND/OR ANY ORDER ISSUED, HEREUNDER VENDOR HEREBY DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WARRANTY OF NONINFRINGEMENT, OR ANY WARRANTY RELATING TO THIRD PARTY SERVICES OR PRODUCTS. THE DISCLAIMER CONTAINED IN THIS PARAGRAPH DOES NOT AFFECT THE TERMS OF ANY WARRANTY PROVIDED BY A MANUFACTURER. 3. PRICING All Equipment, Products, or Services under this Contract will be priced as stated in Vendor’s Proposal. Regardless of the payment method chosen by the Member, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Member at the time of purchase. When providing pricing quotes to Members, all pricing quoted must reflect a Member’s total cost of acquisition. This means that the quoted cost is for delivered Equipment, Products, and Services, and includes all costs to the Member’s requested delivery location. A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 3 Rev. 4/2019 apparent at the time of delivery, Vendor may permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Members, in accordance with Vendor’s Return Policy at www.shi.com/returnpolicy. Members reserve the right to inspect the Equipment and Products within 3 business days after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. Vendor must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition subject to Vendor’s Return Policy. In the event of the delivery of nonconforming Equipment and Products, the Member will notify the Vendor as soon as possible and the Vendor will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Member subject to Vendor’s Return Policy. B. SALES TAX. Each Member is responsible for supplying the Vendor with valid tax-exemption certification(s). When ordering, Members must indicate if it is a tax-exempt entity. C. HOT LIST PRICING. At any time during this Contract, Vendor may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract. When Vendor determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below. Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Members. 4. PRODUCT AND PRICING CHANGE REQUESTS Vendor may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Contract Administrator. This form is available from the assigned Sourcewell Contract Administrator. At a minimum, the request must: x Identify the applicable Sourcewell contract number x Clearly specify the requested change x Provide sufficient detail to justify the requested change x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change) x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 4 Rev. 4/2019 new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged. A fully executed Sourcewell Price and Product Request Form will be become an amendment to this Contract and be incorporated by reference. 5. MEMBERSHIP, CONTRACT ACCESS, AND MEMBER REQUIREMENTS A. MEMBERSHIP. Membership in Sourcewell is open to public and nonprofit entities across the United States and Canada; such as municipal, state/province, K-12 and higher education, tribal government, and other public entities. The benefits of this Contract should be available to all Members that can legally access the Equipment, Products, or Services under this Contract. A Member’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Vendor understands that a Member’s use of this Contract is at the Member’s sole convenience and Members reserve the right to obtain like Equipment, Products, or Services from any other source. Vendor is responsible for familiarizing its sales and service forces with Sourcewell membership requirements and documentation and will encourage potential members to join Sourcewell. Sourcewell reserves the right to add and remove Members to its roster during the term of this Contract. B. PUBLIC FACILITIES. Vendor’s employees may be required to perform work at government- owned facilities, including schools. Vendor’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Member policies and procedures, and all applicable laws. 6. MEMBER ORDERING AND PURCHASE ORDERS A. PURCHASE ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, Member must clearly indicate to Vendor that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Vendor. Typically a Member will issue a purchase order directly to Vendor. Members may use their own forms for purchase orders, but it should clearly note the applicable Sourcewell contract number. Members will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Member. B. ADDITIONAL TERMS AND CONDITIONS. Additional terms and conditions to a purchase order may be negotiated between a Member and Vendor, such as job or industry-specific requirements, legal requirements (such as affirmative action or immigration status requirements), or specific local policy requirements. Any negotiated additional terms and DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 5 Rev. 4/2019 conditions must never be less favorable to the Member than what is contained in Vendor’s Proposal. C. PERFORMANCE BOND. If requested by a Member, Vendor will provide a performance bond that meets the requirements set forth in the Member’s purchase order. D. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Member requires service or specialized performance requirements (such as e-commerce specifications, specialized delivery requirements, or other specifications and requirements) not addressed in this Contract, the Member and the Vendor may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement. E. TERMINATION OF PURCHASE ORDERS. Members may terminate a purchase order, in whole or in part, immediately upon notice to Vendor in the event of any of the following events: 1. The Member fails to receive funding or appropriation from its governing body at levels sufficient to pay for the goods to be purchased; 2. Federal or state laws or regulations prohibit the purchase or change the Member’s requirements; or 3. Vendor commits any material breach of this Contract or the additional terms agreed to between the Vendor and a Member. F. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Member’s purchase order will be determined by the Member making the purchase. 7. CUSTOMER SERVICE A. PRIMARY ACCOUNT REPRESENTATIVE. Vendor will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for: x Maintenance and management of this Contract; x Timely response to all Sourcewell and Member inquiries; and x Business reviews to Sourcewell and Members, if applicable. B. BUSINESS REVIEWS. Vendor must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to members, pricing and contract terms, administrative fees, supply issues, customer issues, and any other necessary information. 8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 6 Rev. 4/2019 A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Vendor must provide a contract sales activity report (Report) to the Sourcewell Contract Administrator assigned to this Contract. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Vendor must submit a report indicating no sales were made). The Report must contain the following fields: x Customer Name (e.g., City of Staples Highway Department); x Customer Physical Street Address; x Customer City; x Customer State; x Customer Zip Code; x Customer Contact Name; x Customer Contact Email Address; x Customer Contact Telephone Number; x Sourcewell Assigned Entity/Member Number; x Item Purchased Description; x Item Purchased Price; x Sourcewell Administrative Fee Applied; and x Date Purchase was invoiced/sale was recognized as revenue by Vendor. B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Vendor will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Members. The Vendor will submit a check payable to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Members under this Contract during each calendar quarter. Payments should note the Sourcewell-assigned contract number in the memo and must be mailed to the address above “Attn: Accounts Receivable.” Payments must be received no later than forty-five (45) calendar days after the end of each calendar quarter. Vendor agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract. In the event the Vendor is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Vendor in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than thirty (30) days from the cancellation date. DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 7 Rev. 4/2019 9. AUTHORIZED REPRESENTATIVE Sourcewell's Authorized Representative is its Chief Procurement Officer. Vendor’s Authorized Representative is the person named in the Vendor’s Proposal. If Vendor’s Authorized Representative changes at any time during this Contract, Vendor must promptly notify Sourcewell in writing. 10. ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. ASSIGNMENT. Neither the Vendor nor Sourcewell may assign or transfer any rights or obligations under this Contract without the prior consent of the parties and a fully executed assignment agreement. Such consent will not be unreasonably withheld. B. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been fully executed by the parties. C. WAIVER. If either party fails to enforce any provision of this Contract, that failure does not waive the provision or the right to enforce it. D. CONTRACT COMPLETE. This Contract contains all negotiations and agreements between Sourcewell and Vendor. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. E. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, master- servant, principal-agent, or any other relationship. 11. LIABILITY Vendor must indemnify, save, and hold Sourcewell and its Members, including their agents and employees, harmless from any third party claims or causes of action, including attorneys’ fees, arising out of the Vendor’s negligence, willful misconduct, or violation of law, in the course of the performance of this Contract by the Vendor or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by Vendor under this Contract. NEITHER PARTY WILL BE LIABLE FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO LOSS OF OR DAMAGE TO DATA, LOSS OF ANTICIPATED REVENUE OR PROFITS, WORK STOPPAGE OR IMPAIRMENT OF OTHER ASSETS, WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 8 Rev. 4/2019 NEITHER PARTY’S TOTAL CUMULATIVE LIABILITY TO THE OTHER IN CONNECTION WITH THIS AGREEMENT WHETHER IN CONTRACT TORT OR OTHER THEORY WILL EXCEED THE TOTAL AMOUNT OF FEES ACTUALLY PAID OR PAYABLE BY SOURCEWELL TO VENDOR UNDER THIS AGREEMENT FOR THE YEAR PREVIOUS TO THE INCIDENT WHICH GAVE CAUSE FOR SUCH LIABILITY. 12. AUDITS Sourcewell reserves the right to review the financial books, records, documents, and accounting procedures and practices of the Vendor relevant to this Contract for a minimum of six (6) years from the end of this Contract upon thirty (30) days’ advance notice to Vendor. Audits may not take place more than once during a twelve (12) month period. This clause extends to Members as it relates to business conducted by that Member under this Contract. 13. GOVERNMENT DATA PRACTICES Vendor and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell under this Contract and as it applies to all data created, collected, received, stored, used, maintained, or disseminated by the Vendor under this Contract. If the Vendor receives a request to release the data referred to in this article, the Vendor must immediately notify Sourcewell and Sourcewell will assist with how the Vendor should respond to the request. 14. INTELLECTUAL PROPERTY As applicable, Vendor agrees to indemnify and hold harmless Sourcewell and its Members against any and all suits, claims, judgments, and costs instituted or recovered against Sourcewell or Members by any person on account of the use of any Services by Sourcewell or its Members performed by Vendor in violation of applicable patent or copyright laws. 15. PUBLICITY, MARKETING, AND ENDORSEMENT A. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Vendor individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. B. MARKETING. Any direct advertising, marketing, or offers with Members must be approved by Sourcewell. Materials should be sent to the Sourcewell Contract Administrator assigned to this Contract. DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 9 Rev. 4/2019 C. ENDORSEMENT. The Vendor must not claim that Sourcewell endorses its Equipment, Products, or Services. 16. GOVERNING LAW, JURISDICTION, AND VENUE Minnesota law governs this Contract. Venue for all legal proceedings out of this Contract, or its breach, must be in the appropriate state court in Todd County or federal court in Fergus Falls, Minnesota. 17. FORCE MAJEURE Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default. 18. SEVERABILITY If any provision of this Contract is found to be illegal, unenforceable, or void then both Sourcewell and Vendor will be relieved of all obligations arising under such provisions. If the remainder of this Contract is capable of performance, it will not be affected by such declaration or finding and must be fully performed. 19. PERFORMANCE, DEFAULT, AND REMEDIES A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows: 1.Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Vendor will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties. 2.Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Vendor may escalate the resolution of the issue to a higher level of management. The Vendor will have thirty (30) calendar days to cure an outstanding issue. 3.Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Vendor must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Vendor fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed work, Sourcewell may terminate this Contract as stated herein. B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Member order under this Contract, in default: DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 10 Rev. 4/2019 1. Nonperformance of contractual requirements, or 2. A material breach of any term or condition of this Contract. Written notice of default and a reasonable opportunity to cure must be issued by the party claiming default. If the default remains after the opportunity for cure, the non-defaulting party may: x Exercise any remedy provided by law or equity, or x Terminate the Contract or any portion thereof, including any orders issued against the Contract. 20. INSURANCE A. REQUIREMENTS. At its own expense, Vendor must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following: 1.Workers’ Compensation and Employer’s Liability. Workers’ Compensation: As required by any applicable law or regulation. Employer's Liability Insurance: must be provided in amounts not less than listed below: Minimum limits: $500,000 each accident for bodily injury by accident $500,000 policy limit for bodily injury by disease $500,000 each employee for bodily injury by disease 2.Commercial General Liability Insurance. Vendor will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition). At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract. Minimum Limits: $1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury $2,000,000 aggregate for Products-Completed operations $2,000,000 general aggregate 3.Commercial Automobile Liability Insurance. During the term of this Contract, Vendor will maintain insurance covering all owned, hired, and non-owned automobiles DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 11 Rev. 4/2019 in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer). Minimum Limits: $1,000,000 each accident, combined single limit 4.Umbrella Insurance. During the term of this Contract, Vendor will maintain umbrella coverage over Workers’ Compensation, Commercial General Liability, and Commercial Automobile. Minimum Limits: $2,000,000 5.Professional/Technical, Errors and Omissions, and/or Miscellaneous Liability. During the term of this Contract, Vendor will maintain coverage for all claims the Vendor may become legally obligated to pay resulting from any actual or alleged negligent act, error, or omission related to Vendor’s professional services required under this Contract. Minimum Limits: $2,000,000 per claim or event $2,000,000 – annual aggregate 6.Network Security and Privacy Liability Insurance. During the term of this Contract, Vendor will maintain coverage for network security and privacy liability. The coverage may be endorsed on another form of liability coverage or written on a standalone policy. The insurance must cover claims which may arise from failure of Vendor’s security resulting in, but not limited to, computer attacks, unauthorized access, disclosure of not public data – including but not limited to, confidential or private information, transmission of a computer virus, or denial of service. Minimum limits: $2,000,000 per occurrence $2,000,000 annual aggregate Failure of Vendor to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default. B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Vendor must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Contract Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf. All policies must include there will be no cancellation, suspension, non-renewal, or reduction of coverage without thirty (30) days’ prior written notice to the Vendor. DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 12 Rev. 4/2019 Upon request, Vendor must provide to Sourcewell copies of applicable policies and endorsements, within ten (10) days of a request. Failure to request certificates of insurance by Sourcewell, or failure of Vendor to provide certificates of insurance, in no way limits or relieves Vendor of its duties and responsibilities in this Contract. C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Vendor agrees to name Sourcewell and its Members, including their officers, agents, and employees, as an additional insured under the Vendor’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Vendor, and products and completed operations of Vendor. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. D. WAIVER OF SUBROGATION. Vendor waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Vendor or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Vendor or its subcontractors. Where permitted by law, Vendor must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors. E. UMBRELLA/EXCESS LIABILITY. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies). F. SELF-INSURED RETENTIONS. Any self-insured retention in excess of $10,000 is subject to Sourcewell’s approval. 21. COMPLIANCE A. LAWS AND REGULATIONS. All Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Services are sold. B. LICENSES. Vendor must maintain a valid status on all required federal, state, and local licenses, bonds, and permits required for the operation of the business that the Vendor conducts with Sourcewell and Members. 22. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION Vendor certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 13 Rev. 4/2019 this Contract Vendor declares bankruptcy, Vendor must immediately notify Sourcewell in writing. Vendor certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota, the United States federal government, or any Member. Vendor certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Vendor further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time. 23. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER UNITED STATES FEDERAL AWARDS OR OTHER AWARDS Members that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Members may also require additional requirements based on specific funding specifications. Within this Article, all references to “federal” should be interpreted to mean the United States federal government. The following list only applies when a Member accesses Vendor’s Equipment, Products, or Services with United States federal funds. A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60- 1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference. B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by non- federal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 14 Rev. 4/2019 the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Vendor must be in compliance with all applicable Davis-Bacon Act provisions. C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. § 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Vendor certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Vendor must comply with applicable requirements as referenced above. E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA). Vendor DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 15 Rev. 4/2019 certifies that during the term of this Contract will comply with applicable requirements as referenced above. F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Vendor certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency. G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Vendors must file any required certifications. Vendors must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Vendors must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Vendors must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352). H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Vendor must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Vendor further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of three (3) years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed. I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Vendor must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act. J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Vendor must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition. K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Vendor agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Vendor that are directly pertinent to Vendor’s discharge of its obligations under this DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 081419-SHI 16 Rev. 4/2019 Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Vendor’s personnel for the purpose of interview and discussion relating to such documents. L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines. 24. CANCELLATION Sourcewell or Vendor may cancel this Contract at any time, with or without cause, upon sixty (60) days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Vendor’s Proposal. Termination of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to termination. Sourcewell SHI International Corp. 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7KH3URSRVHUGHFODUHVWKDWWKHUHLVDQDFWXDORUSRWHQWLDO&RQIOLFWRI,QWHUHVWUHODWLQJWRWKHSUHSDUDWLRQRILWVVXEPLVVLRQDQGRUWKH3URSRVHUIRUHVHHVDQ DFWXDORUSRWHQWLDO&RQIOLFWRI,QWHUHVWLQSHUIRUPLQJWKHFRQWUDFWXDOREOLJDWLRQVFRQWHPSODWHGLQWKHELG <HV1R 7KH%LGGHUDFNQRZOHGJHVDQGDJUHHVWKDWWKHDGGHQGXPDGGHQGDEHORZIRUPSDUWRIWKH%LG'RFXPHQW &KHFNWKHER[LQWKHFROXPQ,KDYHUHYLHZHGWKLVDGGHQGXPEHORZWRDFNQRZOHGJHHDFKRIWKHDGGHQGD DocuSign Envelope ID: 64B0A0DF-6351-4B8E-8587-6C9754F833A7DocuSign Envelope ID: 9572A8C3-61C7-4821-BB68-037BDD3C3793 1 AMENDMENT #1 TO SOURCEWELL CONTRACT #081419-SHI This Amendment is by and between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and SHI International Corp., 290 Davidson Avenue, Somerset, NJ 08873 (Vendor). Sourcewell awarded a contract for Technology Catalog Solutions to Vendor (#081429-SHI) effective November 12, 2019, until October 30, 2023, relating to the provision of services by Vendor and to Sourcewell and its Members (Original Contract). Vendor has requested to amended the Original Contract to expand the interpretation of the term “Vendor.” In consideration of the mutual covenants and agreements described in this Amendment, the parties agree to amend the Original Contract as follows: 1. This Amendment is effective upon the date of the last signature below. Remainder of page intentionally left blank.           2 2. As used within the Original Contract, any reference to “Vendor” will be interpreted to also include SHI Government Solutions, Inc. Except as amended by this Amendment, the Original Contract remains in full force and effect. Sourcewell SHI International Corp. By: By: Authorized Signature Authorized Signature Jeremy Schwartz Kristina Mann Name – Printed Name – Printed Title: Director of Operations & Procurement/CPO Title: Date: Date: Sourcewell–APPROVED: By: Authorized Signature Chad Coauette Name – Printed Title: Executive Director/CEO Date:                          Rev. 7/2022 1 CONTRACT EXTENSION Contract Number: #081419-SHI Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and SHI International Corp. (Vendor), 290 Davidson Avenue, Somerset, NJ 08873 have entered into Contract #081419-SHI for the procurement of Technology Catalog Solutions. The Contract has an expiration date of October 30, 2023, but the parties may extend the Contract by mutual consent. Sourcewell and Vendor acknowledge that extending the Contract benefits the Vendor, Sourcewell and Sourcewell’s Members. Vendor and Sourcewell agree to extend the Contract listed above for an additional period, with a new Contract expiration date of October 30, 2024. All other terms and conditions of the Contract remain in full force and effect. Sourcewell SHI International Corp. By: __________________________By: __________________________ Jeremy Schwartz Erin Rose Title: Chief Procurement Officer Title: Sr. Contracts Specialist Date: ________________________Date: ________________________               SHI Proposed Pricing - Sourcewell RFP # 081419 Technology Catalog Solutions Product Groups SHI Discount off Advertised List Price Desktops 4.50% Notebooks 4.50% Tablets 4.50% Servers 4.50% Group 2 Input Devices 4.50% Group 3 Output Devices 4.50% Group 4 Memory 4.50% Group 5 -Storage Devices 4.50% Group 6 Network Equipment 4.50% Group 7 Software 4.50% Group 8 - Media Supplies 4.50% Group 9 - Collaboration & IP Telephony 4.50% Group 10 - Other 4.50% Services Rates*T&M Rate/Hour Project Manager $125 Sr. Project Manager $175 Consultant - End User Solutions Group $175 Consultant - Security Solutions Group $225 Solutions Architect - End User Solutions $200 Solutions Architect - Data Center Solutions $225 Sr. Solution Architect - Security Solution Group $275 Sr. Solution Architect - Data Center Solutions $250 Cloud Developer $100 Senior Cloud Developer $240 Cloud Solutions Architect $250 * pricing is a sample and can vary on location, minimum billing requirements and other relevant variables. These rates do not include travel expenses. EXHIBIT B TO COOPERATIVE SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND SHI INTERNATIONAL CORP. [Quote or Work Order] See following pages.   Pricing Proposal Quotation #:  23757063 Created On:  7/28/2023 Valid Until:  10/1/2023   AZ-Town of Fountain Hills  Inside Account Executive   Mike Ciccarone 16705 E. Fountains Ave Fountain Hills, AZ 85268 United States Phone:   Fax:  Email:mciccarone@fountainhillsaz.gov   Danny Mirsky 300 Davidson Ave. Somerset, NJ 08873 Phone: 732-317-6876 Fax: Email:daniel_mirsky@shi.com All Prices are in US Dollar (USD)   Product Qty Your Price Total   1 - I5-1240P, WINDOWS HELLO WEBCAM, WIN11+16GB RAM, 512GB PCIE SSD, SUNLIGHT READA     Getac - Part#: BS3766BABCGX     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 9 $3,762.43 $33,861.87   2 Getac Bumper to Bumper + Extended Warranty - Extended service agreement - parts and labor - 2 years (4th/5th year) - pick-up and return     Getac - Part#: GE-SVTBNFX5Y     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 9 $529.40 $4,764.60   3 TF1-STANDARD VEHICLE DOCKING;W/ LPS-208&LPS-211 POWER SUPPLY MOUNTING BRACKET,W/     Getac - Part#: 543390100003     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 9 $725.62 $6,530.58   4 S410G4 - I5-1135G7, WINDOWS HELLO WEBCAM, W 11 PRO X64 WITH 16GB RAM, 512GB PCIE     Getac - Part#: SP276CQASCXX     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 1 $2,752.76 $2,752.76   5 ( BUMPER TO BUMPER )- SEMI-RUG LAPTOP (YEAR 1,2 and 3)     Getac - Part#: GE-SVSRNFW3Y     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 1 $317.28 $317.28   6 BUMPER TO BUMPER W EXTENDED WARRANTY- SEMI-RUG LAPTOP     Getac - Part#: GE-SVSRNFX5Y     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 1 $971.26 $971.26   7 Getac Office Dock - Docking station - 120 Watt - United States - for Getac S410 G4, S410 G4 Basic, S410 G4 Performance  1 $261.75 $261.75    Getac - Part#: GDODU4     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI   8 Getac Vehicle Adapter - Car power adapter - 12 - 32 V - for Getac V110     Getac - Part#: GAD4L1     Contract Name: Sourcewell- Technology Catalog Solutions     Contract #: 081419-SHI 1 $157.74 $157.74   9 Havis C-ADP-101 - Mounting component (adapter plate) - heavy gauge steel - black     Havis - Part#: C-ADP-101 9 $47.75 $429.75   Subtotal $50,047.59 *Tax $3,153.00 Total $53,200.59  *Tax is estimated. Invoice will include the full and final tax due. Additional Comments By accepting, using, or deploying the software, hardware or third party services resold under this ordering document (each, a “Product”), as well as any related maintenance or support services, Customer will be bound by any OEM terms and conditions applicable to such Product, including any current agreements between Customer and OEM, should they exist (the “OEM Terms”). If, in order to procure such Product for or resell such Product to Customer, SHI is required by the OEM to agree to or otherwise purports to accept any terms or conditions (the “Procured Terms”) and be bound thereby, SHI shall do so on behalf of Customer, Customer shall be bound by such Procured Terms, and Customer shall indemnify, defend and hold harmless SHI from and against any claims, actions, liabilities, losses and damages that SHI suffers under such Procured Terms that arise out of or in connection with Customer’s use or deployment of such Product, including any costs associated with periodic payments for, or the autorenewal of, a license to or subscription for such Product. For the avoidance of doubt, Customer is solely responsible for compliance with any autorenewal provisions contained in the OEM Terms or the Procured Terms, including providing timely notice to the OEM of Customer’s intent not to renew a license to or subscription for a Product. All orders of products and services referenced on this quote are non-cancelable and non-refundable. Hardware items on this quote may be updated to reflect changes due to industry wide constraints and fluctuations.  Please note, if Emergency Connectivity Funds (ECF) will be used to pay for all or part of this quote, please let us know as we will need to ensure compliance with the funding program. Thank you for choosing SHI International Corp! The pricing offered on this quote proposal is valid through the expiration date set above. To ensure the best level of service, please provide End User Name, Phone Number, Email Address and applicable Contract Number when submitting a Purchase Order. SHI International Corp. is 100% Minority Owned, Woman Owned Business. TAX ID# 22-3009648; DUNS# 61-1429481; CCR# 61-243957G; CAGE 1HTF0 The Products offered under this proposal are resold in accordance with the SHI Online Customer Resale Terms and Conditions, unless a separate resale agreement exists between SHI and the Customer. ITEM 9. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Staff Contact Information: Aaron D. Arnson, Town Attorney Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-11 - Pedestrians in the Roadway. Staff Summary (background) At the June 20, 2023 Council meeting, as part of Agenda Item 9(B), the Town Council discussed the safety concerns inherent with individuals stopping or standing in medians, particularly along high-traffic and high-speed streets and thoroughfares. The Council directed staff to bring back for consideration, discussion, and possible action an ordinance that prohibits individuals from standing or stopping in the roadway, medians, and similar areas where the speed limit is 35 mph or greater. In response, staff has prepared proposed Ordinance 2023-11 for Council consideration, discussion, and possible action. If adopted, this ordinance would amend Article 12-2 of the Town Code to prohibit individuals from standing or stopping in the roadway, medians, or areas adjacent to roadways where the speed limit is 35 mph or greater, subject to limited exceptions. Such exceptions include: conducting approved/permitted activities related to maintenance, surveying, construction, landscaping, and similar activities; and emergency personnel responding to accidents, safety hazards, and other emergencies. The Town Attorney has previously advised the Council in a privileged setting as to the possible benefits and concerns of adopting an ordinance of this nature and has recommended how to proceed should the Council wish to adopt such an ordinance. Staff notes that the Maricopa County Sheriff’s Office has not yet received an opinion from its own legal counsel regarding the enforcement of this ordinance. Therefore, staff is unable to advise the Council as to whether or how the ordinance will be enforced. 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 directs the Council to the legal advice and recommendations previously shared by the Town Attorney. Staff recommends that the Council take this into consideration should it proceed with adoption of the ordinance. SUGGESTED MOTION MOVE to adopt Ordinance 23-11. Attachments Ordinance  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 08/04/2023 02:55 PM Finance Director David Pock 08/07/2023 07:56 AM Interim Town Manager Linda Mendenhall 08/08/2023 08:14 AM Town Attorney Aaron D. Arnson 08/08/2023 09:15 AM Interim Town Manager Rachael Goodwin 08/08/2023 10:48 AM Form Started By: Linda Mendenhall Started On: 08/03/2023 08:25 AM Final Approval Date: 08/08/2023  ORDINANCE NO. 23-11 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE, CHAPTER 12 TRAFFIC, ARTICLE 12-2 TRAFFIC CONTROL, BY ADDING SECTION 12-2-13 PEDESTRIANS IN THE ROADWAY; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PENALTIES. RECITALS: WHEREAS, the Mayor and Town Council of the Fountain Hills (the “Town Council”) have exclusive control over the streets, alleys, avenues, and sidewalks of the Town and are empowered within the limits of the Town to regulate the use thereof; and WHEREAS, the Town Council wishes to address and remediate the inherent safety concerns caused by persons stopping in and around roadways and medians in close proximity to moving vehicles, and that such safety concerns are an important governmental interest; and WHEREAS, the Town Council has studied the issue and considered traffic and accident data and determined that prohibiting stopping or remaining roadway and similar areas adjacent only to higher speed roadways is an acceptably narrowly tailored method of regulation. WHEREAS, the Town Council desires to amend the Town Code to prohibit such activities throughout the Town. ENACTMENTS: NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. Chapter 12, Article 12-2, Section 12-2-13, Reserved; is amended, by adding Section 12-2-13 Pedestrians in Roadway or Median, as follows (new text in ALL CAPS); deletions in strikeout): SECTION 12-2-13 PEDESTRIANS IN ROADWAY OR MEDIAN Reserved A. IT IS UNLAWFUL FOR ANY PEDESTRIAN TO STOP OR REMAIN IN THE PORTION OF ANY ROADWAY DESIGNED FOR VEHICULAR USE OR IN A PAINTED OR RAISED TRAFFIC ISLAND OR MEDIAN THAT IS ADJACENT TO ANY ROAD ON WHICH THE MAXIMUM SPEED LIMIT IS 35 MILES PER HOUR OR HIGHER AND WHICH SAID TRAFFIC ISLAND OR MEDIAN IS NOT SPECIFICALLY DESIGNATED FOR USE BY PEDESTRIANS EXCEPT TO WAIT TO CROSS THE ROADWAY AT THE NEXT PEDESTRIAN SIGNAL OR, ORDINANCE 23-11 PAGE 2 IN THE ABSENCE OF A PEDESTRIAN SIGNAL, WHEN TRAFFIC HAS CLEARED OR YIELDED. B. THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO PERSONS OCCUPYING A MEDIAN OR ROADWAY WHILE CONDUCTING ACTIVITIES RELATED TO MAINTENANCE, SURVEYING, CONSTRUCTION, LANDSCAPE MAINTENANCE, LANDSCAPE IMPROVEMENTS, OR OTHER SIMILAR ACTIVITY NECESSARY FOR THE SAFE AND EFFICIENT OPERATION OF TOWN STREETS; PROVIDED THAT ALL SUCH OPERATIONS MUST BE CONDUCTED ONLY UPON APPROVAL OF THE PUBLIC WORKS DIRECTOR OR DESIGNEE, AND UPON SUCH CONDITIONS AS THE PUBLIC WORKS DIRECTOR SHALL REQUIRE, SUCH AS ADJACENT LANE CLOSURES, USE OF APPROPRIATE SAFETY VESTS OR GEAR, AND/OR OTHER SAFETY PRECAUTIONS DESIGNED TO ENSURE THE SAFETY OF MOTORISTS AND THOSE TEMPORARILY OCCUPYING THE MEDIAN FOR THESE PURPOSES. C. THE PROVISIONS OF SECTION SHALL NOT APPLY TO EMERGENCY PERSONNEL OCCUPYING A MEDIAN OR ROADWAY IN RESPONSE TO AN ACCIDENT, SAFETY HAZARD, OR OTHER EMERGENCY SITUATION. EMERGENCY PERSONNEL TEMPORARILY OCCUPYING A MEDIAN OR ROADWAY FOR THESE PURPOSES SHOULD TAKE ADEQUATE PRECAUTIONS TO HELP ENSURE PROPER NOTIFICATION OF THE EMERGENCY SITUATION IF FEASIBLE AND TO PROVIDE SUCH SAFETY MEASURES AS ARE APPROPRIATE AND REASONABLY AVAILABLE IN LIGHT OF THE EMERGENCY SITUATION PRESENTED. D. NOTHING IN THIS SECTION SHALL PROHIBIT THE LAWFUL EXERCISE OF ESTABLISHED RIGHTS UNDER THE UNITED STATES OR ARIZONA CONSTITUTIONS. SECTION 2. Providing for Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance or any part of the Code adopted herein by reference are hereby repealed. SECTION 3. Providing for Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance or any part of the Code adopted herein by reference is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. ORDINANCE 23-11 PAGE 3 SECTION 4. Providing for Penalties. A person who violates this Ordinance or any part of the Code adopted herein by reference shall be responsible, as stated in Chapter 1-8, Section 1-8-2: A. Any person found guilty of violating any provisions of this code, when classified as a Class 1 misdemeanor, and upon conviction thereof, shall be punished by a fine not to exceed $2,500.00 or by imprisonment for a period not to exceed six months, or by both such fine and imprisonment. B. otherwise specified, any violation of or failure or refusal to do or perform any act designated as a civil traffic violation is subject to A.R.S. Title 28, Chapter 5, and amendments thereto. C. Any person who is found or pleads guilty to a misdemeanor criminal offense in the municipal court and who, as a consequence, is incarcerated in any jail facility, may as a part of any sentence imposed by the municipal court, be required to reimburse the Town for any costs of such incarceration charged to the Town by the jail facility in which the person was incarcerated. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this ____ day of August, 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 ITEM 9. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Staff Contact Information: Aaron D. Arnson, Town Attorney Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-12 - Prohibited Solicitation Staff Summary (background) At the June 20, 2023 Council meeting, as part of Agenda Item 9(B), the Town Council discussed a variety of options to alleviate the negative secondary effects of homelessness, both for those individuals who experience unsheltered homelessness and for businesses owners and residents. The Council also discussed panhandling and its negative secondary effects. The Council directed staff to bring back for consideration, discussion, and possible action an ordinance that is identical in form and substance to the ordinance recently approved by the City of Glendale in October 2022. Proposed Ordinance 2023-12 is identical to the City of Glendale Ordinance, except for replacing references to Glendale with references to Fountain Hills. If adopted, this ordinance would amend Article 11-1 of the Town Code to prohibit any person from soliciting money or other items of value, or from soliciting the sale of goods or services in an aggressive manner in any public area;  In any public transportation vehicle, or bus station or stop;a. Within fifty (50) feet of any entrance or exit of any financial institution or check cashing business or within fifty (50) feet of any automated teller machine or check cashing business without the consent of the owner or other person legally in possession of such facilities; b. On private property if the owner, tenant or lawful occupant has asked the person not to solicit on the property, or has posted a sign clearly indicating that solicitations are not welcome on the property; c. Within twenty-five (25) feet of the entrance and/or exit of any commercial business or privately owned establishment. d. From any operator of a motor vehicle that is in traffic on a public street or stopped for a traffic control device or stop sign on a public street. e. The Town Attorney has previously advised the Council in a privileged setting as to the possible benefits and concerns of adopting an ordinance of this nature and has recommended how to proceed. Staff notes that the Maricopa County Sheriff’s Office has not yet received an opinion from its own legal counsel regarding the enforcement of this ordinance, Therefore, staff can make no representation as to whether or how the ordinance will be enforced. 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 directs the Council to the legal advice and recommendations previously shared by the Town Attorney. Staff recommends that the Council take this into consideration should it proceed with adoption of the ordinance. SUGGESTED MOTION MOVE to adopt Ordinance 23-12 Attachments Ordinance  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 08/04/2023 02:58 PM Finance Director David Pock 08/07/2023 07:59 AM Interim Town Manager Linda Mendenhall 08/08/2023 08:14 AM Town Attorney Aaron D. Arnson 08/08/2023 09:16 AM Interim Town Manager Rachael Goodwin 08/08/2023 10:48 AM Form Started By: Linda Mendenhall Started On: 08/03/2023 08:26 AM Final Approval Date: 08/08/2023  ORDINANCE NO. 23-12 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE, CHAPTER 11 OFFENSES, ARTICLE 11-1 OFFENSES, BY ADDING SECTION 11-1-18 PROHIBITED SOLICITATION; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PENALTIES. RECITALS: WHEREAS, persons who approach and follow pedestrians, repeat solicitations despite refusals, use obscene or abusive language or gestures to cause fear and intimidation, cause unwanted physical contact, or intentionally block pedestrian and vehicular traffic engage in forms of aggressive solicitation that are extremely disturbing and disruptive to residents and businesses; and WHEREAS, aggressive solicitation contributes not only to the loss of access to, and enjoyment of, public places, but also to an increased sense of fear and intimidation; and WHEREAS, the presence of individuals who solicit money from persons at or near banks, automated teller machines, or in public transportation vehicles is especially troublesome because of the enhanced fear of crime in those confined environments and such solicitation carries with it an implicit threat to both persons and property; and WHEREAS, the Town Council desire to protect citizens from fear and intimidation accompanying aggressive solicitation in the Town; and WHEREAS, the Town Council do not intend to limit any person from exercising the constitutional right to solicit funds, picket, protest, or engage in other constitutional activity, but to impose specific time, place, and manner restrictions on solicitation and associated conduct under circumstances deemed particularly threatening or dangerous; and WHEREAS, the Town Council desires to amend the Town Code to prohibit such activities throughout the Town. ENACTMENTS: NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. Chapter 11 Offenses, Article 11-1 Offenses, by adding Section 11-1-18 Prohibited Solicitation, as follows (new text in ALL CAPS): SECTION 11-1-18 PROHIBITED SOLICITATION; DEFINITIONS. ORDINANCE 23-12 PAGE 2 A. IT SHALL BE UNLAWFUL FOR ANY PERSON TO SOLICIT MONEY OR OTHER ITEMS OF VALUE, OR TO SOLICIT THE SALE OF GOODS OR SERVICES. 1. IN AN AGGRESSIVE MANNER IN ANY PUBLIC AREA; 2. IN ANY PUBLIC TRANSPORTATION VEHICLE, OR BUS STATION OR STOP; 3. WITHIN FIFTY (50) FEET OF ANY ENTRANCE OR EXIT OF ANY FINANCIAL INSTITUTION OR CHECK CASHING BUSINESS OR WITHIN FIFTY (50) FEET OF ANY AUTOMATED TELLER MACHINE OR CHECK CASHING BUSINESS WITHOUT THE CONSENT OF THE OWNER OR OTHER PERSON LEGALLY IN POSSESSION OF SUCH FACILITIES. PROVIDED, HOWEVER, THAT WHEN AN AUTOMATED TELLER MACHINE IS LOCATED WITHIN AN AUTOMATED TELLER MACHINE FACILITY, SUCH DISTANCE SHALL BE MEASURED FROM THE ENTRANCE, EXIT OR OUTSIDE BOUNDARY OF THE AUTOMATED TELLER MACHINE FACILITY; 4. ON PRIVATE PROPERTY IF THE OWNER, TENANT, OR LAWFUL OCCUPANT HAS ASKED THE PERSON NOT TO SOLICIT ON THE PROPERTY, OR HAS POSTED A SIGN CLEARLY INDICATING THAT SOLICITATIONS ARE NOT WELCOME ON THE PROPERTY; 5. WITHIN TWENTY-FIVE (25) FEET OF THE ENTRANCE AND/OR EXIT OF ANY COMMERCIAL BUSINESS OR PRIVATELY OWNED ESTABLISHMENT; OR 6. FROM ANY OPERATOR OF A MOTOR VEHICLE THAT IS IN TRAFFIC ON A PUBLIC STREET OR STOPPED FOR A TRAFFIC CONTROL DEVICE OR STOP SIGN ON A PUBLIC STREET, REGARDLESS OF WHETHER IN EXCHANGE FOR CLEANING THE VEHICLE'S WINDOWS, OR FOR BLOCKING, OCCUPYING, OR RESERVING A PUBLIC PARKING SPACE, OR DIRECTING THE OCCUPANT TO A PUBLIC PARKING SPACE OR EVEN IF NO SERVICES ARE RECEIVED IN EXCHANGE FOR RESPONDING TO THE SOLICITATION; PROVIDED, HOWEVER, THAT THIS PARAGRAPH SHALL NOT APPLY TO SERVICES RENDERED IN CONNECTION WITH EMERGENCY REPAIRS REQUESTED BY THE OPERATOR OR PASSENGER OF SUCH VEHICLE. B. ANY VIOLATION OF THIS SECTION IS A CIVIL VIOLATION FOR A FIRST OFFENSE AND A CLASS 1 MISDEMEANOR FOR ANY SUBSEQUENT OFFENSE(S) IN A TWELVE (12) MONTH PERIOD. C. DEFINITIONS. AGGRESSIVE MANNER MEANS AND INCLUDES: INTENTIONALLY OR RECKLESSLY MAKING ANY PHYSICAL CONTACT WITH OR TOUCHING ANOTHER PERSON OR THE PERSON'S ORDINANCE 23-12 PAGE 3 PROPERTY IN THE COURSE OF THE SOLICITATION WITHOUT THE PERSON'S CONSENT, FOLLOWING THE PERSON BEING SOLICITED, IF THAT CONDUCT IS: (I) INTENDED TO OR IS LIKELY TO CAUSE A REASONABLE PERSON TO FEAR IMMINENT BODILY HARM OR THE COMMISSION OF A CRIMINAL ACT UPON PROPERTY IN THE PERSON'S POSSESSION; OR (II) IS INTENDED TO OR IS REASONABLY LIKELY TO INTIMIDATE THE PERSON BEING SOLICITED INTO RESPONDING AFFIRMATIVELY TO THE SOLICITATION, CONTINUING TO SOLICIT WITHIN FIVE (5) FEET OF THE PERSON BEING SOLICITED AFTER THE PERSON HAS MADE A NEGATIVE RESPONSE, IF CONTINUING THE SOLICITATION IS: (I) INTENDED TO OR IS LIKELY TO CAUSE A REASONABLE PERSON TO FEAR IMMINENT BODILY HARM OR THE COMMISSION OF A CRIMINAL ACT UPON PROPERTY IN THE PERSON'S POSSESSION; OR (II) IS INTENDED TO OR IS REASONABLY LIKELY TO INTIMIDATE THE PERSON BEING SOLICITED INTO RESPONDING AFFIRMATIVELY TO THE SOLICITATION, INTENTIONALLY OR RECKLESSLY BLOCKING THE SAFE OR FREE PASSAGE OF THE PERSON BEING SOLICITED OR REQUIRING THE PERSON, OR THE DRIVER OF A VEHICLE, TO TAKE EVASIVE ACTION TO AVOID PHYSICAL CONTACT WITH THE PERSON MAKING THE SOLICITATION. THERE SHALL BE: (I) A REBUTTABLE PRESUMPTION THAT PLACING ITEMS OF PERSONAL PROPERTY ON A SIDEWALK RESULTING IN LESS THAN THREE FEET OF WALKING SPACE IS DONE WITH THE INTENT TO BLOCK PASSAGE ON THE SIDEWALK; (II) A REBUTTABLE PRESUMPTION THAT ENGAGING IN SOLICITATION IN THE DESIGNATED TRAFFIC LANE OF A PUBLIC ROADWAY OR ON A MEDIAN BETWEEN DESIGNATED TRAVEL LANES OF A PUBLIC ROADWAY IS DONE WITH THE INTENT TO BLOCK PASSAGE ON THE ROADWAY. ACTS AUTHORIZED AS AN EXERCISE OF ONE'S CONSTITUTIONAL RIGHT TO PICKET OR LEGALLY PROTEST, SHALL NOT CONSTITUTE OBSTRUCTION OF PEDESTRIAN OR VEHICULAR TRAFFIC; INTENTIONALLY OR RECKLESSLY USING OBSCENE OR ABUSIVE LANGUAGE OR GESTURES: (I) INTENDED TO OR LIKELY TO CAUSE A REASONABLE PERSON TO FEAR IMMINENT BODILY HARM OR THE COMMISSION OF A CRIMINAL ACT UPON PROPERTY IN THE PERSON'S POSSESSION; OR (II) WORDS INTENDED TO OR REASONABLY LIKELY TO INTIMIDATE THE PERSON INTO RESPONDING AFFIRMATIVELY TO THE SOLICITATION, OR APPROACHING THE PERSON BEING SOLICITED IN A MANNER THAT: (I) IS INTENDED TO OR IS LIKELY TO CAUSE A REASONABLE PERSON TO FEAR IMMINENT BODILY HARM OR THE COMMISSION OF ORDINANCE 23-12 PAGE 4 A CRIMINAL ACT UPON PROPERTY IN THE PERSON'S POSSESSION; OR (II) IS INTENDED TO OR IS REASONABLY LIKELY TO INTIMIDATE THE PERSON BEING SOLICITED INTO RESPONDING AFFIRMATIVELY TO THE SOLICITED. AUTOMATED TELLER MACHINE: A DEVICE, LINKED TO A FINANCIAL INSTITUTION'S ACCOUNT RECORDS, WHICH IS ABLE TO CARRY OUT TRANSACTIONS, INCLUDING, BUT NOT LIMITED TO: ACCOUNT TRANSFERS, DEPOSITS, CASH WITHDRAWALS, BALANCE INQUIRIES, AND MORTGAGE AND LOAN PAYMENTS. AN AUTOMATED TELLER MACHINE REGARDLESS OF WHETHER IT IS LOCATED AT A FINANCIAL INSTITUTION SHALL BE INCLUDED WITHIN THIS DEFINITION. AUTOMATED TELLER MACHINE FACILITY: THE AREA COMPRISED OF ONE OR MORE AUTOMATIC TELLER MACHINES, AND ANY ADJACENT SPACE WHICH IS MADE AVAILABLE TO FINANCIAL INSTITUTION CUSTOMERS AFTER REGULAR INSIDE COUNTER HOURS. IT SHALL BE PRESUMED THAT ANY AUTOMOBILE PARKING SPACE WITHIN FIFTY (50) FEET OF AN AUTOMATED TELLER MACHINE IS PART OF THE AUTOMATED TELLER MACHINE FACILITY TO PROVIDE ACCESS TO FINANCIAL INSTITUTION CUSTOMERS. CHECK CASHING BUSINESS: ANY PERSON DULY LICENSED BY THE STATE OF ARIZONA TO ENGAGE IN THE BUSINESS OF CASHING CHECKS, DRAFTS, OR MONEY ORDERS FOR CONSIDERATION PURSUANT TO THE PROVISIONS OF THE LAWS PERTAINING TO FINANCIAL SERVICES. FINANCIAL INSTITUTION: ANY PERSON, ENTITY OR CORPORATION ENGAGED IN THE BANKING BUSINESS AS DEFINED IN A.R.S. § 6-201, INCLUDING BUT NOT LIMITED TO NATIONAL BANK ASSOCIATIONS, REGARDLESS OF WHETHER THEIR HOME OFFICE IS LOCATED IN THIS STATE, BANKS HOLDING A BANKING PERMIT ISSUES BY THE STATE OF ARIZONA, CREDIT UNIONS OR SAVINGS AND LOAN ASSOCIATIONS. PUBLIC AREA: AN AREA TO WHICH THE PUBLIC OR A SUBSTANTIAL GROUP OF PERSONS HAS ACCESS, AND INCLUDES, BUT IS NOT LIMITED TO, ALLEYS, BRIDGES, BUILDINGS, DRIVEWAYS, PARKING LOTS, PARKS PLAYGROUNDS, PLAZAS, SIDEWALKS, AND STREETS OPEN TO THE GENERAL PUBLIC, AND THE DOORWAYS AND ENTRANCES TO BUILDINGS AND DWELLINGS, AND THE GROUNDS ENCLOSING THEM. SOLICIT: TO REQUEST AN IMMEDIATE DONATION OR TRANSFER OF MONEY OR OTHER THING OF VALUE FROM ANOTHER PERSON, REGARDLESS OF THE SOLICITOR'S PURPOSE OR INTENDED USE OF THE MONEY OR OTHER THING OF VALUE. THE SOLICITATION MAY BE, WITHOUT LIMITATION, BY SPOKEN, WRITTEN, OR PRINTED WORD, OR BY OTHER MEANS OF COMMUNICATION. ORDINANCE 23-12 PAGE 5 SECTION 2. Providing for Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance or any part of the Code adopted herein by reference are hereby repealed. SECTION 3. Providing for Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance or any part of the Code adopted herein by reference is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 4. Providing for Penalties. Unless otherwise provided, any violation of this ordinance is a civil violation for a first offense and a Class 1 misdemeanor for any subsequent offense(s) in a twelve (12) month period. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this ____ day of August, 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 ITEM 9. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Staff Contact Information: Aaron D. Arnson, Town Attorney Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF POSSIBLE ACTION: Approving Ordinance 23-13 - Urban Camping. Staff Summary (background) At the June 20, 2023 Council meeting, as part of Agenda Item 9(B), the Town Council discussed a variety of options to alleviate the negative secondary effects of homelessness, both for those individuals who experience unsheltered homelessness and for businesses owners and residents. The Council also discussed urban camping (i.e., street and other public camping). Staff represented to the Council that it would bring back for consideration, discussion, and possible action an ordinance that addresses this issue. Staff has prepared proposed Ordinance 2023-13 for Council consideration, discussion, and possible action. If approved, Ordinance 2023-13 would prohibit any person from:  Using a public street, alley, lane, parkway, or other right-of-way, whether such right-of-way has been dedicated to the public, in fee or by easement, for lying, sleeping, remaining in a sitting position thereon, or camping, except in the case of a physical emergency or the administration of medical assistance; and Camping in any public park or place, except where specifically authorized by the Town. Consistent with federal law, Ordinance 2023-13 may be enforced where an involuntarily homeless person has access to a shelter space or an alternative location to go to upon being ordered to vacate the area. Staff notes that the Maricopa County Sheriff’s Office has not yet received an opinion from its own legal counsel regarding the enforcement of this ordinance. Therefore, staff can make no representation as to whether or how the ordinance will be enforced. Related Ordinance, Policy or Guiding Principle N/A   Risk Analysis Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to adopt Ordinance 23-13 Attachments Ordinance  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 08/04/2023 03:01 PM Finance Director David Pock 08/07/2023 08:02 AM Interim Town Manager Linda Mendenhall 08/08/2023 08:15 AM Town Attorney Aaron D. Arnson 08/08/2023 09:17 AM Interim Town Manager Rachael Goodwin 08/08/2023 10:40 AM Form Started By: Linda Mendenhall Started On: 08/03/2023 08:27 AM Final Approval Date: 08/08/2023  ORDINANCE NO. 23-13 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS TOWN CODE, CHAPTER 11 OFFENSES, BY ADDING ARTICLE 11-3 URBAN CAMPING; PROVIDING FOR REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR PENALTIES. RECITALS: WHEREAS, the Town Council of the Town of Fountain Hills desires to amend Title 11 Offenses to adopt certain urban camping regulations to protect the health, safety, and welfare of the Town of Fountain Hills and its residents; and WHEREAS, public places in the Town of Fountain Hills provide common areas for residents of the community and non-residents to meet, relax, and take part in recreational, cultural, social, and other activities; and WHEREAS, it is the responsibility of the Town and, in the best interests of residents of the community and nonresidents, to ensure that public streets, sidewalks, parks, and other public places are made readily accessible to the public; and WHEREAS, the Town desires to adopt urban camping regulations to prohibit the use of certain public areas for urban camping and the storage of personal property to ensure that public streets, sidewalks, parks, and other public places are accessible to the public and maintained in a clean and sanitary manner; and WHEREAS, the Ninth Circuit Court of Appeals held in Martin v. Town of Boise and Johnson v. Town of Grants Pass that the Eighth Amendment prohibits the imposition of criminal penalties for camping on outdoor public property for homeless individuals who cannot obtain shelter without first providing an individualized assessment to determine if there is shelter space or other public space available. ENACTMENTS: NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. Chapter 11 Offenses, by adding Article 11-3 Urban Camping, as follows (new text in ALL CAPS): ARTICLE 11-3 URBAN CAMPING SECTION 11-3-1 DEFINITIONS. ORDINANCE 23-13 PAGE 2 THE FOLLOWING WORDS, TERMS, AND PHRASES, WHEN USED IN THIS CHAPTER, SHALL HAVE THE MEANINGS ASCRIBED TO THEM IN THIS SECTION, EXCEPT WHERE THE CONTEXT CLEARLY INDICATES A DIFFERENT MEANING: "CAMP" MEANS TO RESIDE IN OR USE A PUBLIC PARK, STREET, OR OTHER PUBLIC PLACE FOR TEMPORARY OR PERMANENT LIVING ACCOMMODATION PURPOSES INCLUDING, BUT NOT LIMITED TO, ACTIVITIES SUCH AS ERECTING TENTS OR ANY OTHER STRUCTURE PROVIDING SHELTER, DIGGING OR BREAKING EARTH, LAYING DOWN BEDDING FOR THE PURPOSES OF SLEEPING, USING CAMP PARAPHERNALIA, STORING PERSONAL BELONGINGS, STARTING A FIRE, REGULARLY COOKING OR PREPARING MEALS, OR LIVING IN A PARKED VEHICLE. "CAMP PARAPHERNALIA" INCLUDES, BUT IS NOT LIMITED TO, TARPAULINS OR TARPS, COTS, BEDS, SLEEPING BAGS, HAMMOCKS, BLANKETS, OR NON-TOWN DESIGNATED COOKING FACILITIES AND SIMILAR EQUIPMENT. "PUBLIC PARK" MEANS ALL TOWN PARKS AND PLAYGROUNDS. "PUBLIC PLACE" MEANS PUBLIC PLAZAS, TRANSPORTATION FACILITIES, BUS STOPS, SCHOOLS, ATTRACTIONS, MONUMENTS, AND IMPROVED AND UNIMPROVED PUBLIC AREAS. "PUBLIC STREET" MEANS ALL TOWN-OWNED PUBLIC STREETS AND HIGHWAYS, PUBLIC SIDEWALKS, PUBLIC BENCHES, PUBLIC PARKING LOTS, AND PUBLIC PARKING STRUCTURES. SECTION 11-3-2 PROHIBITED USE OF PUBLIC RIGHT-OF-WAY. IT SHALL BE UNLAWFUL FOR ANY PERSON TO USE A PUBLIC STREET, ALLEY, LANE, PARKWAY, OR OTHER RIGHT-OF-WAY, WHETHER SUCH RIGHT-OF-WAY HAS BEEN DEDICATED TO THE PUBLIC, IN FEE OR BY EASEMENT, FOR LYING, SLEEPING, REMAINING IN A SITTING POSITION THEREON, OR CAMPING, EXCEPT IN THE CASE OF A PHYSICAL EMERGENCY OR THE ADMINISTRATION OF MEDICAL ASSISTANCE. SECTION 11-3-3 CAMPING IN PUBLIC PLACES. A. CAMPING PROHIBITED. NO PERSON SHALL CAMP IN ANY PUBLIC PARK OR PLACE, EXCEPT WHERE SPECIFICALLY AUTHORIZED BY THE TOWN. B. YOUTH ORGANIZATION EXCEPTION. THE TOWN MAY, IN ACCORDANCE WITH THE TOWN'S ESTABLISHED PROCEDURES, ISSUE SPECIAL USE PERMITS OR RESERVATION PERMITS TO ORDINANCE 23-13 PAGE 3 AUTHORIZE YOUTH ORGANIZATIONS TO CAMP OR PARK VEHICLES OVERNIGHT IN A PARK. NOTHING IN THIS SECTION SHALL BE INTERPRETED TO PROHIBIT CAMPING OR OVERNIGHT PARKING SPONSORED OR APPROVED BY THE TOWN OF FOUNTAIN HILLS. C. DESIGNATED CAMPING ZONES. THE TOWN COUNCIL MAY DESIGNATE CERTAIN PUBLIC PROPERTY FOR CAMPING AND IF SUCH DESIGNATION HAS BEEN MADE AND SPACE IS AVAILABLE, THEN INDIVIDUALS DESIRING TO CAMP ON PUBLIC PROPERTY SHALL BE REQUIRED TO CAMP IN THE DESIGNATED AREA. SECTION 11-3-4 VIOLATION—PENALTY. A. VIOLATION OF THIS CHAPTER IS A CIVIL PENALTY PUNISHABLE IN ACCORDANCE WITH TOWN CODE, SECTION 1.8, EXCEPT THAT CRIMINAL SANCTIONS SHALL APPLY FOR HABITUAL OFFENDERS. B. AN INDIVIDUAL CHARGED WITH VIOLATION OF THIS CHAPTER, WITH THE CONSENT OF THE INDIVIDUAL, MAY BE TAKEN TO A FACILITY PROVIDING SOCIAL SERVICES RELATED TO MENTAL HEALTH, HOUSING, AND/OR SUBSTANCE ABUSE TREATMENT IN LIEU OF CITATION. SECTION 2. Providing for Repeal of Conflicting Ordinances. All ordinances and parts of ordinances in conflict with the provisions of this Ordinance or any part of the Code adopted herein by reference are hereby repealed. SECTION 3. Providing for Severability. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance or any part of the Code adopted herein by reference is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions thereof. SECTION 4. Providing for Penalties. A person who violates this Ordinance or any part of the Code adopted herein by reference shall be responsible, as follows: A. Violation of this chapter is a civil penalty punishable in accordance with Town Code, Section 1.8, except that criminal sanctions shall apply for habitual offenders. B. An individual charged with violation of this chapter, with the consent of the individual, may be taken to a facility providing social services related to mental health, housing, and/or substance abuse treatment in lieu of citation. ORDINANCE 23-13 PAGE 4 PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this ____ day of August, 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 ITEM 9. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 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: Approving Professional Services Agreement 2023-088 with Kimley Horn & Associates for a Town Center Parking Analysis Staff Summary (Background) Planning for the Town’s Future. Arizona Revised Statutes (ARS) 9-461.06 requires that all municipalities in Arizona update their existing General Plan every ten years. Such updates ensure that the General Plan complies with all applicable requirements included in Arizona Revised Statutes 9-461.05. The Voter approved and Council Adopted Fountain Hills 2020 General Plan complies with all applicable Arizona Revised Statutes. The 2020 General Plan has also incorporated other Town of Fountain Hills efforts such as Vision Fountain Hills and the 2022 Strategic Plan, to ensure that such efforts are integrated with Town needs and community aspirations. The Town of Fountain Hills 2020 General Plan is intended, in all respects, to assist the elected and appointed officials and staff in guiding future growth, development, redevelopment and infill. The Town of Fountain Hills Citizens’ vision for their community is detailed in the 2022 Strategic Plan as Elements, Goals and Strategies. The 2020 General Plan translates the 2022 Strategic Plans, Vision, Goals and Strategies into Goals, Objectives, and Policies for each of the Plan Elements. These statements of principle now need to be carried out in practice. Goal 4, Policy 5, of the 2020 General Plan provides the following direction to the Public Works Department: Conduct a Parking Study that:  Assesses the required capacity and use of existing parking facilities; and, Recommends parking standards based on current best parking practices. The 2020 General Plan identifies the Town Center as the primary focus point for the parking assessment. The 2020 General Plan defines the Town Center as an area East of La Montana, West of Panorama, North of El Lago, South of the East section of La Montana and includes Fountain Park. Staff have attached an exhibit to this staff report for reference. During the planning process, staff contacted several engineering firms to discuss the parking assessment scope. The following firms declined to provide a proposal due to lack of staffing or expertise, J2 Engineering and Environmental Design, Sunrise Engineering, Inc., and Wood Patel and Associates. Kimley Horn & Associates submitted a proposal in the form of a scope and fee in the amount of $48,000 for the services listed below. The Parking Management Study will include the following:  a review of current and past relevant studies, a review of policies and programs, a parking inventory, parking occupancy, special event parking occupancy, projected future parking needs, stakeholder engagement, and the development of parking policy and management recommendations. Related Ordinance, Policy or Guiding Principle 2020 General Plan Risk Analysis Not approving the Professional Services Agreement 2023-088 with Kimley Horn & Associates for a Town Center Parking Analysis may require an amendment to the 2020 General Plan.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Professional Services Agreement 2023-088 with Kimley Horn & Associates for a Town Center Parking Analysis  SUGGESTED MOTION MOVE to approve Professional Services Agreement 2023-088 with Kimley Horn & Associates for a Town Center Parking Analysis in the amount of $48,000 Fiscal Impact Fiscal Impact:$48,000 Budget Reference:N/A Funding Source:Engineering Department If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Attachments Professional Services Agreement  Scope and Fee  Map  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 06/05/2023 04:53 PM Finance Director David Pock 06/06/2023 08:36 AM Town Attorney Aaron D. Arnson 06/06/2023 06:08 PM Interim Town Manager Rachael Goodwin 08/08/2023 10:14 AM Form Started By: Justin Weldy Started On: 05/23/2023 06:47 AM Final Approval Date: 08/08/2023  1 Contract No. 2023-088 PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND KIMLEY-HORN & ASSOCIATES, INC. THIS PROFESSIONAL SERVICES AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Kimley-Horn & Associates, Inc., a(n) North Carolina corporation (the “Vendor”). RECITALS A. The Town conducted a search for firms to conduct a Parking Management Study. B. The Town desires to engage this Vendor to provide Parking Management Study/Analysis (the “Services”). C. The Town desires to enter into an Agreement with the Vendor 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 Vendor 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 June 30, 2024. 2. Scope of Work. This is an indefinite quantity and indefinite delivery Agreement for Services as previously set forth herein. Services shall only be provided when the Town identifies a need and proper authorization and documentation have been approved. For project(s) determined by the Town to be appropriate for this Agreement, the Vendor shall provide the Services to the Town on an as-required basis relating to the specific Services as may be agreed upon between the parties in writing, in the form of a written acknowledgment between the parties describing the Services to be provided (each, a “Work Order”). Each Work Order issued for Services pursuant to this Agreement shall be (i) in the form provided and approved by the Town for the Services, (ii) contain a reference to this Agreement and (iii) be attached to hereto as Exhibit B and incorporated herein by reference. By signing this Agreement, Vendor acknowledges and agrees that Work Order(s) containing unauthorized exceptions, conditions, limitations, or provisions in conflict with the terms of this Agreement, other than Town's project-specific requirements, are hereby expressly declared void and shall be of no force and effect. The Town 2 does not guarantee any minimum or maximum amount of Services will be requested under this Agreement. 3. Compensation. The Town shall pay the Vendor an aggregate amount not to exceed $48,000 at the rates set forth in the Scope/Fee Schedule attached hereto as Exhibit A and incorporated herein by reference. 4. Payments. The Town shall pay the Vendor monthly (and the Vendor 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. Vendor Personnel. Vendor shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Vendor agrees to assign specific individuals to key positions. If deemed qualified, the Vendor is encouraged to hire Town residents to fill vacant positions at all levels. Vendor 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, Vendor 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 Vendor’s performance. The Vendor shall provide and maintain a self-inspection system that is acceptable to the Town. 8. Licenses; Materials. Vendor shall maintain in current status all federal, state and local licenses and permits required for the operation of the business conducted by the Vendor. The Town has no obligation to provide Vendor, 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 Vendor. 9. Performance Warranty. Vendor 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 Vendor 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 any and all losses, claims, damages, liabilities, costs and expenses (including, but 3 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 Vendor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. The amount and type of 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 Vendor, Vendor 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 Vendor. 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 Vendor 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. Vendor’s insurance shall be primary insurance with respect to performance of this Agreement and in the protection of the Town as an Additional Insured. 4 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. 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 Vendor. Vendor 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. Vendor 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, Vendor 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 Vendor. Vendor 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, Vendor 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 Vendor’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 Vendor’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 5 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: (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) Vendor’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 Vendor 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. Vendor 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 6 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. B. Vehicle Liability. Vendor shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Vendor’s owned, hired and non-owned vehicles assigned to or used in the performance of the Vendor’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 Vendor engages in any professional services or work in any way related to performing the work under this Agreement, the Vendor shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Vendor, or anyone employed by the Vendor, or anyone for whose negligent acts, mistakes, errors and omissions the Vendor 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. Vendor shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state statutes having jurisdiction over Vendor’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 Vendor of written notice by the Town. Upon termination for convenience, Vendor 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 7 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 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 Vendor 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 Vendor 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 Vendor 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 Vendor 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 Vendor, 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 Vendor or any agent or representative of the Vendor 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 Vendor 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 Vendor 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 Vendor shall be relieved of any subsequent obligation under this Agreement. 13. Miscellaneous. 8 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 Vendor acknowledges and agrees that the Services provided under this Agreement are being provided as an independent contractor, not as an employee or agent of the Town. Vendor, 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 Vendor, its employees or subcontractors. The Vendor, and not the Town, shall determine the time of its performance of the services provided under this Agreement so long as Vendor meets the requirements as agreed in Section 2 above and in Exhibit A. Vendor is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Vendor 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. Vendor 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 Vendor 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 Vendor. 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 9 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. 13.8 Assignment; Delegation. No right or interest in this Agreement shall be assigned or delegated by Vendor without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Vendor in violation of this provision shall be a breach of this Agreement by Vendor. 13.9 Subcontracts. No subcontract shall be entered into by the Vendor with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. The Vendor 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 Vendor. 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 Vendor 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 Vendor any amounts Vendor 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 Vendor any amounts Vendor owes to the Town for delinquent fees, transaction privilege taxes and property taxes, including any interest or penalties. 10 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 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 Vendor: Kimley-Horn & Associates, Inc. 7740 N. 16th St., Suite 300 Phoenix, Az. 85020 Attn: Robert Ferrin 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 Vendor 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 Vendor’s duties under this Agreement. Persons requesting such information should be referred to the Town. Vendor also agrees that any information pertaining to individual persons shall not be divulged other than to employees or officers of Vendor as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that the Vendor and its subcontractors are complying with the warranty under subsection 13.17 below, Vendor’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 Vendor and its subcontractors’ 11 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 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 Vendor’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 Vendor’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, Vendor 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 Vendor pursuant to this Agreement. Vendor 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 Vendor or its subcontractors reasonable advance notice of intended audits. Vendor 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 Vendor 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). Vendor’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. Vendor 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. 13.21 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 13.22 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 ON FOLLOWING PAGES] EXHIBIT A TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND KIMLEY-HORN & ASSOCIATES, INC. [Scope/Fee Schedule] See following pages. kimley-horn.com 7965 North High Street, Suite 200, Columbus, OH 43235 614-454-6699 October 13, 2022 Justin Weldy Public Works Director Town of Fountain Hills 16705 East Avenue of Fountains Fountain Hills, AZ 85268 RE: Fountain Hills Town Center Parking Management Study Thank you for taking the time to discuss your parking management needs for the Town of Fountain Hills. As your team described the Town is experiencing increased parking pressures in the Town Center and Fountain Hills Lake Park area including during special events and programming. Along with these current conditions there are several aspects of the recently approved Fountain Hills General Plan 2020 that recommend the study of the parking and transportation system in Fountain Hills. These recommendations include conducting an integrated parking study that comprehensively assesses: • Underutilized parking in the Town Center; • Special event parking and traffic management plans and policies for the control of high- volume traffic, short term localized traffic congestion and lack of available parking generated by periodic special events; • Feasibility of locating a public parking structure in the Town Center to support regular Town Center parking needs and special event parking opening valuable land withing the Town Center for additional development. The General Plan 2020 also recommends a parking study in the Implementation Action matrix that: • Assesses the required capacity and use of existing parking facilities; • Recommends parking standards based on current best parking practices; • Updates the Zoning Ordinance parking standards to reflect parking study recommendations. Lastly, the General Plan 2020 recommends the preparation of an integrated Connectivity, Access, and Mobility Plan that implements all the goals included in this Element and updates and incorporates: • All aspects of connectivity, access and mobility for all transportation modes; • The Special Event Parking and Traffic Management Plan; • The Town Center Circulation Plan; • The Street Crossings and Drainage Analysis; and • The parking recommendations included in the Parking Study. The purpose of this high-level scope of work is to support implementing the recommendations of the General Plan 2020 to mitigate existing parking pressures and be proactive as additional growth occurs in the Town Center area. Page 2 kimley-horn.com 7965 North High Street, Suite 200, Columbus, OH 43235 614-454-6699 Draft Scope of Services Outline Task 1 Review Current & Past Relevant Studies ($2,000) Review of relevant studies to gain an understanding of past work performed, particularly recommendations. Key findings relative to parking will be documented. Task 2 Review of Policies & Programs ($2,000) Kimley-Horn will review the Town of Fountain Hills parking policies and programs that are either approved or pending. The review will be cursory in nature to extract pertinent information relative to how parking is operated, maintained, enforcement, applied to development, and required by code. Task 3 Parking Inventory ($2,000) An inventory of existing on and off-street parking facilities will be conducted within an approved study area. For the purposes of this scope of services outline the study area is generally bounded by El Lago Blvd (south), Fountain Hills Blvd (west), Palisades Blvd (north) and Saguaro Blvd (east) including Fountain Park and the roadways adjacent to the east of the town center. The results of this inventory will be mapped in GIS. Task 4 Parking Occupancy ($10,000) An occupancy count survey will be conducted for the parking facilities and on-street parking spaces as agreed upon in Task 3. The occupancy survey will be conducted on an agreed upon representative day or days. The occupancy counts will typically be performed on an hourly basis from approximately 8:00 am to 6:00 pm. Specific times and days will be established in coordination with Town staff. Kimley-Horn will utilize any available occupancy information from the Town of Fountain Hills and will collect any missing data in the field. Kimley-Horn will utilize one of two methods for data collection: collecting the information manually from ground observations for the study area facilities or the use of drones to capture the on-street and surface lot data and on-ground observations to collect the parking garage data. Task 5 Special Event Parking Occupancy ($5,000) An occupancy count survey will be conducted in and around Fountain Hills Lake Park during up to two (2) special events agreed upon by Town staff. The occupancy counts will typically be performed on an hourly basis starting 2 hours leading up to and through the event. Kimley-Horn will utilize one of two methods for data collection: collecting the information manually from ground observations for the study area facilities or the use of drones to capture the on-street and surface lot data and on- ground observations to collect the parking garage data. Task 6 Projected Future Parking Needs ($12,000) Kimley-Horn will evaluate up to three future needs scenarios for the Town Center which can include a combination of known/funded projects, projected Town Center growth, alternate parking supply scenarios, and alternate redevelopment and/or growth scenarios. The three future needs scenarios will be agreed upon by Kimley-Horn and the Town of Fountain Hills prior to beginning the evaluation. Kimley-Horn will reference data provided in ULI’s Shared Parking, Third Edition manual to develop hourly parking generation estimates for each of the three future scenarios. The projected future parking Page 3 kimley-horn.com 7965 North High Street, Suite 200, Columbus, OH 43235 614-454-6699 demand will then be compared to the existing parking supply or projected future parking supply (if the scenarios include redevelopment of an existing parking facility). Based on the results of this analysis, Kimley-Horn will identify potential surpluses or deficits of available parking spaces for each scenario. Task 7 Stakeholder Engagement ($4,000) Kimley-Horn will attend and facilitate internal stakeholder meetings with Town staff, key stakeholder meetings including with property owners, and community wide meetings. The purpose of these meetings will be to collect feedback on existing parking conditions, educate the public on study results and best practices, and present and solicit feedback on parking policy and management recommendations. These meetings would be a mixture of virtual and in-person meetings and the estimated budget could increase if meetings are required to be in-person. Task 8 Parking Policy & Management Toolbox ($4,000) Kimley-Horn will provide a parking policy and management toolbox glossary outlining important tools and strategies used to mitigate parking pressures and increase access for residents. The toolbox glossary will serve as an educational tool for internal and external stakeholders alike and be a reference document for recommendations outlined in Task 9. Task 9 Parking Policy & Management Recommendation ($7,000) Based on the results of the parking occupancy and special event parking occupancy analysis, projected future parking needs, and stakeholder engagement Kimley-Horn staff will develop a parking policy and management recommendations matrix for the Town of Fountain Hills to implement to improve parking and transportation access around the Town Center and Park. The matrix will rank recommendations in priority order and by level of effort to implement. The matrix will serve as the Town’s parking work program for the next several years and inform future budget decisions. TOTAL FEE ESTIMATE ($48,000) Once you and your team have had a chance to review this proposal outline and after we have discussed further, we can provide a more detailed scope of services with defined deliverables for you to review. At that time our team will also provide an hourly fee breakdown to complete this work. The above outline can be modified to meet your needs and can be phased as appropriate. Please feel free to contact me directly at 380 867 1280 or robert.ferrin@kimley-horn.com if you have any questions. Kimley-Horn looks forward to partnering with the Town of Fountain Hills in your parking management journey. Sincerely, Robert Ferrin Senior Project Manager PAUL NORDIN PKWY PALISADES BLVD PAN O R A M A D R PARKVIEW AVE AVENUE OF THE FOUNTAINS EL LAGO BLVD VE R D E R I V E R D R Town Center LA M O N T A N A D R SA G U A R O B L V D LA MON T A N A D R Fountain Park ITEM 9. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 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: Approving Authorization to Proceed with Capital Project T6005, for final design of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge and Palomino Drives. Staff Summary (Background) There are several traffic-related as well as physical and jurisdictional challenges at the Palisades and Eagle Ridge/Palomino intersection. The Town signed this intersection as an All-Way Stop, due to the line-of-sight issues, almost immediately after its opening in 1997. Since that time, traffic volume has continued to increase as a result of the Adero Canyon development, expansion of the Adero Resort on Eagle Ridge Drive, infill of Eagles Nest and the development of several other single-family lots north and west of the intersection. The Intersection analysis completed in 2021 provided a warrant and supplemental intersection analysis for the intersection.  Signal Warrants for eight hour volume, four hour volume and peak hour volume (Warrants 1, 2 and 3) were met, as discussed below: WARRANT 1, Condition B: EIGHT HOUR VOLUME: (MET) 1,073 VPH, on Palisades. 75 VPH, on Palomino/ Eagle Ridge. Eight-Hour Vehicular Volume - the Eight-Hour signal warrant is intended to be applied where there is a large volume of intersecting traffic (Condition A: Minimum Vehicular Volume) or the traffic volume on a major street is heavy such that the minor intersecting street suffers excessive delay or conflict (Condition B: Interruption of Continuous Traffic).   WARRANT 2: 4 HOUR VOLUME: (MET) Warrant 2 is currently met with 10 hours exceeding the required 4-hour threshold. Four-Hour Vehicular Volume - the Four-Hour signal warrant is intended to be applied where the volume of intersecting traffic is the principal reason to consider installing a traffic control signal.   WARRANT 3: PEAK HOUR VOLUME: (MET) Warrant 3 is currently met with 6 hours exceeding the   required 1-hour threshold. The Peak Hour signal warrant is intended for use at a location where traffic conditions are such that for a minimum of 1 hour of an average day, the minor street traffic suffers undue delay when entering or crossing the major street. The approved contract included an expenditure of funds from the 2021-2022 Capital Improvement Projects budget for Capital Improvement Project T5005 that consisted of the design of a traffic signal. This Capital Project, which was approved and funded, was scheduled to be completed by June 30, 2022. However, during the design process, several utility conflicts were discovered and addressed. In addition, the Emergency Vehicle Pre-emption and detection system proved more difficult to resolve than originally anticipated. Staff worked with Kimley Horn & Associates, Emergency Vehicle Pre-emption and detection manufacturers and installers to test different products. This extensive process was compounded by the fact that Palisades Boulevard is a curvilinear four-lane arterial roadway with two lanes of travel and a bike lane in each direction, separated by a raised center median. The intersection of Palisades Blvd and Eagle Ridge/Palomino Drives is located at the crest of a vertical curve (top of a hill).  As a result of this sight line, the distance needed to safely detect and efficiently service Emergency Vehicles is difficult to achieve.  The result of this time-consuming task resulted in an Emergency Vehicle Pre-emption and detection system that will provide unencumbered (unobstructed) site-lines for Emergency Vehicle detection.  It is important to note that Kimley Horn & Associates has maintained their services and original cost estimate throughout the duration of this three-year project. This final stage of design will advance the project design from 90% to 100%. The funding for this final phase has been allocated, budgeted and approved in the FY 23/24 CIP. Related Ordinance, Policy or Guiding Principle Capital Improvement Projects. Risk Analysis Not approving Authorization to Proceed with Capital Project T6005, for final design of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge /Palomino Drives will delay the design and have a negative impact on possible grant funding for construction. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends Authorization to Proceed with Capital Project T6005, for final design of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge and Palomino Drives SUGGESTED MOTION MOVE to approve authorization to Proceed with Capital Project T6005, for final design of a traffic signal at the intersection of Palisades Boulevard and Eagle Ridge and Palomino Drives in the amount of $34,910 and any associated budget transfers.  Fiscal Impact Fiscal Impact Fiscal Impact:$34,910.00 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 Scope and Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 08/08/2023 12:07 PM Finance Director David Pock 08/09/2023 01:10 PM Town Attorney Aaron D. Arnson 08/09/2023 01:14 PM Interim Town Manager Rachael Goodwin 08/10/2023 01:51 PM Form Started By: Justin Weldy Started On: 06/06/2023 09:52 AM Final Approval Date: 08/10/2023  kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 October 14, 2022 Mr. Justin Weldy Public Works Director Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 Re: Palisades Boulevard and Eagle Ridge Drive/Palomino Boulevard Intersection and Traffic Signal Final Design – Continued Services Scope and Fee Dear Mr. Weldy: Kimley-Horn and Associates, Inc. (“Kimley-Horn” or “Consultant”) is pleased to submit this letter agreement (the “Agreement”) to the Town of Fountain Hills (“Client” or “Town”) to provide professional engineering services associated with the intersection of Palisades Boulevard and Eagle Ridge/Palomino Drive. PROJECT UNDERSTANDING Kimley-Horn was previously under contract with the Town for design and post-design services for improvements to the intersection of Palisades Boulevard and Eagle Ridge Drive/Palomino Boulevard (C2021-031). As part of the previous contract, the plans, specifications, and estimate for the intersection improvements were completed for 90% of the final design. As directed by Town Staff, this scope of work includes the continued development of construction plans, estimate, and specifications to construct the improvements, including a new solar-powered optical repeater system. The following outlines Kimley-Horn’s detailed scope of services: SCOPE OF SERVICES Task 1.1 Utility Coordination a. Kimley-Horn will update the utility base file based on comments received from the utility companies. b. Kimley-Horn will hold one (1) utility coordination meeting. c. Kimley-Horn will submit utility clearance letters to each of the utilities identified within the project limits after final design of the project. d. Kimley-Horn will coordinate with SRP Distribution to obtain point of service, provide comments to SRP design, and coordinate the agreements between SRP and Town. e. Kimley-Horn will coordinate with Cox Communications for anticipated relocations identified with the 90% submittal. Palisades Blvd & Eagle Ridge/Palomino Drive Intersection Improvement Final Design – Continued Services October 14, 2022 / Page 2 kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 f. Kimley-Horn will coordinate with Solar Traffic Controls for the proposed solar- powered optical repeater system that will be included in the design plans. Task 1.2 Intersection/Roadway Plans a. Kimley-Horn will finalize intersection/roadway construction drawings in accordance with Town guidelines and details. Final sealed plans will be developed. Intersection Roadway construction drawings include the following sheets: i. Cover Sheet (1 Sheet) ii. General Notes, Typical Section, and Legend Sheet (1 Sheet) iii. ADA Sidewalk Ramp Details (1 Sheet) (1” = 10’ Scale) iv. Intersection Improvement Sheet (1 Sheet) (1” = 20’ Scale) v. Palisades Median Half Plan & Profile (1 Sheet) (1” = 20’ Scale) Task 1.3 Signing and Pavement Marking Plans a. Kimley-Horn will finalize permanent pavement marking and signing plans in accordance with Town guidelines, details, and the MUTCD. Final sealed plans will be developed. Signing and pavement marking sheets include: i. Signing and Marking General Notes and Legend (1 Sheet) ii. Pavement Marking/Signing Plan (1 Sheet) (1” = 40’ Scale) (Double Stacked) Task 1.4 Traffic Signal Plans a. Kimley-Horn will finalize traffic signal plans in accordance with Town guidelines, details, and the MUTCD. Final sealed plans will be developed. Traffic signal sheets include: i. General Notes and Legend (1 Sheet) ii. Traffic Signal Layout (1 Sheet) iii. Pole Layout Schedule (1 Sheet) iv. Conductor Schedule (1 Sheet) Task 1.5 Technical Specifications, Engineer’s Cost Opinion and Scottsdale Encroachment permit a. Kimley-Horn will finalize the technical specifications in accordance with the Maricopa Association of Governments (MAG) Standard Specifications and Town’s Supplement to MAG Specifications and details. b. Kimley-Horn will finalize the engineer’s opinion of probable cost. Palisades Blvd & Eagle Ridge/Palomino Drive Intersection Improvement Final Design – Continued Services October 14, 2022 / Page 3 kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 Task 1.6 Project Management and Meetings a. Kimley-Horn will attend one (1) project meeting, which is anticipated following the submittal of the final plans, specifications, and estimate. Meetings will be held virtually and will consist of no more than two Kimley-Horn staff members. b. Kimley-Horn will be responsible for preparing the meeting agenda and submitting notes of the meeting to the Town. c. Kimley-Horn’s project management task covers the management and administration hours for the duration of project activities identified in the project schedule in Appendix B. Project management task includes contract management, internal staff coordination, and coordination with Town staff outside of the meetings described. This task coordinates and administers the day-to-day operations of the project, including organizing and filing project data and communication files, responding to project correspondence including emails, and budget and schedule monitoring. This task includes the preparation of monthly invoices to the Town for services performed. Task 1.7 Post Design Allowance a. Kimley-Horn will prepare for and attend up to five (5) meetings with the construction team. Meetings will be held virtually and/or at the project site. No more than one Kimley-Horn’s representatives will be present each meeting. Agenda’s and Minutes will be prepared by the City or Contractor. b. Kimley-Horn will respond to Contractor requests for information and issue necessary clarifications and interpretations of the Contract Documents to Town as appropriate to the orderly completion of Contractor's work. Any orders authorizing variations from the Contract Documents will be made by the Town. Kimley-Horn will track RFI’s using an electronic logging format. c. Kimley-Horn will shop drawings submittals on behalf of the Town. We estimate reviewing and responding to ten (10) submittals, including electrical, concrete, asphalt, signing, and marking. Kimley-Horn will track submittals using an electronic logging format. d. Kimley-Horn will prepare final record drawings, consisting of transferring redline changes shown on the Contractor and Inspector field plans onto the original final construction documents. These changes will be done using CAD. Kimley-Horn shall not be responsible for the acts or omissions of any Contractor, or of any of their subcontractors, suppliers, or of any other individual or entity performing or furnishing the Work. Direct Expenses a. Direct reimbursable expenses such as express delivery services, vehicular mileage, and other direct expenses will be billed at cost. A summary of anticipated expenses is shown in Appendix A of this document. Palisades Blvd & Eagle Ridge/Palomino Drive Intersection Improvement Final Design – Continued Services October 14, 2022 / Page 4 kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 Services Not Included Any other services, including but not limited to the following, are not included in this Agreement: · Attending more meetings than specifically described in the sections above · Environmental services · Public involvement · Additional submittals · Landscape/Irrigation Services · Water/Sewer Service Information Provided by Town Kimley-Horn shall be entitled to rely on the completeness and accuracy of all information provided by the Town or the Town’s consultants or representatives. The Town shall provide all information requested by Kimley-Horn during the project. FEE ESTIMATE Kimley-Horn will complete the project for in accordance with the fee estimate provided in Appendix A. SCHEDULE We will provide our services as expeditiously as practicable with the goal of completing the project as outline in the project schedule included in Appendix B. This design schedule assumes a Notice to Proceed date of November 16, 2022. Following the official Notice to Proceed, Kimley-Horn will submit an updated schedule to the Town for approval. We greatly appreciate the opportunity to provide these services to you. Please contact me if you have any questions at 602-906-1191 or zack.handy@kimley-horn.com. Very truly yours, KIMLEY-HORN AND ASSOCIATES, INC. By: Zack Handy, P.E., PTOE Project Manager Palisades Blvd & Eagle Ridge/Palomino Drive Intersection Improvement Final Design – Continued Services October 14, 2022 / Page 5 kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 APPENDIX A FEE ESTIMATE Summary of Consultant's Compensation 10/14/2022 Project Location: Project Description: Palisades Boulevard & Eagle Ridge/Palomino Drive Intersection and Traffic Signal Final Design 7740 N. 16th Street Suite 300 Phoenix, AZ 85020 602.944.5500 CONTRACT LABOR Classification Man Hours Billable Rates Labor Costs Senior Project Manager 20 210.00$ 4,200.00$ Senior Prof 23 185.00$ 4,255.00$ Prof 36 150.00$ 5,400.00$ Analyst/ Designer 32 118.00$ 3,776.00$ Admin 0 93.00$ -$ Subtotal Contract Labor 17,631.00$ DIRECT AND OUTSIDE EXPENSES General Expenses 200.00$ Subtotal Direct & Outside Expenses 200.00$ DESIGN ALLOWANCES Classification Man Hours Billable Rates Labor Costs Senior Project Manager 9 210.00$ 1,890.00$ Senior Prof 34 185.00$ 6,290.00$ Prof 28 150.00$ 4,200.00$ Analyst/ Designer 28 118.00$ 3,304.00$ Admin 15 93.00$ 1,395.00$ Subtotal Design Allowances 17,079.00$ SUBCONSULTANT Subconsultant Task Fee RLF Consulting Survey -$ RLF Consulting ROW -$ RT Underground Utility Pot Hole Investigtion -$ Subtotal Subconsultant Allowances -$ TOTALS Subtotal Contract Labor 17,631.00$ Subtotal Direct & Outside Expenses 200.00$ Subtotal Contract Fee 17,831.00$ Subtotal Design Allowances 17,079.00$ Subtotal Subconsultant Allowances -$ Subtotal Allowances 17,079.00$ Total Contract Fee & Allowances 34,910.00$ Detail of Consultant's Compensation Town of Fountain Hills Palisades Blvd Eagle Ridge/Palomino Drive Intesection Final Design Fee Proposal Senior Project Manager Senior Prof Prof Analyst/ Designer Admin TASK DESCRIPTION SUBTOTAL $ 210.00 $ 185.00 $ 150.00 $ 118.00 $ 93.00 Task 1.1 - Utility Coordination 3,571.00$ 4 7 8 2 - Utility Base Map (AutoCAD)421.00$ 1 2 Utility Meeting (1 mtg)(Virtual)695.00$ 1 1 2 SRP Service Request Letter/Design/Coordination 695.00$ 1 1 2 Cox Coordination 880.00$ 1 2 2 STC Coordination 880.00$ 1 2 2 Task 1.2 - Intersection/Roadway Plans 1,948.00$ 2 2 3 6 - Intersection/Roadway Plans (6 Shts) (Final)1,948.00$ 2 2 3 6 Task 1.3 - Signing and Pavement Marking Plans 2,098.00$ 2 2 4 6 - Signing/Marking Plans (2 Shts)(Final)1,167.00$ 1 1 2 4 Comment Resolution 931.00$ 1 1 2 2 -$ Task 1.4 - Traffic Signal Plans 3,501.00$ 3 3 6 12 - Traffic Signal Plans (4 Shts)(Final)2,570.00$ 2 2 4 10 Comment Resolution 931.00$ 1 1 2 2 -$ Task 1.5 - Technical Specs, Engineer Cost Opinion & Scottsdale Encroachment 4,608.00$ 4 6 13 6 - Technical Specs (Final)1,690.00$ 2 2 6 Quantities (Discplines & Master Compliation)1,738.00$ 1 2 3 6 Cost Estimate (Final)1,180.00$ 1 2 4 -$ Task 1.7 - Project Management and Meetings 1,905.00$ 5 3 2 - - One (1) Project (Virtual) Meeting (Final Com Res)695.00$ 1 1 2 Project Management and Administration 420.00$ 2 QA/QC (12 Shts)790.00$ 2 2 -$ SUBTOTAL DIRECT LABOR 17,631.00$ 20 23 36 32 0 EXPENSES 200.00$ SUBTOTAL SUBCONSULTANT EXPENSES -$ TOTAL CONTRACT FEE (W/OUT ALLOWANCES) 17,831.00$ SUBTOTAL ALLOWANCES 17,079.00$ 9 34 28 28 15 Task 1.8 - Post Design 17,079.00$ 9 34 28 28 15 Construction Meetings (5 mtgs)(1 Person)2,775.00$ 15 Respond to Information (RFI) & Tracking 3,411.00$ 2 6 12 5 Submittal Review & Tracking (10)6,830.00$ 5 10 20 10 Record Drawings 4,063.00$ 2 3 8 16 TOTAL CONTRACT FEE (W/ ALLOWANCES) 34,910.00$ Page 2 of 2 Palisades Blvd & Eagle Ridge/Palomino Drive Intersection Improvement Final Design – Continued Services October 14, 2022 / Page 6 kimley-horn.com 7740 N. 16th Street, Suite 300, Phoenix, AZ 85020 602 944 5500 APPENDIX B PROJECT SCHEDULE ID Task Mode Task Name Duration Start Finish 1 NOTICE TO PROCEED 0 days Wed 11/16/22 Wed 11/16/22 2 Design Kick Off Meeting 0 days Tue 11/22/22 Tue 11/22/22 3 Final Design Stage 20 days Wed 11/23/22 Tue 12/20/22 4 Final (Sealed) Plans, Specs and Estimate 20 days Wed 11/23/22 Tue 12/20/22 5 Final Submittal 0 days Tue 12/20/22 Tue 12/20/22 11/16 11/22 12/20 11/1 11/11 11/21 12/1 12/11 12/21 1/1 November December January Task Split Milestone Summary Project Summary Inactive Task Inactive Milestone Inactive Summary Manual Task Duration-only Manual Summary Rollup Manual Summary Start-only Finish-only External Tasks External Milestone Deadline Progress Manual Progress TOFH - PALISADES AND PALOMINO/EAGLE RIDGE FINAL DESIGN SCHEDULE 2021_0623_Schedule_Palomino.mpp Page 1 Tue 10/11/22 Project: 2021_0623_Schedule_P Date: Tue 10/11/22 ITEM 9. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 08/22/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Request to Town Council Regular Meeting (Agenda Language):  DISCUSSION AND POSSIBLE ACTION: Relating to the New Laws Report provided by the League of Arizona Cities and Towns of the enacted bills that impact the operations of cities and towns.  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 Report  Form Review Form Started By: Linda Mendenhall Started On: 08/14/2023 09:57 AM Final Approval Date: 08/14/2023  2023 NEW LAWS REPORT INTRODUCTION The 2023 New Laws Report of the League of Arizona Citfes and Towns is designed to guide those enactments of the first regular session of the 56th Arizona Legislature that have demonstrable impacts on municipalitfes. During the last regular session, 1,675 bills were introduced in the House and Senate. Of these, at least 52 enactments affect citfes and towns and are summarized in the Report. Scope and Use This Report is intended only to identffy and briefly summarize those new laws with significant impacts on Arizona municipalitfes. It does not describe every new provision or law in detail, but it provides a hyperlink to the informatfon and the chaptered version of the law. For a fuller understanding of new laws, readers are encouraged to review the exact language of the new laws and their relevant legislatfve histories. Effectfve Dates Unless otherwise noted in this Report, the effectfve date of the new laws described in the Report is Oct. 30, 2023. This date – 90 days after the legislatfve session’s conclusion – is the general effectfve date for all enactments that are passed without an emergency clause or alternatfve effectfve date. This Report identffies effectfve dates that vary from this general effectfve date. Where appropriate, it also includes other statutory dates, such as repeal dates, implementatfon dates, and deadlines. Disclaimers This Report, published as a service to League members, does not necessarily identffy every law impactfng municipalitfes. It is neither designed nor intended to provide legal advice or counsel. It should be relied upon only as a reference tool and not as a comprehensive guidance document. While this Report may highlight actfon items that citfes and towns should consider, it does not substftute the independent judgments of your city or town manager, council, or attorney. PART 1: COURTS, CIVIL AND CRIMINAL JUSTICE, AND LAW ENFORCEMENT HB2168 Good Samaritan; medical assistance (Chapter 26, emergency, signed 4/6/23) Contfnues provisions enacted via Laws 2018, Chapter 1, 1st Special Session by five years from July 1, 2023 to July 1, 2028, including a provision allowing a person to not be charged or prosecuted for the possession or use of a controlled substance or drug paraphernalia if that evidence was obtained as a result of the person’s overdose and need for medical assistance. Contains an emergency clause. HB2478 aggravated assault; law enforcement employees (Chapter 159) Expands the list of aggravated assault victfms to include an employee of a law enforcement agency engaged in official dutfes. HB2482 sexual assault kits; victfm notfficatfon (Chapter 154) Transfers the Automated Crime Victfm Notfficatfon System (System) and the associated Law Enforcement Crime Victfm Notfficatfon Fund to the Arizona Criminal Justfce Commission (ACJC). Establishes a 10- member Sexual Assault Kit Study Committee charged with examining the feasibility of providing crime victfms with a tracking system for sexual assault forensic examinatfon kits. Committee members will include one police chief (or the police chief’s appointee). Requires a report to the legislature by December 1, 2023. Requires the ACJC to include a partnership between at least two vendors for the purpose of expanding the System beginning in FY 2024 through FY 2026. HB2485 ambush; police; sentencing enhancement (Chapter 96) States that if a person is convicted of committing aggravated assault on a peace officer, the person will be sentenced to two additfonal years if the trier of fact determines there is any aggravatfng circumstance pertaining to lying in wait for the victfm or ambushing the victfm during the commission of any felony. This sentence is in additfon to any applicable enhanced punishment and cannot be suspended untfl the underlying sentence is served. Outlines exceptfons to this provision for sentence commutatfon, earned early release credits, and qualified personal leave. SB1068 police dogs; emergency treatment (Chapter 187) Requires each ambulance service to allow properly trained emergency medical care technicians (EMCTs) to provide emergency treatment to a police dog injured in the line of duty and to allow for the transport of the police dog by ground ambulance or other emergency medical services vehicle to a veterinary clinic or hospital equipped to provide emergency treatment to dogs. SB1307 constables; salaries (Chapter 196) Requires a county Board of Supervisors to fix the salaries of constables to be elected for a period of four years at the regular June meetfng preceding a general electfon. Increases the annual salary from $16,500 to $20,000 in precincts with an average of 100 or fewer documents served per year over the previous four years as reported on the constable standardized daily actfvity logs. For precincts with an average exceeding 100 documents, the salary is increased from $16,500 to $20,000 (5,000 or fewer registered voters), from $26,000 to $30,000 (more than 5,000 but fewer than 10,000 registered voters), from $29,437 to no more than $40,000 to $36,000 to no more than $45,000 (10,000 but fewer than 12,000 registered voters), from $36,100 to no more than $50,000 to $41,000 to no more than $56,000 (12,000 or more but fewer than 16,000 registered voters), and from $48,294 to no more than $67,000 to $55,000 to no more than $75,000 (16,000 or more registered voters). SB1369 certffied peace officers; hiring reimbursement (Chapter 73) This law permits a law enforcement agency in this state or a city, town, county or politfcal subdivision (Original Agency) that finances a peace officer’s certfficatfon and training to be reimbursed if the officer is later hired by another agency (Hiring Agency). The reimbursement percentage is dependent on how soon the officer leaves the Original Agency: 100% if within 12 months, 75% if after 12 but less than 24 months, and 50% if after 24 but less than 36 months. The Hiring Agency must cover all certfficatfon and training costs, such as travel, housing, and salary during training. Hiring Agencies are barred from considering potentfal reimbursement costs when hiring and cannot make officers pay these costs. The Original Agency can enforce collectfon of the reimbursement through civil methods. However, if a peace officer leaves the Original Agency and remains unemployed as an officer for a year or more before being hired by the Hiring Agency, the Original Agency is not entftled to reimbursement. PART 2: CAMPAIGNS, ELECTIONS AND RECORDKEEPING SB1006 municipal notfces and ordinances; postfng (Chapter 183) Exempts a city or town from the requirement to publish the exhibits of an ordinance if the words “exhibits on file” and the locatfon where the ordinance can be located are printed at the bottom of the adoptfng ordinance. SB1273 early ballot delivery; instructfon requirements (Chapter 119) Requires the countfes to include, in the official instructfons for voters on electfon day and the printed instructfons to early voters, a specified statement concerning the unlawful handling and return of ballots. PART 3: TAXES, BUDGET, AND FINANCE HB2446 smart and safe fund; distributfon (Chapter 35) Modifies the distributfon formula from the Smart and Safe Fund (Fund) by adding Joint Powers Authoritfes to eligible entftfes receiving 31.4% of Fund monies in proportfon to the number of enrolled members in the Public Safety Personnel Retfrement System. Contains a retroactfvity clause to January 1, 2021. HB2809 public infrastructure improvements; reimbursement (Chapter 181) Specifies that transactfon privilege tax (TPT) revenues paid to a city, town, or county must not exceed the TPT collected from constructfon contracts benefitfng manufacturing facilitfes. It amends the language to clarify that the amount paid is the lesser of 80% of the total cost of public infrastructure improvements or the total TPT collected from businesses. Additfonally, the aggregate cap on payments made to citfes, towns, and countfes is raised from $100 million to $200 million. SB1131 residentfal leases; municipal tax exemptfon (Chapter 204) Prohibits citfes and towns from taxing residentfal rental leases beginning Jan. 1, 2025. The measure will reduce revenues for the 75 citfes and towns that tax residentfal rental propertfes by $230 million annually. Landlords must also stop charging tenants the amount of the repealed residentfal rental transactfon privilege tax (TPT) beginning Jan. 1, 2025. Landlords bear the burden of proof in any legal disputes over charges, and this rent reductfon requirement will be repealed on January 1, 2027. Simultaneously, the Arizona Department of Revenue (ADOR) is mandated to track revenues from remote sellers separately when depositfng TPT revenues into the state General Fund. Municipalitfes are required to prioritfze these revenues for public safety purposes before any other. By Sept. 30, 2024, ADOR must inform every residentfal rental TPT licensee about the upcoming tax repeal, either electronically or by first-class mail. The ADOR notfficatfon requirement will be repealed on Jan. 1, 2027. SB1189 municipal tax code commission; contfnuatfon (Chapter 192) Extends the Municipal Tax Code Commission from July 1, 2023 untfl July 1, 2027. SB1274 computer data centers; TPT; refund (Chapter 68) Directs a computer data center (CDC) to follow the standard tax refund process when claiming refunds for transactfon privilege tax (TPT) or use tax. The measure comes into effect startfng from January 1, 2022. The new law also provides an exemptfon for CDCs, allowing their refund claims to bypass the established aggregate refund cap. SB1720 general appropriatfons act; 2023-2024. (Chapter 133) The following appropriatfons were included in SB1720: $12.2M for Fire Incident Management Fund $23.6M for Rural Broadband Accelerated Match Fund, details available in SB1723 $5.0M for senior housing assistance $5.0M for fire district grants $32M for wildfire mitfgatfon $10M for statewide cybersecurity grants $8.0M for human trafficking reductfon grants $150M for Housing Trust Fund $40M for Homeless Shelter & Services Fund, with an additfonal $20M supplemental appropriatfon for FY23, details in SB1728 $5.0M for Mobile Home Relocatfon Fund $84.6K for municipal firefighter reimbursement administratfon $12.2M for local border support $1.0M for law enforcement recruitment and retentfon matching grants Multfple individual appropriatfons to citfes and towns for a variety of specified purposes SB1722 capital outlay; appropriatfons; 2023-2024. (Chapter 135) In SB1722, a notable appropriatfon includes: $12.5M for the SMART Fund. Please see SB1735 for additfonal details. PART 4: GENERAL GOVERNMENT HB2019 licensing; permitting; criteria; clarity (Chapter 86) Specifies that if a county or municipality requires a license or permit for a free speech, assembly actfvity, or an actfvity changing the use, appearance, or density of a structure or land, then such county or municipality shall specify the criteria for grantfng the license or permit, unless criteria are established by existfng state or federal law. Provides a 60-day tfmeframe for municipalitfes and countfes to approve or deny applicatfon submittals after they are deemed administratfvely complete unless another tfmeframe is specified by a municipal or county ordinance or state or federal law. HB2143 gray water; residentfal standards; rules (Chapter 105) Eliminates overriding language that restricted city, town, or county ordinances from limitfng gray water use, if such use is authorized by the Arizona Department of Environmental Quality (ADEQ) for reclaimed water reuse. It grants ADEQ the authority to establish regulatfons setting minimum requirements for addressing public health and safety issues related to indoor use of residentfal gray water treatment systems, partfcularly for toilet flushing. The indoor use of gray water for toilet flushing is allowed under specific conditfons untfl ADEQ establishes its regulatfons. These conditfons include daily gray water usage of less than 400 gallons, certfficatfon to meet Standard 350 for residentfal gray water recycling issued by a Natfonal Sanitary Foundatfon and the American Natfonal Standards Instftute, reasonable preventfon of human contact with gray water, dedicated piping systems for treated gray water only, and the provision of gray water for toilet flushing only when the system is operatfng correctly. HB2166 DHS; licensure; group homes (Chapter 94) Requires a behavioral-supported group home operated by a service provider and under contract with the Arizona Department of Economic Security to be licensed by the Arizona Department of Health Services (ADHS) beginning July 1, 2024. Requires ADHS to license behavioral-supported group homes, valid for the period of accreditatfon, up to a maximum of three years. Authorizes inspectfons to verify facilitfes meet health and safety standards. Accredited healthcare instftutfons may bypass compliance inspectfons if the director receives their accreditatfon report, and the instftutfon is accredited by a nonprofit organizatfon approved by the U.S. Department of Health and Human Services. HB2223 liquor; licensing; processes; procedures (Chapter 25) Allows the Department of Liquor Licenses and Control (DLLC) to issue a temporary microbrewery festfval license for product sampling and sales, contfngent on locatfon approval by the county or municipal body unless the proposed physical locatfon is fully located within a licensed premise. Licensees with off-sale privileges delivering spirituous liquor must document each delivery and acquire recipient’s identfficatfon informatfon. Startfng in 2024, liquor licensees can pay luxury privilege taxes annually instead of monthly. Allows the Director of the DLLC to expedite an applicatfon for an extension of premises before the expiratfon of the 60-day period when the local governing body (or its designee) makes an advisory recommendatfon. Licensed craft producers can consume and serve their products at off-sale retail locatfons. Makes various other changes to liquor statutes. HB2373 permits; automated permitting platiorm (Chapter 33) Authorizes countfes and municipalitfes to use a “qualified online automated permitting platiorm” to verify code compliance in order to issue solar energy device permits. Modifies the requirement for electrical diagrams to be either one-line or three-line, instead of both. Specifies that if a municipality or county chooses to use such platiorm for code compliance verificatfon, a one-line or three-line electrical diagram is not required. HB2375 state land transfer; Bullhead City (Chapter 63) Transfers an estfmated 9.95 acres of state sovereign land from the State Land Department to Bullhead City. The designated use of this land is for public parks and recreatfonal actfvitfes. Any sale, exchange, or barter of this land is prohibited. HB2381 mobile homes; recreatfonal vehicles; fund (Chapter 16, emergency, 3/30/23) Increases the maximum amount of assistance a mobile homeowner may receive from the Mobile Home Relocatfon Fund (Fund) and increases the amount a landlord is required to pay into such Fund if there is a change in use that causes mobile home relocatfons. The Arizona Department of Housing (ADOH) is required, instead of allowed, to notffy the county assessors to reinstate the assessments if the amount in the Fund is less than $6 million at the end of a fiscal year. Retroactfve to April 16, 2022. Contains an emergency clause. HB2484 failure to return vehicle (Chapter 112) Repeals a criminal code statute related to failure to return a motor vehicle under a security interest. It establishes new conditfons for returning such a vehicle, including the lapse of lien payments for over 90 days, receipt of a 90-day overdue notfce from the second creditor, and failure to rectffy the default within 30 days. An owner intentfonally failing to return the vehicle or allow the second creditor to take it over will be in violatfon. Notfces must detail the loan agreement number, vehicle informatfon, business address, operatfonal hours, and maximum penaltfes. The original contract must state the obligatfon to return the vehicle within 30 days of a default notfce, with the owner keeping their address updated. Exceptfons exist for physically incapacitated owners, unfit vehicles for return, or if the owner has a security interest related to buyer remedies or rejected goods. Secured creditors are liable for all expenses associated with law enforcement-led seizures. They can file an affidavit with the Arizona Department of Transportatfon (ADOT) for failure of vehicle return, leading to immediate suspension of the vehicle’s registratfon and license plate. ADOT is barred from transferring or re-registering the vehicle untfl recovery confirmatfon is received from the secured creditor. HB2547 zoning ordinances; property rights; costs (Chapter 85) Requires a municipal governing body to consider a housing impact statement prior to adoptfng any zoning ordinance or amendment. Requires the statement to include an estfmated evaluatfon of the probable effect on the average cost of constructfng housing for sale or rent within the zoning districts where the proposed zoning ordinance or amendment applies, a detailed explanatfon of any data or reference materials upon which the proposed zoning ordinance or amendment is predicated, and an overview of any alternatfve methods that are less expensive or less restrictfve for achieving the objectfves of the proposed zoning ordinance or amendment. HB2669 prohibitfon; biosolids; land applicatfon (Chapter 167) Requires the Arizona Department of Environmental Quality (ADEQ) to require any land applicatfon of a substance containing sewage or septage to comply with rules pertaining to the Clean Water Act including pathogen reductfon requirements. States that a biosolid combined with a solid waste shall be regulated as a solid waste by ADEQ. HB2717 trauma counseling; 911 dispatchers (Chapter 109) Expands the traumatfc event counseling program available to public safety employees, peace officers, and firefighters to include 911 dispatchers. SB1010 personal flotatfon devices; rowing; exceptfon (Chapter 168) Exempts children ages 12 and under from a requirement to wear personal flotatfon devices while in rowing shells that are underway if such rowing shells are used for practfce, training or rowing competftfons. Requires specific conditfons to apply, including that the rowing event is supervised by a coach certffied by a natfonally recognized rowing associatfon and is in a launch near the rowing shell, the launch complies with the requirements of a natfonally recognized rowing associatfon and carries lifesaving equipment on board and the operator of the rowing shell has successfully passed a swimming test as certffied by a natfonally recognized rowing associatfon. SB1051 census adjustment; populatfon threshold (Chapter 4) Permits countfes with a populatfon of less than 500,000 (up from 400,000) and multfjurisdictfonal areas of 50,000 to 100,000 people to voluntarily establish rural planning zones. It also raises the populatfon threshold to 500,000 for countfes transferring transportatfon excise tax revenues to the state treasurer. Furthermore, it increases the same populatfon threshold in countfes for the Arizona Department of Health Services to issue requests for proposal and proposed contracts for the Arizona Long-Term Care System (ALTCS). Populatfon estfmates are based on the latest figures from the Office of Economic Opportunity as opposed to data from the Arizona Department of Economic Security. SB1061 public officials; home addresses; confidentfality (Chapter 125) Adds electfon officers and public officials to the list of individuals authorized to request that the general public be prohibited from accessing public records containing a person’s personal identffying informatfon that are maintained by the Arizona Department of Transportatfon (ADOT). Makes it a class 5 felony to knowingly make available on the internet the personal informatfon of an electfon officer or public official and designates the knowing release of a public official’s personal informatfon with malicious intent as a class 6 felony. States that law enforcement agencies or state and local government entftfes are not required to disclose a public official’s personal informatfon. SB1103 administratfve review; approvals; developments (Chapter 1) Empowers the legislatfve body of a municipality or county, by ordinance, to authorize administratfve personnel to review and approve site plans, development plans, preliminary plats, land divisions, lot line adjustments, lot tfes, plat amendments or final plats and design review plans based on objectfve standards without a public hearing. SB1188 regulatfon; permissible consumer fireworks (Chapter 161) Allows municipalitfes to prohibit permissible consumer fireworks on days other than December 26 through January 4. Previously, this tfmeframe was December 24 through January 3. SB1270 open meetfngs; capacity (Chapter 23) Requires schools, school boards, executfve boards, and municipalitfes to provide sufficient seatfng to cater for the antfcipated attendance at deliberatfons and proceedings of a public body. However, these entftfes are not forced to relocate a meetfng beyond the largest regular meetfng room available. Exempts meetfngs held via technological devices from agenda postfng requirements. States that an agenda for any public meetfng shall specify the tfme when the public will be allowed physical access to the meetfng place. SB1315 emergency response; students with disabilitfes (Chapter 120) Mandates that school boards and county school superintendents include provisions in their emergency response plans on how schools and emergency responders will communicate and assist students with disabilitfes during an emergency. SB1432 assured water; small residentfal developments (Chapter 182, emergency, signed 6/19/23) Mandates that a city or town providing water via an intergovernmental agreement (IGA) with a standpipe district (District) must do so for no more than three years, using a standpipe for water hauling to residences outside the municipality’s water service area that lack sufficient water. Specific conditfons include a maximum of 750 impacted residences, no other adequate water source within ten miles, reimbursement to the city or town for the costs, and ensuring that water availability for other areas is not reduced without consent. The District must enter into an IGA encompassing various aspects, including cost reimbursement and conservatfon measures. Property owners can choose whether to join a District, which must only provide water to its members. The District can levy a surcharge capped at 10% of a customer’s bill without unanimous board approval. By January 1, 2024, the director of the Arizona Department of Water Resources must submit a report regarding building permits in Actfve Management Areas and assured water supply certfficates. Contains a repeal date of December 31, 2025, and includes an emergency clause. SB1650 auditor general; dutfes; access (Chapter 40) Requires officers of a state agency, board, commission, department, instftutfon, program, advisory council, committee, or politfcal subdivision to provide reasonable space for Auditor General staff and furnish records in the form and tfme prescribed. Makes it a class 2 misdemeanor to knowingly obstruct or mislead the Auditor General. Modifies the consideratfons for Committee of Reference (COR) during agency sunset reviews and changes the final sunset review report by each COR. PART 5: TRANSPORTATION AND TRAFFIC ENFORCEMENT HB2288 roundabouts; right-of-way; large vehicles (Chapter 107) Specifies that the operator of a vehicle or combinatfon of vehicles with a total length of at least 40 feet or a total width of at least 10 feet may deviate from the lane in which the driver is operatfng to the extent necessary to approach and proceed through a roundabout. Allows an operator of a large vehicle to navigate the roundabout and mandates that other drivers yield if they have already entered the roundabout. Requires the Arizona Department of Transportatfon (ADOT) or a local jurisdictfon to post a yield sign or a standard sign designed by ADOT conveying that large vehicles possess the right-of-way or that vehicles shall yield to a large vehicle in the roundabout. States that if two large vehicles approach simultaneously, then the one on the right shall yield to the one on the left. HB2298 planned community authority; public roadways (Chapter 84) Clarifies that for any planned community established after December 31, 2014, the homeowners’ associatfon (HOA) loses the authority to regulate any roadway after the period of declarant control, regardless of provisions in community documents. For communitfes whose declaratfons were recorded before January 1, 2015, and which regulate roadways owned by a government entfty, they may contfnue their existfng regulatfons untfl either a membership vote is held on the matter by June 30, 2025, or if such vote fails or does not occur. If a vote fails or does not occur, the HOA will lose their authority to regulate public roadways and existfng regulatfons will expire. One-way streets and privately owned roadways are exempt. SB1097 truck routes; designatfon (Chapter 30) The Arizona Department of Transportatfon (ADOT) or a local government may limit or ban the operatfon of legally sized vehicles on major arterial streets connectfng multfple local jurisdictfons, provided a test drive or vehicle template demonstrates a safety concern. This applies to ordinances and resolutfons adopted post-January 1, 2020. If a highway lacked a “truck restrictfon” before annexatfon by a local government, it cannot be included in a restrictfon post-January 1, 2020. Local governments must amend or repeal any ordinances inconsistent with this act within 90 days after its effectfve date, otherwise they will be invalidated. SB1102 transportatfon excise tax; Maricopa County (Chapter 203) The Maricopa County Transportatfon Tax, otherwise known as Prop. 400, is a proposed levy that, if approved by voters in a countywide electfon, will be implemented startfng January 1, 2026, for a term of 20 years. This tax would be up to 10% of the 1990 state TPT rate, 10% of the jet fuel excise tax rate, and 10% of the use tax rate for electricity or natural gas consumers. The revenues from this tax will be allocated as follows: 40.5% for the state highway system, 22.5% for arterial streets and regional transportatfon infrastructure, and 37% to the Public Transportatfon Fund. No more than 5% of the tax revenues can be used for regional transportatfon infrastructure and these allocatfons cannot be reduced. The funds cannot be used for any rail system extensions, influencing electfon outcomes, or projects that reduce existfng lane miles unless certain conditfons are met, including approval from a third-party engineering study, public input, and no increased vehicle congestfon or travel tfmes. The Maricopa County Regional Public Transportatfon Authority will be reestablished if the tax is approved. A countywide electfon for the tax’s contfnuatfon will occur between Jan. 1, 2022, and Jan. 1, 2024, and at least one year before the existfng tax would be discontfnued, on Jan. 1, 2025. Publicity for this ballot will include a summary of the tax, its uses, and arguments for and against the measure. Arguments can be submitted to the Maricopa County Electfons Director. SB1206 commercial vehicles; penalty; civil; criminal (Chapter 126) Establishes out-of-service (OOS) order violatfons for drivers, motor carriers, shippers, and manufacturers. Outlines a penalty structure that makes it a class 2 misdemeanor for a first offense, class 1 misdemeanor for a second offense, and a class 6 felony for any subsequent offenses. Adds shipper or manufacturer to a prohibitfon requiring a driver to operate a commercial vehicle that is subject to an OOS order untfl all repairs are completed or who is subject to an OOS order untfl the reason is remedied. Requires a court to impose a civil penalty of at least $2,750 nor more than $25,000 on a shipper or manufacturer that violates an OOS order or permits a driver to violate or fail to comply with an OOS order. Adds language subjectfng shippers and manufacturers to disqualificatfon of a commercial driver’s license. SB1340 toll roads; conversion; prohibitfon (Chapter 129) Prohibits county boards of supervisors from approving applicatfons to convert publicly funded or maintained streets or highways into toll roads, except for public-interest airports. The Arizona Department of Transportatfon (ADOT) is also prohibited from entering into any agreement to convert an existfng publicly funded or maintained road into a toll road. This prohibitfon extends to implementfng general purpose toll lanes, high occupancy toll lanes, variable rate tolling, or any combinatfon thereof, as well as mechanisms informing drivers about upcoming toll facilitfes and payment optfons. PART 6: LABOR, EMPLOYMENT, RETIREMENT AND BENEFITS HB2008 ASRS; contributfon prepayment (Chapter 46) Permits employers to elect a short-term investment rate of return. Strikes a requirement for employers that elect an amortfzatfon schedule for their prepaid contributfons if such employer enters into a contributfon prepayment program with the Arizona State Retfrement System. HB2009 ASRS; retfrement applicatfon; changes (Chapter 47) Permits members to modify informatfon in their retfrement applicatfon within a 60-day period following their official retfrement date. HB2015 retfrement plans; plan electfon; rehire (Chapter 48) Allows a Tier 3 Correctfons Officer Retfrement Plan (CORP) or Public Safety Personnel Retfrement System (PSPRS) member, upon re-employment by a new or previous employer, to make a new benefit plan electfon within a 90-day window. This applies to those who are either hired by a new employer or are rehired by their former employer following a bona fide terminatfon of employment that lasted for at least six months, provided there was no prearranged agreement for reemployment. HB2028 PSPRS; contributfon rates (Chapter 102, emergency, 5/1/23) Reduces the contributfon rate for members of the Public Safety Personnel Retfrement System from 11.65% to 7.65% beginning in FY 2024. States that any amount of the member’s contributfon exceeding 7.65% and accumulated between July 1, 2011 through June 30, 2020 may be applied to the calculatfon of employer contributfons. Retroactfve to July 1, 2023. Contains an emergency clause. HB2029 ASRS; supplemental deferral plan; partfcipatfon (Chapter 52) Authorizes a politfcal subdivision or a politfcal subdivision entfty not partfcipatfng in the Arizona State Retfrement System (ASRS) from electfng to allow its employees to partfcipate in a supplemental employee deferral plan overseen by ASRS entering into an agreement with ASRS. HB2431 workers’ compensatfon; firefighters; rate deviatfon (Chapter 149) Enacts session law limitfng commercial workers’ compensatfon insurers (Insurer) to collect additfonal premiums only if a fire district can receive reimbursements under the federal American Rescue Plan Act of 2021 before July 1, 2023. Sets the maximum amount at $800,000 for the additfonal premium each Insurer can collect. SB1164 workers’ compensatfon; fraud investfgatfons; adjudicatfons (Chapter 191) Requires the Industrial Commission of Arizona (Commission) to establish a Fraud Unit (Unit) to investfgate fraudulent actfvitfes, statements or representatfons made in connectfon with workers’ compensatfon claims. Requires the Commission to adopt rules establishing a process for receiving complaints and conductfng investfgatfons. Allows the Unit to investfgate allegatfons of fraud either based on a complaint or the Unit’s own motfon. States that any allegatfon involving unfair claim processing practfces or bad faith by an employer, insurance carrier or claims processing representatfve. Clarifies, as enacted via HB2431, the aggregate amount of the additfonal premium each commercial workers’ compensatfon insurer may charge and collect from all fire districts insured at $800,000. SB1173 public retfrement systems; plan electfon (Chapter 6) Modifies the Public Safety Personnel Retfrement System (PSPRS) and the Correctfons Officer Retfrement Plan (CORP) by specifying that employees hired or rehired from July 1, 2017, their partfcipatfon in PSPRS or CORP commences on their hiring or rehiring date. Additfonally, the penalty for late contributfons to the PSPRS board by both employer and employee will now be compounded annually instead of daily. Probatfon or surveillance officers hired on or after July 1, 2018, are granted the optfon to partfcipate either in the CORP or the PSPRS defined contributfon plan. The tfmeline following a member’s retfrement during which they must pay an alternate contributfon rate is reduced from 12 to 6 months. Finally, the requirement for the PSPRS Board to use a total asset amount, composed of the sum of assets in the prefunding plan and the defined benefit pension, in the calculatfon of the unfunded pension liability and the annual actuarial required contributfon amount for the annual employer valuatfon report was stricken. PART 7: BALLOT REFERRALS H.C.R. 2039 governor; emergency powers (Transmitted to the Secretary of State, 06/13/2023) Terminates any emergency powers given to the governor during a state of emergency 30 days post proclamatfon. This requires consent from the voters at the next general electfon in order to become effectfve. If a petftfon with signatures from a minimum of one-third of the House and Senate is presented, it mandates the governor to convene a special session. This does not apply to powers given during a state of war emergency or an emergency triggered by a flood or fire. Restricts, during a special session meant for ending or modifying the emergency powers given to the governor, the topics the legislature can consider to those related to the emergency powers bestowed upon the governor during a state of emergency. If the legislature does not prolong the governor’s emergency powers, it prevents the governor from declaring a new state of emergency based on the same circumstances that led to the original proclamatfon of the state of emergency. H.C.R. 2033 primary electfons; eligible candidates (Transmitted to the Secretary of State, 03/28/2023) Specifies the direct primary electfon law enacted by the legislature supersedes any contrary or inconsistent provision of any charter, law, ordinance, rule, resolutfon or policy of any city. Provides that the direct primary electfon for partfsan offices shall be conducted in a manner so that each politfcal party has qualified for representatfon on the ballot shall be permitted to nominate for each office a number of candidates equal to the number of positfons to be filled for that office in the ensuing general electfon. Stfpulates that all otherwise eligible candidates who are so nominated shall be placed on the ballot in the next ensuing general electfon. Directs the Secretary of State to submit the propositfon to the voters at the next general electfon. New Laws Report Is published annually by the League of Arizona Citfes and Towns, 1820 W. Washington Street, Phoenix, AZ 85007 Phone: (602) 258-5786; Fax: (602) 253-3874; Email: league@azleague.org; Internet: www.azleague.org