HomeMy WebLinkAboutAGENDApacket__11-21-23_0458_538
NOTICE OF MEETING - 2nd AMENDMENT 11/20/23
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, NOVEMBER 21, 2023
WHERE:
FOUNTAIN HILLS COUNCIL CHAMBERS
16705 E. AVENUE OF THE FOUNTAINS, FOUNTAIN HILLS, AZ
Councilmembers of the Town of Fountain Hills will attend either in person or by telephone conference
call; a quorum of the Town’s various Commission, Committee or Board members may be in attendance
at the Council meeting.
Notice is hereby given that pursuant to A.R.S. §1-602.A.9, subject to certain specified statutory
exceptions, parents have a right to consent before the State or any of its political subdivisions make a
video or audio recording of a minor child. Meetings of the Town Council are audio and/or video
recorded and, as a result, proceedings in which children are present may be subject to such recording.
Parents, in order to exercise their rights may either file written consent with the Town Clerk to such
recording, or take personal action to ensure that their child or children are not present when a
recording may be made. If a child is present at the time a recording is made, the Town will assume that
the rights afforded parents pursuant to A.R.S. §1-602.A.9 have been waived.
REQUEST TO COMMENT
The public is welcome to participate in Council meetings.
TO SPEAK TO AN AGENDA ITEM, please complete a Request to Comment card, located in the back of the Council
Chambers, and hand it to the Town Clerk prior to discussion of that item, if possible. Include the agenda item on which
you wish to comment. Speakers will be allowed three contiguous minutes to address the Council. Verbal comments
should be directed through the Presiding Officer and not to individual Councilmembers.
TO COMMENT ON AN AGENDA ITEM IN WRITING ONLY, please complete a Request to Comment card, indicating it is a
written comment, and check the box on whether you are FOR or AGAINST and agenda item, and hand it to the Town
Clerk prior to discussion, if possible.
TO COMMENT IN WRITING ONLINE: Please feel free to provide your comments by visiting
https://www.fountainhillsaz.gov/publiccomment and SUBMIT a Public Comment Card by 3:00 PM on the day of the
meeting . These comments will be shared with the Town Council.
Town Council Regular Meeting of November 21, 2023 2
NOTICE OF OPTION TO RECESS INTO EXECUTIVE SESSION
Pursuant to A.R.S. §38-431.02, notice is hereby given to the members of the Town Council, and to the general public, that at
this meeting, the Town Council may vote to go into executive session, which will not be open to the public, for legal advice
and discussion with the Town's attorneys for legal advice on any item listed on the following agenda, pursuant to A.R.S.
§38-431.03(A)(3).
1.CALL TO ORDER AND PLEDGE OF ALLEGIANCE – Mayor Dickey
2.INVOCATION - Pastor Rod Warembourg, Desert Creek Fellowship
3.ROLL CALL – Mayor Dickey
4.STATEMENT OF PARTICIPATION
5.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER
A.Stellar Students for the Month of November
6.PRESENTATIONS
A.PRESENTATION: Update on the Fire Department Transition
B.PRESENTATION: Annual financial audit results by Heinfeld Meech & Co.
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
Town Council Regular Meeting of November 21, 2023 3
Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for
which the item was scheduled. The items will be removed from the Consent Agenda and considered in its
normal sequence on the agenda.
A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Regular
Meeting of October 3, 2023, and the Regular Meeting of November 17, 2023.
B.CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License
application for Fountain Hills Chamber of Commerce for a wine walk on the avenue on
December 08, 2023.
C.CONSIDERATION AND POSSIBLE ACTION: Approval of the First Amendment to the
Contract 2021-028.1, a Services Agreement with Online Solutions, LLC, for Citizenserve
electronic application processing software and ongoing maintenance
D.CONSIDERATION AND POSSIBLE ACTION: Approval of Resolution 2023-36, abandoning a
20' Public Utility and Drainage Easement along the southwest side of 16414 N Dixie Mine
Trail (Application A23-000012).
9.REGULAR AGENDA
A.CONSIDERATION AND POSSIBLE ACTION: Approval of the recommendations for the
appointment of members to the Town's Boards, Commissions, and Committees.
B.CONSIDERATION AND POSSIBLE ACTION: FY23 Year-End Summary, Q1FY24 Revenue
Update, and Council Direction on FY24 Transfers and CIP
C.CONSIDERATION AND POSSIBLE ACTION: Approval of Ordinance 23-10, amending Town
Code Chapter 8, Business Regulations, by amending Section 8-3-5 D 8 regarding mobile
food vendors at special events, adding a new Article 8-7, Mobile Food Vendors.
D.CONSIDERATION AND POSSIBLE ACTION: Approval of Ordinance 23-14, amending
Chapter 12 of the Town Code, Section 12-3-3 regarding parking adjacent to schools,
parks, and special events and Section 12-3-8 regarding parking in the right-of-way.
E.CONSIDERATION AND POSSIBLE ACTION: Approval of Ordinance 23-17, amending Town
Code Section 2-2-2 regarding the process for the selection of a Vice Mayor, and approval
of Resolution 2023-39 updating the Rules of Procedure Section 4 - Notice and Agenda
adding setting the meeting agenda.
F.CONSIDERATION AND POSSIBLE ACTION: Approval of the Two Way Radio Equipment
Maintenance Agreement between the City of Mesa and the Town of Fountain Hills for
repair and maintenance of our two way radio communications systems.
Town Council Regular Meeting of November 21, 2023 4
G.CONSIDERATION AND POSSIBLE ACTION: Approval of the IGA with the TOPAZ Regional
Wireless Cooperative (TRWC) for planning, design, operations, and maintenance of the
dispatch network used by the Mesa Regional Dispatch Center (MRDC).
H.CONSIDERATION AND POSSIBLE ACTION: Approval of the proposed 2024 Town Council
Meeting Dates and Summer Break.
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 November 21, 2023 5
ITEM 6. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Presentations Submitting Department: Administration
Prepared by: David Pock, Finance Director
Staff Contact Information: David Pock, Finance Director
Request to Town Council Regular Meeting (Agenda Language): PRESENTATION: Annual financial
audit results by Heinfeld Meech & Co.
Staff Summary (Background)
In compliance with State statute, an annual financial audit of the Town is completed each year by an
independent auditing firm. Heinfeld Meech & Co. completed the annual audit of the Town for the
fiscal year ended 6/30/2023. Its audit was conducted in accordance with U.S. generally
accepted auditing standards and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Heinfeld Meech & Co. has
issued the Town an unmodified opinion for fiscal year 2023. As this is a presentation only, there is no
required action from the Town Council. However, the Mayor and Council will have an opportunity to
ask questions of the representatives from the auditing firm.
Attachments
Annual Comprehensive Financial Report
Expenditure Limitation Report
HURF
Single Audit Report
Form Review
Inbox Reviewed By Date
Town Attorney Aaron D. Arnson 11/07/2023 08:17 PM
Finance Director David Pock 11/08/2023 01:32 PM
Finance Director David Pock 11/08/2023 01:32 PM
Town Attorney Aaron D. Arnson 11/08/2023 01:34 PM
Town Manager Rachael Goodwin 11/13/2023 06:05 PM
Form Started By: David Pock Started On: 11/07/2023 07:47 AM
Final Approval Date: 11/13/2023
Town of Fountain Hills, Arizona
Annual Comprehensive
Financial Report
For the Fiscal Year Ended June 30, 2023
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2023
Issued by:
Administration Department
Finance Division
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
INTRODUCTORY SECTION Page
Letter of Transmittal 1
List of Elected and Appointed Officials 11
GFOA Certificate of Achievement 12
Organizational Chart 13
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT 17
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A) 23
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position 36
Statement of Activities 37
Fund Financial Statements:
Balance Sheet – Governmental Funds 40
Reconciliation of the Balance Sheet –
Governmental Funds to the Statement of Net Position 43
Statement of Revenues, Expenditures and Changes in Fund Balances –
Governmental Funds 44
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balances – Governmental Funds to the
Statement of Activities 46
Statement of Net Position – Proprietary Fund 47
Statement of Revenues, Expenses, and Changes in Net Position –
Proprietary Fund 48
Statement of Cash Flows – Proprietary Fund 49
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION – continued Page
Notes to Financial Statements 50
REQUIRED SUPPLEMENTARY INFORMATION
Schedule of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual:
General Fund 72
Highway User Revenue Fund 73
Grants Fund 74
Note to Required Supplementary Information 75
COMBINING AND INDIVIDUAL FUND FINANCIAL STATEMENTS AND
SCHEDULES
Governmental Funds:
Combining Balance Sheet – All Non-Major Governmental Funds –
By Fund Type 78
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – All Non-Major Governmental Funds – By Fund Type 80
Special Revenue Funds:
Combining Balance Sheet 84
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 86
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 88
Debt Service Funds:
Combining Balance Sheet 94
Combining Statement of Revenues, Expenditures and
Changes in Fund Balances 96
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
FINANCIAL SECTION – continued Page
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Budget and Actual 98
Capital Projects Fund:
Combining Balance Sheet 101
Combining Statement of Revenues, Expenditures and Changes in 102
Fund Balances
Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Budget and Actual 104
STATISTICAL SECTION
Financial Trends:
Net Position by Component 108
Changes in Net Position 110
Fund Balances – Governmental Funds 112
Statement of Revenues, Expenditures and Changes in
Fund Balances – Governmental Funds 114
Revenue Capacity:
Governmental Activities – Tax Revenues by Source 116
Assessed Value and Estimated Actual Value of Taxable Property 117
Principal Property Taxpayers 118
Property Tax Levies and Collections 119
Taxable Sales by Category 120
Direct and Overlapping Sales Tax Rates 122
TOWN OF FOUNTAIN HILLS, ARIZONA
TABLE OF CONTENTS
STATISTICAL SECTION – continued Page
Debt Capacity:
Ratios of Outstanding Debt by Type 123
Ratios of General Bonded Debt Outstanding 124
Direct and Overlapping Governmental Activities Debt 125
Legal Debt Margin Information 126
Calculation of Legal Debt Margin 128
Revenue Bond Coverage 129
Demographic and Economic Information:
Demographic and Economic Statistics 130
Principal Employers 131
Operating Information:
Authorized Full-Time Equivalent Government Employees by Function 132
Operating Indicators by Function 133
Capital Assets Statistics by Function 134
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INTRODUCTORY SECTION
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www.fh.az.gov
November 8, 2023
To the Honorable Mayor, Members of the Town Council, and Citizens of the Town of Fountain
Hills:
State law requires that all general-purpose local governments publish, within six months of the
close of each fiscal year, a complete set of financial statements presented in conformity with
accounting principles generally accepted in the United States of America and audited in
accordance with auditing standards generally accepted in the United States by a certified public
accounting firm licensed in the State of Arizona. Pursuant to that requirement, we hereby issue the
Annual Comprehensive Financial Report (ACFR) of the Town of Fountain Hills (Town) for the
fiscal year ended June 30, 2023.
This report consists of management’s representations concerning the finances of the Town.
Consequently, management assumes full responsibility for the completeness and reliability of all
of the information presented in this report. To provide a reasonable basis for making these
representations, management of the Town has established a comprehensive internal control
framework that is designed both to protect the government’s assets from loss, theft, or misuse and
to compile sufficient reliable information for the preparation of the Town of Fountain Hills’s
financial statements in conformity with accounting principles generally accepted in the United
States of America. Because the cost of internal controls should not outweigh their benefits, the
Town’s comprehensive framework of internal controls has been designed to provide reasonable
rather than absolute assurance that the financial statements will be free of material misstatement.
As management, we assert that, to the best of our knowledge and belief, this financial report is
complete and reliable in all material respects.
The Town’s financial statements have been audited by Heinfeld, Meech & Co., P.C., a certified
public accounting firm. The goal of the independent audit was to provide reasonable assurance
that the financial statements of the Town for the fiscal year ended June 30, 2023, are free of
material misstatement. The independent audit involved examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements; assessing the accounting
principles used and significant estimates made by management; and evaluating the overall
financial statement presentation. The independent auditors concluded, based upon the audit, that
there was a reasonable basis for rendering an unmodified opinion that the Town’s financial
statements for the fiscal year ended June 30, 2023, are fairly presented in conformity with
accounting principles generally accepted in the United States of America. The independent
auditor’s report is presented as the first component of the financial section of this report.
TOWN OF FOUNTAIN HILLS
16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268
480.816.5100 | Fax: 480.837.3145
Page 1
Accounting principles generally accepted in the Unites States of America require that management
provide a narrative introduction, overview, and analysis to accompany the basic financial
statements in the form of Management’s Discussion and Analysis (MD&A). This letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The
Town of Fountain Hills’s MD&A can be found immediately following the report of the
independent auditors.
PROFILE OF THE GOVERNMENT
The Town of Fountain Hills overlooks the Verde River Valley and the east valley of the metro
Phoenix area. The Town is a master planned community established in 1970 by McCulloch
Properties (now MCO Properties, Inc.). Prior to 1970, the area was a cattle ranch and was part of
one of the largest land and cattle holdings in Arizona. The land was purchased by Robert
McCulloch in the late 1960s and the community designed by Charles Wood, Jr. (designer of
Disneyland in southern California). The centerpiece of Fountain Hills is one of the world's tallest
man-made fountains, a focal point that attracts thousands of visitors each year.
Located on 13,006 acres of land, Fountain Hills is surrounded by the McDowell Mountains and
Scottsdale on the west, the Fort McDowell Yavapai Nation on the east, the Salt River Pima-
Maricopa Indian Community on the south, and by the McDowell Mountain Regional Park on the
north. The elevation is 1,520 feet at the fountain, 2,460 feet at the Adero Canyon Trailhead, and is
approximately 500 feet above Phoenix.
Over the past thirty years, Fountain Hills has grown from 10,030 residents to a town of 23,785
in 2023. On June 5, 2006, the Town of Fountain Hills became twenty square miles and about
ten percent larger by annexing 1,300 acres of State Trust Land. The process to annex the State
Trust Land occurred over a two and one-half year period, and development of the land will occur
in the years to come. Annexing this property into the Town ensures that its future development
will be of the highest quality under Town standards.
The Town offers a wide range
of living accommodations,
from small condominium
complexes to large custom
homes. Fountain Hills also
offers recreational and cultural
programs and services that
contribute to a high quality of
life for its residents. The
community consists of
primarily residential property
and open space; of the total
20.32 square miles of land,
only 2.5% of the total is zoned
commercial and/or industrial, 23.3% is preserved as open space and 51.0% is residential.
Page 2
The Town’s Mission Statement
The Town of Fountain Hills’ purpose is to serve the best interests of the community by:
providing for the safety and well-being of its residents and visitors;
respecting its special, small-town character and quality of life;
providing superior public services;
sustaining the public trust through open and responsive government;
and maintaining the stewardship and preservation of its financial and natural resources.
To serve, respect, and provide trust and stewardship.
The Town of Fountain Hills is an Arizona municipal corporation, acting as a general law town as
prescribed in the Arizona Revised Statutes. The Town was incorporated on December 5, 1989,
with the governmental and administrative affairs of the Town operating under the Council-
Manager form of government. Legislative authority is vested in a seven member Town Council.
The Mayor is a member of the Town Council who is directly elected by voters and chairs the Town
Council meetings. The members of the Council are elected at large and serve four year overlapping
terms. The Town Council is responsible for the adoption of local ordinances, budget adoption,
appointment of residents to citizen advisory committees and hiring the Town Manager. The Town
Manager is responsible for implementation of the policies of the Town Council and overall
management of the Town through department directors and approximately 68 full-time equivalent
(FTE) employees. The Presiding Judge, Town Attorney, and Town Prosecutor are under the
direction of the Town Council.
The Town provides or administers a full
range of services including public safety
(law enforcement, fire and emergency
medical services); development services
(code enforcement, planning and zoning);
public works (including construction and
maintenance of streets and infrastructure);
municipal court; recreational activities;
community center; senior services and
cultural events. The Town does not
maintain utility or other operations that
require the establishment of enterprise
funds.
Fountain Hills Town Hall
Page 3
The financial reporting entity (the Town) includes all the funds of the primary government (i.e., the
Town of Fountain Hills as legally defined) as well as all of its component units. The component units
consist of legally separate entities for which the primary government is financially accountable.
Blended component units, although legally separate entities, are, in substance, part of the primary
government’s operations and are included as part of the primary government. Accordingly, the
Cottonwoods Maintenance District, the Eagle Mountain Community Facilities District and the
Fountain Hills Municipal Property Corporation are included in the financial report of the Town.
FACTORS AFFECTING FINANCIAL CONDITION
The information presented in the financial statements is perhaps best understood when it is considered
from the broader perspective of the specific environment within which the Town of Fountain Hills
operates.
Internal Controls
As earlier noted, the management of the Town of Fountain Hills, Arizona, is responsible for
establishing and maintaining a system of internal control. Internal accounting controls are designed to
provide reasonable, but not absolute, assurance regarding;
1) Safeguarding of assets against loss from unauthorized use or deposition, and
2) Reliability of financial records for preparing financial statements and maintaining
accountability for assets.
The concept of reasonable assurance recognizes:
1) The cost of a control should not exceed the benefits likely to be derived, and
2) The valuation of costs and benefits requires estimates and judgments by management.
The system of internal control is subject to periodic evaluation by management and is also considered
by the independent auditors in connection with the annual audit of the Town’s financial statements. All
internal control evaluations occur within the above framework. The Town's internal accounting
controls are considered to adequately safeguard assets and provide reasonable assurance of proper
recording of financial transactions.
Budgetary Controls
The budget process is a cyclical process and begins each year with the preparation of the base budget
by each department head. Each budget is based on expenditures to date and the previous years’
experience. The departments’ base budgets, along with any requests for new positions, programs or
services are reviewed by the Town Manager. The Town Manager then meets with department heads to
review their base budgets and requests for new services and/or programs. Once management has
reviewed the departments’ requests, a tentative budget is presented to the Town Council by the Town
Manager.
Page 4
The Town Council formally adopts the budget and appropriates funding for the General Fund, Special
Revenue Funds, Debt Service Funds, Internal Service Funds, Capital Projects Funds, and Proprietary
Fund. Therefore, these funds have appropriated budgets, and budget to actual information is presented.
In April/May, the Town Manager submits to the Town Council a proposed budget for the fiscal year
commencing on July 1st. The budget includes proposed expenditures and the means of financing them.
The Town Council is then required to hold public hearings on the proposed budget and to adopt a final
budget by June 30, the close of the Town of Fountain Hills’ fiscal year. Public hearings on the budget
are held each year in accordance with legal requirements in order to obtain comments from local
residents. The budget is legally enacted through passage of a resolution and is prepared by fund and
department. The resolution sets the limit for expenditures during the fiscal year. The Town Manager
may authorize transfers between departments; however, all inter-fund transfers are approved by Town
Council. Additional expenditures may be authorized for expenditures directly necessitated by a natural
or man-made disaster as prescribed in the State Constitution, Article IX, Section 20.
The Town is subject to the State of Arizona’s Expenditure Limitation Law for Towns and Cities. This
law does not permit the Town to spend more than budgeted revenues plus the carry-over of unrestricted
cash balance from the prior fiscal year. The limitation is applied to the total of the combined funds. All
appropriations lapse at year-end.
To ensure compliance with the state imposed expenditure limitation, a uniform expenditure report must
be filed with the state’s Auditor General each year. This report reconciles total Town expenditures from
the audited financial statements to total expenditures for reporting in accordance with the state’s
uniform expenditure reporting system (ARS Section 41-1279.07).
The appropriated budget is prepared by fund and department. Department heads may make transfers of
non-personnel appropriations within their department. Transfers of appropriations between
departments require Town Manager approval, and all inter-fund transfers require Town Council
approval. Budget-to-actual comparisons are provided in this report for each individual governmental
fund for which an appropriated annual budget has been adopted. Budget-to-actual comparisons for the
General Fund, Streets Fund, and Grants Fund are presented in the Required Supplementary Information
and all other funds are presented in Combining and Individual Fund Financial Statements and
Schedules.
Local Economy
The Town of Fountain Hills, Arizona, relies
mostly on its Transaction Privilege Tax
(Sales Tax) and Voter-Approved Local
Revenue (State Shared Revenue) collections
to fund nearly 90% of its General Fund
(Operating) expenditures. During the past
fiscal year, the Town’s revenue collections
from these sources exceeded the budgeted
expectations.
Sales tax revenues continued to grow during the fiscal year, and state shared revenues were mostly in
line with expectations, with a slight slowdown in state-wide fuel taxes. With the possibility of a
recession in the coming fiscal year, the Town will be closely monitoring these revenue sources and
make adjustments accordingly.
Page 5
The following chart is a look at the past five years’ local sales tax activity by category:
As shown in the chart, sales tax collections continue to show signs of moderate growth and relative
stability across all categories. Retail sales, the largest category of sales tax revenue, experienced a 7%
increase over the prior year. Restaurant/Bar and Services revenue exceeded pre-pandemic levels with
an increase of 5% and 14%, respectively, compared to FY22. Construction sales tax, a one-time revenue
source, is driven entirely by development activity in the community and increased substantially
compared to the prior year. This was primarily due to the sale of a commercial development that was
subject to speculative builder taxes. The Transportation/Communication/Utility category also
increased slightly during the year.
Construction activity provides revenue to the Town through sales taxes based on the value of the
project, 50% of these proceeds are utilized for general operations and the other 50% for capital
expenditures. Since this funding source is rarely enough to meet capital project needs, the Town must
find additional funds to pay for necessary infrastructure projects.
State-shared revenues are derived as a proportionate share of state sales, income and vehicle license
taxes which are distributed based on the Town’s population compared to all other incorporated cities
and towns in Arizona (currently 0.40%). State shared income tax revenue is based on personal and
corporate earnings from two years ago. Revenue from this category increased by 42.7% in fiscal year
2022-23 due to delayed tax collections from COVID. State shared sales tax has increased over the past
several years, and this year continued the trend by increasing revenue by 4.3% compared to the prior
year.
Other local activity has remained fairly consistent during the period. The opportunity to further expand
the retail tax base in Fountain Hills is limited by the lack of available commercial land – over 70% of
the currently available commercial lots are already developed.
Page 6
Development Activity
Page 7
Economic Outlook
Retail Sales – Not having a property tax, the Town of Fountain Hills relies heavily on transaction
privilege taxes (TPT), sometimes called a sales tax. Overall, Town TPT revenues provide over 61% of
the General Fund revenues. On November 1, 2019 the Town’s TPT rate went up 0.3% to the current
rate of 2.9%. Hospitality-related collections are the most susceptible to changes in economic
conditions. Construction TPT is also highly tied to the health of the economy and is equally divided
between the General Fund and the Capital Projects Fund.
State Shared Revenues – The Town of Fountain Hills receives significant revenue allocations from
the State. These Voter-Approved Local Revenues (VALR), or State shared revenues, include
allocations of the state-collected income tax, sales tax, fuel tax and motor vehicle-in-lieu taxes. All but
the fuel tax and the vehicle license tax are placed in the Town's General Fund, where it is used to sustain
a large portion of the Town's day-to-day activities. Ultimately, each of these revenue sources will be
negatively affected by inflation, as well as the Federal Reserve’s fight against it.
Streets Fund (HURF) – The Town receives a proportionate share of the fuel tax collected in Maricopa
County. These revenues are placed in the Streets Fund to be used specifically for street maintenance
and related activity. Although the state-shared revenue formula generally allocates revenues based on
official census data, in recent years, the state legislature has reduced the formula distribution of state
shared revenues to cities. The resulting loss must be replaced by the General Fund, which increases the
pressure to maintain operations across the Town.
Long-term Financial Planning
Fountain Hills’ Financial Policies are balanced on sound financial reserves and conservative revenue
growth forecasts for the foreseeable future. However, potential for State legislative impacts to revenue-
sharing, reductions in local revenues, and additional demands for essential Town services remain. The
Town’s Financial Policies set forth guidelines against which current budgetary performance can be
measured and proposals for future programs can be evaluated.
The Town’s Financial Policies have helped weather the uncertainty encountered during the pandemic
and the years that have followed. This policy continues to require the Town to retain an amount equal
to 20% of the average actual General Fund revenues for the preceding five fiscal years as part of its
General Fund balance. This amount is estimated to cover approximately 60 days of General Fund
expenditures and is considered a “Rainy Day” fund.
Additionally, a reserve of 20% of the average actual General Fund revenues for the preceding five
fiscal years will be maintained as Unassigned Fund Balance. This additional fund balance reserve will
provide increased flexibility in the event of unanticipated decreases in revenue collection.
The Council also adopted Financial Policies that include guidelines for the issuance of debt for capital
expenditures, community facility districts, financing alternatives, expenditure controls and financial
planning. The policy was amended during FY 09-10 to reduce the allocation of the local construction
sales tax to the Capital Projects Fund from 85% to 50%, reflecting the transition from one-time building
activity to ongoing redevelopment activity. The debt policy was prepared with a preference for “pay-
as-you-go” financing for capital spending. However, the policy does allow for bond financing of larger
projects so that the cost can be equitably distributed among the Town’s current and future residents.
Page 8
In 2020, the Strategic Planning Advisory Commission (SPAC) began the process of gathering public
input to update the Strategic Plan’s vision, confirm residents’ values, and create a fresh structure for
the Strategic Plan revision. However, the pandemic delayed this effort. Subsequently, Strategic Plan
2022 was built upon the foundation of four Strategic Priorities, eleven Signature Strategies, and twenty-
three Supporting Tasks. Based on citizen input, the Strategic Plan is designed to guide our future
decisions grounded on these common priorities:
1. Targeted Collaborative Economic Development
2. Promote the Long-Term Financial Sustainability of Town Infrastructure, Environmental, and
Social Resources
3. Continue to Improve the Public Health, Well-Being, and Safety of Our Town
4. Maintain Current Infrastructure While Preparing the Town for Emerging Trends that Increase
Public Safety and Quality of Life
MAJOR INITIATIVES, SERVICE EFFORTS AND ACCOMPLISHMENTS
The Town of Fountain Hills’ adopted budget for fiscal year 2022-23 reflected a cautious approach to
the continued recovery from the pandemic and increasing inflation. Due to the uncertain economic
conditions ahead, the Town approached revenue projections cautiously and kept expenditure levels low
as well. At the start of FY22, the American Rescue Plan Act (ARPA) provided resources to local
governments through the State of Arizona. These resources allowed the Town to save $4.2M in the
General Fund that would have otherwise been spent to pay for public safety contracts with Maricopa
County Sheriff’s Office and Rural Metro. The same amount was received in FY23 and was used for
the same purpose. This will result in a total of $8.4M of General Fund savings over the two fiscal years.
As Pavement Management has been a priority for many years, Council decided that the General Fund
savings discussed above should be used toward that purpose. As a result, $4.2M was transferred to the
Streets Fund in FY23 and another $4.2M in FY24. Although these infusions will not resolve all of the
pavement issues in Town, it will provide some relief while other options are researched and
implemented.
For the Year
The following list depicts the continued commitment of the Town of Fountain Hills to make the
community a better place to live. Fiscal year 2022-23 goals attained are summarized within this list of
accomplishments:
Community Services awarded the Gold Medal for Excellence in Park and Recreation
Management by the National Recreation and Park Association
Recognized as a Dementia Friendly community, the 10th in Arizona
Continued park improvements at Desert Vista Park, including renovation and expansion of
the skate park and the addition of a pump track
Over 5,400 meals provided through the Home Delivered Meal program
Completed storm drain improvements throughout the Town
Implemented “See, Click, Fix” portal on Town’s website to simplify resident reporting
Secured grant funding from the Arizona Office of Tourism - Proposition 302
Secured grant funding from Salt River Pima-Maricopa Indian Community - Proposition 202
Page 9
AWARDS AND ACKNOWLEDGEMENTS
Awards
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for
Excellence in Financial Reporting to the Town of Fountain Hills for its Annual Comprehensive
Financial Report (ACFR) for the fiscal year ended June 30, 2022. This was the twenty-seventh
consecutive year that the Town has received this prestigious award. In order to be awarded a Certificate
of Achievement, the Town published an easily readable and efficiently organized ACFR. This report
satisfied both accounting principles generally accepted in the United States of America (GAAP) and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current ACFR
continues to meet the Certificate of Achievement program’s requirements, and we will be submitting
it to the GFOA to determine its eligibility for the fiscal year ended 2023 Certificate.
In addition, the government received the GFOA’s Distinguished Budget Presentation Award for its
annual budget for the fiscal year beginning July 1, 2022. In order to qualify for the Distinguished
Budget Presentation Award, the government’s budget document was judged to be proficient in several
categories, including as a policy document, a financial plan, an operations guide, and a communications
device. This is the twentieth consecutive year that the Town has received the award.
Acknowledgments
The preparation of this Annual Comprehensive Financial Report could not have been accomplished
without the efficient and dedicated services of the entire Finance Division. I also wish to extend my
appreciation to the Mayor and members of Town Council for their leadership and support in planning
and conducting the financial affairs of the Town in a responsible and progressive manner. Each
employee of the Town has my sincere appreciation for the contributions made in the preparation of this
report.
Respectfully submitted,
Rachael Goodwin
Town Manager
Page 10
TOWN OF FOUNTAIN HILLS, ARIZONA
LIST OF PRINCIPAL OFFICIALS
JUNE 30, 2023
ELECTED OFFICIALS
Ginny Dickey, Mayor
Peggy McMahon, Vice-Mayor
Gerry Friedel, Councilmember
Sharron Grzybowski, Councilmember
Brenda Kalivianakis, Councilmember
Allen Skillicorn, Councilmember
Hannah Toth, Councilmember
TOWN MANAGER & DIRECTORS
Rachael Goodwin, Interim Town Manager
David Trimble, Deputy Town Manager/Administrative Services Director
Linda Mendenhall, Town Clerk
Kevin Snipes, Interim Community Services Director
John Wesley, Development Services Director
Amanda Jacobs, Economic Development Director
David Pock, Chief Financial Officer
Justin Weldy, Public Works Director
Aaron Arnson, Pierce Coleman PLLC, Town Attorney
Mark Iacovino, The Law Office of Mark Iacovino, Town Prosecutor
Captain Larry Kratzer, Maricopa County Sheriff’s Office, District Commander
Robert Melton, Presiding Judge
Captain Dave Ott, Rural Metro Corporation, Fire Chief
Page 11
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Fountain Hills
Arizona
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
Page 12
Citizens of Fountain HillsCitizens of Fountain Hills
Presiding Judge
Town of Fountain Hills Organization
Fire / EMS AdministrationAdministration Law
Enforcement
Town Manager Town AttorneyTown Prosecutor
Appointed
by Council
Contracted
Mayor and Town CouncilMayor and Town Council
Development
Services
Recreation
Community
Services
Community
Center
Code
Enforcement
Building Safety
Senior
Services
Parks
Volunteer
Program
GIS
Planning
Engineering
Streets
Facilities
Public Works
Inspection
Finance Finance
Town ClerkTown Clerk
Administrative
Services
Administrative
Services
Economic
Development /
Tourism
Economic
Development /
Tourism
Community
Relations
Community
Relations
Page 13
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Page 14
FINANCIAL SECTION
Page 15
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Page 16
Independent Auditor’s Report
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Report on Audit of Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major
fund, and the aggregate remaining fund information of Town of Fountain Hills, Arizona (Town), as of
and for the year ended June 30, 2023, and the related notes to the financial statements, which
collectively comprise the Town’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, each major fund, and the aggregate
remaining fund information of the Town of Fountain Hills, Arizona, as of June 30, 2023, and the
respective changes in financial position and, where applicable, cash flows thereof for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements
section of our report. We are required to be independent of Town of Fountain Hills, Arizona, and to meet
our other ethical responsibilities in accordance with the relevant ethical requirements relating to our
audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
Change in Accounting Principle
As described in Note 1, the Town implemented the provisions of the GASB Statement No. 96,
Subscription-Based Information Technology Arrangements, for the year ended June 30, 2023, which
represents a change in accounting principle. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Page 17
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue
as a going concern for one year beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations,
or the override of internal control. Misstatements are considered material if there is a substantial
likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable
user based on the financial statements. In performing an audit in accordance with generally accepted
auditing standards and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the Town’s ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control related
matters that we identified during the audit.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management’s Discussion and Analysis, and budgetary comparison information, as listed in the table
of contents, be presented to supplement the basic financial statements. Such information is the
responsibility of management and, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary
information in accordance with auditing standards generally accepted in the United States of America,
which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic
Page 18
financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town’s basic financial statements. The Combining and Individual Fund
Financial Statements and Schedules are presented for purposes of additional analysis and are not a
required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records
used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the Combining and Individual Fund Financial Statements and Schedules
information is fairly stated in all material respects in relation to the basic financial statements as a
whole.
Other Information
Management is responsible for the other information included in the annual report. The other
information comprises the Introductory Section and Statistical Section but does not include the basic
financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do
not cover the other information and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exists between the other information and
the basic financial statements, or the other information otherwise appears to be materially misstated.
If, based on other work performed, we conclude that an uncorrected material misstatement of the other
information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated
November 8, 2023, on our consideration of Town of Fountain Hills, Arizona’s internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is solely to describe the
scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on the effectiveness of the Town of Fountain Hills, Arizona’s
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering Town of Fountain Hills,
Arizona’s internal control over financial reporting and compliance.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 8, 2023
Page 19
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Page 20
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
(Required Supplementary Information)
Page 21
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Page 22
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
As management of the Town of Fountain Hills, Arizona (Town), we offer readers of the Town’s
financial statements this narrative overview and analysis of the financial activities of the Town
for the fiscal year ended June 30, 2023. This discussion and analysis is intended to be an easily
readable breakdown of the Town of Fountain Hills’ financial activities based on currently known
facts, decisions and conditions. This analysis will focus on current year activities and operations
and should be read in combination with the transmittal letter and the financial statements that
follow. The management’s discussion and analysis is presented as required supplementary
information to supplement the basic financial statements.
FINANCIAL HIGHLIGHTS
The Town’s total net position of governmental activities increased $9.3 million to $143.4
million, representing a 6.9 percent increase of the total net position.
General revenues from governmental activities accounted for $31.5 million in revenue, or 77
percent of all revenues from governmental activities. Program specific revenues in the form
of charges for services and grants and contributions accounted for $9.4 million or 23 percent
of total governmental activities revenues.
The Town had $31.6 million in expenses related to governmental activities, an increase of
10.2 percent from the prior fiscal year, primarily due to increased costs associated with public
works and construction services.
Among the major governmental funds, the General Fund had $28.3 million in current fiscal
year revenues, which consisted primarily of transaction privilege (sales) tax and
intergovernmental revenues. The total expenditures of the General Fund were $15.5 million.
The General Fund’s fund balance increased $2.9 million to $17.4 million at the end of the
current fiscal year.
OVERVIEW OF FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the Town’s basic financial
statements. The Town’s basic financial statements comprise three components: 1) government-
wide financial statements, 2) fund financial statements, and 3) notes to the financial statements.
This report also contains other supplementary information in addition to the basic financial
statements themselves.
Page 23
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
OVERVIEW OF FINANCIAL STATEMENTS – continued
Government-wide financial statements. The government-wide financial statements provide
readers with a broad overview of the Town’s finances, in a manner similar to a private-sector
business. These statements are prepared using the accrual basis of accounting.
The Statement of Net Position presents information on all of the Town’s assets, liabilities, and
deferred inflows/outflows of resources with the difference reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating.
The Statement of Activities presents information showing how the Town’s net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in future fiscal periods (e.g., earned but unused compensated absences).
The government-wide financial statements distinguish functions of the Town that are principally
supported by taxes and intergovernmental revenues (governmental activities). The governmental
activities of the Town include administration, development services, public safety, public works,
and culture and recreation.
Fund financial statements. A fund is a grouping of related accounts that is used to maintain
control over resources that have been segregated for specific activities or objectives. The Town
uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements. All Town funds are included in the governmental fund classification, except for one
internal service fund that is classified as a proprietary fund.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial statements.
However, unlike the government-wide financial statements, governmental fund financial
statements use the modified accrual basis of accounting and focus on near-term inflows of
spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating the Town’s near-term financing
requirements.
Internal service fund. This type of fund is classified as a proprietary fund, and it is used to
report activity in the Technology Replacement Fund. The fund provides goods and services to
other funds and departments on a cost-reimbursement basis. The activity is intended to operate
on an essentially “break-even” basis over time.
Page 24
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
OVERVIEW OF FINANCIAL STATEMENTS – continued
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements.
By doing so, readers may better understand the long-term impact of the Town’s near-term
financing decision. Both the governmental fund balance sheet and the governmental fund
statement of revenues, expenditures and changes in fund balances provide a reconciliation to
facilitate this comparison between governmental funds and governmental activities.
Information is presented separately in the governmental fund balance sheet and in the
governmental fund statement of revenues, expenditures and changes in fund balances for the
General, Highway User Revenue (HURF), Grants, and Capital Projects Funds, all of which are
considered major funds. Data from other governmental funds are combined into a single,
aggregated presentation. Individual fund data for each of these non-major governmental funds is
provided in the form of combining statements and schedules.
Notes to the financial statements. The notes provide additional information that is essential to a
full understanding of the data provided in the government-wide and fund financial statements. The
notes to the financial statements can be found immediately following the basic financial
statements.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the Town’s budget
process. The Town adopts an annual budget for all funds. A schedule of revenues, expenditures
and changes in fund balances - budget and actual has been provided for the major funds as required
supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
While this document contains information about the funds used by the Town to provide services
to its citizens, the Statement of Net Position and the Statement of Activities serve to provide an
answer to the question of how the Town, as a whole, did financially throughout the year. These
statements include all assets and liabilities using the accrual basis of accounting, similar to the
accounting used by the private sector. The basis for this accounting takes into account all of the
current year’s revenues and expenses regardless of when the cash is received or paid.
These two statements report the Town’s assets and the changes in those assets. The change in
assets is important because it tells the reader whether the financial position of the Town as a whole
has improved or diminished. However, in evaluating the overall position of the Town, non-
financial information such as changes in the Town’s tax base and the condition of the Town’s
capital assets will also need to be evaluated.
Page 25
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
Analysis of Net Position. Over time, net position may serve as a useful indicator of a government’s
financial position. In the case of the Town, assets related to governmental activities exceeded
liabilities by $134.4 million at the end of the fiscal year.
The largest portion of the Town’s governmental activities net position reflects its investment in
capital assets (e.g., land, infrastructure, buildings and improvements, vehicles, machinery and
equipment and construction in progress); less any related outstanding debt used to acquire those
assets. The Town uses these capital assets to provide services to its citizens; consequently, these
assets are not available for future spending. Although the Town’s investment in its capital assets
is reported net of related outstanding debt, it should be noted that the resources needed to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used
to liquidate these liabilities. As the Town does not currently have any outstanding debt, the
reported amount represents the total invested in capital assets. In addition, a portion of the Town’s
net position represents resources that are subject to external restrictions on how they may be used.
The remaining balance is unrestricted and may be used to meet the Town’s ongoing obligations to
its citizens and creditors.
The following tables present a summary of the Town’s net position for the fiscal years ended
June 30, 2023 and June 30, 2022.
Governmental Activities
As of As of
June 30, 2023 June 30, 2022
Current and other assets $ 46,708,494 $ 37,056,421
Capital assets, net 101,838,463 102,346,737
Total assets 148,546,957 139,403,158
Current and other liabilities 3,087,313 2,873,943
Long-term liabilities 284,016 297,878
Total liabilities 3,371,329 3,171,821
Deferred outflows 1,734,697 2,124,397
Net position
Net investment in capital assets 102,346,737
Restricted 5,749,726
Unrestricted
101,838,463
9,646,597
31,955,871 26,010,477
Total net position $ 143,440,931 $ 134,106,940
At the end of the current fiscal year the Town reported positive balances in all three categories of
net position for governmental activities. The Town also reported positive balances in all net
position categories in the prior fiscal year.
Page 26
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The Town’s financial position is the product of several financial transactions including the net
results of activities, the acquisition and payment of debt, the acquisition and disposal of capital
assets, and the depreciation of capital assets.
Changes in net position. The Town’s total revenues for the current fiscal year were $40.9 million.
The total cost of all programs and services was $31.6 million. The following table presents a
summary of the changes in net position for the fiscal years ended June 30, 2023 and June 30, 2022.
Governmental Activities
Fiscal
Year Ended
June 30, 2023
Fiscal
Year Ended
June 30, 2022
Revenues
Program revenues:
Charges for services $ 2,415,721 $ 2,830,516
Operating grants and contributions 6,729,883 6,381,580
Capital grants and contributions 259,266 161,751
General revenues
Property taxes 9,854 9,728
Sales taxes 20,586,294 17,660,758
Franchise taxes 382,948 399,007
State-shared revenue 8,039,448 6,541,023
Vehicle License taxes 1,182,243 1,180,100
Investment earnings 1,099,525 (419,006)
Miscellaneous 226,049 280,140
Total revenues $40,931,231 $ 35,025,597
Expenses
General government $ 4,890,912 $ 4,333,863
Development services 1,206,991 1,068,260
Public safety 9,930,356 9,487,150
Public works 10,792,078 9,780,920
Culture and recreation 4,776,903 3,999,178
Total expenses 31,597,240 28,669,371
Changes in net position 9,333,991 6,356,226
Net position, beginning 134,106,940 127,750,714
Net position, ending $143,440,931 $134,106,940
Page 27
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The charts below compare the governmental expenses from fiscal years 2022-23 and 2021-22.
Page 28
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
GOVERNMENT-WIDE FINANCIAL ANALYSIS – continued
The following items are significant current year transactions that have had an impact on the change
of net position.
Revenues from sales tax collections and state-shared sources increased substantially for the
fiscal year and accounted for approximately $4.7 million more than the prior fiscal year.
The Town received its final American Rescue Plan Act (ARPA) payment during the fiscal
year, which will result in a significant decrease of federal intergovernmental funding in
fiscal year 2024.
Expenditures were up 10.2 percent across all governmental functions, with the highest
percentage increase seen within the Culture and Recreation function. Multiple park
improvements were completed during the fiscal year to increase accessibility and
functionality of the Town’s parks.
Investment income reversed from negative mark-to-market returns reported in the prior
fiscal year to over $1.1 million earned in the current fiscal year. As investments matured,
the Town benefited from higher bond yields with durations from one to three years.
The following table presents the cost of the Town’s major functional activities. The table also
shows each function’s net cost (total cost less charges for services generated by the activities and
intergovernmental aid provided for specific programs). The net cost shows the financial burden
that was placed on the Town by each of these functions.
Year Ended June 30, 2023 Year Ended June 30, 2022
Total
Expenses
Net (Expense)/
Revenue
Total
Expenses
Net (Expense)/
Revenue
Governmental Activities
General government $ 4,890,912 $ (3,751,754) $ 4,333,863 $ (3,617,651)
Development services 1,206,991 (444,062) 1,068,260 (120,829)
Public safety 9,930,356 (5,523,668) 9,487,150 (5,137,429)
Public works 10,792,078 (8,504,075) 9,780,920 (7,243,437)
Culture and recreation 4,776,903 (3,968,811) 3,999,178 (3,176,178)
Total expenses $ 31,597,240 $ (22,192,370) $ 28,669,371 $ (19,295,524)
The cost of all governmental activities this year was $31.6 million.
Federal, State, county, and tribal governments and charges for services subsidized certain
governmental programs with revenues of $9.4 million.
The net cost of the Town’s governmental activities was $22.2 million, which was funded
primarily by general revenues. General revenues consist of $20.6 million in sales taxes and
$9.2 million in State-shared revenues.
Page 29
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental funds. The focus of the Town’s governmental funds is to provide information on
near-term inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the Town’s financing requirements. In particular, unassigned fund balance may serve as
a useful measure of the Town’s net resources available for spending at the end of the fiscal year.
The financial performance of the Town as a whole is reflected in its governmental funds. As the
Town completed the year, its governmental funds reported an increase of $9.6 million in the
combined fund balance from $32.2 million to $41.8 million.
The General Fund comprises 41.6 percent of the total fund balance. Approximately $11.6 million,
or 67.0 percent, of the General Fund’s fund balance is unassigned.
The General Fund is the principal operating fund of the Town. The fund balance increased by $2.9
million to $17.4 million as of fiscal year end. General Fund revenues increased $3.6 million
primarily due to increased local sales tax collections. General Fund expenditures increased slightly
from $13.9 million to $15.5 million.
The Highway User Revenue Fund comprises 17.5 percent of total fund balance. The fund balance
increased $3.4 million from the prior year and will continue to be used to fund the pavement
management program in the next fiscal year.
The Capital Projects Fund comprises 29.8 percent of the total fund balance. All of the fund balance
is committed or assigned to capital projects. The fund balance increased $2.5 million due to a year-
end transfer from the General Fund and unfinished projects that will be carried-over to FY24.
The Grants Fund was utilized during the year primarily to account for the American Rescue Plan
Act (ARPA) funding made available by the Department of the Treasury. This is federal funding
was provided to assist state, county, and local governments after the pandemic. The fund balance
increased $106,156 due to earned but unspent miscellaneous grants.
The Technology Replacement Fund is the Town’s sole proprietary fund. Unrestricted net position
of this fund at the end of the fiscal year amounted to $160,181. This was an increase of $41,453
that was due to internal charges to other governmental funds.
Page 30
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
BUDGETARY HIGHLIGHTS
A majority of the budget transfers for the fiscal year moved budget authority between departments
within the General Fund; however, the final budget for the General Fund did decrease $7.0 million
as a result of budget transfers to the Grants Fund to pay public safety costs using ARPA funding
and to the Streets Fund for pavement maintenance.
A schedule showing the budget amounts compared to the Town’s actual financial activity for the
General Fund is provided in this report as required supplementary information. The significant
variances are summarized as follows:
The favorable variance of $3.3 million in overall revenues is primarily due to increased
local sales tax collections.
The favorable total expenditures variance of $2.5 million is due primarily to lowered
expenditures throughout all departments.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets. As of the end of the current fiscal year, the Town had invested $101.8 million in
capital assets, including buildings, facilities, vehicles, computers, equipment, infrastructure and
artwork. This amount represents a net increase, prior to depreciation, of $4.3 million from the prior
fiscal year. The increase was primarily due to completed capital projects for the storm water system
and park infrastructure. Total depreciation expense for the current fiscal year was $5.0 million.
The following schedule presents a summary of capital asset balances for the fiscal years ended
June 30, 2023 and June 30, 2022.
Governmental Activities
As of
June 30, 2023
As of
June 30, 2022
Capital assets – non-depreciable $ 36,231,449 $ 34,894,320
Capital assets – depreciable, net 65,607,014 67,452,417
Total $101,838,463 $102,346,737
The estimated construction commitments amount is $838,200.
Additional information on the Town’s capital assets can be found in Note 6.
Page 31
TOWN OF FOUNTAIN HILLS, ARIZONA
MANAGEMENT’S DISCUSSION AND ANALYSIS (MD&A)
YEAR ENDED JUNE 30, 2023
CAPITAL ASSETS AND DEBT ADMINISTRATION – continued
Debt Administration. The Town does not currently have any outstanding debt. Therefore, there
were not any town-wide taxes levied in fiscal year 2023.
State statutes currently limit the amount of general obligation debt a Town may issue to a
percentage of its total assessed valuation for water, sewer, artificial lighting, parks, open space,
recreational facility improvements, public safety, law enforcement, fire and emergency facilities
and street and transportation facilities. The current 20 percent debt limitation for the Town is
$134.1 million. State statutes also currently limit the amount of general obligation debt a Town
may issue to a percentage of its total assessed valuation for all other purposes. The current 6 percent
debt limitation for the Town is $40.2 million.
Additional information on the Town’s long-term debt can be found in Note 7 in the notes to the
financial statements.
CONTACTING THE TOWN’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors and
creditors with a general overview of the Town’s finances and to demonstrate the Town’s
accountability for the resources it receives. If you have questions about this report or need
additional information, contact the Finance Division, Town of Fountain Hills, 16705 East Avenue
of the Fountains, Fountain Hills, Arizona 85268 or visit our website at www.fountainhillsaz.gov.
Page 32
BASIC FINANCIAL STATEMENTS
Page 33
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Page 34
GOVERNMENT-WIDE FINANCIAL STATEMENTS
Page 35
ASSETS
Current assets:
Cash and investments
Accounts receivable
Intergovernmental receivable
Taxes receivable
Leases receivable
Interest receivable
Inventory, at cost
Prepaid items
Total current assets
Noncurrent assets:
Capital assets not being depreciated
Capital assets, net of accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Accounts payable
Accrued wages and benefits
Other liabilities
Customer deposits
Compensated absences payable
Unearned revenues
Total current liabilities
Noncurrent liabilities:
Non-current portion of long-term liabilities
Total noncurrent liabilities
Total liabilities
DEFERRED INFLOWS OF RESOURCES
Leases
NET POSITION
Net investment in capital assets
Restricted for:
Public works
Capital outlay
Debt service
Unrestricted
Total net position
Governmental
Activities
$ 43,366,214
374,391
1,035,253
26,444
1,762,077
84,324
12,923
46,868
46,708,494
36,231,449
65,607,014
101,838,463
148,546,957
2,082,927
228,927
759
169,241
355,898
249,561
3,087,313
284,016
284,016
3,371,329
1,734,697
101,838,463
7,288,954
2,145,462
212,181
31,955,871
$143,440,931
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF NET POSITION
JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 36
Program Revenues
Net (Expense)
Revenue and
Changes in Net
Position
Functions/Programs
Governmental activities:
General government
Development services
Public safety
Public works
Culture and recreation
Total governmental activities
Expenses
$ 4,890,912
1,206,991
9,930,356
10,792,078
4,776,903
$31,597,240
Charges for
Services
$ 516,373
762,929
136,082
359,972
640,365
$2,415,721
Operating
Grants and
Contributions
$ 622,785
4,270,606
1,779,359
57,133
$6,729,883
Capital Grants
and
Contributions
$
148,672
110,594
$259,266
Governmental
Activities
$ (3,751,754)
(444,062)
(5,523,668)
(8,504,075)
(3,968,811)
(22,192,370)
General revenues:
Taxes:
Property taxes
Sales taxes
Franchise taxes
State sales & income tax revenue sharing - unrestricted
Vehicle license tax revenue sharing - unrestricted
Investment earnings
Miscellaneous
Total general revenues
Changes in net position
Net position, beginning of year
Net position, end of year
9,854
20,586,294
382,948
8,039,448
1,182,243
1,099,525
226,049
31,526,361
9,333,991
134,106,940
$143,440,931
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 37
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Page 38
FUND FINANCIAL STATEMENTS
Page 39
ASSETS
Cash and investments
Accounts receivable
Intergovernmental receivable
Taxes receivable
Leases receivable
Interest receivable
Inventory, at cost
Prepaid items
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Other liabilities
Customer deposits
Unearned revenues
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Unavailable revenues - other
Leases
Total deferred inflows of resources
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Unassigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
General
$ 17,167,897
111,440
718,791
1,762,077
31,122
12,923
44,542
$19,848,792
$ 342,051
198,934
759
169,241
17,373
728,358
193
1,734,697
1,734,890
57,465
4,044,890
1,639,184
11,644,005
17,385,544
$19,848,792
Highway User
Revenue
$ 7,698,249
27,805
262,379
$7,988,433
$ 606,205
21,172
627,377
27,789
27,789
6,922,858
410,409
7,333,267
$7,988,433
Grants
$ 327,341
235,146
26,351
$588,838
$ 18,343
232,188
250,531
223,710
223,710
114,597
114,597
$588,838
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 40
Capital Projects
$ 13,466,860
5,472
51,687
$13,524,019
$ 1,047,933
1,047,933
5,692,029
6,784,057
12,476,086
$13,524,019
Non-Major
Governmental
Funds
$ 4,545,686
22,260
26,444
1,515
2,326
$4,598,231
$ 68,395
8,821
77,216
26,334
26,334
2,326
2,331,309
1,766,428
394,618
4,494,681
$4,598,231
Total
Governmental
Funds
$ 43,206,033
374,391
1,035,253
26,444
1,762,077
84,324
12,923
46,868
$46,548,313
$ 2,082,927
228,927
759
169,241
249,561
2,731,415
26,334
251,692
1,734,697
2,012,723
59,791
9,368,764
11,503,347
9,228,268
11,644,005
41,804,175
$46,548,313
Page 41
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Page 42
Total governmental fund balances
Amounts reported for governmental activities in the Statement of
Net Position are different because:41,804,175$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Governmental capital assets 239,951,412$
Less accumulated depreciation (138,112,949)101,838,463
Some receivables are not available to pay for current period
expenditures and, therefore, are reported as deferred inflows
of resources in the funds.
Property taxes 26,334
Other 251,692 278,026
Long-term liabilities (compensated absences payable) are not due and payable
in the current period and, therefore, are not reported in the funds.(639,914)
The Internal Service Fund is used by management to charge the cost of
technology replacement to the individual funds. The assets and liabilities of the
Internal Service Fund are included in the Statement of Net Position.160,181
Net position of governmental activities 143,440,931$
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE BALANCE SHEET - GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 43
Revenues:
Property taxes
Sales taxes
Franchise taxes
Licenses and permits
Leases and rents
Intergovernmental
Charges for services
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Development services
Public safety
Public works
Culture and recreation
Capital outlay
Debt service -
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General
$
16,732,052
382,948
1,140,759
355,607
8,456,527
212,774
374,877
211,773
387,670
28,254,987
4,024,863
1,210,967
5,404,843
1,311,745
3,292,151
209,920
15,454,489
12,800,498
(9,875,527)
(9,875,527)
2,924,971
14,460,573
$17,385,544
Highway User
Revenue
$
1,419,744
2,606,929
3,664
15,855
197,804
4,243,996
4,988,349
25,676
5,014,025
(770,029)
4,200,000
4,200,000
3,429,971
3,903,296
$7,333,267
Grants
$
4,605,125
95,056
4,700,181
385,875
4,208,150
4,594,025
106,156
106,156
8,441
$114,597
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 44
Capital Projects
$
1,724,626
140,284
4,000
268,398
2,137,308
1,215
841,627
4,263,138
5,105,980
(2,968,672)
5,450,527
5,450,527
2,481,855
9,994,231
$12,476,086
Non-Major
Governmental
Funds
$ 8,778
709,872
383,519
110,594
8,573
29,071
145,230
1,395,637
285,728
401,015
291,320
98
978,161
417,476
597,340
(372,340)
225,000
642,476
3,852,205
$4,494,681
Total
Governmental
Funds
$ 8,778
20,586,294
382,948
1,524,278
355,607
15,919,459
216,438
403,305
240,844
1,094,158
40,732,109
4,697,681
1,210,967
9,612,993
7,542,736
3,583,471
4,498,734
98
31,146,680
9,585,429
10,247,867
(10,247,867)
9,585,429
32,218,746
$41,804,175
Page 45
Changes in fund balances - total governmental funds 9,585,429$
Amounts reported for governmental activities in the Statement of Activities are
different because:
Governmental funds report the portion of capital outlay for capitalized assets as expenditures.
However, in the Statement of Activities, the costs of those assets are allocated over their
estimated useful lives as depreciation expense.
Expenditures for capitalized assets 4,497,424$
Less current year depreciation (4,976,937) (479,513)
Some revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds.
Property taxes 1,076
Other 221,440 222,516
Some expenses reported in the Statement of Activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds.
Loss on disposal of assets (28,761)
Compensated absences (7,133) (35,894)
The Internal Service Fund is used by management to charge the cost of
technology replacement to the individual funds. The changes in net position of the Internal
Service Fund is reported with governmental activities in the Statement of Activities.41,453
Changes in net position in governmental activities 9,333,991$
TOWN OF FOUNTAIN HILLS, ARIZONA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 46
ASSETS
Current assets:
Cash and investments
Total current assets
Total assets
NET POSITION
Unrestricted
Total net position
Governmental
Activities:
Internal Service
Funds
$160,181
160,181
160,181
160,181
$160,181
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 47
Operating revenues:
Other
Charges for services
Total operating revenues
Operating expenses:
Cost of services
Total operating expenses
Operating income (loss)
Nonoperating revenues (expenses):
Investment earnings
Total nonoperating revenues (expenses)
Changes in net position
Total net position, beginning of year
Total net position, end of year
Governmental
Activities:
Internal Service
Funds
$5
65,017
65,022
28,936
28,936
36,086
5,367
5,367
41,453
118,728
$160,181
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION -
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
The notes to the basic financial statements are an integral part of this statement.
Page 48
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
Governmental
Activities:
Internal
Service Funds
Increase/Decrease in Cash and Cash Equivalents
Cash flows from operating activities:
Cash received from charges for services $65,017
Cash received from other sources 5
Cash payments to suppliers for goods and services (28,936)
Net cash provided by/used for operating activities 36,086
Cash flows from investing activities:
Investment income 5,367
Net cash provided by/used for investing activities 5,367
Net increase/decrease in cash and cash equivalents 41,453
Cash and cash equivalents, beginning of year 118,728
Cash and cash equivalents, end of year $160,181
Reconciliation of Cash and Cash Equivalents to the Statement of Net Position
Cash and investments $160,181
Less investments not maturing in less than three months 0
Total cash and cash equivalents $160,181
The notes to the basic financial statements are an integral part of this statement.
Page 49
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The financial statements of the Town of Fountain Hills, Arizona (Town) have been prepared
in conformity with accounting principles generally accepted in the United States of America
as applied to government units. The Governmental Accounting Standards Board (GASB) is
the accepted standard-setting body for establishing governmental accounting and financial
reporting principles.
During the year ended June 30, 2023, the Town implemented the provisions of GASB
Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs). This
Statement increases the usefulness of the financial statements by requiring the recognition of
certain assets and liabilities for SBITAs. This Statement also requires a government to disclose
essential information about the arrangement. The Town’s analysis of SBITAs in effect at the
beginning of the year resulted in no changes to beginning balances reported in the financial
statements due to the implementation of this standard.
The more significant of the Town’s accounting policies are described below.
A. Reporting Entity
The Town’s major operations include development services, culture and recreation, public
works, public safety and general administrative services.
The Town is a municipal corporation governed by an elected Mayor and Council. The financial
reporting entity consists of a primary government and its component units. A component unit
is a legally separate entity that must be included in the reporting entity in conformity with
generally accepted accounting principles. The Town is a primary government that has a
separately elected governing body, is legally separate, and is fiscally independent of other state
or local governments. Furthermore, the component units combined with the Town for financial
statement presentation purposes and the Town are not included in any other governmental
reporting entity. Consequently, the Town’s financial statements include only the funds of those
organizational entities for which its elected governing body is financially accountable.
Page 50
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Eagle Mountain Community Facilities District and the Cottonwoods Maintenance District. As
special purpose districts and separate political subdivisions under the Arizona Constitution, the
Districts can levy taxes and issue bonds independently of the Town. Property owners in the
designated areas are assessed taxes for the costs of operating the Districts. The Town Council
serves as the Board of Directors; however, the Town has no liability for the Districts’ debt, the
Districts are responsible for the debt; the debt is therefore not subject to the Town’s debt limit.
The Districts cannot be part of another reporting entity. The Districts’ governing bodies are
substantially the same as the Town and the Town’s management oversees operations, resulting
in the Town having the ability to exercise control. As a result, for financial reporting purposes,
transactions of the Districts are combined together and included as if they were part of the
Town’s operations.
Town of Fountain Hills, Arizona Municipal Property Corporation. The Town of Fountain
Hills, Arizona Municipal Property Corporation’s (MPC) Board of Directors consists of three
members which are appointed by the Fountain Hills Town Council. The MPC, which is a
nonprofit corporation incorporated under the laws of the State of Arizona, was formed for the
sole purpose of assisting the Town in obtaining financing for various projects of the Town.
The Town has a “moral obligation” for the repayment of the MPC’s bonds. The MPC cannot
be part of another reporting entity. The MPC provides services exclusively to the Town. As a
result, for financial reporting purposes, transactions of the MPC are combined together and
included as if they were part of the Town’s operations.
B. Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement
of activities) present financial information about the Town as a whole. The reported
information includes all of the Town's component units. For the most part, the effect of internal
activity has been removed from these statements. Interfund services provided and used, such
as interfund transfers, are not eliminated in the process of consolidation. Governmental
activities normally are supported by taxes and intergovernmental revenues. The Town does not
have any fiduciary or business-type activities.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment is offset by program revenues. Direct expenses are those that are clearly
identifiable with a specific function or segment. Program revenues include 1) charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function or segment and 2) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular function or segment.
Taxes, unrestricted state shared revenues, investment income and other items not included
among program revenues are reported instead as general revenues.
Page 51
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation
Government-wide Financial Statements – The government-wide financial statements are
reported using the economic resources measurement focus and the accrual basis of accounting.
Revenues are recorded when earned and expenses are recorded when a liability is incurred,
regardless of the timing of related cash flows. Grants and similar items are recognized as
revenue as soon as all eligibility requirements imposed by the grantor or provider have been
met. As a general rule, the effect of internal activity has been eliminated from the government-
wide financial statements; however, the effects of interfund services provided and used
between functions are reported as expenses and program revenues at amounts approximating
their external exchange value.
Fund Financial Statements – Governmental fund financial statements are reported using the
current financial resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available. Revenues are
considered to be available when they are collectible within the current period or soon enough
thereafter to pay liabilities of the current period. For this purpose, the Town considers revenues
to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to compensated absences,
and claims and judgments, are recorded only when payment is due.
Property taxes, sales taxes, franchise taxes, state shared revenues, licenses and permits, charges
for services, and investment earnings associated with the current fiscal period are all
considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. Grants and similar awards are recognized as revenue as soon as all eligibility
requirements imposed by the grantor or provider have been met. Miscellaneous revenue is not
susceptible to accrual because generally they are not measurable until received in cash.
Unearned revenues arise when resources are received by the Town before it has legal claim to
them, as when grant monies are received prior to meeting all eligibility requirements imposed
by the provider.
The focus of governmental fund financial statements is on major funds rather than reporting
funds by type. Each major fund is presented in a separate column.
The Town reports the following major governmental funds.
General Fund – The General Fund is the Town’s primary operating fund. This fund
accounts for all financial resources of the Town, except those required to be accounted for
in other funds.
Page 52
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Highway User Revenue Fund (HURF) – This fund accounts for the Town’s share of motor
vehicle fuel tax revenues and sales tax.
Grants Fund – This fund accounts for the activities of various restricted grants and
contributions received by the Town.
Capital Projects Fund – This fund accounts for the capital improvements to various projects
and equipment purchases of the Town.
Additionally, the Town reports the following fund type:
Proprietary Fund – The Proprietary Fund is an Internal Service Fund that accounts for the
operation of technology replacement services to other Town departments on a cost
reimbursement basis.
The Proprietary Fund financial statements are reported using the economic resources
measurement focus and accrual basis of accounting and are presented in a single column.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with a proprietary fund’s principal ongoing operations. The
principal operating revenues of the Town’s internal service fund are charges to Town
departments for technology replacement. Operating expenses for the internal service fund
include the cost of goods and services. All revenues and expenses not meeting this definition
are reported as nonoperating revenues and expenses.
D. Cash and Investments
For purposes of the Statement of Cash Flows, the Town considers all highly liquid investments
with a maturity of three months or less when purchased to be cash equivalents. Cash and cash
equivalents at year end was cash and investments in the State Treasurer’s Local Government
Investment Pool.
Cash and investments at year end were cash on hand, cash in bank, restricted cash, cash and
investments held by the State Treasurer, and investments in the State Treasurer’s Local
Government Investment Pool.
Cash and investments are pooled, except for investments that are restricted under provisions
of bond indentures or other restrictions that are required to be reported in the individual funds.
Page 53
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Arizona Revised Statutes authorize the Town to invest public monies in the State Treasurer’s
local government investment pools, the County Treasurer’s investment pool, obligations of the
U.S. Government and its agencies, obligations of the state and certain local government
subdivisions, interest-bearing savings accounts and certificates of deposit, collateralized
repurchase agreements, certain obligations of U.S. corporations, and certain other securities.
Investments are stated at fair value.
Statutes do not include any requirements for credit risk, custodial credit risk, concentration of
credit risk, interest rate risk, or foreign currency risk for the Town’s investments.
Arizona statute requires a pooled collateral program for public deposits and a Statewide
Collateral Pool Administrator (Administrator) in the State Treasurer’s Office. The purpose of
the pooled collateral program is to ensure that governmental entities’ public deposits placed in
participating depositories are secured with collateral of 102 percent of the public deposits, less
any applicable federal depository insurance.
An eligible depository may not retain or accept any public deposit unless it has deposited the
required collateral with a qualified escrow agent or the Administrator. The Administrator
manages the pooled collateral program, including reporting on each depository’s compliance
with the program.
E. Investment Earnings
Investment earnings is composed of interest, dividends, and net changes in the fair value of
applicable investments. Investment earnings is a component of revenue in the governmental
funds financial statements and is reported in nonoperating revenue in the proprietary fund
financial statements.
F. Receivables and Payables
Activity between funds that is representative of lending/borrowing arrangements outstanding
at the end of the fiscal year is referred to as either “due to/from other funds” (i.e., the current
portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of
interfund loans). Interfund balances between governmental funds are eliminated on the
statement of net position.
Page 54
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
G. Property Tax Calendar
Property taxes are levied by the Town and collected by the Maricopa County Treasurer.
Property taxes are levied no later than the third Monday in August and are payable in two
installments due October 1 of the current year and March 1 of the subsequent year. Taxes
become delinquent after the first business day of November and May, respectively. Interest
attaches on installments after the delinquency date. Pursuant to A.R.S., a lien against assessed
real and personal property attaches on the first day of January preceding assessment and levy;
however according to case law, an enforceable legal claim to the asset does not arise.
All receivables are shown net of an allowance for uncollectibles.
H. Inventory
All inventories are valued at average cost using the first-in/first-out (FIFO) method.
Inventories consist of expendable supplies held for consumption. The cost of such inventories
is recorded as expenditures/expenses when consumed rather than when purchased.
I. Prepaid Items
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both the government-wide and fund financial statements. The cost
of prepaid items is recorded as expenditures/expenses when consumed rather than when
purchased.
J. Capital Assets
Capital assets, which include land and improvements, artwork, buildings and improvements,
vehicles, machinery, and equipment, construction in progress, infrastructure assets, and
intangible right-to-use assets are reported in the government-wide financial statements.
Capital assets are defined by the Town as assets with an initial, individual cost in excess of
$10,000 and an estimated useful life in excess of one year. Capital assets are recorded at
historical cost, if purchased or constructed. Donated capital assets are recorded at the
acquisition value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the assets or
materially extend the life of the asset are not capitalized.
Page 55
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Capital assets of the Town are depreciated using the straight-line method over the following
estimated useful lives:
Buildings and building improvements 20 - 50 years
Improvements other than buildings 20 years
Infrastructure 15 - 50 years
Vehicles, machinery and equipment 5 - 20 years
K. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position may report a separate section for
deferred outflows of resources. This separate financial statement element, deferred outflows
of resources, represents a consumption of net assets that applies to a future period and so will
not be recognized as an outflow of resources (expense/expenditure) until then. The Town did
not have any items that qualified for reporting in this category.
In addition to liabilities, the statement of financial position may report a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net assets that applies to a future period and so will not
be recognized as an inflow of resources (revenue) until that time.
L. Compensated Absences
The Town’s employee vacation and sick leave policies generally provide for granting vacation
and sick leave with pay. Sick leave and vacation benefits accrue as pay periods are completed
at the current rate of pay.
All eligible full-time and part-time regularly-scheduled employees can accrue vacation leave.
Employees accrue up to a maximum of two times the yearly maximum accrual of vacation
through carryover of balances. In the event of termination, employees will be paid for any
accrued, but unused, vacation hours. Full-time and part-time regularly-scheduled employees
accrue sick leave, up to a maximum of 1040 hours. Part-time non-regularly-scheduled,
temporary, or seasonal, and other employees accrue paid sick time for hours worked, not to
exceed 40 hours per calendar year.
The current and long-term liabilities, including related benefits, for accumulated vacation and
sick leave are reported on the government-wide financial statements. A liability for these
amounts is reported in governmental funds only if they have matured, for example, as a result
of employee termination, resignations and retirements. Generally, resources from the General
Fund are used to pay for compensated absences.
Page 56
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
M. Long-term Obligations
In the government-wide financial statements, long-term debt and other long-term obligations
are reported as liabilities on the statement of net position. Bond premiums and discounts are
amortized over the life of the bonds using the straight-line method. Deferred amounts on
refunding result from the difference between the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the shorter of the life of the
refunded or refunding debt.
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are
reported as other financing sources while discounts on debt issuances are reported as other
financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received,
are reported as debt service expenditures.
N. Interfund Activity
Flows of cash from one fund to another without a requirement for repayment are reported as
interfund transfers. Interfund transfers between governmental funds are eliminated in the
statement of activities. Interfund transfers in the fund financial statements are reported as other
financing sources/uses in governmental funds.
O. Net Position Flow Assumption
In the government-wide financial statements the Town applies restricted resources first when
outlays are incurred for purposes for which either restricted or unrestricted amounts are
available.
P. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and accompanying
notes. Actual results may differ from those estimates.
Page 57
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Q. Leases
As lessor, the Town recognizes lease receivables with an initial, individual value of $50,000
or more. If there is no stated rate in the lease contract (or if the stated rate is not the rate the
Town charges the lessee) and the implicit rate cannot be determined, the Town uses its own
estimated incremental borrowing rate as the discount rate to measure lease receivables.
The Town’s estimated incremental borrowing rate was determined based on the prevailing
federal funds rate at the beginning of the lease term, since the Town does not have outstanding
debt. This rate reflects the low risk of renting these facilities over a long lease period with
multiple renewals.
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Fund balances of the governmental funds are reported separately within classifications based
on a hierarchy of the constraints placed on the use of those resources. The classifications are
based on the relative strength of the constraints that control how the specific amounts can be
spent. The classifications are nonspendable, restricted, committed, assigned, and unassigned
fund balance classifications.
Nonspendable. The nonspendable fund balance classification includes amounts that cannot
be spent because they are not in spendable form, or legally or contractually required to be
maintained intact.
Restricted. Fund balance is reported as restricted when constraints placed on the use of
resources are either externally imposed by creditors (such as through debt covenants), grantors,
contributors, or laws or regulations of other governments or is imposed by law through
constitutional provisions or enabling legislation.
Committed. The committed fund balance classification includes amounts that can be used only
for the specific purposes imposed by formal action of the Town Council, the Town’s highest
level of decision making authority, by ordinance. Those committed amounts cannot be used
for any other purpose unless the Town Council removes or changes the specified use by taking
the same type of action it employed to previously commit those amounts.
Page 58
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 – FUND BALANCE CLASSIFICATIONS
Assigned. Amounts in the assigned fund balance classification are intended to be used by the
Town for specific purposes but do not meet the criteria to be classified as restricted or
committed. In governmental funds other than the General Fund, assigned fund balance
represents the remaining amount that is not restricted or committed. In the General Fund,
assigned amounts represent intended uses established by the Town Council or a management
official delegated that authority by formal Town Council action. The authority to make
assignments has been delegated by the Town Council to the Finance Director.
Unassigned. Unassigned fund balance is the residual classification for the General Fund and
includes all spendable amounts not contained in the other classifications. In other governmental
funds, the unassigned classification is used only to report a deficit balance resulting from
overspending for specific purposes for which amounts had been restricted, committed, or
assigned.
The Town applies restricted resources first when outlays are incurred for purposes for which
either restricted or unrestricted (committed, assigned, and unassigned) amounts are available.
Similarly, within unrestricted fund balance, committed amounts are reduced first followed by
assigned, and then unassigned amounts when expenditures are incurred for purposes for which
amounts in any of the unrestricted fund balance classifications could be used.
The Town has established a fund balance policy which states that the combined General Fund
operating fund balance should be at least 30 percent of the average actual General Fund
revenues for the preceding five fiscal years.
The Town has established a stabilization fund (Rainy Day fund) in the Town’s fund balance
policy. The Rainy Day fund had a balance of $3,980,307, reported as a committed fund balance
at June 30, 2023. The Rainy Day fund may only be used for the following: 1) to replace the
loss of more than 20 percent of the Town’s local share of state shared revenues, 2) for any
event that threatens the health, safety or welfare of the Town’s citizens, 3) for any event that
threatens the fiscal stability of the Town, and lastly 4) to address any matter declared as an
emergency by the governor of the State of Arizona or the Mayor of the Town. All withdrawals
from the Rainy Day fund shall be subject to the following rules: 1) any appropriation shall
require the approval by at least 2/3 vote by the Town Council, and 2) the maximum amount of
Rainy Day withdrawal in any fiscal year shall not exceed one-half of the total balance in the
fund. Replenishment of the Rainy Day fund when spent by the Town should not exceed a
period of more than five years, and should be repaid in annual installments of not less than one
percent of the previous fiscal year General Fund balance. Repayments shall be appropriated as
part of the annual budget adoption.
Page 59
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 2 – FUND BALANCE CLASSIFICATIONS
The table below provides detail of the major components of the Town’s fund balance
classifications at year end.
General
Fund
Highway
User
Revenue
Fund
Grants
Fund
Capital
Projects
Fund
Non-Major
Governmental
Funds Total
Fund Balances:
Nonspendable:
Inventory $ 12,923 $ $ $ $ $ 12,923
Prepaid items 44,542 2,326 46,868
Restricted:
Capital Projects 15,338 15,338
Debt Service 185,847 185,847
Highways and Streets 6,922,858 114,597 7,037,455
Development Fees 2,130,124 2,130,124
Committed:
Rainy Day 3,980,307 3,980,307
Public Art 64,583 64,583
Downtown Strategy 625,922 625,922
Economic Development 591,811 591,811
Tourism 133,017 133,017
Capital Projects 5,692,029 5,692,029
Local Court Enhancement 415,678 415,678
Assigned:
Capital Projects 6,784,057 6,784,057
Environmental 394,618 394,618
Vehicle Replacement 1,639,184 410,409 2,049,593
Unassigned: 11,644,005 11,644,005
Total fund balances $ 17,385,544 $ 7,333,267 $ 114,597 $ 12,476,086 $ 4,494,681 $ 41,804,175
Page 60
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH AND INVESTMENTS
Custodial Credit Risk – Deposits. Custodial credit risk is the risk that in the event of bank
failure the Town’s deposits may not be returned to the Town. The Town does not have a
deposit policy for custodial credit risk. At year end, the carrying amount of the Town’s deposits
was $790,602 and the bank balance was $1,594,390. At year end, $1,094,390 of the Town’s
deposits were covered by collateral held by the pledging financial institution in the Town’s
name. The remaining amount is covered by FDIC.
Fair Value Measurements. The Town categorizes its fair value measurements within the fair
value hierarchy established by generally accepted accounting principles. The hierarchy is
based on the valuation inputs used to measure the fair value of the asset.
Level 1 inputs are quoted prices in active markets for identical assets
Level 2 inputs are significant other observable inputs
Level 3 inputs are significant unobservable inputs
Valuation Techniques. Equity securities classified in Level 1 of the fair value hierarchy are
valued using prices quoted in active markets for those securities. Debt securities classified in
Level 2 of the fair value hierarchy are valued using matrix pricing techniques. Matrix pricing
is used to value securities based on the securities’ relationship to benchmark quoted prices.
The State Treasurer’s pools are external investment pools, the Local Government Investment
Pool (Pool 5) and Local Government Investment Pool-Government (Pool 7), with no
regulatory oversight. The pools, as an investment company, are not registered with the
Securities and Exchange Commission. The activity and performance of the pools are reviewed
monthly by the State Board of Investment. The fair value of each participant’s position in the
State Treasurer investment pools approximates the value of the participant’s shares in the pool
and the participants’ shares are not identified with specific investments. Participants in the pool
are not required to categorize the value of shares in accordance with the fair value hierarchy.
All investments in which the fair value hierarchy is applicable are measured at fair value on a
recurring basis. At year end, cash and investments as of June 30, 2023, are classified in the
accompanying financial statements as follows:
Carrying amount of investments $42,574,912
Carrying amount of cash deposits 790,602
Cash on hand 700
Total pooled cash and investments $43,366,214
Page 61
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH AND INVESTMENTS
At year end, the Town’s investments consisted of the following:
Investment Maturities
(in Years)
Credit Rating
Investment Type Category Fair Value Less than 1 1-5 S&P Moody’s
U.S. Government and Agency Notes Level 1 $ 8,728,324 $ 243,555 $ 8,484,769 AA+ Aaa
Supra-National Notes Level 1 496,329 181,099 315,230 AAA Aaa
Federal Agency Notes Level 1 249,256 249,256 AA+ Aaa
Corporate and Foreign Bonds Level 2 2,820,786 2,820,786 BBB+ to AA A3 - Aa2
Asset Backed Securities Level 2 809,904 4,073 805,831 AAA, NR Aaa, NR
Certificates of Deposit Level 2 126,926 126,926 AA- Aa3
US Bank Money Market Funds Level 1 18,916 n/a n/a
$ 428,727 $12,802,798
State Treasurer’s Investment Pool 7 Not applicable 29,324,471 37 days average maturities
Total $42,574,912
Interest Rate Risk. Interest rate risk is the risk that changes in interest rates may reduce the
market value of Town investments. In accordance with its investment policy, the Town
manages its exposure to declines in fair values by the following:
Structuring the investment portfolio so that securities mature concurrent with the
anticipated cash requirements for ongoing operations, thereby avoiding, as much as
possible, the need to sell securities into an adverse market environment prior to
maturity.
Investing funds primarily in shorter-term securities or similar investment pools and
limiting the average maturity of the portfolio in accordance with the needs of the Town.
With respect to any firm or individual given responsibility for investments utilizing
external research and advice regarding the current interest rate outlook and global
economic condition to optimize portfolio duration strategy.
Page 62
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 – CASH AND INVESTMENTS
Credit Risk. Credit risk is the risk of default of debt by an issuer or counterparty to an
investment. The Town will limit credit risk by limiting investments in the Town’s portfolio to
the asset classes designated as acceptable in ARS §35-323. When possible, analysis of the
credit worthiness of all individual debt issuers held in the portfolio should be conducted on an
annual basis in an effort to guard against investing in a weak or deteriorating credit situation.
Additionally, the Town will pre-qualify financial institutions, brokers/dealers, and investment
advisers with which the Town will do business. The State Treasurer’s Local Government
Investment Pool 7 was rated AAA by Moody’s at year end.
Custodial Credit Risk – Investments. Custodial credit risk is the risk that in the event of
depository financial institution failure, the Town’s deposits may not be returned to the Town.
The Town’s investment in the State Treasurer’s investment pool represents a proportionate
interest in the pool’s portfolio; however the Town’s portion is not identified with specific
investments and is not subject to custodial credit risk.
Concentration of Credit Risk. Concentration of credit risk is the risk of loss from over
concentration of investments. In accordance with its investment policy, the Town diversifies
its investment portfolio to minimize the risk of loss resulting from over concentration of assets
in a specific maturity, specific issuer, or specific class of securities. With the exception of U.S.
Treasury notes and securities and authorized pools, the investment policy establishes a
maximum percentage of 30 percent in insured or collateralized certificates of deposit; 20
percent in certificates of deposit registry services; 30 percent in commercial paper; and 30
percent in bonds, debentures, or notes.
Investment Type Fair Value
Percent of Town
Investments
U.S. Government and Agency Notes $ 8,728,324 20.5%
Supra-National Notes 496,329 1.2%
Federal Agency Notes 249,256 0.6%
Corporate and Foreign Bonds 2,820,786 6.6%
Asset Backed Securities 809,904 1.9%
Certificates of Deposit 126,926 0.3%
US Bank Money Market Funds 18,916 0.0%
State Treasurer’s investment pool 7 29,324,471 68.9%
$ 42,574,912
Page 63
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 – RECEIVABLES
Receivable balances, net of allowance for uncollectibles, have been disaggregated by type and
presented separately in the financial statements with the exception of intergovernmental
receivables. Intergovernmental receivables, net of allowance for uncollectibles, as of year-end
for the Town’s individual major funds consisted entirely of receivables due from the State.
NOTE 5 – LEASES RECEIVABLE
The Town has cell tower land agreements and a fire station ambulance bay usage agreement
that fall under the provisions of contracts classified as leases. The related receivables under the
lease agreements have been recorded at the present value of their future minimum lease
payments as of the implementation date. Lease revenue of $178,866 and related interest
revenue of $24,051 are recorded as leases and rents in the General Fund.
Future minimum lease payments to be received under the lease agreements at year end are
summarized as follows:
Year ending June 30:
2024 $ 122,997
2025 123,613
2026 125,580
2027 129,538
2028 136,549
2029-33 645,705
2034-38 234,781
2039-43 184,398
2044-45 58,916
Total $ 1,762,077
Page 64
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS
A summary of capital asset activity at year end is as follows:
Governmental Activities
Beginning
Balance
Increase
Decrease
Ending
Balance
Capital assets, not being depreciated:
Land $ 29,690,368 $ $ $ 29,690,368
Artwork 2,608,900 2,608,900
Construction in progress 2,595,052 4,325,010 2,987,881 3,932,181
Total capital assets, not being depreciated 34,894,320 4,325,010 2,987,881 36,231,449
Capital assets, being depreciated:
Infrastructure 155,359,694 297,000 155,656,694
Buildings and building improvements 23,421,289 13,193 23,434,482
Improvements other than buildings 16,977,148 2,627,699 19,604,847
Vehicles, machinery and equipment 4,989,483 222,403 187,946 5,023,940
Total capital assets being depreciated 200,747,614 3,160,295 187,946 203,719,963
Less accumulated depreciation for:
Infrastructure (111,275,396)(3,277,816)(114,553,212)
Buildings and building improvements (7,465,337) (499,594) (7,964,931)
Improvements other than buildings (12,361,959)(789,288)(13,151,247)
Vehicles, machinery and equipment (2,192,505) (410,239) (159,185) (2,443,559)
Total accumulated depreciation (133,295,197)(4,976,937)(159,185)(138,112,949)
Total capital assets, being depreciated, net 67,452,417 (1,816,642)28,761 65,607,014
Governmental activities capital assets, net $ 102,346,737 $ 2,508,368 $ 3,016,642 $ 101,838,463
Depreciation expense was charged to functions/programs as follows:
Governmental activities:
General government $ 223,912
Development services 16,721
Public safety 317,363
Streets and highways 3,231,075
Culture and recreation 1,187,866
Total depreciation expense $ 4,976,937
Page 65
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 6 – CAPITAL ASSETS
Construction Commitments – At June 30, 2023, the Town has the following active
construction commitments. The resources for these commitments have been accumulated in
the Capital Projects Fund.
Governmental Activities
Project
Spent-to-Date
Remaining
Commitment
Stormwater Infrastructure Rehabilitation $ 246,391 $ 57,793
Golden Eagle Park Field Lights 690,137 690,137
Shea Boulevard Widening - Palisades to Technology 305,257 40,316
TS – Palisades at Eagle Ridge 104,643 49,954
Total commitments $ 1,346,428 $ 838,200
NOTE 7 – CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the current fiscal year was as follows:
Beginning
Balance Additions Reductions
Ending
Balance
Due Within
One Year
Governmental activities:
Compensated absences payable $ 632,781 $ 408,620 $ 401,487 $ 639,914 $ 355,898
Governmental activity long-term
Liabilities $ 632,781 $ 408,620 $ 401,487 $ 639,914 $ 355,898
NOTE 8 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
At year end, interfund balances were as follows:
Interfund transfers:
At year end, interfund transfers were as follows:
Transfers out
Transfers in
General
Fund
Non-Major
Governmental
Funds Total
Highway User Revenue Fund $ 4,200,000 $ $ 4,200,000
Capital Projects Fund 5,450,527 5,450,527
Non-Major Governmental Funds 225,000 372,340 597,340
Total $ 9,875,527 $ 372,340 $10,247,867
Page 66
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 – INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS
The General Fund transferred $5,175,527 to the Capital Projects Fund for future projects, as
required by the Town’s financial policies; $4,200,000 to Highway User Revenue Fund for
additional pavement maintenance projects; and $500,000 to Environmental Fund for continued
storm drain and wash maintenance. The Economic Development Fund transferred $97,340 to
the Tourism Fund to provide funding for operating costs of the tourism program. The
Development Fee Fund transferred $275,000 to the Capital Projects Fund for expansion of the
Fountain Park splash pad.
NOTE 9 – CONTINGENT LIABILITIES
Compliance – Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies, principally the state government. Any disallowed claims,
including amounts already collected, may constitute a liability of the applicable funds. The
amount, if any, of expenditures/expenses that may be disallowed by the grantor cannot be
determined at this time, although the Town expects such amounts, if any, to be immaterial.
Lawsuits – The Town is a party to a number of various types of lawsuits, many of which
normally occur in governmental operations. The ultimate outcome of the actions is not
determinable; however, Town management believes that the outcome of these proceedings,
either individually or in the aggregate, will not have a materially adverse effect on the
accompanying financial statements.
NOTE 10 – RISK MANAGEMENT
The Town is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; and natural disasters. The Town’s insurance protection is
provided by the Arizona Municipal Risk Retention Pool (Pool). The Pool is made up of various
towns and cities within Arizona that operate a common risk management and insurance
program. The Pool is structured such that member premiums are based on an actuarial review
that will provide adequate reserves to allow the Pool to meet its expected financial obligations.
The Pool has the authority to assess its’ members additional premiums should reserves and
annual premiums be insufficient to meet the Pool’s obligations.
Page 67
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 – RISK MANAGEMENT
The Town joined the Arizona Municipal Workers’ Compensation Pool (Pool) together with
other governments in the state for risks of loss related to workers’ compensation claims. The
Pool is a public entity risk pool currently operating as a common risk management and
insurance program for towns and cities in the State. The Town is responsible for paying a
premium, based on an experience rating formula that allocates pool expenditures and liabilities
among members.
The Town continues to carry commercial insurance for all other risks of loss, including
employee health, dental, and vision insurance. There were no settlements that exceeded
insurance coverage in any of the past three years.
NOTE 11 – RETIREMENT PLANS
Defined Contribution Pension Plan
All full-time employees of the Town participate in a defined contribution pension plan
administered by the ICMA Retirement Corporation as a 401(a) plan. The contribution rates are
11 percent for both the employee and the Town. The payroll for the Town employees covered
by this plan for the year ended June 30, 2023, was $4,764,951 The Town’s total payroll was
$5,541,914.
A defined contribution pension plan provides benefits in return for services rendered, provides
an individual account for each participant, and specifies how contributions to the individual’s
account are to be determined, instead of specifying the amount of benefit the individual is to
receive. Under a defined contribution pension plan, the benefits a participant will receive
depend solely on the amount contributed to the participant’s account and the returns earned on
investment of those contributions. All full-time Town employees must participate in the
pension plan from the date they are hired. Contributions made by an employee vest
immediately and contributions made by the Town vest on a pro rata basis for five years. Town
Council has the authority to establish and amend benefit terms and to establish and amend the
contribution rates. The assets are held in a trust not controlled by the Town and all investment
decisions are made by the employee. The plan does not require reporting under provisions of
GASB Statement No. 84, Fiduciary Activities.
Page 68
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11 – RETIREMENT PLANS
An employee that leaves the employment of the Town is entitled to his or her contributions
and the vested portion of the Town’s contributions, plus interest earned. During the fiscal year,
the Town’s required and actual contributions amounted to $514,245. The employees’
contributions totaled $514,245. Employees may also contribute to the ICMA Retirement
Corporation 457 plan on a voluntary basis (with the exception of one contract employee that
is limited to 11 percent of earnings); there is no employer match for those contributions. During
the fiscal year, employees contributed $128,170 to that plan. The Town contributed $9,743 for
the contract employee’s 457 account.
No pension provision changes occurred during the year that affected the required contributions
to be made by the Town or its employees. The ICMA Retirement Corporation held no securities
of the Town or other related parties during the fiscal year 2022-23 or as of the close of the
fiscal year.
Page 69
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Page 70
REQUIRED SUPPLEMENTARY INFORMATION
Page 71
16,732,052 $ 2,305,819
$ 14,383,864 $ 21,392,024 $ 17,385,544 $ (4,006,480)
Variance with
Final Budget
Positive
(Negative)
(9,875,527)
(4,006,480)
205,664
40,213
1,437,170
69,650
19,804
6,339
1,341,377
63,199 (130,701) 269,612 6,773
362,430
3,349,482
245,877
2,519,565
5,869,047
(9,875,527)
148,711
452,070
35,682
200,055
2,924,971
14,460,573
57,948
358,667
5,404,843
15,454,489
12,800,498
(9,875,527)
830,650
4,574,193
209,920
4,024,863
1,210,967
3,292,151
2,724,710
426,945
70,280
8,456,527 212,774 374,877 211,773
387,670
28,254,987
25,240
24,905,505
2,794,360
76,619
1,511,800 1,311,745
802,928
446,749
1,036,314
4,614,406
(9,875,527)
6,931,451
14,460,573
Actual
382,948
1,140,759
355,607
6,931,451
245,602
3,744,221
5,462,033
1,359,678
2,144,305
5,650,720
17,974,054
343,475 105,265 205,000
(76,709)
14,460,573
Final
325,000
782,092
299,872
8,393,328
24,982,204
(76,709)
209,300
76,619
4,402,834
5,456,036
8,337,335
1,359,678
3,719,221
9,858,870
205,000
25,240
24,905,495
2,672,360
446,749
5,141,607
1,497,800
Fund balances (deficits), end of year
Budgeted Amounts
Original
325,000
782,092
299,872
8,393,328 343,475 105,265
Other financing sources (uses):
Transfer inTransfer out
Total other financing sources (uses):
Changes in fund balances
Fund balances, beginning of year
Culture and recreation
Total public safety
Total expenditures
Administration
Municipal court
Excess (deficiency) of revenues over expenditures
Non departmental
Expenditures:
Capital outlay
Mayor and council
Current -General government
Public safetyFire and emergency
Law enforcement
Total general government
Development services
Public works
IntergovernmentalCharges for servicesOtherFines and forfeitures
Investment earnings
Total revenues
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GENERAL
YEAR ENDED JUNE 30, 2023
Revenues:Sales taxesFranchise taxes
Licenses and permits
Leases and rents 55,735
14,426,223 14,426,233
See accompanying notes to this schedule.
Page 72
Revenues:
Sales taxes
Intergovernmental
Charges for services
Other
Investment earnings
Total revenues
Expenditures:
Current -
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Budgeted Amounts
Original
$ 1,197,552
2,679,005
100,000
31,000
10,000
4,017,557
5,908,110
5,908,110
(1,890,553)
(1,890,553)
3,903,296
$2,012,743
Final
$ 1,197,552
2,679,005
100,000
31,000
10,000
4,017,557
9,538,110
70,000
9,608,110
(5,590,553)
(5,590,553)
3,903,296
$(1,687,257)
Actual
$ 1,419,744
2,606,929
3,664
15,855
197,804
4,243,996
4,988,349
25,676
5,014,025
(770,029)
4,200,000
4,200,000
3,429,971
3,903,296
$7,333,267
Variance with
Final Budget
Positive
(Negative)
$ 222,192
(72,076)
(96,336)
(15,145)
187,804
226,439
4,549,761
44,324
4,594,085
4,820,524
4,200,000
4,200,000
9,020,524
$9,020,524
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
HIGHWAY USER REVENUE
YEAR ENDED JUNE 30, 2023
See accompanying notes to this schedule.
Page 73
Revenues:
Intergovernmental
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public safety
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Budgeted Amounts
Original
$ 11,190,000
11,190,000
981,850
4,208,150
5,190,000
6,000,000
8,441
$6,008,441
Final
$ 11,129,535
11,129,535
5,129,535
4,208,150
9,337,685
1,791,850
8,441
$1,800,291
Actual
$ 4,605,125
95,056
4,700,181
385,875
4,208,150
4,594,025
106,156
8,441
$114,597
Variance with
Final Budget
Positive
(Negative)
$ (6,524,410)
95,056
(6,429,354)
4,743,660
4,743,660
(1,685,694)
$(1,685,694)
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL
GRANTS
YEAR ENDED JUNE 30, 2023
See accompanying notes to this schedule.
Page 74
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2023
NOTE 1 – BUDGETARY BASIS OF ACCOUNTING
The Town budget is prepared on a basis consistent with accounting principles generally accepted
in the United States of America. The Town Council follows these procedures in establishing the
budgetary data reflected in the financial statements:
1. In accordance with Arizona Revised Statutes, the Town Manager submits a proposed
budget for the fiscal year commencing the following July 1 to the Town Council. The
operating budget includes proposed expenditures and the means of financing them for the
upcoming year.
2. Public hearings are conducted to obtain taxpayer comment.
3. Prior to the third Monday in August, the budget for the Town is legally enacted through
passage of a resolution. To ensure compliance with the expenditure limitation, a uniform
expenditure report must be filed with the State each year. This report, issued under a
separate cover, reconciles total Town expenditures from the audited basic financial
statements to total expenditures for reporting in accordance with the State’s uniform
expenditure reporting system (A.R.S 41-1279.07).
4. Expenditures may not legally exceed the expenditure limitation described below for all
fund types as a whole. For management purposes, the Town adopts a budget by department
for the General Fund and in total by fund for other funds. The Town Manager, subject to
Town Council approval, may at any time transfer any unencumbered appropriation balance
or portion thereof between departments. The adopted budget cannot be amended in any
way without Town Council approval.
5. Formal budgetary integration is employed as a management control device during the year
for the General, Highway User Revenue, Excise Tax, Special Revenue, Debt Service, and
Capital Projects Funds on essentially the same modified accrual basis of accounting used
to record actual revenues and expenditures.
The Town is subject to the State of Arizona’s Spending Limitation Law for Towns and Cities.
This law does not permit the Town to spend more than budgeted revenues plus the carryover
unrestricted cash balance from the prior fiscal year. The limitation is applied to the total of the
combined funds. The Town complied with this law during the year.
Page 75
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Page 76
COMBINING AND INDIVIDUAL
FUND FINANCIAL STATEMENTS
AND SCHEDULES
Page 77
ASSETS
Cash and investments
Intergovernmental receivable
Taxes receivable
Interest receivable
Prepaid items
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
Special Revenue
$ 2,229,588
22,260
149
1,515
2,326
$2,255,838
$ 68,307
8,821
77,128
2,326
15,338
1,766,428
394,618
2,178,710
$2,255,838
Debt Service
$ 185,974
26,295
$212,269
$88
88
26,334
185,847
185,847
$212,269
Capital Projects
$ 2,130,124
$2,130,124
$
2,130,124
2,130,124
$2,130,124
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
JUNE 30, 2023
Page 78
Total Non-Major
Governmental
Funds
$ 4,545,686
22,260
26,444
1,515
2,326
$4,598,231
$ 68,395
8,821
77,216
26,334
2,326
2,331,309
1,766,428
394,618
4,494,681
$4,598,231
Page 79
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Debt service -
Fiscal charges
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Special Revenue
$ 8,778
709,872
2,556
110,594
8,573
29,071
60,409
929,853
285,728
401,015
291,320
978,063
(48,210)
597,340
(97,340)
500,000
451,790
1,726,920
$2,178,710
Debt Service
$
5,824
5,824
98
98
5,726
5,726
180,121
$185,847
Capital Projects
$
380,963
78,997
459,960
459,960
(275,000)
(275,000)
184,960
1,945,164
$2,130,124
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
ALL NON-MAJOR GOVERNMENTAL FUNDS - BY FUND TYPE
YEAR ENDED JUNE 30, 2023
Page 80
Total Non-Major
Governmental
Funds
$ 8,778
709,872
383,519
110,594
8,573
29,071
145,230
1,395,637
285,728
401,015
291,320
98
978,161
417,476
597,340
(372,340)
225,000
642,476
3,852,205
$4,494,681
Page 81
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Page 82
NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Downtown Strategy Fund – accounts for the portion of Town sales tax committed by the Town
Council for the development of the downtown area.
Economic Development Fund – accounts for the portion of Town sales tax committed by the
Town Council for economic development and tourism.
Tourism Fund – accounts for the portion of Town sales tax committed by the Town Council as
well as any grants received for all tourism activities.
Local Court Enhancement Fund – accounts for a local court surcharge, committed for court
enhancement.
Environmental Fund – accounts for all funds received from collection of the environmental fee.
Cottonwoods Maintenance Fund – accounts for all funds restricted to pay for maintenance of
the Cottonwoods Maintenance District.
Debt Service Funds
General Obligation Debt Service Fund – accounts for the Town’s property tax revenues received
to pay the debt service of the Town’s general obligation bonds.
Eagle Mountain Debt Service Fund – accounts for the property tax revenues restricted to pay
the debt service of the Eagle Mountain Community Facilities District.
Municipal Property Corporation Debt Service Fund – accounts for the revenues received to
pay the debt service on MPC revenue bonds.
Capital Projects Funds
Facilities Replacement Fund – accounts for all funds assigned for the maintenance and repair of
facilities and equipment.
Development Fees Fund – accounts for restricted development fees collected from building
permits.
Page 83
ASSETS
Cash and investments
Intergovernmental receivable
Taxes receivable
Interest receivable
Prepaid items
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Accrued wages and benefits
Total liabilities
Fund balances:
Nonspendable
Restricted
Committed
Assigned
Total fund balances
Total liabilities and fund balances
Downtown
Strategy
$ 621,569
4,345
1,515
$627,429
$ 1,507
1,507
625,922
625,922
$627,429
Economic
Development
$ 581,029
17,379
1,131
$599,539
$ 884
5,713
6,597
1,131
591,811
592,942
$599,539
Tourism
$ 149,064
1,195
$150,259
$ 12,939
3,108
16,047
1,195
133,017
134,212
$150,259
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2023
Page 84
Local Court
Enhancement
$ 415,142
536
$415,678
$
415,678
415,678
$415,678
Environmental
$ 445,932
$445,932
$ 51,314
51,314
394,618
394,618
$445,932
Cottonwoods
Maintenance
$ 16,852
149
$17,001
$ 1,663
1,663
15,338
15,338
$17,001
Totals
$ 2,229,588
22,260
149
1,515
2,326
$2,255,838
$ 68,307
8,821
77,128
2,326
15,338
1,766,428
394,618
2,178,710
$2,255,838
Page 85
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Total revenues
Expenditures:
Current -
General government
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Downtown
Strategy
$
141,974
4,501
15,480
161,955
54,623
54,623
107,332
107,332
518,590
$625,922
Economic
Development
$
567,898
4,058
16,190
588,146
215,176
215,176
372,970
(97,340)
(97,340)
275,630
317,312
$592,942
Tourism
$
110,594
14
8,637
119,245
291,320
291,320
(172,075)
97,340
97,340
(74,735)
208,947
$134,212
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2023
Page 86
Local Court
Enhancement
$
29,071
161
29,232
15,929
15,929
13,303
13,303
402,375
$415,678
Environmental
$
2,556
19,387
21,943
393,664
393,664
(371,721)
500,000
500,000
128,279
266,339
$394,618
Cottonwoods
Maintenance
$ 8,778
554
9,332
7,351
7,351
1,981
1,981
13,357
$15,338
Totals
$ 8,778
709,872
2,556
110,594
8,573
29,071
60,409
929,853
285,728
401,015
291,320
978,063
(48,210)
597,340
(97,340)
500,000
451,790
1,726,920
$2,178,710
Page 87
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Downtown Strategy
Budget
$
119,755
1,260
121,015
65,200
65,200
55,815
55,815
518,590
$574,405
Actual
$
141,974
4,501
15,480
161,955
54,623
54,623
107,332
107,332
518,590
$625,922
Variance -
Positive
(Negative)
$
22,219
4,501
14,220
40,940
10,577
10,577
51,517
51,517
$51,517
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2023
Page 88
Economic Development
Budget
$
479,021
240
479,261
246,320
246,320
232,941
(97,340)
(97,340)
135,601
317,312
$452,913
Actual
$
567,898
4,058
16,190
588,146
215,176
215,176
372,970
(97,340)
(97,340)
275,630
317,312
$592,942
Variance -
Positive
(Negative)
$
88,877
4,058
15,950
108,885
31,144
31,144
140,029
140,029
$140,029
Tourism
Budget
$
125,465
180
125,645
317,179
317,179
(191,534)
97,340
97,340
(94,194)
208,947
$114,753
Actual
$
110,594
14
8,637
119,245
291,320
291,320
(172,075)
97,340
97,340
(74,735)
208,947
$134,212
Variance -
Positive
(Negative)
$
(14,871)
14
8,457
(6,400)
25,859
25,859
19,459
19,459
$19,459
(Continued)
Page 89
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Local Court Enhancement
Budget
$
49,000
900
49,900
89,850
89,850
(39,950)
(39,950)
402,375
$362,425
Actual
$
29,071
161
29,232
15,929
15,929
13,303
13,303
402,375
$415,678
Variance -
Positive
(Negative)
$
(19,929)
(739)
(20,668)
73,921
73,921
53,253
53,253
$53,253
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2023
Page 90
Environmental
Budget
$
2,400
2,400
627,100
627,100
(624,700)
(624,700)
266,339
$(358,361)
Actual
$
2,556
19,387
21,943
393,664
393,664
(371,721)
500,000
500,000
128,279
266,339
$394,618
Variance -
Positive
(Negative)
$
2,556
16,987
19,543
233,436
233,436
252,979
500,000
500,000
752,979
$752,979
Cottonwoods Maintenance
Budget
$ 8,670
72
8,742
12,388
12,388
(3,646)
(3,646)
13,357
$9,711
Actual
$ 8,778
554
9,332
7,351
7,351
1,981
1,981
13,357
$15,338
Variance -
Positive
(Negative)
$ 108
482
590
5,037
5,037
5,627
5,627
$5,627
(Continued)
Page 91
Total revenues
Revenues:
Property taxes
Sales taxes
Licenses and permits
Intergovernmental
Other
Fines and forfeitures
Investment earnings
Expenditures:
Current -
General government
Public works
Culture and recreation
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Totals
Budget
$ 8,670
598,776
125,465
49,000
5,052
786,963
401,370
639,488
317,179
1,358,037
(571,074)
97,340
(97,340)
(571,074)
1,726,920
$1,155,846
Actual
$ 8,778
709,872
2,556
110,594
8,573
29,071
60,409
929,853
285,728
401,015
291,320
978,063
(48,210)
597,340
(97,340)
500,000
451,790
1,726,920
$2,178,710
Variance -
Positive
(Negative)
$ 108
111,096
2,556
(14,871)
8,573
(19,929)
55,357
142,890
115,642
238,473
25,859
379,974
522,864
500,000
500,000
1,022,864
$1,022,864
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2023
Page 92
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Page 93
ASSETS
Cash and investments
Taxes receivable
Total assets
LIABILITIES, DEFERRED INFLOWS OF RESOURCES
AND FUND BALANCES
Liabilities:
Accounts payable
Total liabilities
Deferred inflows of resources:
Unavailable revenues - property taxes
Fund balances:
Restricted
Total fund balances
Total liabilities, deferred inflows of resources
and fund balances
General
Obligation Debt
Service
$ 155,313
26,295
$181,608
$
26,334
155,274
155,274
$181,608
Eagle Mountain
Debt Service
$ 19,234
$19,234
$88
88
19,146
19,146
$19,234
Municipal
Property
Corporation Debt
Service
$ 11,427
$11,427
$
11,427
11,427
$11,427
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING BALANCE SHEET - NON-MAJOR DEBT SERVICE FUNDS
JUNE 30, 2023
Page 94
Totals
$ 185,974
26,295
$212,269
$88
88
26,334
185,847
185,847
$212,269
Page 95
Revenues:
Investment earnings
Total revenues
Expenditures:
Debt service -
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General
Obligation Debt
Service
$4,712
4,712
4,712
150,562
$155,274
Eagle Mountain
Debt Service
$710
710
88
88
622
18,524
$19,146
Municipal
Property
Corporation Debt
Service
$402
402
10
10
392
11,035
$11,427
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
Page 96
Totals
$5,824
5,824
98
98
5,726
180,121
$185,847
Page 97
Total revenues
Revenues:
Property taxes
Investment earnings
Expenditures:
Debt service -
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
General Obligation Debt Service
Budget
$
1,200
1,200
350
350
850
150,562
$151,412
Actual
$
4,712
4,712
4,712
150,562
$155,274
Variance -
Positive
(Negative)
$
3,512
3,512
350
350
3,862
$3,862
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
Page 98
Eagle Mountain Debt Service
Budget
$ 1,380
100
1,480
14,200
14,200
(12,720)
18,524
$5,804
Actual
$
710
710
88
88
622
18,524
$19,146
Variance -
Positive
(Negative)
$ (1,380)
610
(770)
14,112
14,112
13,342
$13,342
Municipal Property Corporation Debt Service
Budget
$
100
100
1,010
1,010
(910)
11,035
$10,125
Actual
$
402
402
10
10
392
11,035
$11,427
Variance -
Positive
(Negative)
$
302
302
1,000
1,000
1,302
$1,302
(Continued)
Page 99
Total revenues
Revenues:
Property taxes
Investment earnings
Expenditures:
Debt service -
Fiscal charges
Total expenditures
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Totals
Budget
$ 1,380
1,400
2,780
15,560
15,560
(12,780)
180,121
$167,341
Actual
$
5,824
5,824
98
98
5,726
180,121
$185,847
Variance -
Positive
(Negative)
$ (1,380)
4,424
3,044
15,462
15,462
18,506
$18,506
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
NON-MAJOR DEBT SERVICE FUNDS
YEAR ENDED JUNE 30, 2023
Page 100
ASSETS
Cash and investments
Total assets
LIABILITIES AND FUND BALANCES
Fund balances:
Restricted
Total fund balances
Total liabilities and fund balances
Development
Fees
$2,130,124
$2,130,124
$2,130,124
2,130,124
$2,130,124
TOWN OF FOUNTAIN HILLS, ARIZONA
BALANCE SHEET - NON-MAJOR CAPITAL PROJECTS FUND
JUNE 30, 2023
Page 101
Revenues:
Licenses and permits
Investment earnings
Total revenues
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances, end of year
Development
Fees
$ 380,963
78,997
459,960
459,960
(275,000)
(275,000)
184,960
1,945,164
$2,130,124
TOWN OF FOUNTAIN HILLS, ARIZONA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
NON-MAJOR CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2023
Page 102
(This page intentionally left blank)
Page 103
Total revenues
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Expenditures:
Current -
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Capital Projects
Budget
$ 1,141,951
70,000
10,000
1,221,951
2,800
307,148
6,439,092
6,749,040
(5,527,089)
275,000
275,000
(5,252,089)
4,068,310
$(1,183,779)
Non-GAAP
Actual
$ 1,724,626
140,284
132,283
1,997,193
1,215
59,648
4,263,138
4,324,001
(2,326,808)
3,950,527
3,950,527
1,623,719
4,068,310
$5,692,029
Variance -
Positive
(Negative)
$ 582,675
70,284
122,283
775,242
1,585
247,500
2,175,954
2,425,039
3,200,281
3,675,527
3,675,527
6,875,808
$6,875,808
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2023
Page 104
Facilities Replacement Fund
Budget
$
1,000
1,000
1,050,000
1,050,000
(1,049,000)
(1,049,000)
5,925,921
$4,876,921
Non-GAAP
Actual
$
4,000
136,115
140,115
781,979
781,979
(641,864)
1,500,000
1,500,000
858,136
5,925,921
$6,784,057
Variance -
Positive
(Negative)
$
4,000
135,115
139,115
268,021
268,021
407,136
1,500,000
1,500,000
1,907,136
$1,907,136
Development Fees
Budget
$
459,007
3,000
462,007
462,007
(275,000)
(275,000)
187,007
1,945,164
$2,132,171
Actual
$
380,963
78,997
459,960
459,960
(275,000)
(275,000)
184,960
1,945,164
$2,130,124
Variance -
Positive
(Negative)
$
(78,044)
75,997
(2,047)
(2,047)
(2,047)
$(2,047)
(Continued)
Page 105
Total revenues
Revenues:
Sales taxes
Licenses and permits
Intergovernmental
Other
Investment earnings
Expenditures:
Current -
General government
Public works
Capital outlay
Total expenditures
Excess (deficiency) of revenues over expenditures
Other financing sources (uses):
Transfer in
Transfer out
Total other financing sources (uses)
Changes in fund balances
Fund balances, beginning of year
Fund balances (deficits), end of year
Totals
Budget
$ 1,141,951
459,007
70,000
14,000
1,684,958
2,800
1,357,148
6,439,092
7,799,040
(6,114,082)
275,000
(275,000)
(6,114,082)
11,939,395
$5,825,313
Non-GAAP
Actual
$ 1,724,626
380,963
140,284
4,000
347,395
2,597,268
1,215
841,627
4,263,138
5,105,980
(2,508,712)
5,450,527
(275,000)
5,175,527
2,666,815
11,939,395
$14,606,210
Variance -
Positive
(Negative)
$ 582,675
(78,044)
70,284
4,000
333,395
912,310
1,585
515,521
2,175,954
2,693,060
3,605,370
5,175,527
5,175,527
8,780,897
$8,780,897
TOWN OF FOUNTAIN HILLS, ARIZONA
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES -
BUDGET AND ACTUAL
ALL CAPITAL PROJECTS FUNDS
YEAR ENDED JUNE 30, 2023
Page 106
STATISTICAL SECTION
The statistical section presents financial statement trends as well as detailed financial and
operational information not available elsewhere in the report. The statistical section is intended to
enhance the reader’s understanding of the information presented in the financial statements, notes
to the financial statements, and other supplementary information presented in this report. The
statistical section is comprised of the five categories of statistical information presented below.
Financial Trends
These schedules contain information on financial trends to help the reader understand how
the Town’s financial position and financial activities have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the factors affecting the
Town’s ability to generate revenue.
Debt Capacity
These schedules present information to help the reader evaluate the Town’s current levels of
outstanding debt as well as assess the Town’s ability to make debt payments and/or issue
additional debt in the future.
Demographic and Economic Information
These schedules present various demographic and economic indicators to help the reader
understand the environment in which the Town’s financial activities take place and to help
make comparisons with other cities.
Operating Information
These schedules contain information about the Town’s operations and various resources to
help the reader draw conclusions as to how the Town’s financial information relates to the
services provided by the Town.
Note: For locally assessed property (i.e., excluding mines, utilities, etc.) Proposition 117, approved
by voters in 2012, amended the Arizona Constitution to require that all property taxes after fiscal
year 2014-15 be based upon property values limited to five percent in annual growth. The
aggregate assessed value of all taxable properties within a taxing jurisdiction (i.e., after applying
assessment ratios based on the use of a property), including property values with a growth limit,
is currently referred to as net limited assessed value and formerly as primary assessed value. In
accordance with Proposition 117, this value is used for all taxing purposes beginning with fiscal
year 2015-16. Aggregate assessed value without a growth limit is currently referred to as net full
cash assessed value and formerly as secondary assessed value. This value remains the value
utilized for determining debt capacity limits.
Page 107
2014 2015 2016 2017
Governmental activities:
Net investment in capital assets 89,713,260$ 95,325,824$ 95,647,990$ 94,909,703$
Restricted 5,480,867 6,310,810 4,530,239 4,471,661
Unrestricted 19,186,823 15,180,582 17,232,506 17,578,068
Total governmental activities net position 114,380,950$ 116,817,216$ 117,410,735$ 116,959,432$
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year ended June 30
Page 108
2018 2019 2020 2021 2022 2023
96,777,854$ 104,781,328$ 104,004,331$ 103,822,185$ 102,346,737$ 101,838,463$
4,589,526 3,646,449 2,766,041 2,610,178 5,749,726 9,646,597
16,244,169 15,258,797 17,388,168 21,318,351 26,010,477 31,955,871
117,611,549$ 123,686,574$ 124,158,540$ 127,750,714$ 134,106,940$ 143,440,931$
Fiscal Year ended June 30
Page 109
2014 2015 2016 2017
Expenses
Governmental activities:
General government 2,432,965$ 2,479,365$ 2,516,966$ 3,142,722$
Development services 1,237,717 2,074,611 2,253,208 1,364,378
Public safety 6,958,056 6,816,152 7,178,890 7,563,898
Public works 6,630,875 4,963,979 6,476,688 7,904,577
Culture and recreation 2,760,690 2,822,954 3,124,523 3,375,414
Interest on long-term debt 472,999 698,542 241,694 178,749
Total governmental activities expenses 20,493,302 19,855,603 21,791,969 23,529,738
Program Revenues
Governmental activities:
Fines, fees and charges for services:
General government 215,943 337,655 298,737 837,163
Development services 531,193 693,670 1,257,492 1,062,094
Public safety 74,887 86,641 90,345 155,454
Public works 250,421 236,706 48,688 216,724
Culture and recreation 340,353 339,158 321,189 393,028
Operating grants and contributions 1,307,738 1,431,017 1,615,973 1,699,931
Capital grants and contributions 144,570 2,874,796 381,011 494,328
Total governmental activities program revenues 2,865,105 5,999,643 4,013,435 4,858,722
Net (Expenses)/Revenues (17,628,197) (13,855,960) (17,778,534) (18,671,016)
General Revenues and Other Changes in Net Assets
Governmental activities:
Taxes:
Property taxes 1,449,646 904,660 2,569,504 2,296,199
Sales taxes 8,459,267 8,983,049 9,395,667 9,415,151
Franchise taxes 349,414 352,673 360,320 367,119
State shared revenues 5,326,332 5,713,235 5,813,678 6,057,278
Investment earnings 123,311 150,358 219,058 55,127
Miscellaneous 166,115 188,251 13,826 28,839
Special item - Donation of capital assets - - - -
Total governmental activities 15,874,085 16,292,226 18,372,053 18,219,713
Changes in Net Position
Governmental activities (1,754,112)$ 2,436,266$ 593,519$ (451,303)$
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Changes in Net Position
Last Ten Fiscal Years
(accrual basis of accounting)
Fiscal Year Ended June 30
Page 110
2018 2019 2020 2021 2022 2023
3,431,752$ 3,318,477$ 3,470,936$ 6,687,041$ 4,333,863$ 4,890,912$
1,460,967 867,725 825,884 968,808 1,068,260 1,206,991
7,567,012 8,142,069 9,003,452 6,321,489 9,487,150 9,930,356
7,380,663 10,263,244 9,961,306 10,175,540 9,780,920 10,792,078
3,311,648 3,767,996 3,490,447 3,601,870 3,999,178 4,776,903
118,552 57,054 881 7,544 - -
23,270,594 26,416,565 26,752,906 27,762,292 28,669,371 31,597,240
295,716 280,312 533,189 310,411 498,242 516,373
1,314,915 1,143,871 608,892 693,161 947,431 762,929
155,973 90,774 100,444 104,726 89,140 136,082
52,465 10,214 131,750 355,619 654,434 359,972
497,914 1,151,500 409,651 435,432 641,269 640,365
1,737,958 1,850,676 2,007,841 4,733,757 6,381,580 6,729,883
304,951 181,939 91,245 135,525 161,751 259,266
4,359,892 4,709,286 3,883,012 6,768,631 9,373,847 9,404,870
(18,910,702) (21,707,279) (22,869,894) (20,993,661) (19,295,524) (22,192,370)
2,263,623 2,476,546 2,077,368 402,481 9,728 9,854
10,311,577 11,491,123 13,172,390 15,657,292 17,660,758 20,586,294
421,682 423,947 434,896 426,260 399,007 382,948
6,396,667 6,514,470 6,874,771 7,787,184 7,721,123 9,221,691
158,860 554,549 545,983 49,665 (419,006) 1,099,525
10,410 202,969 236,452 262,953 280,140 226,049
- 6,118,700 - - - -
19,562,819 27,782,304 23,341,860 24,585,835 25,651,750 31,526,361
652,117$ 6,075,025$ 471,966$ 3,592,174$ 6,356,226$ 9,333,991$
Fiscal Year Ended June 30
Page 111
2014 2015 2016 2017
General fund
Nonspendable
Inventory 14,358$ 6,975$ 9,272$ 5,872$
Prepaid items 18,348 10,655 4,123 16,868
Committed 1,345,200 2,634,923 2,652,357 2,714,135
Assigned 1,647,193 1,872,492 1,701,086 1,743,768
Unassigned 4,972,853 4,369,457 5,853,806 2,696,999
Total general fund 7,997,952$ 8,894,502$ 10,220,644$ 7,177,642$
All other governmental funds
Nonspendable
Cash with escrow agent 1,973,067$ 1,645,000$ -$ -$
Prepaid items 997 656 5,055 474
Restricted 3,505,590 10,066,786 4,500,044 4,432,710
Committed 2,089,361 1,079,780 1,366,081 8,576,250
Assigned 7,147,586 5,444,124 5,943,364 1,784,761
Unassigned - - - -
Total all other governmental funds 14,716,601$ 18,236,346$ 11,814,544$ 14,794,195$
Source: The source of this information is the Town's financial records.
Fiscal Year ended June 30
Town of Fountain Hills, Arizona
Fund Balances — Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 112
2018 2019 2020 2021 2022 2023
13,490$ 5,168$ 8,982$ 7,117$ 14,845$ 12,923$
21,945 17,311 2,418 20,170 36,464 44,542
2,893,850 3,027,804 3,249,354 3,387,433 3,664,240 4,044,890
2,101,574 2,380,653 622,641 1,085,667 1,278,191 1,639,184
2,140,434 1,863,722 5,535,499 10,958,643 9,466,833 11,644,005
7,171,293$ 7,294,658$ 9,418,894$ 15,459,030$ 14,460,573$ 17,385,544$
-$ -$ -$ -$ -$ -$
- - - - 4,253 2,326
4,571,263 3,579,891 2,708,883 2,541,894 5,701,067 9,368,764
7,248,890 5,868,386 6,068,810 4,430,491 5,511,281 7,458,457
2,340,683 2,592,343 2,402,244 1,845,901 6,541,572 7,589,084
- - (66,361) - - -
14,160,836$ 12,040,620$ 11,113,576$ 8,818,286$ 17,758,173$ 24,418,631$
Fiscal Year ended June 30
Page 113
Town of Fountain Hills, Arizona
Statement of Revenues, Expenditures and Changes in Fund Balances
Last Ten Fiscal Years
(modified accrual basis of accounting)
2014 2015 2016 2017
Revenues
Taxes 10,271,737$ 10,240,382$ 12,299,285$ 12,069,714$
Licenses and permits 891,782 1,043,382 1,372,045 1,310,973
Leases and rents 252,584 269,753 258,165 284,090
Intergovernmental 6,677,518 9,770,048 7,559,436 7,917,651
Charges for services 161,376 176,541 197,109 351,476
Other 134,114 188,251 147,662 153,438
Fines and forfeitures 170,995 186,456 209,380 257,727
Investment earnings 123,311 150,358 219,058 55,127
Total revenues 18,683,417 22,025,171 22,262,140 22,400,196
Expenditures
Current:
General government 2,194,845 2,275,124 2,324,026 2,713,548
Development services 1,774,983 2,073,990 2,217,814 1,275,147
Public safety 6,890,770 6,675,874 7,034,887 7,420,032
Public works 3,085,559 1,275,779 2,498,714 3,954,450
Culture and recreation 1,921,939 1,962,585 2,240,865 2,484,940
Capital outlay 1,750,465 8,799,068 6,471,382 1,693,265
Debt service:
Principal 2,415,000 1,850,000 4,260,000 2,675,000
Interest 460,811 454,957 308,106 244,986
Other debt service 12,188 243,585 2,005 2,180
Total expenditures 20,506,560 25,610,962 27,357,799 22,463,548
Excess (deficiency) of revenues
over (under) expenditures (1,823,143) (3,585,791) (5,095,659) (63,352)
Other Financing Sources (Uses)
Transfers in 1,838,453 2,519,774 562,044 5,194,138
Transfers out (1,838,453) (2,519,774) (562,044) (5,194,138)
Proceeds from sale of capital assets - - - -
Issuance of refunding bonds - 4,180,000 - -
Issuance of long-term debt - 7,565,000 - -
Bond Premium - 342,086 - -
Payment to refunded bonds escrow agent - (4,085,000) - -
Total other financing sources (uses)- 8,002,086 - -
Net change in fund balances (1,823,143)$ 4,416,295$ (5,095,659)$ (63,352)$
Expenditures for capitalized assets 2,385,168$ 9,067,254$ 6,394,346$ 1,696,612$
Debt service as a percentage of noncapital expenditures 15.9% 15.4% 21.8% 14.1%
Source: The source of this information is the Town's financial records.
Fiscal Year Ended June 30
Page 114
2018 2019 2020 2021 2022 2023
13,019,341$ 14,342,801$ 15,694,054$ 16,510,939$ 18,071,247$ 20,978,020$
2,004,386 2,040,622 835,731 1,293,172 2,039,349 1,524,278
282,531 280,801 286,391 264,621 333,946 355,607
8,266,028 8,401,676 8,920,296 12,713,449 14,124,324 15,919,459
254,122 181,105 222,947 99,090 171,157 216,438
207,697 347,141 387,225 320,291 431,838 403,305
182,997 130,483 281,704 239,191 223,964 240,844
158,860 554,549 545,983 49,654 (419,224) 1,094,158
24,375,962 26,279,178 27,174,331 31,490,407 34,976,601 40,732,109
3,195,936 3,147,063 3,280,191 6,513,419 4,105,257 4,697,681
1,397,249 858,957 797,513 954,667 1,041,531 1,210,967
7,402,227 6,295,989 8,566,058 8,906,428 9,180,108 9,612,993
3,420,317 7,880,668 6,046,298 6,321,814 5,712,452 7,542,736
2,375,758 2,845,027 2,609,842 2,726,748 3,166,526 3,583,471
4,317,214 4,487,854 2,716,523 4,758,067 3,828,699 4,498,734
2,720,000 2,635,000 2,310,000 400,000 - -
185,164 123,871 67,301 7,044 - -
1,805 1,600 1,998 500 598 98
25,015,670 28,276,029 26,395,724 30,588,687 27,035,171 31,146,680
(639,708) (1,996,851) 778,607 901,720 7,941,430 9,585,429
4,543,728 3,672,532 1,928,978 3,086,628 11,962,153 10,247,867
(4,543,728) (3,672,532) (1,928,978) (3,136,628) (11,962,153) (10,247,867)
- - 418,585 - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 418,585 (50,000) - -
(639,708)$ (1,996,851)$ 1,197,192$ 851,720$ 7,941,430$ 9,585,429$
4,293,214$ 4,465,837$ 2,689,270$ 4,758,055$ 3,890,700$ 4,497,424$
14.0% 11.6% 10.0% 1.8% 0.0% 0.0%
Fiscal Year Ended June 30
Page 115
Fiscal Year
Ended June 30 Property Tax Sales Tax Franchise Tax Total
2014 1,463,056 8,459,267 349,414 10,271,737
2015 904,660 8,983,050 352,673 10,240,383
2016 2,543,298 9,391,267 360,320 12,294,885
2017 2,287,444 9,419,551 367,119 12,074,114
2018 2,286,081 10,311,578 421,682 13,019,341
2019 2,427,730 11,491,124 423,947 14,342,801
2020 2,086,769 13,172,389 434,896 15,694,054
2021 427,387 15,657,292 426,260 16,510,939
2022 11,482 17,660,758 399,007 18,071,247
2023 8,778 20,586,294 382,948 20,978,020
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Governmental Activities - Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 116
Net Assessed
Net Total Estimated Taxable Value as a
Assessed Direct Actual Percentage of
Taxable Tax Taxable Estimated Actual
Fiscal Year Value*Rate**Value*Taxable Value
2014 365,963,182 0.2773 3,359,684,579 10.89%
2015 403,330,477 0.1151 3,722,794,676 10.83%
2016 402,223,763 0.5246 3,744,585,506 10.74%
2017 423,688,665 0.4472 3,965,824,715 10.68%
2018 444,639,625 0.4259 4,166,589,970 10.67%
2019 466,895,716 0.4257 4,381,287,279 10.66%
2020 494,576,905 0.3382 4,657,015,387 10.62%
2021 520,103,815 - 4,909,183,626 10.59%
2022 546,532,825 - 5,164,740,322 10.58%
2023 575,824,127 - 5,453,898,649 10.56%
Source: The source of this information is the Arizona Department of Revenue's
Abstract of the Assessment Roll and the Town's financial records.
** Per $100 of assessed taxable value; No town-wide taxes levied since FY20.
Town of Fountain Hills, Arizona
Assessed Value and Estimated Actual Value of Taxable Property
Last Ten Fiscal Years
*Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona
Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and secondary
taxes are levied against the net limited assessed value. The net full cash value is used for
determining the Town’s bonding capacity and as the ceiling for net limited assessed value.
Page 117
Net Limited Percentage of Net Full Cash Percentage of
Assessed Total Net Limited Assessed Total Net Full Cash
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
RCS-Park Place 1 LLC 4,104,443 1 0.75%
EPCOR - Chaparral City Water Company 4,014,150 2 0.73%
Hunter Retail LLC 2,664,494 3 0.49%
FFI Fountain View Owner LLC 2,484,873 4 0.45%
Whitestone Fountain Hills, LLC 1,917,085 5 0.35%1,738,782$ 3 0.48%
Strathmore Company LLC 1,579,590 6 0.29%
Fountain Hills Apartments LLC 1,446,429 7 0.26%
Fountain Hills Invest Co., LLC 1,438,833 8 0.26%
Target Corporation 1,435,594 9 0.26%1,585,664 5 0.43%
Palisades Resorts LLC 1,315,948 10 0.24%
Chapparal City Water Company 3,314,550 1 0.91%
Inland Western Fountain Hills Four Peaks LLC 2,868,437 2 0.78%
WSL Fountain View Investors V, LLC 1,681,860 4 0.46%
Firerock LLC 1,340,312 6 0.37%
Smith's Food & Drug 1,261,980 7 0.34%
Qwest Corporation 1,193,858 8 0.33%
EN LLC 1,491,136 9 0.41%
Fountain Hills Hotel Developers LLC 1,062,651 10 0.29%
Totals 22,401,439$ 4.08%17,539,230$ 4.80%
Source: The source of this information is the Maricopa County Assessor's Office.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2015-2016), both primary and
secondary taxes are levied against the net assessed limited property valuation. The net assessed full cash
property valuation is used for determining the Town’s bonding capacity and as the ceiling for net limited
assessed property valuation.
Note: 2023 data was unavailable from the Maricopa County Assessor's Office. 2022 data used instead.
Town of Fountain Hills, Arizona
Principal Property Taxpayers
June 30, 2022 and 2014
2022 2014
Page 118
Current Percent of Delinquent Ratio of Total
Fiscal Total Tax Current Taxes Tax Total Tax Tax Collections
Year Tax Levy Collections Collected Collections Collections to Total Tax Levy
2014 1,449,884 1,426,612 98.4% 18,215 1,444,827 99.7%
2015 892,104 881,170 98.8%6,903 888,073 99.5%
2016 2,532,115 2,502,995 98.8% 18,913 2,521,908 99.6%
2017 2,278,728 2,241,482 98.4% 29,003 2,270,485 99.6%
2018 2,272,027 2,230,328 98.2% 30,908 2,261,236 99.5%
2019 2,404,250 2,369,262 98.5% 19,709 2,388,971 99.4%
2020 2,092,340 2,044,210 97.7% 37,403 2,081,613 99.5%
2021 397,416 392,363 98.7%5,064 397,427 100.0%
2022 6,381 6,326 99.1%55 6,381 100.0%
2023 8,669 8,669 100.0%- 8,669 100.0%
Source: The source of this information is the Maricopa County Treasurer's Office.
Town of Fountain Hills, Arizona
Property Tax Levies and Collections
Last Ten Fiscal Years
Page 119
2014 2015 2016 2017
Sales category:
Construction 783,064$ 935,694$ 918,717$ 730,164$
Transportation/utilities 1,375,623 1,405,768 1,327,441 1,288,153
Wholesale/retail 3,653,181 4,214,119 4,815,582 4,982,218
Restaurants/bars 655,654 682,180 742,540 811,985
Real estate, rental & leasing 782,453 617,348 552,856 636,834
Services 342,079 604,618 779,753 852,675
Other 867,213 523,323 254,378 117,523
Total 8,459,267$ 8,983,050$ 9,391,267$ 9,419,552$
Note: Other includes all state and local sales tax audit adjustments.
Source: The source of this information is the Town's financial records.
Fiscal Year Ended June 30
Town of Fountain Hills, Arizona
Taxable Sales by Category
Last Ten Fiscal Years
(modified accrual basis of accounting)
Page 120
2018 2019 2020 2021 2022 2023
1,408,332$ 1,932,716$ 1,910,021$ 1,990,383$ 1,780,123$ 3,449,250$
1,309,928 1,290,585 1,405,005 1,529,268 1,501,600 1,576,570
5,235,992 5,464,247 7,031,474 8,956,208 9,834,924 10,500,903
829,857 893,595 892,210 1,062,172 1,446,971 1,517,063
745,171 842,233 965,124 993,228 1,103,241 1,258,009
747,834 1,025,548 916,769 1,125,753 1,992,955 2,278,723
34,464 42,200 51,786 280 946 5,776
$ 10,311,578 11,491,124$ 13,172,389$ 15,657,292$ 17,660,760$ 20,586,294$
Fiscal Year Ended June 30
Page 121
Fiscal
Year
Ended Town Maricopa State Total
June 30 Rate County Rate Tax Rate
2014 2.60% 0.70% 5.60% 8.90%
2015 2.60% 0.70% 5.60% 8.90%
2016 2.60% 0.70% 5.60% 8.90%
2017 2.60% 0.70% 5.60% 8.90%
2018 2.60% 0.70% 5.60% 8.90%
2019 2.60% 0.70% 5.60% 8.90%
2020* 2.90% 0.70% 5.60% 9.20%
2021 2.90% 0.70% 5.60% 9.20%
2022 2.90% 0.70% 5.60% 9.20%
2023 2.90% 0.70% 5.60% 9.20%
* 0.3% Town rate increase effective 11/1/2019
Source: The source of this information is the Arizona Department of Revenue.
Town of Fountain Hills, Arizona
Direct and Overlapping Sales Tax Rates
Last Ten Fiscal Years
Page 122
Community Municipal Highway
Fiscal Year General Facilities Property User Special Total Debt
Ended Obligation District Corporation Revenue Assessment Outstanding Per
June 30 Bonds*Bonds**Bonds*Bonds Bonds Debt Capita
2014 2,000,000 2,495,000 4,695,000 - - 9,190,000 398
2015 9,517,086 2,300,000 3,525,000 - - 15,342,086 665
2016 7,678,669 1,935,000 1,400,000 - - 11,013,669 477
2017 5,680,252 1,560,000 1,030,000 - - 8,270,252 358
2018 3,631,835 1,180,000 670,000 - - 5,481,835 238
2019 1,683,417 795,000 300,000 - - 2,778,417 120
2020 - 400,000 - - - 400,000 17
2021 - - - - - - -
2022 - - - - - - -
2023 - - - - - - -
Source: The source of this information is the Town's financial records and the U.S. Bureau of Economic Analysis.
* All bond amounts presented include amortization of original issuance discounts and premiums.
** All bond amounts presented include amoritization of original issuance discounts and premiums.
The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general obligation bonds.
Population data can be found in the Schedule of Demographic and Economic Statistics.
Governmental Activities
Town of Fountain Hills, Arizona
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
Page 123
Fiscal
Year
General
Obligation
Bonds*
Less: Amounts
Restricted for
Principal
Net General
Obligation
Bonds
Estimated Actual
Taxable Value of
Property
Percentage of
Estimated Actual
Taxable Value of
Property
Net General
Obligation
Bonded Debt
per Capita
Net General
Obligation Bonded
Debt per Net Limited
Assessed Valuation
Municipal
Property
Corporation
Bonds*
Net Municipal
Property
Corporation Debt
per Capita
Total
Revenues-All
Sources
2014 4,495,000 87,949 4,407,051 3,359,684,579 0.13% 189 1.20% 2,721,933 117 18,891,967
2015 11,817,086 420,782 11,396,304 3,722,794,676 0.31%483 2.83% 1,764,338 75 22,161,316
2016 9,613,669 576,281 9,037,388 3,744,585,506 0.24%378 2.25% 1,088,117 46 22,262,139
2017 7,240,252 343,697 6,896,555 3,965,824,715 0.17%282 1.63% 860,437 35 22,400,196
2018 4,811,835 83,185 4,728,650 4,166,589,970 0.11%192 1.06% 664,484 27 24,375,962
2019 2,478,417 146,100 2,332,317 4,381,287,279 0.05%93 0.50% 287,694 12 26,279,178
2020 400,000 171,807 228,193 4,657,015,387 0.01%9 0.05%- - 27,586,011
2021 - 191,594 - 4,909,183,626 -- - - 31,354,466
2022 - 194,344 - 5,436,380,244 - - -- - 35,025,597
2023 - 200,754 - 5,453,898,649 -- -- - 40,931,231
Source: The source of this information is the Department of Revenue and the Town's financial records
* All bond amounts presented are net of original issuance discounts and premiums. The Town is not obligated
for repayment of the Eagle Mountain Community Facilities District general obligation bonds
Population data can be found in the Schedule of Demographic and Economic Statistics.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the Arizona Constitution. Beginning with Tax Year 2015 (Fiscal
Year 2016), both primary and secondary taxes are levied against the net limited assessed value. The net full cash assessed value is used for
determining the Town’s bonding capacity and as the ceiling for net limited assessed value
Town of Fountain Hills, Arizona
Ratios of General Bonded Debt Outstanding
Last Ten Fiscal Years
Page 124
Estimated
Estimated Share of
Percentage Overlapping
Outstanding Debt Applicable Debt
Overlapping:
Maricopa County Special Healthcare District 600,335,000$ 1.11% 6,663,719$
Maricopa County Community College District 135,585,000 1.11% 1,504,994
East Valley Institute of Technology - 2.25% -
Fountain Hills Unified School District 5,655,000 96.47% 5,455,379
Total Overlapping Debt 13,624,092
Direct:
Town of Fountain Hills, Arizona*
General Obligation Bonds -
Revenue Bonds -
Eagle Mountain Community Facilities District** -
Total Direct Debt -
Total direct and overlapping debt 13,624,092$
Source: The source of this information is the Town's records, the State and County Abstract of the
Assessment Roll, the Arizona Department of Revenue Report of Indebtedness and the applicable
governmental unit.
* All bond amounts include amortization of original issuance discounts and premiums.
** The Town is not obligated for repayment of the Eagle Mountain Community Facilities District general
obligation bonds.
Note: The estimated percentage of debt outstanding applicable to the Town is calculated based on the Town's
net limited assessed valuation as a percentage of the net limited assessed valuation of the overlapping
jurisdiction.
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the Town
of Fountain Hills. This schedule further estimates the portion of outstanding debt of those overlapping
governments that is borne by residents and businesses of the Town. This process recognizes that, when
considering a town's ability to issue and repay long-term debt, the entire debt burden borne by residents
should be taken into account. However, this fact does not imply that every taxpayer is a resident, and,
therefore, responsible for repaying the debt of each overlapping government.
Town of Fountain Hills, Arizona
Direct and Overlapping Governmental Activities Debt
as of June 30, 2023
Governmental Unit
Page 125
2014 2015 2016 2017
6% Debt Limit
Debt limit 21,957,791$ 24,199,829$ 28,325,296$ 30,651,126$
Total net debt applicable to limit - - - -
Legal debt margin 21,957,791$ 24,199,829$ 28,325,296$ 30,651,126$
Total debt applicable to the limit
as a percentage of debt limit - - - -
20% Debt Limit
Debt limit 73,192,636$ 80,666,095$ 94,417,653$ 102,170,422$
Total net debt applicable to limit 2,000,000 9,175,000 7,405,000 5,475,000
Legal debt margin 71,192,636$ 71,491,095$ 87,012,653$ 96,695,422$
Total debt applicable to the limit
as a percentage of debt limit 3% 11% 8% 5%
Source: The source of this information is the Town's financial records.
Note: All amounts presented are net of original issuance discounts and premiums.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town’s bonding capacity and as the ceiling for net limited
assessed value.
Fiscal Year Ended June 30
Town of Fountain Hills, Arizona
Legal Debt Margin Information
Last Ten Fiscal Years
Page 126
2018 2019 2020 2021 2022 2023
31,459,192$ 32,400,042$ 33,907,227$ 35,603,580$ 37,800,780$ 40,238,671$
- - - - - -
31,459,192$ 32,400,042$ 33,907,227$ 35,603,580$ 37,800,780$ 40,238,671$
---- - -
104,863,974$ 108,000,140$ 113,024,089$ 118,678,601$ 126,002,599$ 134,128,903$
3,495,000 1,615,000 - - - -
101,368,974$ 106,385,140$ 113,024,089$ 118,678,601$ 126,002,599$ 134,128,903$
3% 1% - - -
Fiscal Year Ended June 30
Page 127
Net full cash assessed valuation 670,644,516
Water, Sewer, Artificial Lighting, Parks, Open Space, Recreational Facility
Improvements, Public Safety, Law Enforcement, Fire and Emergency
Facilities, Street and Transportation Facilities
Debt limit - 20% of net full cash assessed valuation 134,128,903$
Net debt applicable to limit -
20% legal debt margin 134,128,903
All Other General Obligation Bonds
Debt limit - 6% of net full cash assessed valuation 40,238,671
Net debt applicable to limit -
6% legal debt margin 40,238,671
Total legal debt margin 174,367,574$
Source: The source of this information is the Maricopa County Assessor's Office and the
Town's financial records.
Note: On November 6, 2012, voters approved Proposition 117, an amendment to the
Arizona Constitution. Beginning with Tax Year 2015 (Fiscal Year 2016), both primary and
secondary taxes are levied against the net limited assessed value. The net full cash assessed
value is used for determining the Town’s bonding capacity and as the ceiling for net limited
assessed value.
Town of Fountain Hills, Arizona
Calculation of Legal Debt Margin
as of June 30, 2023
Page 128
Fiscal
Year
Ended Pledged
June 30 Principal Interest Total Revenues Coverage
2014 1,225,000 234,176 1,459,176 14,313,158 9.8
2015 2,545,000 184,500 2,729,500 15,583,484 5.7
2016 480,000 32,740 512,740 16,250,673 31.7
2017 370,000 22,680 392,680 16,815,224 42.8
2018 360,000 16,686 376,686 18,194,833 48.3
2019 370,000 10,854 380,854 19,765,936 51.9
2020 300,000 4,860 304,860 20,862,372 68.4
2021 - - - 24,001,082 100.0
2022 - - - 26,453,550 100.0
2023 - - - 30,620,545 100.0
Source: The source of this information is the Town's financial records.
Town of Fountain Hills
Revenue Bond Coverage
Last Ten Fiscal Years
Municipal Facilities Corporation Revenue Bonds
Page 129
Town of Fountain Hills, Arizona
Demographic and Economic Statistics
Last Ten Calendar Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022*
Population 23,318 23,573 23,899 24,482 24,583 24,987 25,200 23,820 23,906 23,785
Per capita personal income 48,244$ 46,619$ 48,240$ 50,162$ 60,531$ 54,936$ 57,468$ 59,791$ 57,550$ 60,707$
Median age 53 53.7 53.8 53.7 53.5 57.5 58.8 59.4 58.6 62.0
Public school enrollment 1,820 1,692 1,619 1,506 1,444 1,380 1,338 1,314 1,267 1,192
Town of Fountain Hills
unemployment rate 6.0% 5.4% 2.4% 1.9% 1.6% 3.9% 8.7% 4.9% 4.4% 2.8%
Land use
Total acres 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7 13,005.7
Total square miles 20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32 20.32
Vacant lots 1,196 1,165 1,247 1,209 1,175 1,172 1,052 1,158 1,158 1,030
Number of units
Housing 12,991 12,981 13,002 13,130 13,176 13,558 13,749 13,875 13,876 14,101
Lodging 4 4 4 4 4 4 4 4 4 4
Restaurants 54 43 46 50 52 54 55 55 57 57
Shopping centers 20 20 20 20 20 20 20 20 20 20
Schools
Public 3 3 3 3 3 3 3 3 3 3
Preschool 7 7 7 7 7 5 5 5 5 5
Charter 1 1 1 1 1 1 1 1 - -
Vocational - - - - 1 1 2 2 1 1
Note: N/A indicates the information is not available
* Information obtained is based on calendar years; therefore, the latest information obtained wa
from 2022.
Sources: The sources of the "Per Capita Personal Income", "Median Age" and "Unemployment Rate" information are
Sites USA (2009-2017), U.S. Census Bureau and Arizona Office of Economic Opportunity (beginning in 2018). The
source of the "Population" is the U.S. Census Bureau July 1, 2022 estimate. The source of School Enrollment is the
Fountain Hills Unified School District No. 98. Other information is from the Town's records.
Calendar Year Calendar Year
Page 130
Percentage
Number of of Total Town Number of
Employer Employees Rank Employment Employees Rank
Fountain Hills Unified School District No. 98 270 1 4.4% 335 1
Safeway Stores 130 2 2.1%87 6
Fountain View Village 120 3 2.0% 136 2
Rural Metro Corporation 110 4 1.8% 111 3
Firerock Country Club 100 5 1.6% 100 5
Fry's Food Stores 80 6 1.3% 105 4
Target Stores 70 7 1.2% 100 5
Eagle Mountain Golf Club 70 7 1.2%70 8
Fountain Hills Family Practice PC 70 7 1.2%
Fountain Hills Medical Center 70 7 1.2%
Town of Fountain Hills 70 7 1.2%60 10
Golf International Inc 60 8 1.0%
Quotemedia Inc 60 8 1.0%
Sunridge Canyon Golf Course 60 8 1.0%59 11
United States Postal Service 60 8 1.0%
Bashas 60 8 1.0%63 9
Holiday Inn 80 7
Totals 1,460 24.2% 1,306
Total Town employment 6,070 5,102
Source: The source of this information is the Maricopa Association of Governments and Town records.
Note: MAG data includes employers with 5+ employees and is rounded to nearest 10.
* Data for 2022 was not available.
2021*
Town of Fountain Hills, Arizona
Principal Employers
Prior Fiscal Year and Nine Years Ago
2012
Page 131
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Municipal court 4.00 3.63 3.63 3.63 3.63 3.63 3.63 3.63 3.63 4.63
Administration 10.56 11.33 11.63 12.25 13.45 13.70 15.20 15.00 16.00 16.24
Public works n/a n/a n/a 9.80 9.80 10.80 12.43 12.43 12.00 13.00
Development services 16.25 16.30 16.30 7.50 8.50 7.50 9.00 9.00 9.00 10.00
Community services 20.18 21.06 20.76 20.76 20.56 20.56 20.56 22.01 24.02 24.52
Total 50.99 52.32 52.32 53.94 55.94 56.19 60.82 62.07 64.65 68.39
Source: The source of this information is the Town's financial records.
Town of Fountain Hills, Arizona
Authorized Full-time Equivalent Government Employees by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30
Page 132
Function/Program 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Municipal Court
Cases filed 1,649 1,738 1,593 2,014 1,277 891 2,237 1,324 1,586 1,823
Hearings/Trials held 1,665 1,585 1,564 1,844 676 801 568 1,430 1,378 1,216
Administration
FTEs per 1,000 residents 2.2 2.2 2.2 2.2 2.3 2.2 2.4 2.6 2.7 2.9
Registered voters - general election N/A 16,213 none 16,387 none 16,775 none 18,415 none 18,423
Voter turnout - general election N/A 40% none 40% none 50% none 90% none 80%
Development Services
Building permits issued 445 443 410 509 468 576 547 575 620 730
Building inspections conducted 2,131 2,448 2,129 2,704 3,707 4,795 4,069 3,652 1,911 5,460
Number of code violation cases 716 752 713 669 654 655 690 497 586 656
Number of zoning cases 41 65 72 50 41 11 7 21 73 95
Community Services
Number of Community Center bookings/permits*3,383 3,439 3,124 3,764 4,395 3,857 3,169 1,675 1033* 316**
Number of participants in recreational programs 2,291 2,249 2,910 3,773 3,794 3,489 1,830 2,892 4,110 5,244
Number of Senior Services members 1,189 1,273 1,326 1,335 1,220 1,313 1,265 1,360 1,175 1,290
Number of home delivered meals 4,799 4,035 3,497 3,920 3,093 3,562 5,215 4,402 4,581 5,449
Law Enforcement (contracted)
Physical arrests 743 445 220 220 214 67 86 56 49 67
Traffic violations 1,379 1,539 1,215 1,803 1,053 1,248 2,618 2,745 2,568 3,349
Fire & Emergency Medical (contracted)
Total incident responses 2,956 3,166 3,191 3,425 3,659 4,073 3,896 4,215 4,268 4,709
Average response time (in minutes)3:53 3:37 3:57 3:25 3:33 3:32 3:51 4:50 4:38 4:44
Source: The source of this information is the Town's financial records.
Note: N/A indicates that the information is not available.
**Beginning in 2023, individual bookings were replaced by single day and recurring permits only.
Fiscal Year Ended June 30
Town of Fountain Hills, Arizona
Operating Indicators by Function
Last Ten Fiscal years
*The Community Center was closed from 7/1/22 until 10/3/22 for renovations.
Page 133
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Public safety
Number of fire stations 2 2 2 2 2 2 2 2 2 2
Public works
Streets (centerline miles) 178.9 178.9 178.9 178.9 180.0 180.0 180.0 180.0 180.0 180.0
Streets (lane miles)390 390 391 390.5 391.5 391.5 391.5 391.5 391.5 391.5
Pedestrian lighting 34 85 91 91 91 91 91 91 95 95
Traffic signals 13 13 13 13 13 13 13 13 13 13
Parks and recreation
Acreage-developed parks 116 119 119 119 119 119 119 119 119 119
Playgrounds 7 7 7 7 7 9 9 9 9 9
Baseball/softball diamonds 6 6 6 6 6 6 6 6 6 6
Soccer/football fields 7 7 7 7 7 7 7 7 7 7
Community centers 1 1 1 1 1 1 1 1 1 1
Preserve acreage 740 807 807.2 807.2 807.2 889.2 913.2 913.2 913.2 913.2
Miles of trails 10.43 15.80 15.8 18.5 18.5 18.5 18.5 18.5 23.0 23.0
Source: The source of this information is the Town's facilities records.
Note: N/A indicates the information is not available.
Town of Fountain Hills, Arizona
Capital Assets Statistics by Function
Last Ten Fiscal Years
Fiscal Year Ended June 30
Function/Program
Page 134
Town of Fountain Hills
16705 E. Avenue of the Fountains
Fountain Hills, Arizona 85268
480-816-5100
www.fountainhillsaz.gov
-facebook.com/TownofFountainHills
-twitter.com/fhazgov
Town of Fountain Hills, Arizona
Annual Expenditure Limitation Report
Year Ended June 30, 2023
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2023
CONTENTS PAGE
Independent Accountant’s Report 1
Annual Expenditure Limitation Report - Part I 2
Annual Expenditure Limitation Report - Part II 3
Annual Expenditure Limitation Report - Reconciliation 4
Notes to Annual Expenditure Limitation Report 5
INDEPENDENT ACCOUNTANT’S REPORT
The Auditor General of the State of Arizona
The Honorable Mayor and Town Council
of the Town of Fountain Hills, Arizona
We have examined the accompanying Annual Expenditure Limitation Report of the Town of
Fountain Hills, Arizona for the year ended June 30, 2023, and the related notes to the report. The
Town’s management is responsible for presenting this report in accordance with the Uniform
Expenditure Reporting System as described in Note 1. Our responsibility is to express an opinion
on this report based on our examination.
Our examination was conducted in accordance with attestation standards established by the
American Institute of Certified Public Accountants. Those standards require that we plan and
perform the examination to obtain reasonable assurance about whether this report is presented in
accordance with the Uniform Expenditure Reporting System, in all material respects. An
examination involves performing procedures to obtain evidence about the amounts and disclosures
in the report. The nature, timing, and extent of the procedures selected depend on our judgment,
including an assessment of the risks of material misstatement of the report, whether due to fraud
or error. We believe that the evidence we obtained is sufficient and appropriate to provide a
reasonable basis for our opinion.
We are required to be independent and meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
In our opinion, the Annual Expenditure Limitation Report referred to above is presented, in all
material respects, in accordance with the Uniform Expenditure Reporting System as described in
Note 1.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 7, 2023
Page 1
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT – PART I
YEAR ENDED JUNE 30, 2023
1.Economic Estimates Commission expenditure limitation $ 31,896,371
2. Voter-approved alternative expenditure limitation
(approved N/A)N/A
3.Enter applicable amount from line 1 or line 2 31,896,371
4.Amount subject to the expenditure limitation
(total amount from Part II, Line C)23,486,547
5.Amount under the expenditure limitation $ 8,409,824
I hereby certify, to the best of my knowledge and belief, that the information contained in this
report is accurate and in accordance with the requirements of the Uniform Expenditure Reporting
System.
Signature of Chief Fiscal Officer
Name and Title: David Pock, Finance Director
Telephone Number: 480-816-5162 Date: November 7, 2023
See accompanying notes to report.
Page 2
Internal
Governmental Enterprise Service Fiduciary
Funds Funds Funds Funds Total
A. Amounts reported on the
Reconciliation, Line D $ 31,085,286 $- $ 28,936 $ - $ 31,114,222
B. Less exclusions claimed:
1 Bond proceeds -
Debt service requirements on bonded indebtedness -
Proceeds from other long-term obligations -
Debt service requirements on other long-term obligations -
2 Dividends, interest, and gains on the sale or redemption of investment securities -
3 Trustee or custodian -
4 Grants and aid from the federal government 4,208,150 4,208,150
5 Grants, aid, contributions, or gifts from a private agency, organization, or individual, except
amounts received in lieu of taxes 128,901 128,901
6 Amounts received from the State of Arizona 543,582 543,582
7 Quasi-external interfund transactions 28,936 28,936
8 Amounts accumulated for the purchase of land, and the purchase or construction of
buildings or improvements -
9 Highway user revenues in excess of those received in fiscal year 1979-80 2,549,388 2,549,388
10 Contracts with other political subdivisions -
11 Refunds, reimbursements, and other recoveries 168,718 168,718
12 Voter-approved exclusions not identified above -
13 Prior years carryforward -
14 Total exclusions claimed 7,598,739 -28,936 - 7,627,675
C.Amounts subject to expenditure limitation $23,486,547 $- $- $- $23,486,547
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - PART II
YEAR ENDED JUNE 30, 2023
Description
See accompanying notes to report.
Page 3
Internal
Governmental Enterprise Service Fiduciary
Description Funds Funds Funds Funds Total
A.
$ 31,146,680 $- $ 28,936 $ - $ 31,175,616
B. Subtractions:
1.Items not requiring the use of
working capital -
Depreciation -
Loss on disposal of capital assets -
Bad debt expense -
Other postemployment benefits expense -
Claims incurred but not reported -
Pension expense -
Landfill closure and postclosure care costs -
2.-
98 98
3.Required fees paid to the Arizona Department of Revenue 61,296 61,296
4.Involuntary court judgments -
5.Total subtractions 61,394 - - - 61,394
C. Additions:
1.Principal payments on long-term debt -
2.Acquisition of capital assets -
3.Other postemployment benefits paid in the current year
but reported as expenses in previous years -
4.Claims paid in the current year but reported as
expenses incurred but not reported in previous years -
5.Pension contributions paid in the current year -
6.
-
7.Total additions - - - - -
D. Amounts reported on Part II, Line A $ 31,085,286 $- $ 28,936 $ - $ 31,114,222
See accompanying notes to report.
TOWN OF FOUNTAIN HILLS, ARIZONA
ANNUAL EXPENDITURE LIMITATION REPORT - RECONCILIATION
YEAR ENDED JUNE 30, 2023
Total expenditures/expenses/deductions and applicable other financing
uses, special items, and extraordinary items reported within the fund
financial statements
Expenditures of separate legal entities established under Arizona
Revised Statutes
Landfill closure and postclosure care costs paid in the current year but
reported as expenses in previous years
Page 4
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2023
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Annual Expenditure Limitation Report (AELR) is presented as prescribed by the Uniform
Expenditure Reporting System (UERS), as required by Arizona Revised Statutes §41-1279.07.
The AELR excludes expenditures, expenses, or deductions of certain revenues specified in the
Arizona Constitution, Article IX, §20, from the total expenditures, expenses, or deductions
reported in the fund financial statements.
In accordance with the UERS, a note to the AELR is presented below for any exclusion claimed
on Part II and each subtraction or addition in the Reconciliation that cannot be traced directly
to an amount reported in the fund financial statements. All references to financial statement
amounts in the following notes refer to the Statement of Revenues, Expenditures, and Changes
in Fund Balances for the Governmental Funds; Statement of Revenues, Expenses, and Changes
in Fund Net Position for the Proprietary Funds; Statement of Cash Flows for the Proprietary
Funds.
NOTE 2 – The subtraction for expenditures of separate legal entities established under Arizona
Revised Statutes in the Governmental Funds consists of expenditures from the Municipal Property
Corporation Debt Service Fund and the Eagle Mountain Debt Service Fund.
Governmental
Municipal Property Corporation Debt Service Fund $ 10
Eagle Mountain Debt Service Fund 88
$ 98
NOTE 3 – The subtraction of $61,296 for required fees paid to Arizona state agencies was paid to
the Municipal Firefighter Cancer Reimbursement Fund.
NOTE 4 – The exclusions claimed for dividends, interest, and gains on the sale or redemption of
investment securities in the Governmental and Internal Service Funds consisted of investment
earnings. The current year exclusion utilized is a follows:
Governmental
Internal
Service
Carryforward exclusions as of 6/30/22 $ 119,687 $ 229
Investment earnings 1,094,148 5,367
Carryforward exclusions as of 6/30/23 $ 1,213,835 $ 5,596
Page 5
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2023
NOTE 5 – Grants and aid from the federal government are claimed as exclusions in the year the
expenditure occurs and any unused amounts are carried forward for future years. The current year
grant exclusion utilized is $4,208,150 is related to the Coronavirus State and Local Fiscal Relief
Funds grant.
NOTE 6 – Grant revenues, contributions and sponsorships from private organizations are claimed
as exclusions in the year the expenditure occurs and any unused amounts are carried forward for
future years. The current year grant exclusion utilized is a follows:
Proposition 202 $ 65,618
Contributions 7,659
Sponsorships 55,624
Current year exclusion utilized $ 128,901
NOTE 7 – State grant revenues are claimed as exclusions in the year the expenditure occurs and any
unused amounts are carried forward for future years. The current year state grant exclusion utilized
is a follows:
Proposition 302 $ 210,735
LTAF II 127,277
Maricopa Association of Governments 205,570
Current year exclusion utilized $ 543,582
NOTE 8 – The exclusion of $28,936 in the Internal Service Fund relates to charges for services
paid to the Internal Service Fund for technology replacement. The interfund charges are included
in “Charges for Services” in the Internal Service Fund and as a current expenditure in various
departments in the Governmental Funds.
NOTE 9 – The highway user revenue (HURF) earned in excess of the amounts received in fiscal
year 1979-80 is as follows:
HURF Fund Intergovernmental Revenue $ 2,606,929
Less: Vehicle License Tax Revenues (827,570)
Excludable revenue $ 1,779,359
Carryforward HURF funds as of 6/30/22 $ 1,215,538
HURF Fund expenditures 5,014,025
Less: expenditures of Vehicle License Tax (827,570)
Less: expenditures of non-excludable revenue (1,637,067)
HURF eligible expenditures in current year 2,549,388
Less: current year HURF Funds utilized (1,779,359)
Less: prior year HURF Funds utilized (770,029)
Carryforward HURF Funds as of 6/30/23 $ 445,509
Page 6
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO ANNUAL EXPENDITURE LIMITATION REPORT
YEAR ENDED JUNE 30, 2023
NOTE 10 – Refunds, reimbursements, and other recoveries are claimed as exclusions in the year
the expenditure occurs and any unused amounts are carried forward for future years. The current
exclusions utilized was $168,718.
NOTE 11 – Revenues that are constitutionally excludable that were not spent in the year of receipt
may be accumulated and excluded in future years when spent. A summary of the revenue sources
and the changes in those balances is shown in the table below:
Description
Balance
June 30, 2022 Increase Decrease
Balance
June 30, 2023
Dividends, interest, and gains on the sale or
redemption of investment securities $ 119,916 $ 1,099,515 $ $ 1,219,431
Highway user revenues in excess of those
received in fiscal year 1979-80 1,215,538 770,029 445,509
Grants, aid, and contributions 7,145 41,419 7,145 41,419
Total carryforward $ 1,342,599 $ 1,140,934 $ 777,174 $ 1,706,359
Page 7
INDEPENDENT ACCOUNTANT’S REPORT
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have examined the Town of Fountain Hills, Arizona’s (Town) compliance as to whether
highway user revenue fund monies received by the Town pursuant to Arizona Revised Statutes
Title 28, Chapter 18, Article 2, and any other dedicated state transportation revenues received by
the Town, were used solely for authorized transportation purposes during the fiscal year ended
June 30, 2023. Management is responsible for the Town’s compliance with those specified
requirements. Our responsibility is to express an opinion on the Town’s compliance with the
specified requirements based on our examination.
Our examination was conducted in accordance with attestation standards established by the
AICPA. Those standards require that we plan and perform the examination to obtain reasonable
assurance about whether the Town complied, in all material respects, with the specified
requirements referenced above. An examination involves performing procedures to obtain
evidence about whether the Town complied with the specified requirements. The nature, timing,
and extent of the procedures selected depend on our judgment, including an assessment of the risks
of material noncompliance, whether due to fraud or error. We believe the evidence we obtained is
sufficient and appropriate to provide a reasonable basis for our opinion.
We are required to be independent and to meet our other ethical responsibilities in accordance with
relevant ethical requirements relating to the engagement.
Our examination does not provide a legal determination on the Town’s compliance with specified
requirements.
In our opinion, the Town of Fountain Hills, Arizona complied, in all material respects, with the
aforementioned requirements for the fiscal year ended June 30, 2023.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 8, 2023
Town of Fountain Hills, Arizona
Single Audit Report
Year Ended June 30, 2023
TOWN OF FOUNTAIN HILLS, ARIZONA
SINGLE AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2023
CONTENTS Page
Independent Auditor’s Report on Internal Control Over Financial Reporting 1
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards
Independent Auditor’s Report on Compliance for Each Major Federal Program; 3
Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures
of Federal Awards Required by the Uniform Guidance
Schedule of Expenditures of Federal Awards 6
Notes to the Schedule of Expenditures of Federal Awards 7
Schedule of Findings and Questioned Costs 8
Independent Auditor’s Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with
Government Auditing Standards
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
We have audited, in accordance with the auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of the
governmental activities, each major fund, and the aggregate remaining fund information of Town
of Fountain Hills, Arizona, as of and for the year ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise Town of Fountain Hills, Arizona’s basic
financial statements, and have issued our report thereon dated November 8, 2023. Our report
included an emphasis of matter paragraph as to comparability because of the implementation of
Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information
Technology Arrangements.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Town of Fountain
Hills, Arizona’s internal control over financial reporting (internal control) as a basis for designing
audit procedures that are appropriate in the circumstances for the purpose of expressing our
opinions on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of Town of Fountain Hills, Arizona’s internal control. Accordingly, we do not
express an opinion on the effectiveness of Town of Fountain Hills, Arizona’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control such that there is a reasonable possibility that a
material misstatement of the entity’s financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses or significant deficiencies may exist that have not been identified.
Page 1
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Fountain Hills, Arizona’s
financial statements are free from material misstatement, we performed tests of its compliance
with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with
which could have a direct and material effect on the financial statements. However, providing an
opinion on compliance with those provisions was not an objective of our audit, and accordingly,
we do not express such an opinion. The results of our tests disclosed no instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity’s internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity’s internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 8, 2023
Page 2
Independent Auditor’s Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance; and
Report on the Schedule of Expenditures of Federal Awards
Required by the Uniform Guidance
Honorable Mayor and Members of the Town Council
Town of Fountain Hills, Arizona
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited Town of Fountain Hills, Arizona’s compliance with the types of compliance
requirements identified as subject to audit in the OMB Compliance Supplement that could have a
direct and material effect on each of Town of Fountain Hills, Arizona’s major federal programs
for the year ended June 30, 2023. Town of Fountain Hills, Arizona’s major federal programs are
identified in the summary of auditor’s results section of the accompanying schedule of findings
and questioned costs.
In our opinion, Town of Fountain Hills, Arizona complied, in all material respects, with the
compliance requirements referred to above that could have a direct and material effect on each of
its major federal programs for the year ended June 30, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted
in the United States of America (GAAS); the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the
audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Our responsibilities under those standards and the Uniform Guidance are further described in the
Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of Town of Fountain Hills, Arizona and to meet our other ethical
responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion on compliance for each major federal program. Our audit does not provide a legal
determination of Town of Fountain Hills, Arizona’s compliance with the compliance requirements
referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the
design, implementation, and maintenance of effective internal control over compliance with the
requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements
applicable to Town of Fountain Hills, Arizona’s federal programs.
Page 3
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an
opinion on Town of Fountain Hills, Arizona’s compliance based on our audit.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards,
and the Uniform Guidance will always detect material noncompliance when it exists. The risk of
not detecting material noncompliance resulting from fraud is higher than for that resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Noncompliance with the compliance requirements referred to above
is considered material, if there is a substantial likelihood that, individually or in the aggregate it
would influence the judgment made by a reasonable user of the report on compliance about Town
of Fountain Hills, Arizona’s compliance with the requirements of each major federal program as
a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the
Uniform Guidance, we
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and
design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding Town of Fountain Hills, Arizona’s
compliance with the compliance requirements referred to above and performing such other
procedures as we considered necessary in the circumstances.
Obtain an understanding of Town of Fountain Hills, Arizona’s internal control over
compliance relevant to the audit in order to design audit procedures that are appropriate in
the circumstances and to test and report on internal control over compliance in accordance
with Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of Town of Fountain Hills, Arizona’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and any significant deficiencies and material
weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of
compliance requirement of a federal program on a timely basis. A material weakness in internal
control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a federal program will not be prevented, or detected and corrected, on
a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control
over compliance, yet important enough to merit attention by those charged with governance.
Page 4
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to
identify all deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies in internal control over compliance. Given these limitations, during our
audit we did not identify any deficiencies in internal control over compliance that we consider to
be material weaknesses, as defined above. However, material weaknesses or significant
deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of
our testing of internal control over compliance and the results of that testing based on the
requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other
purpose.
Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of Town of Fountain Hills, Arizona as of and for the year
ended June 30, 2023, and the related notes to the financial statements, which collectively comprise
Town of Fountain Hills, Arizona’s basic financial statements. We issued our report thereon dated
November 8, 2023, which contained unmodified opinions on those financial statements. Our audit
was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements. The accompanying schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by the Uniform Guidance and
is not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the schedule of expenditures
of federal awards is fairly stated in all material respects in relation to the basic financial statements
taken as a whole.
Heinfeld, Meech & Co., P.C.
Scottsdale, Arizona
November 8, 2023
Page 5
Additional Identifying Number
Federal Award Name of Funder Assigned By Funder Total Amount Federal
CFDA Identification Pass‐Through Pass‐Through Provided to Federal Program Cluster Cluster
Federal Awarding Agency/Program Title Number (Optional)Entity Entity Sub‐Recipients Expenditures Total Name Total
DEPARTMENT OF TREASURY
COVID‐19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS 21.027 COVID‐19 $4,208,150 $4,208,150 N/A $0
TOTAL DEPARTMENT OF TREASURY
$4,208,150
TOTAL EXPENDITURE OF FEDERAL AWARDS $4,208,150
Please Note:
Italicized award lines indicate pass‐through funding
The accompanying Notes to the Schedule of Expenditures of Federal Awards are an integral part of the schedule.
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Fiscal Period 7/1/2022 ‐ 6/30/2023
Page 6
TOWN OF FOUNTAIN HILLS, ARIZONA
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2023
Significant Accounting Policies Used in Preparing the SEFA
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal
grant activity of Town of Fountain Hills, Arizona under programs of the federal government for
the year ended June 30, 2023. The information in the Schedule is presented in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the Town, it is not
intended to and does not present the financial position, changes in net position or cash flows of the
Town. Expenditures reported on the Schedule are reported on the modified accrual basis of
accounting. Such expenditures are recognized following the cost principles contained in the
Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to
reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits
made in the normal course of business to amounts reported as expenditures in prior years. Pass-
through entity identifying numbers are presented where available.
10% De Minimis Cost Rate
The auditee did not use the de minimis indirect cost rate.
Assistance Listing Numbers
The program titles and Assistance Listing numbers were obtained from the federal or pass-through
grantor or through sam.gov. If the three-digit Assistance Listing extension is unknown, there is a
U followed by a two-digit number in the Assistance Listing extension to identify one or more
Federal award lines from that program. The first Federal program with an unknown three-digit
extension is indicated with U01 for all award lines associated with that program, the second is
U02, etc.
Page 7
TOWN OF FOUNTAIN HILLS, ARIZONA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2023
Summary of Auditor’s Results:
Financial Statements
Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Significant deficiency(ies) identified: No
Material weakness(es) identified: No
Noncompliance material to financial statements noted: No
Federal Awards
Internal control over major programs:
Significant deficiency(ies) identified: No
Material weakness(es) identified: No
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with §200.516 of
Uniform Guidance: No
Identification of major programs:
Assistance Listing Number Name of Federal Program or Cluster
21.027 Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee: No
Findings Related to Financial Statements Reported in Accordance with Government
Auditing Standards: No
Findings and Questioned Costs Related to Federal Awards: No
Summary Schedule of Prior Audit Findings required to be reported: No
Page 8
ITEM 8. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 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 October 3, 2023, and the Regular
Meeting of November 17, 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 October 3, 2023, and the Regular
Meeting of October 17, 2023.
SUGGESTED MOTION
MOVE to approve the minutes of the Regular Meeting of October 3, 2023, and the Regular Meeting of
October 17, 2023, as presented.
Attachments
Verbatim Transcript
Verbatim Transcript
Form Review
Inbox Reviewed By Date
Town Attorney Linda Mendenhall 10/25/2023 02:23 PM
Finance Director David Pock 10/25/2023 02:28 PM
Town Attorney Aaron D. Arnson 10/25/2023 02:31 PM
Town Manager Rachael Goodwin 11/08/2023 07:55 AM
Form Started By: Linda Mendenhall Started On: 10/16/2023 01:26 PM
Final Approval Date: 11/08/2023
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL October 3, 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 Sharron Grzybowski; Councilmember Gerry Friedel; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth; Councilmember Allen Skillicorn
Staff Present: Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately Forty-four members of the public were present.
TOWN OF FOUNTAIN HILLS
OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
Page 1 of 65
Post-Production File
Town of Fountain Hills
Town Council Meeting Minutes
October 3, 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
OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
Page 2 of 65
MAYOR DICKEY: Welcome. Please stand for the pledge and remain standing if you
choose, 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. Pastor Keith Pavia from Christ's Church. Hi. Oops, your
entry music.
PAVIA: I like it. That was my batting music when I was in college playing baseball too.
No. Thank you, I'm so honored, Mayor Dickey, thank you. And everyone on the council.
We'd just like to start with prayer.
Dear God, we come here, and we ask to lift this up to you. We love this town. We love
this town. We know you love us. Be with us as we grow and learn and do the things
with integrity and character to make this town the greatest. We thank you and we ask
all this in Jesus' name. Amen.
ALL: Amen.
PAVIA: Thank you.
MAYOR DICKEY: Thank you.
Roll call, please?
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Here.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Present.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Present.
MENDENHALL: Councilmember McMahon?
MCMAHON: Here.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Here.
MENDENHALL: Councilmember Toth?
TOTH: Present.
TOWN OF FOUNTAIN HILLS
OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
Page 3 of 65
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 a future council agenda.
Mayor, we do have one correction to the record. At our last meeting item number 9G
for the community center improvements. We mentioned that GCON was not a
responsive bidder. They were indeed a responsive bidder, meaning that they fulfilled
the RFP submittal requirements. They were not the high score on the bid tabulation.
MAYOR DICKEY: Thank you. Appreciate that clarification.
We'll start with our reports. And we will start this time, I remember, with the town
manager.
GOODWIN: Mayor, I don't have a report tonight.
MAYOR DICKEY: Oh, okay. We remembered you.
TOTH: I also don't have a report tonight. Thank you, Mayor.
MAYOR DICKEY: Vice mayor?
GRZYBOWSKI: This past two weeks, I attended the Greater Phoenix Economic Council
board meeting where we learned that GPEC received three honors recently. They are
ranked number one regional economic development office in the country. This is
especially exciting because it's voted on by their peers; so that's pretty cool. Also, the
International Economic Development Council gave them two forms of recognition. One
of them was a top economic development organization in the U.S. and the other was
recognition for excellence in regionalism and international cross-border collaboration.
TOWN OF FOUNTAIN HILLS
OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
Page 4 of 65
It just goes to show you how hard GPEC works for the area to bring development and
business to not just Fountain Hills, but the Greater Phoenix area. And while some of
those businesses may not find their way here, we do find that we get residents based
off of some of the big businesses that come into town. So that's actually very exciting
news, those three pieces of recognition.
The other thing I wanted to do was also remind you guys that Movie in the Park is
coming up on Saturday the 14th, at Four Peaks Park at 7 p.m. and they're playing the
Super Mario Brothers movie, which is a very fun movie.
Thank you, Mayor.
MAYOR DICKEY: Is it (indiscernible)?
GRZYBOWSKI: It's super.
MAYOR DICKEY: Councilman?
FRIEDEL: Two things, Mayor. First one, we are recognizing domestic violence month
here in the town. We're all dressed in purple tonight. The Mayor's going to read a
proclamation in a little bit. But a couple of things that the town is doing, on Wednesday
nights, we're going to have the fountain purple and also the town will be draped in
purple as well. And we do have a voucher program for anybody that you know that is in
need of that, that's administered through our MCSO and town manager. And a couple
of little statistics. A child witnesses domestic violence once every 44 minutes in this
country. So it is a problem. It is an issue. And there were 101 domestic violence
fatalities in Arizona, and over half of them occurred right in Maricopa County in 2022.
So we take it seriously here. We want to recognize that. And so just be aware of what
we're going to do there.
And then, Mayor, I have a second thing that -- it's an initiative that I want to roll out
tonight. So many of you, when you came into the meeting tonight, saw the blue barrel
out in the hallway for our foodbank. So my wife and I have long supported our
foodbank here in town. It came to my attention that they're really low on supplies and
we've got holidays coming up. So my initiative and challenge is to everybody in this
town, when you come to town hall or come to our campus here, drop something in that
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barrel. Help us support our foodbank and get them restocked up, because they do --
dozens of local families use our foodbank here in town. So that receptacle is out there
and through the help of the town, which I want to thank you the town for doing that
and stepping into that. Rachael will work out some of the final details.
But I also have volunteered, so make me work on this one, will you? Fill that thing up,
fill that whole lobby up, because I've got volunteers from American Legion Post 58 that
are going to help me take everything down to our foodbank. So it won't involve any
town employees or anything like that. So again, I want to thank the town. And what I'll
do is, I'll try to work with Bo Larsen, our communications director, and give updates as
to where we are and what we've taken down there so that everybody knows what we're
doing with that.
And just to start that off, Rachael, I want to give you this. This is the first donation into
that blue can.
GOODWIN: Thank you.
MAYOR DICKEY: Thank you. Good idea.
FRIEDEL: And that's all I have, Mayor.
MCMAHON: Good evening, everybody.
I wanted to provide the council with an update on the homeless ordinance. Mayor
Dickey and I, and town manager Rachael, have been speaking with stakeholders about
providing shelter and other services for our homeless people here. And once we have
that matter addressed and resolved we'll get back to the council.
In addition, I attended the East Valley Partnership statespersons' luncheon honoring
various very successful women in our county. And those women are going on to mentor
younger women, which is really great, so that all will be successful.
I also attended the Valley Metro board of directors retreat at their facility down at 44
Street. And it was really an amazing time to be able to walk through that whole facility
and see how they keep up the trains and maintenance. And I remember walking in, and
you saw the wheels separated from the train, and it reminded me of putting trains
together at Christmas. Where you'd put the boxcar on the train wheels, et cetera, and
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go around. But this was for real. It was really amazing. And the majority of the
employees there have been with Valley Metro for years. So that was really great.
And then I also wanted to remind everybody that we have a Cares Forum coming up on
the 19th. It's going to be about 6:30, and it is on elder abuse in the form of fraud,
phishing, and scams. We will be having someone from the FBI come out and address
that and also from the Attorney General's office. So again, that's going to be on the
19th of October, 6:30, at the community center, and I hope you can attend.
Thank you.
MAYOR DICKEY: Thank you.
KALIVIANAKIS: Thank you, Ms. Mayor.
Thanks, everybody for coming out tonight. I see we don't have a packed house and so
all you people at home, you've got to get out here. I want to -- what former vice
mayor -- councilmember said on the Fountain Hills Cares. Yeah, we do have a great
program coming up and word-of-mouth would be really a nice way to spread this too. If
you have any loved ones or people that you know that would be subject to, particularly
elderly, getting scammed, please let them know.
Also Councilmember Friedel told me about his foodbank initiative which I 100 percent
support. I think that's great. Thank you, Gerry. I brought some food with me. I'm going
to be second to donate tonight. So I'll be seeing you later, Rachael.
I have a short report tonight, but I did take time off. I took ten days of between last
council meeting and this council meeting, and I went to California; took a little R and R.
And I went to the Reagan Presidential Library and there they have the Holocaust
Auschwitz exhibits. I think it's gone now. It was at the very end of its run. And it was
amazing to see. The sadness and when you left that display it was heart wrenching, and
I literally cried many times throughout the presentation. I have just a couple of quotes
that I want to read tonight that were there at that exhibit.
They said, "Remember it didn't start with the gas chambers. It started with those in
power dividing the people; us versus them. It started with intolerance. It started with
hate speech. It started with people stop caring, become desensitized and turned a blind
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eye. It became a slippery slope to genocide. This hatred gradually developed from
words, to stereotypes, to prejudice, to legal exclusion, dehumanization, and escalating
violence". At the end of the tour, there was a proclamation from somebody who had
survived. I am always reminded of our shared humanity and my responsibility to defend
those who are disadvantaged and discriminated against. It helps me remember that
small actions can bring a big difference in making our community safe for all people.
And so let's never forget what happened.
I said this before in an editorial to the Fountain Hills Times and I'd just like to repeat
myself today. I think we can all do better.
So thank you, Ms. Mayor.
SKILLICORN: Thank you, Madam Mayor.
Thank you very much for everyone attending tonight. Everyone at home, hello. Just a
couple of very short things. It was great to be part of the Chamber of Commerce ribbon
cutting and a few of us were there. Again, proves that Fountain Hills is open for
business. Also had an opportunity last week to attend the Maricopa County Board of
Supervisors meeting to see how things are going there. Yeah. They had a lot more
public comments than we do, so that was very interesting. So some of us were also
there.
And one thing I just -- and I thank you with that statement there it was very passionate,
very important. Kind of on the same note, I did want to share one of my favorite verses
here. And this is 2 Chronicles 7:14, "If my people who are called by my name will
humble themselves and pray and seek my face and turn from their wicked ways, then I
will hear from heaven, I will forgive their sin and will heal their land."
Thank you very much.
MAYOR DICKEY: Thank you. Had a couple of meetings but one thing I want to mention
was that we did have our Leadership Academy Town Hall Day here so that was pretty
nice. And Brenda was the host, I think. Or I don't know what you call yourself, the
moderator?
KALIVIANAKIS: Yeah.
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MAYOR DICKEY: But it was really good, and it was -- Tammy came and spoke and had a
lot of great interaction.
So I've got three proclamations and I'm going to go down there and I'm going to make
Gerry come down for the first one and Rachael come down for the second one and Dave
Ott come up for the third one. So we'll get going on that.
Okay. So the first one is Domestic Violence Awareness Month, which is the purple we
were just talking about. So I will read this and then you can say whatever you'd like. I
know you said a couple of things, but if you'd like to, that would be great.
"Whereas home should be a place of warmth, unconditional love, tranquility, and
security; and for most of us, home and family can indeed be counted among our
greatest blessings. And whereas tragically for many Americans, these are blessings that
are tarnished by violence and fear; women, men, young children, and the elderly are all
counted among victims of domestic violence. And whereas domestic violence is a major
contributor to homelessness, particularly among women and children. And whereas
physical injury and deaths occur, and emotional scars are often permanent, and
whereas law enforcement officials, shelters, hotline services, health care providers, the
clergy, and concerned citizens are helping in the effort to end domestic violence.
And whereas we recognize the compassion and dedication of these volunteers and
professionals, applaud their efforts, and must increase public understanding of this
important problem.
"Therefore I, Ginny, Mayor of the Town of Fountain Hills proclaim the month of October
as domestic violence month and urge all citizens to please observe this month by
becoming aware of the tragedy of domestic violence and supporting community efforts
and working towards its end."
Gerry. Let's have Gerry say something because he's on our MAG regional council:
domestic violence.
FRIEDEL: Thank you. Thank you, Ginny.
I want to thank the town for really stepping forward and backing us on this. I have a
meeting Thursday down in Phoenix. We have our regional meeting then. So they'll
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know what we're doing here in this town, and they know that we are a big partner in
this. We saw a tremendous spike in domestic violence during the COVID days and it
hasn't gone back down, ironically enough. So alcoholism, drug related issues, and also
homelessness as you mentioned, are all either influences or byproducts of domestic
violence. So again, we have programs in place in town. So if you know of anybody
that's in need of that, reach out to us and let us know, okay.
Thank you.
MAYOR DICKEY: Thank you very much.
Next is our Arizona Cities and Towns Week, and who better to give it to than our town
manager. So she will hold that, and I'll read a little bit of an abbreviated version.
"Whereas the citizens of Fountain Hills rely on the town to experience a high quality of
life in our community; and whereas cities and towns work 24 hours a day, seven days a
week to deliver vital services such as fire, police, emergency response to ensure our
community's safety. Whereas cities and towns provide services and programs that
enhance the quality of life for residents such as parks, utilities, street maintenance,
sanitation and recycling, libraries, community centers, and recreational programs.
And whereas it is one of the responsibilities of town officials to ensure open and
accessible government through frequent communication with citizens using various
avenues and means. And whereas through participation and cooperation; citizens,
community leaders, businesses, and staff can work together to ensure that service
provided by the town will remain exceptional elements of the quality of life for our
community.
"Therefore, I, Ginny, Mayor proclaim that the Town of Fountain Hills joins with the
League of Arizona Cities and Towns and fellow municipalities across the State of Arizona
in declaring October 15th through the 21st, 2023, as Arizona Cities and Towns Week."
Yes. And you need to say something. I'll hold that for you.
GOODWIN: All right. I'll be brief.
Thank you, mayor, council, and thank you to our staff. Our Cities and Towns Week is a
time that we recognize our municipal employees, our volunteers, and our elected
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officials, that continue to work to ensure that our services are delivered effectively. The
dedication of our town team and community partners is second to none and they work
all hours of the day and night, 365 days a year, to provide these services to our
community. Right, Justin? Right.
Our team takes a lot of pride to ensure the safety, the protection, the well-being, the
convenience, and the enrichments to all of our citizens who live, work, and play here in
Fountain Hills. So thank you.
MAYOR DICKEY: Thank you.
And last, we have our chief coming up here for Fire Prevention Week. There you go. I
definitely cut that one down. But I've still got quite a bit.
"Whereas the town is committed to ensuring the safety and security of all those living in
Fountain Hills. And whereas fire is a serious public safety concern locally and nationally
and homes are where people are at the greatest risk from fire, with departments
responding to 338,000 home fires in 2021, most recent information.
"Whereas smoke alarms sense smoke well before you can, alerting you in the event of a
fire in which you may have as little as two minutes to escape. And whereas cooking is
the leading cause of home fires in the United States with more than 166,400 annually,
two of every five home fires start in the kitchen and 31 percent of those fires resulted
from unattended cooking." It's a good thing I don't cook that much.
"Whereas more than half of nonfatal cooking fire injuries occur when the victims try to
fight the fire themselves. And whereas residents should turn pot handles toward the
back of the stove, keep a lid nearby, keep a three-foot kid-free zone around the stove,
and elsewhere, and watch what they heat and set a timer.
"And whereas residents who have planned a home fire escape plan are more likely to
survive a fire, and working smoke alarms cut the risk of dying in a home fire in half. And
whereas Fountain Hills first responders are dedicated to reducing the occurrence of fires
and injuries through prevention and protection and education. And whereas the 2023
Fire Prevention Week theme is: Cooking safety starts with you, paying attention to fire
prevention reminds us to stay alert when cooking to reduce the risk of kitchen fires.
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"Therefore, I, Ginny, Mayor, proclaim October 8th through the 14th, 2023, as Fire
Prevention Week and urge the people of Fountain Hills to check their kitchens for fire
hazards and use safe cooking practices and support the many public safety activities and
efforts of our town's fire and emergency services." Thank you.
OTT: Thank you. I'll keep it brief since I'm up again here in a few minutes. But fire
prevention is really the key to a lot of safety in the home. We're lucky enough here that
we also have a fire sprinkler ordinance. Besides all new homes that are built requiring
smoke alarms, they also require fire sprinklers, which will, if you sleep through your
smoke alarm, the fire sprinkler will put the fire out and you wake up wet. But we'll be
out in the schools next week -- starting next week. So we did kind of a weather-related
class last week or the week before in the schools. So we're looking forward to getting
back out into that. So thank you.
MAYOR DICKEY: Thank you.
Thanks so much, everyone. So our first presentation is from the Fountain Hills Youth
Substance Abuse Prevention Coalition executive director, Tammy Bell. Welcome
Tammy. And Shawn's here too.
BELL: She's going to join me.
MAYOR DICKEY: Good to see you.
BELL: If you some questions.
MAYOR DICKEY: You bet. Thank you.
BELL: Can it go full screen, or no? Oh, there.
Thank you, Mayor, Vice Mayor, council, and staff. My name is Tammy Bell. I've been a
resident of Fountain Hills for 18 years and, as of September 1st, the executive director
of Protect our Youth. Very recent. Before then I was a sector leader for years and also a
board member.
I just came today to tell you about the Coalition because I really want to make sure that
you understand who we are and how we work before your decision this afternoon.
Our mission for Protect our Youth Coalition is to achieve sustainable reductions in
substance abuse in youth in Fountain Hills and the Fort McDowell Yavapai Nation with a
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focus on marijuana, vaping, alcohol, and opioids.
And now Shawn and I are standing up here as staff members of the Coalition, but I really
want you to see who the Coalition is as a whole because we do not make up the
Coalition.
Coalitions by definition is a formal arrangement of collaboration among groups or
sectors of our community. If we have any of our sector leaders here, would you please
stand up? Raise your hand. I think we have several. Yes, you too. We have fire and
police in back. Thank you very much.
So these are the people who make up the Coalition. We do not make our decisions
without them. It's a Fountain Hills fire, MCSO, the Times, Boys' and Girls' Club, faith
community, the school district, the sanitary district, the chamber, the Town of Fountain
Hills, parents, PTO, the recovery center, the crisis team, service organizations, the
Yavapai Nation, and the medical center and more. So just to give you that picture that
the Coalition does exist and function with the community involved.
And I just wanted to say this quote too, "By mobilizing the entire community, parents,
teachers, youth, police, healthcare providers, faith communities, business and civic
leaders, and others these communities transform themselves", which is our goal.
I want to give you a little bit of our strategic focus as to how we work as a Coalition, in
these five steps.
Our first step is we have to collect data to get local needs. So there are national issues,
there are state issues, but we go as far as collecting local issues so that our efforts are
directly related to our community, our youth, Fountain Hills, and then the Yavapai
Nation.
Second, we build our capacity and our resources, which is why we have the Coalition,
and everyone involved in the Coalition. And then the third, we get together as a
Coalition to decide what's going to work in our town and who's going to participate in
doing those.
Fourth, we implement our action plan that we came up with as a team. And then,
finally, we evaluate our impact with data again and we report back. So we are
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completely funded by community supporters and grants solely. We utilize a strict -- for
the DFC grant particularly, that's the largest fund that we have. We utilize strict
monthly reporting and it's a reimbursement system. So we don't get the money in
advance and can use it however we want. We have to show that we're using it for those
measures that they approve, and then we get reimbursed after they've reviewed what
we've spent it on.
Our board gets a monthly financial review. Our sector leaders get a bi-annual review of
all our grant sources and spending. And our CPA evaluates it annually. So we do have
systems in place to track our activity, to report our activity, and to show those who so
graciously give us a grant and our community supporters that we are using it to be
effective in our Coalition.
We don't do this ourselves, not even within our town. There's so much to learn within
the State of Arizona and our country. So these are some of the people that we partner
with. We have the Substance Abuse Coalition leaders of Arizona, CADCA, Arizona
Criminal Justice Commission, and SAMHSA, just to name a few.
What we know and what drives what we do. These are some of the key things. We
know that if parents are talking to their children in their home, they have a 50 percent
chance less that their kids will not do drugs. If parents are talking to their kids in their
home, there's a 50 percent chance that their kids will not get involved with drugs. It's
really important to us that we are consistently providing education for our parents to
not only have the facts about the harms and the things that the kids are perceiving, but
also just to know how to communicate those facts with them. Sometimes teen
communication can be kind of hard, so we help with that also.
We also know that youth who begin using addictive substances before the age of 15 are
nearly seven times more likely to develop a substance abuse compared to those who
delay their first use until age 21. This is why we focus on middle school and high school,
but we also get into the elementary school because we know early prevention matters.
And we can age-appropriately speak to anybody about drugs. I started with my kids as
soon as I dropped them off at preschool -- don't take vitamins from other kids. Right? It
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starts simple and then it gets more complex.
There are perceptions that we know of. The kids think that there's no harm in trying it,
and the kids may also think, well, everyone's doing it. And those are false. And so we
do a lot of advertising and campaigning to speak to those perceptions.
So these are our goals for our current action plan. We have five percent goals in many
different ways. We want to increase the perception of risk by five percent. And we
want to do that specifically for nicotine vaping, marijuana concentrates and opioids, e-
cigarettes, and the use of youth marijuana. We want to increase that percentage of
harm and risk in our community by five percent.
We also want to decrease by five percent the perception that the youth have that
everybody does it and this is a social norm. Because we already know from local data
that 60 percent of our students have never used. So majority is, it's not the norm to be
using drugs in Fountain Hills.
We also want to decrease the access that our youth have to substances in Fountain Hills,
and we also want to decrease, obviously, the use that our youth are having.
We do know that it takes one year to change an attitude, and we know that it takes two
years to change a behavior. So we're going to be here for a while, because we know it
takes time to really make this kind of difference. I should have pointed out too, we
started in 2009. So we have been an active Coalition for 14 years.
I'm going to give you a brief, and I won't go through all of this unless you want me to.
But this is just last year's annual review. I will say when we started in 2009 the Coalition
started mostly about alcohol parties and kids who were underage drinking. That was
the biggest concern back in 2009. Since then, as I've told you, we've expanded that to
nicotine vaping, marijuana use, opioids, and prescription drug abuse. So we have found
that those are elements that are in our community, so we need to address those as well.
In the last year -- our year just ended in September, we did nearly 100 events, programs,
and meetings with the purpose of prevention. And we had over 100,000's of
impressions in doing so.
We did this by awareness campaigns through media channels. There's a list of things
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that we did just in this last year. We do this through community partnerships and
engagement. This is where we work most closely with the town where we participate in
Back to School Bash, Teen Takeover, Fountain Hills Cares. Also with the Chamber on
Fountain Hills Day, with the community center we did the volunteer expo. With MCSO
we promote the Drug Take Back days and with the Yavapai Nation we recently were
invited to the educational Pow Wow.
We also do school programs. Shawn stays very, very busy with our students, and I think
when you look at the list here, you'll see that we utilize some art, some writing, in our
contests and we do them because we know that kids build resilience when they are
using creative measures. It's also important to add here that we did increase our
Narcan training and distribution this last year.
In addition to those, we also expanded our reach to the Yavapai Nation. We actively
participate in SACLA, went to trainings in Washington DC, and in Arizona we did a parent
resource direct mailing kit. We did a rebranding and renamed the Coalition with our
new website, and we did that so that our grant would allow us to expand to help our
youth in the Yavapai Nation. Originally the grant was just for Fountain Hills community,
so we wanted to expand that, and we had to change our name to protect our Youth in
order to reapply for the grant and expand our community reach. And then of course,
we did a community perception survey as well to continue collecting data.
So through these media campaigns, community involvement, and school programs we
got results. Since 2018 these are the results we've seen. Between 2018 and 2022, a
58.6 decrease in youth e-cigarette use, 40.7 decrease in prescription drug use, 33.7
percent decrease in alcohol consumption, and 19.2 decrease in marijuana use. So we're
very proud of that. And those are just the use reductions. I did not calculate the
perception reductions, which are great too. In fact, Shawn just reminded me, she just
finished the vaping curriculum, and we know that when a child is presented with
curriculum on the harms of vaping, they have a 50 percent less chance of ever using.
Our future action plan. We want to develop a youth coalition, because peers listen to
peers, and we need to give them the skills to talk to each other about living drug free.
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And so we really want to do that. We are participating in the internship program with
the Chamber and the school district. We are again, expanding our reach. We want to
reach out to our homeschool educators, the Boys and Girls Club, our Inspiration
Academy, providing the same education and message with them and include them in
the Youth Coalition as well.
We want to rebrand our safe home network and get safe home toolkits into every
home. We want to continue support for Narcan and drug testing, increase social medica
presence, continue to enhance our tracking and reporting platforms and grow our
community involvement presence.
At our next meeting in October, we have our consultant coming who's going to be giving
us the data from our 2022 youth survey and giving us suggestions as a community as to
what should be incorporated in our action plan to meet our needs. So I welcome each
of you, because our town is a sector leader, to attend and learn more.
This again is just a reminder that we're doing it together. And that is the end of my
presentation and our information if you need anything.
MAYOR DICKEY: Thank you so much. I appreciate it Tammy and Shawn. Do we have
any questions or comments?
Yes, ma'am.
MCMAHON: I'd like to say thank you to Shawn and Tammy very much. Those results
are amazing. And I know you worked really, really hard for this, and I really appreciate
it. I attended your meeting. I'm planning to attend the next one. And I'm just -- again,
thank you so much for making such a difference in our community. Appreciate it.
BELL: Thank you.
MAYOR DICKEY: Yes, Councilmember?
FRIEDEL: When is that meeting again?
BELL: October 20th, it's a Friday, at 9 a.m. at the learning center.
FRIEDEL: Okay. Thank you.
BELL: Any questions?
MAYOR DICKEY: I guess no questions. Just good comments, pats on the back. I
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remember speaking one time, right for the Coalition, right before prom, and it was
pretty interesting because my son, that's the firefighter now, was a senior and they did a
whole reenactment of an accident, and it was a drunk driver. And it was very powerful
because they had a helicopter come. I don't know if Dave was here way back when, but
he's going to be 40 this month. And they took him away and his girlfriend. And then
they said they took him to surgery. And then they said, oh, Brian passed away. And it
was just, like, you know, and you were in the football field, and it just really had an
effect. And I mean, the kid, of course, the one that was the drunk one, you know for the
setup and all, wasn't hurt. And it was just a really powerful, powerful message. And it
really worked, and you've been doing it for years.
I have a quick question. Is this Red Ribbon Week right now?
UPHOFF: It will be.
MAYOR DICKEY: Oh, okay.
UPHOFF: October 23rd.
MAYOR DICKEY: October 23rd?
UPHOFF: Through to the 31st, every single year. But we celebrate it in the schools, 23rd
through the 27th, this year.
MAYOR DICKEY: And what does it mean, the Red Ribbon Week? Can you talk into the
microphone?
UPHOFF: Yeah. It just honors Kiki Camarena, who was a DEA agent that worked with
the drug cartels, and in 1985 he was murdered by the drug cartels. And so his
hometown community here in the United States started a grassroots movement to
celebrate his life and they all wore red ribbons. And then, I don't know, I guess it was
maybe about four or five years later it became a nationwide movement.
MAYOR DICKEY: Wow.
UPHOFF: And so last year, we got back in the schools, we were at middle school only
last year, really successful, eventful week. And this year, we're actually in all three of
the schools. So we're having our high schoolers do public service announcements which
will be shown during Red Ribbon Week to our middle schoolers. So we've already got a
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few. Yeah.
MAYOR DICKEY: That's great. Thank you. Any further comments?
Thank you so much. We appreciate all that.
BELL: Thank you.
MAYOR DICKEY: Good information.
FRIEDEL: Thank you.
MAYOR DICKEY: Next, we're going to hear from Chief Ott and he's going to talk to us --
and this will relate to, I think, some of the questions that some of the council people had
about preparedness and fire safety around your home and such. So welcome.
OTT: Good evening, Mayor, and Council. That's a tough group to follow and I want to
brag on them a little bit. I go to a lot of public health meetings across the Valley, and we
are one of the only communities that has a youth coalition. And I brag on them quite a
bit. Even gave Shawn a few props now and then, but they're in much better hands now.
So I'm glad to see they're still continuing.
I'm going to talk to you a little bit about our emergency preparedness, and forgive me,
there's a lot of initials for things that we do in the emergency management side of
things. So if I spit out some letters and you're not really sure what I'm talking about and
I don't take the time to explain it, just ask me and I'll go ahead and go through it. I did a
whole presentation one time just using three letter abbreviations for everything that we
deal with, and it took up about 15 minutes. I will not do that tonight.
So with your fire department leadership, between Chief Winters and myself, we have
over 70 years of emergency management experience. We've both gone to extensive
classes at the Emergency Management Institute, but we've by no means laid down the
groundwork for our emergency operations plan. Chief Roberts and Chief LaGreca did a
great job of formulating that before we got here, and we just kind of kept things rolling.
Really the town's -- in modern times, the town's first threat from a wildfire situation was
the Rio Fire in 1995 and that stopped short of the north town boundary. So we've had
experience here where we've looked at things.
Being an emergency manager in Arizona is a little less challenging than being some
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places that have dynamics like the wildland areas of California, the coastal regions
where we have hurricanes. The central area, the plains, where we have tornadoes. We
really have a few things that we look at here and probably most emergency managers in
the Valley will say that one of their biggest concerns would be an extended power
outage. And some of those things we have control over, some of them we don't have
control over.
But we do have an emergency operations plan, an EOP, if I refer back to that and a
continuity of operations plan. Both of those are kind of protected from FOIA because
they have proprietary information, if you will. It's much like things that we deal with on
law enforcement with the Maricopa County Sheriff's. We've got plans in place for things
like active shooters and that, but that actual plan is not something that if you ask me
for, I could give it to you.
Almost every situation is dynamic and changes. One plan doesn't work for all of them,
but the other part of that is that there's some vital information in that that is sensitive
and if it got into the wrong locations in the wrong hands, it could be detrimental to us in
the event of an emergency. But we are a little behind on doing tabletop exercises. Part
of that was COVID. It kind of put a damper on some of the group functions that we
would do. And then Maricopa County Emergency Management also had a little bit of
changeover coming out of COVID so some of our planners weren't there.
Chief Winters had also -- we're lucky enough to have him with us. He was a planner of
the emergency management for the county and also helped develop our latest
emergency operation plan. So those items are in place, and they cover a gamut. It's
really kind of FEMA 101 on the emergency operation plan.
It lists out a lot of potential things that we could do. How are we going to handle that?
What do we do? And it's a group effort. It takes all of the town departments for us to
function in an emergency, to keep things functioning, to keep the town running, to live
into our emergency operations plan and make that work. As many things disaster
related, you think you have a really good plan until something happens and then you
realize where the weak parts are. But in that event, that's why we do things like have
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our EMT, emergency management team, that would come in, kind of look at things. We
try to plan ahead. We do a lot of forecasting. What's the event going to do? What's the
extent of the event? What are we going to lose? What's the potential for losing things?
What are our backup plans? Our relationship with Maricopa County and our IGA
partners through that really give us a lot of depth into what we can do. If we needed
frontend loaders, we go through our IGA with the county. We go to the county; we say
we need some frontend loaders to help with the flooding condition we've got out here.
They can make that happen for us, going through one or two calls. If we did not have
that relationship, it might take us five or six calls, a lot of noes, but we can kind of turn
around and go to the county and through that group get what we need. Even if we
need additional people to sit in our emergency operations center to cover those
operational periods. So we all work pretty well throughout that side of it.
We also have a community wildfire protection plan, which is a countywide document as
well. It goes through things like mitigation. And as I said earlier, prevention is a huge
part of our world. And if we can prevent the fire or prevent a disaster, then we're
farther ahead at that aspect. So I know a lot of things come up and our terrain and our
really foliage growth is kind of unique. We have what we call a WUI, wildland–urban
interface, and I'd like to think ours is more of a DUI, which is a desert-urban interface.
We don't have tall trees. We don't have things that when you get up into, like the areas
of Yarnell and you start climbing up into the higher elevations around Crown King,
where we've actually got timber here, we've got medium fuels. In some areas they're a
little thick in some of the washes but public works has a great plan in place. It's on a
rotating basis that they go through, and they try to hit every area of the town-owned
washes. Most of the HOAs also have some sort of a wildfire protection plan in place and
maintain defensible spaces around their areas.
But it still comes back to every resident that's responsible for their own area. And every
year as we get into the season, with the help of Bob and the Times or the Independent
Fountain Hills or whatever we're at now, and Bo put out public information that we'll be
glad to come out and do surveys around your property to help you with -- we're not a
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fire-wise community. A fire-wise is a good program. We adopt a lot of fire-wise
philosophy and part of that has to do with a clear space around your area. Kind of
concentrating a little bit more on wildfires because that seems to be the theme of what
people are concerned about here. You see smoke in the distance, you're not sure how
fast that smoke or fire is going to travel to you. When you take a look at things, like
some of the devastation that happened in Lahaina, and then you look at the houses that
survived. We've had wildfires in New Mexico that have devastated towns. You look at
the houses that survived. If you look at the before and after pictures, those houses that
are still there today were well-maintained, they had defensible spaces around them,
and that's really the key to when things like firebrands start blowing in the wind. If you
look at your house and you've got leaves collecting in one pile close to your house, if it
was a firebrand blowing in the wind, it's going to go that same location that those leaves
are at. So those are areas that you want to make sure that you remove anything that's
combustible, that would allow something from a fire to get there and then maybe
extend to that.
We're also very lucky in that we live in a community that has a lot of stucco and tiled
roofed houses. But in the areas that we do have some of that urban interface left in
there, we've had neighbors and some of our honorary firefighters get out with the
garden house and kind of knock some things down until we got there. I'm referring to
the help that you gave us.
But it's a group effort and we're here to do what we can to protect the investment of
the town and the lives of the people that reside here and visit here. And one of the best
things, I think, in my years and I do remember; this makes me feel old. I kind of do
remember Brian getting flown off at the graduation thing. I went on the Brian thing and
got lost there.
But as we move forward and we protect things here, one of the important things is that
we do have communication. Sometimes there's a lack of communication. We've had
issues in the past and we've kind of corrected those. But a couple of years ago we
decided on a product that is Code Red, not to be confused with the national weather
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services' code red. But the town has a code red program that you can go on the
website, you can sign up for it. We don't use it for every little thing because we don't
want people to think we're crying wolf and get used to it and you ignore it. If we had an
actual event where we needed to shelter in place or evacuate, we're going to put that
information out through Code Red. It's a wireless emergency announcement or a WEA.
The county also has a WEA program, not to be confused with ours. We're in control of
ours. We would have to go through the county for the county to put theirs out. But
there would be times that we would do that as a joint effort. And you're kind of limited
to the number of characters that you can use so the message you put out might not be
as broad as you would like it to be. We're going to refer you back, at that point, to look
at the town website and some of the town's social media things and with the help of Bo
we'll get all that information out so that it's pertinent, it's up to date.
If there are things that -- I'll frequently send the council and the mayor and the town
manager information on things that are going on, like the current fire going on at the
landfill. Those things typically, if there's an issue or a threat to the town, we'll take that
a little bit further and we'll stay on top of that. But that's what we end up doing and
with the help of Maricopa County Sheriffs and Larry and Jonathan, we kind of work
together on that. And if there's things that they know that we don't know or we know
that they don't know, we try to share that information so it's kind of one united voice
coming through and you're not getting information from a lot of different sources. And
sometimes that's where some of the problem lies, is that in a disaster or an emergency
there's a lot of mixed messaging and we want to have kind of one source of that, so that
we can give you the best information there is.
And I mentioned shelter in place, and sometimes sheltering in place is the best thing
that you can do. If you're in a tornado, you're probably going to try to shelter in place in
an area in your house that you know is fairly secure. If we have a wildfire in the area of
Adero Canyon, that's kind of a draw going up in there. It's got light flash fuels, and
maybe some medium fuels in there, our direction to you, if you are a homeowner in
there might be to close your windows, stay in place, 20 minutes after the fire blows
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through, we're going to be in pretty good shape and be able to go back to a somewhat
normal life with a little bit of a scarred landscaping. But those are things that we have
to take into account. And is it better as a whole to keep you where you're at or is it
better to try to evacuate you out in an orderly manner and get you into another area of
safety. And if we do that, we kind of follow the county's ready, set, go model as well.
One of the last fires that we had up in McDowell Mountain Park, we had our maps out,
everything was designated. We have a ready line, we have a set line, and we have a go
line. And it gives you time to work through that.
With that, that also gives you time to try to set up shelters or a place. You don't want to
evacuate somebody without a plan on where they can go and where you want them so
you can work through that and you're not just saying you've got to leave, and you've got
no place to go. We're going to have that set up through American Red Cross, through
the county emergency management. Those shelters are kind of in place and identified
and again, that would be a unified effort to come through and make all that happen.
So kind of in a nutshell, that's a lot of emergency management. But I think the biggest
thing is that I feel very comfortable as a resident of town that if there were any varied
number of emergencies here, that we would be able to handle them and keep
everybody safe and limit the amount of devastation to the town.
MAYOR DICKEY: Thank you so much, Chief. Councilman?
SKILLICORN: Thank you, Madam Mayor.
And I ask this after, obviously, Maui and then, maybe, at the end we'll talk about the
landfill fire too. But I know you talked about there's certain specifics you don't want to
share but what did you learn from the Maui situation? Hypothetically, imagine power
going out, no water, potentially no internet, and we only have a few roads going into
town and going out of town. When you saw that happening, what were you thinking
that you would respond to prevent the tragedy that happened there?
OTT: Mayor, Councilman, it's kind of one of those dynamic things that you're look at
and there's -- you can either look at it from the 10,000-foot level or you can look at from
the boots on the ground level. And one of the boots on the ground side of things is that
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you go in and on the wildland setting kind of things, we used to do a red rock, green
rock. You would do a red rock for a house that had -- you had no chance of saving
because of the vegetation, the state of the structure, things that might add to your
inability to get in there and put the fire out in that house. And a green rock would be a
house that you had a chance of going in and being able to save with limited resources as
you go through.
Overall, and foremost, is life safety when you look at that. What can we do to get
people out that are in a situation that they're trapped? Lahaina is a little bit unique. It
is a one-road in. The road on the backside is not on the rental car maps. I know that
because I've driven that road and got in trouble from the rental car company. But you
were kind of stuck in that area. It's very hilly terrain. Fire in a wildland setting moves 16
times faster uphill. It was wind fueled. The initial reports that we saw were that it was
potentially started by a powerline that went down. They don't have the ability to shut
the power grid off on Maui. So that was something that was a factor.
If you look at Paradise, California, that was another fire that was started by the
powerlines, in an area where a lot of maintenance that should have been done was not
done. But that's secondary to how do we get people to the safest spot? And can we get
in, and that's part of the evacuations. If we've got everybody leaving, are we able to get
in there to do anything? What are our resources and what can we do? If I'm going into
an area where the water supply is down and I only have the water that I have in the tank
on my truck, I have to be very good at what I'm doing. I might not be putting house fires
out; I might be focused at that point on life safety. How are we going to get people out?
Are there people that are injured? How do I keep our people safe as we're moving
through that? So the things in the initial beginning are, you know, holy crap man, that's
a lot of flame. And then trying to work back on how do you work that and where does
the emergency management portion of that come in? And when do you change from,
you're in the first responder mode to we move into the whole emergency management,
how are we going to manage this whole scene. What does this look like tomorrow?
What does this look like next week? What does this look like in three months? Where
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are we at.
So I don't know if I answered your question fully, but those are the things that I look at.
One is how do we immediately protect life safety in that area? I think we're set up
pretty good here. I take a lot of pleasure in going across the country and talking to
other people in the fire service. We only need a fire truck to carry -- and don't hold me
to this when I come back and ask for another fire truck. But we only need the firetruck
to carry the hose because EPCOR supplies us with a fantastic water supply. They've got
redundant pumps; they've got redundant systems. If we lost water in one area, we
would -- more than confident in the EPCOR staff that we'd have water in another of the
town. And in that case, we would call in other departments, use our mutual aid
contacts, call in water tenders and get water and do water shuttles, do whatever we
needed to to protect those areas.
But again, life safety is the most important part of that.
SKILLICORN: Madam Mayor, Chief, we don't have any type of siren, right? Like air raid
siren, a tornado siren?
OTT: No. I went back and looked after you asked.
SKILLICORN: Okay. And then the Code Red is the text service, that's 100 percent opt-in,
correct?
OTT: Yes.
SKILLICORN: And obviously, we need to sign up for that. Everyone need to log in and
sign up for that, put our phone numbers in there. But also like, what if cell towers are
down? How are we going to communicate to the people. So let's say power's down,
cell towers are down, people can't go to the social media, the town website because
there's no power. How do we get the message out?
OTT: Mayor, Councilman, that goes back to like my starts, where we didn't have
internet. We did not have all of those things. So we went door to door. Early on in the
Rio Fire, I was over on the Scottsdale side when that started the first night, we went
door to door with the help of Scottsdale PD and we evacuated neighborhoods. And the
flipside of that is that you knock on somebody's door, even though they can see the
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flames coming in the backyard, they don't want to leave. I don't blame them, but you
can't -- in a controlled manner where you have to tell everybody that in your best
interests you need to leave, grab your bare minimum, a little bit of cash, your
medications, whatever you need. At that point you didn't have to worry about cell
phones because not very many people had them either. So if the things that we rely on
the most aren't there, we still know how to go back and do face-to-face notifications
and work it out that way.
Part of my emergency management experience have been with Indian Nations and
there are a lot of Indian communities that do not have any of the modern conveniences,
which also made it a little bit easier, when you'd say well, the power's out and the
people you tell that you've got a cooling center will respond with I've only had air
conditioning for a year. I've only had power in my house for five years. So when you
take a look at that aspect of it, that you can do with a lot, we just choose not to. If we
don't have those there for notification or whatever, we need to go back to doing what
we did before and we'll do it. And maybe it's to a point where we're not letting people
into that area opposed to notifying that they need to get out. It's all based on our
resources. And I know Lt. Halverson (ph.) could add to that. One of the last fires they
had up off the Beeline Fire, it was kind of a door-to-door ranch notification on an area
that's very spread out and you don't see your neighbor. So you actually have to go and
physically do that.
That's the worst-case scenario. Nobody wants to lose the internet. Nobody wants to
lose a cell tower. There's a lot of redundancy built-in in things and since you brought up
the opt-in, the civil defense is testing their WEA tomorrow. So if you get a WEA alert,
the wireless emergency notification, it is a test. Palo Verde frequently test their system.
We try to test our system just not overly frequently. But generally when people start
coming back to town we'll go ahead and do something. Probably October, November,
or January, depending if we want to skip over the holidays.
SKILLICORN: Great. And Madam Mayor, Chief, any advice for homeowners clearing
brush or anything that -- their own personal wildfire prevention?
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OTT: Mayor, Councilman, we'll be glad to come out and kind of give you some pointers
and, depending on the day, we might even help you haul a little bit of brush. But to me
it's clearing the area, but not throwing your brush over the back fence and into the wash
where it's going to become a potential problem when it dries out. So I think those
things, keeping it clean, keeping it healthy, choosing the right plants when you're
looking for landscaping. Keeping trees trimmed up so that -- we talk about flash fuels,
medium fuels, latter fuels. A flash fuel is your dried grass, as that's dying and it's going
out. But if you've got an area and you've got trees that are limbed up, nothing's
touching down to the ground, a lot of times that flash fuel will just do that. It will just
flash, burn through it, and not extend to anything else. It's where you get more dead
growth that's down there, maybe get a little bit more from the light fuels to the light-
medium fuels, will then start to propagate as the fire goes through and move from
there.
You also mentioned the Greenways Fire. And that is probably the best example of
spontaneous combustion you can get is that decaying organic matter just heats up to
the point where it will get hot, and if the conditions are right, and on Saturday the wind
condition was right to kind of keep that fire going, and it's still burning now. They
estimate it's about a 15-acre stretch but it's contained within the boundaries of the
landfill. They did a good job on Saturday afternoon to kind of maintain that, keep
anything from extending out into the desert area to the north and west of that, and now
it's really a heavy equipment operation, pretty much run by the landfill staff overseen by
the fire department up there. So it could potentially burn for another two or three
weeks.
MAYOR DICKEY: Three weeks?
OTT: Potentially. Whether or not they can do it. I mean, it's a lot of work to go back
and work through that. And if you've lived in an area that you have either large stacks
of hay or large stacks of manure, it's the same thing. Spontaneous combustion and
nobody wants to go on a manure fire.
MAYOR DICKEY: Just a quick one. When you talk about getting information out, like
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with the fire over there at the landfill. And when you send us an email that says it's all
under control and such, and you see -- maybe you see people on Facebook or
something, thinking that it's something else, is that public? I mean, can you just say no,
it isn't or don't worry or, you know?
OTT: Yeah. Those are things that we can always look at addressing. I usually kind of
take a look at it. We get calls, we'll notify our alarm room. And it will be the same, we'll
go over to Mesa that we have a fire in the area and could be getting calls. So when
those people call 911, it's a little bit more immediate. Because the problem that you
have with social media sometimes is that unless it's the football score or some things
that you -- I don't even know what you'd call it, because I need Bo to help me through all
that. But unless it's a notification -- it would come up -- that would pique your interest,
you're not going to see it. It's going to go right past you. So as an example, that would
not be something that we would use Code Red for, because it's really -- and we can
geofence -- that's a term I do know. We can geofence where the message goes, and
would that be to everybody in Eagle Mountain or just Fire Rock on that side of it? It's
not really -- when we kind of set up the criteria there were things that -- is it area-
specific or is it townwide worthy? Some of it, it's there. They're going to be -- it's going
to be out on the news and maybe that's where you get your information from, is
Channel 3 or 5 or 10 or 15, and that brings that to light because they have more
information on it than we do.
MAYOR DICKEY: That was more like if you see someone. I just want to -- not to be the
one that initiates it but if you see someone saying, if they're worried about something
and you can already just comment and say, everybody knows and everything's under
control or something like that. I don't know. It's tempting to do sometimes.
OTT: Madam Mayor, and council, I will leave that up to your discretion on what you
chose to share with your constituents.
KALIVIANAKIS: Thank you, Ms. Mayor.
Yeah. Thank you for your thoughtful presentation. And any town, I think, if you take
the top five concerns, fire prevention and public safety are definitely one and two.
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Disaster prevention, of course, it's really important. Being a member of the United
States Coastguard Auxiliary, I did take those FEMA courses that you referred to earlier in
your presentation. I've got the certificates on the wall. And the level of coordination
between the local, the state, and the national government and the number of
contingency operations is just unbelievable.
When Allen made a good point, but what if the internet goes out. Well, it's getting like a
flowchart, well, then you do this. When that happens, then you do this. And so these
things have been thought out, flowcharted, brain trusted and we're in really, really good
shape in this town, and I don't ever worry at night about an event like Hawaii,
thankfully.
I will throw you one softball question. And that's, has the Town of Fountain Hills done
everything to make your job and everything regarding fire prevention easy? Do you
have our full support or is there some area that we might do better?
OTT: Mayor, Councilmember, I got to say from the start my job up here has been well-
thought out and well-supported. Even with that weird kind of transition, go-between
with Rural. The town has always been supportive of the fire department up here and
given them the tools to do what they need to do. Going back to Chief LaGreca and
chiefs prior to that, before Scott got up here. But it has always been kind of easy to
come up here and work. The fact that council was wise enough back in the early 2000s
to adopt the sprinkler ordinance on the firefighter side of things, that's huge. We kind
of fight through that in other areas that people think that it's not worth the money that
you spend on it. I've had experience in fighting fires and investigating fires and that --
between sprinkled homes and nonsprinkled homes and it's just incredible. So the
support from the town has always been there.
One of the other things that -- I think I kind of a senior moment in there. Was we're also
a storm-ready town or a storm-ready community, which is through a membership with
the National Weather Service. So when things start to look like they're developing into
some sort of a weather event, I know Director Weldy is very up on it as well. Chief
Winters and I kind of do the nerdy thing and listen to the weather radio and see where
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that's going to go. Is it a potential for something that could create flooding or for us, the
flooding has not been as bad as some of the lightning strikes. So those are all things
that again, in the event that we had a lightning strike that took out some of the cell
signals and the cell tower and the internet's down, and people that have been here over
15 years, 20 years, remember when every time the wind blew, or it rained your lost TV,
you lost any sort of internet. When we had hardline phones, the phone lines went out.
So those things we're very attuned to, and again, if we look at emergencies on a smaller
scale, because that's what we deal with every day, in the event that we had a residential
fire and we needed to remove the people around there, we would do that. Going face
to face and probably utilizing MCSO to help with our evacuation. Utilize our crisis
response team to help get those people that are being displaced into a place that
they've got cover over their head. And helping with calling the insurance companies or
whatever they needed at that point.
So this town is very, very good to work in and very well-receptive to a lot of things. We
just wish that more people would call us at the start of wildland season, when
everything's blooming and growing. We average about three calls a year for people
asking us to come and look at their properties. So we would like to do more of that.
That's probably the only thing I could say.
FRIEDEL: Thank you, Chief, for your presentation tonight. And there's no doubt in our
minds up here that we're in good hands. I just have one request; will you wait a few
years before you want a fire truck?
OTT: I will. That's good maintenance but some things you just can't forecast. That's like
your emergency management plan. You go, oh, everything but that. We will do that for
you.
MAYOR DICKEY: On that note, thank you so much. Really appreciate it.
Our next item is call to the public. Do we have speaker cards?
MENDENHALL: We have one card. It's in your packet. And I believe they're wanting call
to the public; Kimberly Kroker just wants to give you another comment about Sycamore
Wash. And that's it.
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MAYOR DICKEY: Thank you so much.
Our next item is our consent agenda. Can I get a motion, please?
SKILLICORN: Motion to approve.
FRIEDEL: Second.
MAYOR DICKEY: Thank you. Roll call?
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Aye.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you.
Our first item on our agenda is about our Fountain Hills Youth Substance Abuse
Coalition and an MOU. Is this yours, Linda? Are you doing this one or -- no? Oh,
Rachael.
GOODWIN: I'll take this one.
MAYOR DICKEY: I thought I was -- never mind. Go ahead.
GOODWIN: That's okay.
As you noted, after Tammy's presentation it's actually a different name but the same
idea. This item tonight is brought forward actually as an act or as a result of action that
was taken in October of 2021, where staff are directed to join the One Arizona
Distribution of Opioid Settlement Funds agreement. As part of that national settlement
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agreement, Maricopa County is expected to receive roughly $80 million. As part of that
settlement some of those funds will be distributed to local municipalities, including
ours. We've already begun to receive our portion and that's over, I believe it's a 15- or
18-year settlement agreement. So it will be coming in over the next decade or more.
But we've already started to receive that and as part of that, we need to begin
allocation or disbursement of those funds.
So keeping in mind that the funds must be used for treatment, prevention, or
awareness, it's recommended that this funding be allocated to the Prevention Coalition.
With that, and you just heard about the Coalition. You heard about what their mission
is, how they serve our community directly, and that is partly why we believe this is a
good partnership.
I'm here, as well as Aaron, as well as Director Pock, to answer any questions you might
have.
MAYOR DICKEY: Thank you. Do we have any speaker cards on this item?
MENDENHALL: Yes, we do. First, we'll start with the packet. These are people who just
wanted to express their support or nonsupport. First, we have Rory Wilson who says
she's for it and she also wrote information. Dwight Johnson is for it, and he also wrote a
comment. Bob Ditta is for it and also wrote a comment. J.P. Ward is for it. He makes a
comment. Thomas Aiello is for it and also makes a comment.
And now we do have two speaker cards and first to speak is Joshua Logan. And on deck
is Lilian Acker.
LOGAN: Madam Mayor, Council. I'm Josh Logan. I'm a Fountain Hills member of the
Chamber of Commerce. I own Guardian Training and Consulting. Both my wife and I
are retired law enforcement. I spent 15 years in law enforcement, in three different
capacities, in two different states. I've watched the opioid crisis go from a schedule 3/4
drug, you know, Oxycodone, to being rescheduled to a Schedule 2 drug, which created
the heroin epidemic. And now we're seeing unadulterated fentanyl across the country.
Not going to get into a political stance, but fentanyl's crossing our border at an epidemic
rate and seeing it first-hand on the streets and now being in former law enforcement, I
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feel now, I can speak what I want to say because I don't have a police chief. My wife is
my boss. Which is actually more dangerous if you know my wife. But I can speak my
mind on this matter.
I have distributed Narcan on multiple occasions to people that have overdosed
firsthand, and on two occasions I have watched and held people that have died and
expired from opioid overdose. The reason I'm so choked up about this is because I feel
fervent about this, and we need to educate the public on the dangers of opioids. Albeit
important for pain control, I -- you know, being a disabled veteran, I understand pain
firsthand, but I also see the dangers of this. And that a lot of people think because
they're prescribed that they're safe, and yes, they are. But the addictive qualities of it is
extremely dangerous. And so seeing that firsthand, I will absolutely support more
funding for prevention. Because being on the law enforcement side, I was reactionary
in nature and it's near and dear to my heart. And so being a member of the Chamber of
Commerce, going to these Coalition meetings for a multitude of years and watching
what the Coalition is doing and now, with Tammy Bell's leadership, the future is only
getting brighter. And I just want you to consider that and do what we can as a town, as
a community, to help these people and to prevent this and get the war on drugs is a
whack-a-mole kind of proposition. You take one drug dealer down and you get another
one. Working as an advanced roadside impaired driving enforcement officer for 15
years, I see it firsthand.
So let's approve this and have big pharma pay their dues. That's what I want them to
do.
So thank you.
ACKER: Lillian Acker, resident. I wasn't planning on speaking, but I will. Madam Mayor
and Councilmembers, I am working with the school district, I'm on the school board and
I have seen what the Coalition has done there. It's just an amazing job. And having had
a dear friend's child die because he had taken -- he started with a prescription, and it
just went worse. It is something that's dear to my heart and I think if we can support
the Coalition with this, it would be very helpful.
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Thank you.
MAYOR DICKEY: Any discussion or questions? Anyone? Yes, Councilwoman?
Oh, I just had one question about the amount. I didn't know if that was -- was that
40,000? Is that a year or is that over the years? It's over the years?
GOODWIN: That's how much we've accrued at this point.
MAYOR DICKEY: Okay.
GOODWIN: That's how much we've collected. The disbursements are -- actually vary
year by year and it really depends on how much the state gets in based on those
settlement agreements. There's three different agreements, each one is based on a
different total and each one runs out differently. So it can vary wildly. So some years
it's predicted to be 15 or 18,000. Some years it's as low as 7,000. So during the course
of that settlement agreement, it fluctuates from year to year. So I believe the way we
have structured this is to, whatever we're collecting year over year is what would be
disbursed.
MAYOR DICKEY: Thank you.
Councilwoman?
KALIVIANAKIS: Oh, thank you, Ms. Mayor.
Rachael, I know these funds are available. I know that the intent of this program was to
obviously remediate the opioid dependency. By us directing the funds simply to the
Youth Coalition, are we ignoring -- because if you look at it, it says affected youth and
other individuals. It's for opioid remediation activities. And it calls for media
campaigns, school-based prevention programs and medical provider education to
prevent youth and other individuals from misusing prescription drugs. So even though
that's under the auspices of the youth, is it going to go deep into our community, to
medical facilities and other people that are affected by opioid addiction? Or just merely
youth?
GOODWIN: The way we have it structured; it would be disbursed to the Coalition which
is youth focused. So it would intensify or would be focused on youth prevention efforts.
Because our portion is not -- I'm not going to say, it's not nothing, but it's also not a
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substantial amount of money. To be able to reach all of those different sectors would
be difficult. I don't think the intention was to say you need to do all of these. It's these
are the -- this is the gamut of which we need to serve, and we need to stay within those
parameters, but we don't need to touch all of those.
Again, in discussion internally, we felt like the idea that an ounce of prevention is worth
a pound of cure, the prevention efforts and targeting our youngest, most at-risk
community, our youth, seemed to be the wisest use of the money.
KALIVIANAKIS: Yeah. I can appreciate that. But again, I think that the prescription
nature of the opioids, this is something that should factor in because the monies are
available because of the -- too many opioids were being prescribed legally and creating
such havoc in our society. So I just wanted to throw that out there.
GOODWIN: Sure.
MAYOR DICKEY: Councilwoman?
TOTH: Thank you, Mayor. I just wanted to make the note that they do say youth and
others. The Coalition and the education that they pour into the community it is
targeted toward youth and to prevent youth from using these substances. But I see it all
the time. I think everyone else sees it all the time. I wouldn't be surprised to hear that
this is helping people of all age groups to understand the true risks of these substances.
I also really quickly, I want to sincerely thank those that came up to speak about this
topic. I know that a lot of us, this is something that's very close to our hearts and being
able to prevent young people from leaning on these substances for whatever mental
health or other issue that they might be trying to compensate for, even when that is
pain and that is a prescription, is something that's really close to a lot of our hearts and I
think a lot of us hve lost friends or family due to these kind of issues.
So it's something that we all have a lot of passion for. However, I wanted to point out
that with this money -- well, not, however. That's the wrong word. But I wanted to
point out with this money we would have to create something completely new. So just
as a note to my fellow councilmember this is the best way to make sure every cent of
this money gets used for the purpose that we've been instructed to use it for, which is
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prevention and education. This is an existing part of our community that specializes in
this. Has the proper training and the proper experience on the topic.
Meaning that we don't have that experience. And if we were to try and do it, where it's
covering the full system, we would end up not using as much of that money for the
correct purpose. So I don't mean to get on a soapbox about that. I just wanted to really
point out that I truly believe this is the best way for this money to be used to its fullest
extent.
KALIVIANAKIS: Thank you for setting me straight.
FRIEDEL: I would have to agree. They have the programs and the board and the staff in
place to deal with this. And with that, I'd like to make a motion to adopt resolution
2023-26.
TOTH: Second.
MAYOR DICKEY: Thank you. Roll call, please?
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Aye.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you. Thanks again for all your work.
Our next item is the recommendation of appointment of a youth commissioner to the
community services advisory commission. We have subcommittees of our -- council has
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subcommittees, three members each who interview applicants for openings that we
have on our commissions. So this time it was a for a youth commissioner, and I would
like to please, first of all, thank anybody that applied and get a motion please to approve
the recommendation by the council interview subcommittee to appoint Kevin Williams
to the community service advisory commission serving until June of 2024.
TOTH: So moved.
FRIEDEL: Second.
SKILLICORN: Second.
MAYOR DICKEY: Thank you very much.
Is Kevin here? Okay. Congratulations to him and again thank you to the committee and
the applicants. Can I get a roll call, please.
MENDENHALL: Yes. First clarification. I heard two people second. Who gets the
honor? Okay. All right.
MAYOR DICKEY: The honor of the second.
MENDENHALL: All right. Councilmember Skillicorn?
SKILLICORN: Yes.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Yes.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you very much. Our next item is item 9C, which is
consideration of extending a special use permit on Ivory.
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Shall I go straight to John? Okay. Thank you.
Hi, John.
WESLEY: Good evening, Mayor, and Council. This should hopefully be fairly quick. It is
about the extension of a special use permit. In September of 2022, council approved a
special use permit for the property at the corner of El Pueblo and Ivory. This would
allow for four residential unit on the second floor of a mixed-use building. The code
requires a building permit to issued within one year. The permit approved -- I probably
didn't write that one like I should have. The town has approved the building permit for
this development, but due to some issues that the applicant recognized with the
designed electric service for the building, has determined not to pull the permit until he
gets that corrected. And so he's made every attempt to get the permit, in fact it could
have been issued and then got an addendum afterward, but he chose not to go ahead
and pull the permit at this time.
So again, just a reminder of the property we're talking about, in the plat 106 area, zoned
C-C. It's a property there at the southeast corner of that plat, or northwest corner of
that intersection. This is what the building would look like. And the floor plan with
office and parking on the ground floor addition the four residential units above.
Again, the applicant has shown every intention to move forward and get the building
permit by taking it as far as he has through that process. He's shown continued interest
in the area with the purchase of three other lots that the council's approved special use
permits for.
So staff recommends approval of this extension for six months.
MAYOR DICKEY: Thank you. Did we have any speaker cards?
MENDENHALL: Not for this item, Mayor.
MAYOR DICKEY: Thank you. Any discussion? Questions?
I just want to point out there was just little typo in the staff summary. It was September
of 2022. All right. Can I get a motion?
GRZYBOWSKI: Move to approve as written.
MAYOR DICKEY: I'm sorry?
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MCMAHON: Second.
GRZYBOWSKI: Move to approve as written.
MAYOR DICKEY: Roll call, please?
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: No.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you.
Our next item is a public hearing, which I will open. And this is regarding a home on
Palisades and Westby Drive. I will hear our presentation and then we'll get the cards
and then we'll discuss. Hi.
TAVASSOLI: Hi. Thank you, Madam Mayor, members of the council, and the public.
What you have before you is a special-use permit request for a 16-bed home for the
aged. Which is really a specific type of community residence. And really as you'll see,
this is actually an expansion of a home for the aged that has been in existence since
2005 actually. And it's currently capped at ten beds.
The location we're talking about here is just a few blocks away from here to the north at
the northeast corner of Palisades and Westby Drive. It is a property that's a little over a
third of an acre. The home that sits on it is about 4,259 square feet.
Here's just a idea of some of the zoning characteristics in and around the property. The
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vast majority of the area is zoned R-3, multi-family, with the exception to the south
which is a planned area development known as the Havenly. And just off the picture
there to the east, is the Basher shopping center and the CVS drug store, south of
Palisades there.
Her's a closer look of the property, right there at the center of your screen. Again, as I
mentioned, the property is about a little over a third of an acre with almost a 4,300
square foot property there. There is a driveway access to the property off of Westby
Drive. And I should mention here that at one time there was a garage there. In the
following slide you'll see a garage door, but that has since been converted to a living
area and is currently functioning as a bedroom for the existing ten-bedroom facility.
There at the bottom you see a Google street view of the property, looking east towards
Westby. But to summarize, the special-use permit request, the applicant again is
requesting six additional beds in addition to the ten that they are currently operating
under.
Now this includes -- these six beds includes two beds for live-in caregivers. So it would
be for 14 patients plus the two live-in caregivers. I already mentioned the size of the
home. Part of the reason they're coming before you is they're seeking licensure from
the Arizona State Department of Health. They require owners of such facilities to get
approval from local jurisdiction for issuing a license.
This is a conceptual site plan that has, of course, been included in your packets. The
applicant is not requesting any physical expansion of the building. They are adding
some more beds to the bedrooms that they have available. By my count there's about
seven bedrooms in the facility right now. There's a living room and a den, and of course,
kitchen facilities as well.
The only physical modification to the property that will be proposed is expansion of the
parking area. And although what you see before you is a conceptual site plan of what
that parking area would look like at the end, should the council decide to grant approval
of the special use permit, the applicant still has one additional process to go through --
one additional zoning entitlement process to go through, that being the site plan review
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in which we will receive a more precise site plan of the parking area. There are some
details that would need to be worked out, which are not shown here on the site plan,
such as landscaping and some other details with regard to the configuration of the
parking areas.
The applicant has gone through the required citizen participation process with the
neighboring landowners within 300 feet of the subject property. They've used the
property owners on record with the county to send out mailers. They did have a virtual
meeting, actually way back in February, shortly after we received the application for this
request for special-use permit. Followed by a planning and zoning commission meeting
back on May 8th. At the conclusion of which the application was recommended for -- or
I should say the request was recommended for denial.
What I should note is, at that time, although the facility was advertised for 16 beds, at
that time it did not include the two to three caregivers that were going to help operate
the facility. And so the applicant decided to go ahead and somewhat modify the
request to cap it at 16 max, including both patients and caregivers.
Throughout this whole process, and this is kind of an update to the staff report, staff has
received eight letters of opposition, citing a number of concerns with regard to traffic
or, more particularly, parking in the area. And you'll see some of the details that have
been spelled out by the various members of the public in your staff report.
So section 2.02 establishes standards for review by the commission and the council.
Some of the things that the commission -- or I should have updated this. But there's
some of the things that the council, y'all, may want to consider is the nature of the use.
It is a commercial operation by virtue of it expanding to more than ten beds. Any
special conditions that might exist with the property itself or the home may be brought
under consideration. Things such as pick-up, drop off, visitation hours during the day,
and the staff report covers a few things with regards to traffic and adjacent uses, some
of which we can discuss with myself and the applicant later.
So the staff's recommendation is approval of the SUP request. And although this goes
without saying, I should say emphatically, it is subject to the administrative site plan
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review process, should this request be approved; mainly because the parking area must
be expanded. However, the use is consistent with the 2020 general plan and no
proposed building expansion is proposed. There may be a few modifications in the
interior, we'll have the architect explain those in greater detail. But no expansion to the
footprint.
And at this point, I will open it up to questions. The applicant and the owner of the
facility are both here as well.
MAYOR DICKEY: Thank you. Why don't we go with the public cards and then we'll
discuss, and I'll close the public hearing. Thank you.
Do you have any cards?
MENDENHALL: Yes, Mayor, we do. Well, in your packet. We'll start with the written
comments. We have Liz Gildersleeve, she's against it. William Thomas Liffiton, he is
against it. And then we have three speaker cards. First, we'll have, we'll start with
Diane Bach, and then on deck is Tammy Helm. And after Tammy is Crystal Cavanaugh.
BACH: Madam Mayor, councilmembers.
MAYOR DICKEY: Can you put the microphone -- yeah. Thank you so much.
BACH: I live across the street from this facility. And I know that we need these in this
area but it's like that saying, not in my street. Anyway, we adamantly oppose any
proposed changes to this Fountain View Manor home for the following reasons. Impact
on traffic alone is already congested and unsafe along Westby Drive. Vehicles are
traveled -- they travel off to Palisades competing for room, where there are cars parked
on both sides of the street for this already feeling-commercial facility that is a residential
home trying to be commercial.
Emergency vehicles come more often to this building than you might think, with flashing
lights and sirens. And there's only ten beds here. Their parking situation has been
downplayed by the owner saying that this fly by plane that comes in the air and sees
one car down there, to take a photo from the air one day of the year seems
disingenuous. We see cars over there as many as six at a time, staggering, coming and
going. I have pictures here if you want to see.
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The applicant states that she wishes to increase the number of residents while keeping
the facility's residential status and feel of the home, residential function, and
appearance. But approving this SUP will only destroy all of that. It will change the
nature of the residential look and lower our property values. Especially, when they plan
to pull out all those plants. There's an ocotillo there they have left, I think, to die. And
it's huge. It's probably as tall as this ceiling. And I'm sad to see it.
Even commercial properties have more landscaping than they have on Westby Drive.
It's all parking. All of it. And they're -- I guess, they're going to make it more of a slab?
I'm not sure exactly what they're going to do but it's upsetting, actually, to look over
there and see that. There is not a mix of residential and commercial properties as the
erroneously stated staff said. I'd like to make it clear that all properties along Westby
Drive are residential except for this one property that already feels uncomfortably
commercial, yet supposedly is not. So commercial property will only degrade the nature
of the residential look and feel of the neighborhood that we need to keep so as not to
create a slippery slope for any future proposals.
Garbage collection has like three cans out there for ten-plus beds now. Wouldn't it be
six or seven if we had more? We strongly urge the council to deny this property be
changed from a residential property to commercial. Even if only for safety reasons for
the patients inside and for all those traveling down Westby Drive. If the planning and
zoning commission has denied this, I'm unsure how the council can support it. I think
that if you lived in Westby Drive --
MAYOR DICKEY: Thank you, ma'am.
BACH: -- I'd be willing to bet you wouldn't want to live there either.
MAYOR DICKEY: Sorry. The button went off. So thank you.
BACH: Oh, okay.
MAYOR DICKEY: Thank you very much.
BACH: Thank you.
MENDENHALL: Tammy Helm, are you still here?
HELM: Yes.
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MENDENHALL: Oh, there you are.
HELM: Yes. Good evening, Ms. Mayor, and councilmembers.
I am here on behalf of my parents and myself. We, the three of us, are Fountain Hills
residents. They cannot be here tonight. My parents have lived in Westby for over 15
years. I have noticed the traffic has gotten worse over the years. I have the same
sentiments as the last speaker that was just up here. So I will just quickly go through my
things.
There are so many parked cars which cause difficulties for drivers who are trying to turn
onto Westby or off of Westby. Often it's reduced to one lane on Westby because of all
the parked vehicles. There have been multiple accidents on this corner. I understand
one as fatal, many years ago. Many of the condo residents who live on Westby park
their personal vehicles on both sides of the street and, in addition, there are numerous
commercial and delivery trucks parking on both sides of the street that add to the
congestion on this corner. Increasing the size of the driveway will not alleviate the
current traffic problems, let alone the future traffic problems that will result from an
increased number of patients. Meaning, there will be more visitors, more employees,
more deliveries to that property.
We're also concerned about the health and welfare of the current and possible future
patients. There are already too many people crammed into one house. I believe the
square footage is over 4,000 because they utilize the garage. The garage has been
turned into living space. So apparently there are seven bedrooms, five bathrooms, all
on the same property for 20 people and now they have 10 but increasing it up to 16.
I'm sorry, not 20.
I just think that this is very unreasonable. You know, do the math for 20 people living in
one house that was originally built for a single family. I ask you, councilmembers and
Mayor Dickey, how many of you would be willing to put one of your elderly loved ones
into a facility with this many people? Please consider what many of these residents are
asking you to do and please deny this special permit request. Thank you.
CAVANAUGH: Good evening. Crystal Cavanaugh, resident. I was at that P&Z meeting
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earlier this year when their 5-1 recommendation was for the council to deny the
expansion of the community residents from 10 dependent adults to 16, plus staff.
Which essentially at that time put it around 20. I was expecting that to be on an agenda
some months ago, but the applicant apparently reconsidered and waited. So tonight,
there's the request to increase the number of residents from 10 to 14, plus two live-in
caregivers, totaling 16. The staff report has indicated that they recommend that this
should actually be permitted. Are you kidding me?
The P&Z commission, the previous town council, and many citizens worked very hard
last year to provide input on our ordinance, talked through concerns, and came to an
agreement that the number of residents in longer-term family community residence like
tonight should be eight, plus staff. And the transitional community residence, such as
drug treatment, be allowed at five, plus staff.
So this request tonight for 14 residents in a residential neighborhood, plus two live-in
staff, should be denied. The number of residents in this home was already
grandfathered in after the ordinance was changed last year. They already have two
more residents than are allowed under the current ordinance, which states eight. They
want 16 people staying in a residential home at the corner of Westby and Palisades.
They've already modified the garage, like stated, to be a bedroom for staff. Now they
want to add an additional bed in each bedroom. Will this make it even more difficult for
some of these elderly residents to move about their bedrooms and the home itself?
There is no way that the current residents will get better care or even the same level of
care if you bring in six more dependent adults. It might improve billing, but it will not
improve care for these people.
This also opens the door for any of the other community residences to request
expansion and exceptions for their homes to bring in more people. It is a very bad idea
to start undermining our current ordinance in this way. We definitely need to avoid any
unintended consequences. Please do not approve this SUP.
MAYOR DICKEY: Thank you. That's it? All right.
Do we want to ask questions of Farhad or the applicant? Anybody have any questions
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or comments? No.
I will close the hearing. And we are free to speak among ourselves or make a motion.
GRZYBOWSKI: Actually, Mayor, if I may? One of the things that -- and Ms. Cavanaugh
made it perfectly clear is that the P&Z people were led to believe it was 16 patient beds
with the two caregivers. We've now changed it to 14 patient beds with the 2 live-in
caregivers. According to the P&Z meeting, the applicant said at the time that they are
allowed as low as 80 square feet per -- I'm going to say bed, but per person in the
room -- or per resident, I think, is what he said. It's not for me to judge somebody else's
financial or personal comfort level with that 80 square feet or 100 square feet. If that's
what they can afford, then that's what they can afford. I won't judge them based off of
that. People don't like a 1,300 square foot home. My husband and I live in a 1,300
square foot home, but that's nobody's business. It's my comfort level.
That being said, also the number of cars were mentioned, and I know at the P&Z
meeting the applicant or the attorney or somebody reminded us that these are assisted
living people. They don't drive, they don't own cars, so the cars that are there are
generally that of the caregivers themselves, and he said that throughout the history of
however many years he looked at pictures, there was one or two cars parked in the
driveway.
And I'm actually looking at two pictures right now. One from Google Maps and one
from the presentation from Farhad. And the Farhad presentation shows one car in the
driveway. The Google Maps presentation not only shows no cars in the driveway, but
the next car up on the street is quite a distance down.
So I appreciate the concern over the vehicles, but I don't think that I see that as a
problem. Also, again, looking at the street and the number of multiple resident
households that are already located on the street, granted one of them we're looking at
the backend of one set of apartments or condos, I don't think that's the frontend. I
think that's the backend, if I remember correctly. So basically, I'm saying I don't think I
have a problem with this particular situation. Especially now that we've gone from 16
patients, down to 14 patients with the two beds. Thank you.
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MAYOR DICKEY: Thank you. Councilman, did you have?
SKILLICORN: Thank you, Madam Mayor.
I actually just want to -- I think the presentation was great. Told me everything I didn't
know. Planning and zoning voted it down. We had multiple residents say that they
didn't want it. I trust planning and zoning. I trust our residents.
MAYOR DICKEY: Councilwoman?
TOTH: I just wanted to point out that 80 square feet is actually the size of two
regulation pool tables. So if we put two of those together, that is the amount of space
that we're talking about for someone living.
I do understand -- I'm the biggest proponent of the free market that there is, but at the
same time we do, at some point, need to look out for people and we talk about seniors.
Seniors might not always realize what they're signing up for. If they need that special
care, that might be what they can find. And we need to be looking out for the ten beds
that are there and ensuring that they're getting a standard of care that is providing
them a good quality of life. I find it extraordinarily hard to believe that you can find a
good quality of life with living within the space of two regulation size billiard tables.
So with that I motion to disprove -- deny. Thank you. Jeez, Louise.
SKILLICORN: Second.
TOTH: Thank you.
MAYOR DICKEY: I think we have a motion and a second. Hold on, one sec.
We closed the hearing and once we make a motion we don't -- we're not supposed to
take public comment.
MENDENHALL: Yeah, this is the applicant.
MAYOR DICKEY: It's the applicant?
TOLAN: This is the owner. I just wanted to say a few words.
MAYOR DICKEY: Okay. The applicant can --
TOLAN: Even though it was denied --
MAYOR DICKEY: Well, the applicant can come up.
TOLAN: -- people don't know about this.
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MAYOR DICKEY: I'm sorry. Could you get to the microphone and identify yourself? I
appreciate it.
TOLAN: Yeah. First, although she was mentioning correctly. We took pictures,
physically over and over again when it's a street full of cars, none of ours. They're like
neighbors or whoever. The one accident, a few years ago, was on Palisades not on our
street. They're eight bedrooms and the ninth is caregiver. The rule is true, 80m square
feet per person. If it's in a room, double, whatever. The house was approved for
(indiscernible). Meaning, people with no money, okay? So for people they are okay
with two in the room, it's wonderful.
There is another thing, after we just passed all the fire inspection, whatever, health
department supposed to approve me. And let's say, hypothetically, I have license for 14
in the end, and then you and you and you and you, you're going to come in my house
and you're going to decide by yourself if it's too crowded or not, and you are going to be
the one who decided that I'm going to have 14 in the house. Because there are houses
licensed for ten and there are only four, six people in the house because they cannot
put more. Either because no good care or too crowded whatever. So then even I have
the license for 14, that doesn't mean I'm going to have 14. If the people of Fountain
Hills, they're going to decide it's too much. I am bothered because people don't
understand ourself. I've been in business 20 years, and I have good reputation in the
city and all these people -- like my house is almost 4,500 square feet. There are homes
in Phoenix, 3,300 square feet, approved for 16.
Based on the fact that yes, people don't -- not everybody has money and maybe in a
smaller or not extraordinarily large room, two people are happy just to have good care,
clean, good food, medically and everything care in the house. But regardless, it's you --
you're going to decide if I'm going to have 14 because I can be licensed for 14 and
maybe only 8 people in the house.
That's all I wanted to say.
MAYOR DICKEY: Thank you very much.
We do have a motion and a second on the table to move to deny the permit. Can I have
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a roll -- wait, Brenda?
KALIVIANAKIS: Yeah, I just had a little further discussion. Is that in order? Has that ship
sailed?
MAYOR DICKEY: No, you can.
KALIVIANAKIS: Okay. Thank you, Ms. Mayor.
Yeah. I'm a little troubled by our residential neighborhoods becoming commercial
zones. They're wide open for detox, extreme outpatient therapy, sober living. Now
these residents, although our code provides for them, you know, we do have to look out
for the neighborhoods and the people that live in those neighborhoods. I understand
these people are eligible for access and so maybe your concern about we'll at least have
a safe, clean place, even though it's very small -- I kind of disagree with that. I think it's
too small, just me, personally.
It's just -- it seems to me that there were -- I forget, eight letters submitted in our
packet, all of which were neighbors that were against. The only letters in our packet
that were for are people that were -- whose parents were residents there and they
signed a letter saying, yeah, my parents really like the soup here and it's been really nice
to stay. Well, those are people that live there or their caregivers. But the people that
are affected in the neighborhood categorically don't like it, including our speakers
tonight. So to me, this is a pretty simple no vote. Thank you.
MAYOR DICKEY: I'm sorry?
MCMAHON: Can I ask a question?
MAYOR DICKEY: Yeah. Sure.
MCMAHON: Farhad, it says here that a facility containing more than 10 beds must meet
different licensing prerequisites by the State Department of Health. What's their license
right now? Is it ten beds? Do they need to go and get another license and the process
for that? Do they need to have this pre-approved in order for them to apply for more
beds? Or is the cart before the horse or what's going on here? In addition, this seems
like a very crowded situation to me. There's been no mention of restrooms, et cetera.
So I would like to know about that and just like, what's the process here? Are we taking
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the cart before the horse or what?
TAVASSOLI: Mayor, Councilmember McMahon. As I mentioned in my presentation, this
does require -- going back a ways. Yes, they are currently licensed for ten beds by the
State Department of Health. Any increase in beds would require modification to that
license. However, any modification by the state would first require local approval. Not
only for the special-use permit but my understanding is also the site plan review process
which would follow, should it be approved. Did that answer your question?
MCMAHON: Yes, it does. Thank you.
It's a little bit confusing, seven bedrooms – eight bedrooms. I mean, how many – what
is the projected number of people per bedroom for the elderly here? And the
caretakers, I understand, would probably have their own bedroom. So what is the ratio,
is important.
TAVASSOLI: My understanding is no more than two beds per bedroom. I think, I believe
the architect could be more articulate.
TOLAN: There are currently eight bedrooms. So they're going to be maximum, it would
be 16, but they are not. So some bedrooms, and they are pretty large, the bedrooms,
believe it or not. They're like, let's say if it would have been 16, it would have been two
per bedrooms and the bedrooms are not small. You can walk anytime in my house. And
an extra bedroom for caregivers. So right now, as it is right now, there are nine
bedrooms and five bathrooms. But as you can imagine not every resident uses the
bathroom. Most of them, or at least half, they are incontinent.
MAYOR DICKEY: Yes, Aaron?
ARNSON: Mayor, before the council takes a vote, I just wanted to put a reminder to
make sure everything's clear. It's a motion to deny. So if you want to deny the request,
vote yes. If you want to approve the request, vote no. Okay. So there's no confusion.
MAYOR DICKEY: Thank you.
Okay. We'll take a roll call vote, please, on the motion to deny.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
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MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Aye.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Nay.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you. Thanks very much.
Our next item is approving a second amendment with Kimley-Horn, Palisades Boulevard
and Fountain Hills Boulevard intersection. Thank you. Hi Justin.
WELDY: Madam Mayor, Councilmembers. As you can see from the staff report, not
only myself but previous public works directors have been working to improve the level
of service for this intersection for a considerable amount of time. In the past several
years we have certainly done our best to make improvements, including, but not limited
to, either the elimination or the trimming of vegetation in the raised medians that are in
the western leg or on the southern leg.
We've also increased the green ball for the protected left turn, just slightly, to see if we
could gain any level of service improvements there. But prior to getting any further into
that, let's run back a little bit and talk about the challenge we face.
The challenge that we primarily face at this location is northbound left turns. And the
majority of this traffic we know, over the years, is directly related to the high school. It's
important to note when that traffic signal was originally built and managed by the
county, the school at that time was a junior high school. The high school was added at a
later date after incorporation.
As of recent, the junior high school has been moved back in there and for anybody that
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may or may not use that intersection in the early morning, or lunch time, you'll note
that there is a considerable amount of congestion. The challenge that we primarily
faced is we're not providing service to not only the northbound left turns but also the
eastbound, westbound, and southbound left turns simply because we don't have
adequate storage and the traffic signal is currently like our remaining other 12 signals, it
has protected left turns.
Over the last -- well, during COVID or during the pandemic times, obviously, we didn't
have any challenges there. Once this new school year started up, we were right back
into the same situation. It should be noted that this has been discussed amongst staff
and the town manager for a considerable amount of time, trying to determine when the
best time would be to bring it back and we believe that time is tonight.
A brief description of the design is simply to increase the lengths of the lefthand turns,
offset them just slightly. So if someone wanting to make a left turn could see past the
opposite side vehicle sitting there. And also most likely eliminate the lefthand turn --
backing up.
The protected left turn. Let's spend just a moment and discuss protected left turns.
Protected left turns are just that. The vehicles that are wishing to make a left turn get
their own indication, in this case a green arrow, and all of the left turns for the north
and south legs enter that movement at the same time. The same for the east and west.
Unprotected, which we don't have any of those here in town, allows for the vehicles to
enter the intersection and if there is adequate gaps in the vehicles traveling the
opposite direction, make a left turn. That's really the difference between the two of
them.
The design will also include some badly needed improvements, primarily on the
southeast corner, adjacent to the service station there. There is a very steep sidewalk
and a very steep angled ramp. Year before last and last year, to alleviate some of the
challenges there, we went out and installed some smaller poles and put push buttons on
those because we have at least two daily users of that intersection that are in a specialty
vehicle. I don't want to call it a wheelchair but it's an electronic or motorized
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wheelchair. And they were simply not able to reach the button because of the steep
grades. So this design will also take care of that.
It's important to also note this is just the design. Part of that will provide an engineer's
estimate for the project. We will be returning to you, most likely with the -- somewhere
around 60 percent. We'll bring some exhibits up and show you want we're proposing
and what we think is going to work best and then obviously after it's approved, we'll be
meeting with the council whether or not we're going to be including it in one of our
capital projects in the future.
With that, I'll do my best to answer any questions you may have.
MAYOR DICKEY: Thank you, Justin. Do we have any speaker cards?
MENDENHALL: Yes, Mayor, we do. First, we'll have Barry Wolborsky, and then on deck
is Kim Wolborsky.
B. WOLBORSKY: I'm Barry Wolborsky, and you know me as a frequent flyer here. In
keeping with my theme that everyone loves a study, I want to talk about the proposed
add-on study, and this is an add-on study, and I've mentioned add-on studies before.
That if you do the initial study suggesting that you need a big project, then you get the
add-on study which is a lot more money. And this is an add-on study regarding traffic
revisions mentioned before.
Once again, I will say, that if a study is opposed to your common sense the 99 percent of
the time, the study is wrong. I admit that there are a handful of times per century when
science amazes us. Galileo's proving that a pound of feathers will hit the ground just as
fast as a pound of lead from the top of a tower is one of those. Fleming's discovery that
mold could cure infection and naming it Penicillin was another one. I don't think this
study falls into that category. But I feel certain that Mr. Weldy's study is designed to
give an end and I'll tell you why I think that.
The idea that permissive left turns at that intersection, meaning cars can dart in-
between traffic is the solution to the problem, to me is terrifying. This indicates that the
goal of the study was actually to reduce the population of Fountain Hills. Clearly, they
have no concept of what kind of drivers we have here. The fact that the safety
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committee found that this was the best choice presented to them makes me shudder
what the other choices were.
For the safety of our community, I recommend that this study not be approved and that
an alternative firm, who understands our situation better, be hired to do the follow-on
study. I don't think speeding up traffic a few seconds at that intersection is going to be
worth the death and injury that will occur when cars are trying to dive in-between each
other and kind of thread the needle through the traffic stream. Thank you.
K. WOLBORSKY: Hi, I'm Kim Wolborsky. Madam Mayor, Council, and I am a resident of
Fountain Hills. And I'm married to that guy. And when the light of my life told me he
was going to speak on this issue, I had some great ideas and he said, well, if you want to
present those you have to do it yourself. So here I am.
So well, I think they're great ideas. Quick plug for the online agenda again with the
detailed links.
And I do think it's a great idea to increase the length of the turn lane when you're
heading north on Fountain Hills Boulevard. It clogs up, people get stuck with the behind
of their car sticking out in the other lane which clogs up traffic. I think that's great.
What I am concerned about is the permissive left turns. The median age in Fountain
Hills is 58, and I can say that because I'm helping to raise that median and based on my
age. And you know, that means our reflexes aren't really what they were when we were
18. I come from a town where we had permissive left turns, and it was a mixed town,
and you did see a lot of accidents that way. I think that's a real possibility.
Did the recommendation, did the original study take this into account? I regularly see
very slow and hesitant drivers on our streets.
Added to this is the higher rates of alcohol and drug abuse since the pandemic. I see a
strong possibility of an increase in accidents at this intersection. But the main thing
here is, what is the cost of the project? Like, we have no ballpark on the cost of the
project. And the design cost just for this piece of the study is over 80K. Is this money
better spent on paving our streets at this time? Like, it would be great to improve this
intersection, is this our top priority? That's all I got. Thank you.
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MAYOR DICKEY: That's it? Okay. Councilman?
SKILLICORN: Thank you, Madam Mayor. Director, a couple of questions. One, this
study. Is this study needed to lengthen the turn arrow length of time? I mean, can we
increase it a few more seconds or double it with or without the study?
WELDY: Madam Mayor, Councilmember, this is not study. The analysis for this
intersection was done several years ago. What we're asking for tonight is funding for
the design. So the design is based on the analysis. And as part of this design the
protected permissive left turn will be visited. We may not end up with unprotected left
turns at that intersection based on the geometry in its current configuration and it may
not be possible for the future. That will be determined as part of the final design.
Again, this is for the design of the exhibits and the concepts that were provided almost
two and a half years ago. The analysis was completed. There's no additional analysis.
In regards to construction cost, that will be included in the 90 percent design. They will
make an estimate at that time.
SKILLICORN: Madam Mayor, Director, so this $21,000 is engineering. But if we let it go
ahead it could very well turn up to a project that has these unprotected left turns
without some direction. And that's kind of where I want to get into is -- I don't think it's
appropriate to have the unprotected left turn. So I want to make sure that direction is
on the record. But also one question I have is, you mentioned a lot of this is traffic
relating to the school, right? So I'm going to guess that's only a few very specific times a
day. Morning, lunch time. This would be going to the school and not away from the
school. So I'm guessing it's mostly morning and lunch time, is that correct?
WELDY: Councilmember, this is three peak flows. So a.m., midday, and p.m.
SKILLICORN: Okay. Do you have maybe like -- I'm not looking for a specific like, you
know 7:16 to like 7:45, but I mean is there -- can you give me a guestimate of the times
we're talking about here?
WELDY: The queues usually begin to create challenges just before 7 a.m. and because
of the split times at the school, probably about 8:30, 8:45 is whenever we see things
begin to slow down.
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SKILLICORN: And --
WELDY: And in that mix we also have a select number of parents that are also on their
way out or residents that are on their way out to their employment during that time
frame as well.
SKILLICORN: And is that constant? From 7 to 8:45?
WELDY: It's pretty constant.
SKILLICORN: So I made this an argument about something else recently. I don't like to
change things up for such a small period of the day. You know, there's 24 hours a day
and we're talking about one hour and 45 minutes that there's a little bit more traffic.
Now, no one likes to sit in traffic, I get it. But for 22 hours, 15 minutes a day, there's not
a lot of traffic here. So I mean, I'd be okay with lengthening the green light. I'd be okay
with extending the distance of the left turn lane, but I'm not so sure redesigning
something and making significant changes for one-12th of the day, is enough for me.
That's where I'm a stickler on this. It's that yeah, it's inconvenient for an hour and 45
minutes, but again that's only one-12th of the day and we're going to make major
changes on it. I'm very hesitant here.
WELDY: Understood. And for a point of clarification. Right now there is a very strong
push for the Town of Fountain Hills to visit their other 12 traffic signals and remove the
protected left turns with flashing yellow arrows. That's what a flashing yellow arrow is,
is an unprotected left turn. It's just a brief reminder to tell you to not only look at this
arrow but try and determine whether or not there's a car coming in the opposite
direction. And in regards to increasing the time, all traffic signals work on seconds. And
we've increased the green ball time as far out as we can. The longer you increase two
legs, the more you're decreasing the other two directions which creates a separate
problem.
MAYOR DICKEY: Councilwoman McMahon?
MCMAHON: Director, I serve on the pedestrian traffic safety committee, and we've
been talking about this for a while. It's not just high school traffic. It is also the
snowbirds. I think that's one of our busiest intersections in town, right?
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WELDY: Madam Mayor, Councilmember, it certainly has an uptick. Our busiest
intersections are Palisades and Shea and Fountain Hills Boulevard and Shea, and then
lastly Saguaro and then we move to the interior.
MCMAHON: Right. And I recall that when we went through this particular process,
looking at this, you already tweaked the timing on the light, and it didn't really help the
congestion. It didn't help the left turn, the right turn, et cetera. Personally, I don't think
it's just for the northbound. I think it's for the east- and westbound because I've come
over Palisades and turned left onto Fountain Hills Boulevard, there's been a long line
even during the day, shopping time, et cetera. I think based upon what you've told us in
the past that this is really a safety issue, and also to address the sidewalk for access for
disabled, et cetera, this would be included in that as well, is what you were saying?
WELDY: Correct.
MCMAHON: Okay. Thank you. And let's see -- I think that given the fact that we're
looking -- we've been talking about traffic lights, et cetera, and adjusting them for more
safety in the town, I think that this would be a good idea to proceed with, thank you.
WELDY: Madam Mayor, one last point that I think is important, for clarification.
Whenever you have a traffic signal that is not meeting its service demands, what we end
up with are red-light runners and I'm not going to single out any age group, but I'm
certainly going to say that we have a number of youth that may or may not need to be
somewhere at a certain time, a couple of times a day, nearby and we want to be ahead
of the game on that.
MAYOR DICKEY: Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor.
As much as I'd like to go along with you on this one, I think I can't. This reminds me of
the conversations we used to have about want-to-have items versus need-to-have
items. I've literally gone to that intersection. I took pictures of that intersection, they're
on my phone. It's honestly one of the better intersections I've seen in the east Valley.
It's completely ADA compliant and all four corners. The traffic flow is good. I go
through that intersection daily. It seems like this is a waste of almost $100,000 and then
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to put on top of that, after the design study comes, there's going to be another huge bill
to correct an intersection that really, right now, is functioning rather well.
We pledged a year ago, on this council, to build the darn roads and to fix the roads. I
haven't strayed from that. That's still what I want to do. Some people call it roads first,
whatever you'd like to call it. There were recently two letters to the editor, published in
the Fountain Hills Independent, neither of which were supporters of mine and both of
which acknowledged that what happened to the roads first? What happened to this
council? How come we're not fixing the roads?
This, to me, would be a dereliction of duty, to take these funds and to put it to what I
would consider a fully functioning intersection that's ADA compliant and except for a
couple of kids that run stoplights, I don't think we can throw that much money at it.
And so I would be a no for this expenditure.
WELDY: Madam Mayor, just one clarification. None of the four corners of that
intersection comply with the DOJ requirements for accessibility. All of them are out of
compliance. One of them, in fact, on the southeast corner is very, very steep, and
difficult to walk on, much less get a motorized cart or wheelchair on.
KALIVIANAKIS: Just a point of clarification, when they were built they were compliant,
correct?
WELDY: No, ma'am.
KALIVIANAKIS: Oh, they weren't?
WELDY: No, ma'am.
KALIVIANAKIS: So how did that happen?
WELDY: You would have to talk to the county about that.
KALIVIANAKIS: How long ago was that built?
WELDY: The original intersection and the geometry, '79, '80, perhaps.
KALIVIANAKIS: Okay. Yeah. I'm not handicapped, obviously. But visually, it looks ADA
compliant with the ramps and everything. But I will not dispute your assessment.
MAYOR DICKEY: Vice Mayor?
GRZYBOWSKI: So the ADA noncompliance thing is new news. So that hasn't changed
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my mind how I feel about the intersection. But I wanted to say is, ever since I started
coming to council meetings, 2016, early 2017, lengthening those left-turn lanes has
been a conversation by every single council, multiple calls to public. So I feel like it's
something that we really need to do and unfortunately you have to design it first before
you can even figure out to find funding in the budget. But I wholeheartedly support
doing that. Just, like I say, conversation has been going on for years. So I'm ready to
actually move to approve as written.
MCMAHON: I second.
MAYOR DICKEY: Is there any further discussion? I do have a question.
The design doesn't include sewer, landscape irrigation; is that because you know where
all those lines are and it's not a concern or is that something that the design doesn't
usually –
WELDY: Madam Mayor, what I'm going to describe in civil engineering is shallow
construction. So the curb gutter and asphalt, we would like to believe are not going to
impact the sewer lines or water or electrical, they should be deeper. We have a minimal
amount of irrigation there. It would be in what we refer to as the west leg, which is on
the west side of the intersection. We have a raised median there. And then we have a
raised median on the south leg. Most likely, what we would do is eliminate the majority
of the landscaping and the irrigation for the length of the left turn pocket as part of that.
And the reason for that, you end up with a very narrow, maybe two feet wide or
narrower, and that's not very safe for someone to get out there and do maintenance in.
MAYOR DICKEY: Thanks. I just wanted to make sure that that was okay with you that
that wasn't in there. So we do have a motion and a second to approve this design. It's
not a study; design of an intersection. And I would concur that we have been discussing
this for quite a while and also from folks who have told us that the mornings were
difficult for them, not just the students, as far as getting in and out of there. And we all
know where Starbucks is and such, it can get really congested. So I think it's a good, safe
move to make.
Can we have a roll call, please?
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MENDENHALL: Yes. Councilmember Toth?
TOTH: No.
MENDENHALL: Councilmember Friedel?
FRIEDEL: No.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: No.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: No.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you.
I would like to go on to our next item which is approval of Interwest Safety sign contract.
WELDY: Madam Mayor, Councilmembers. Thank you for the opportunity. This contract
amendment is directly related to our street name signs, our stop signs, our regulatory
signs, occasionally some of the signs that we use for trails. But primarily, this is going to
be covering the signs we need that are required by the federal, state, and/or county.
We do have a sign shop and oftentimes, when we're having discussions or if we're doing
tours, you will hear me say that. I want to be clear that the sign shop we own only
contains our inventory and allows the location for street apartment staff to assemble as
much of a sign structure as they can prior to taking it out on location.
It's important to note that over the last several years materials have been increasingly
short in supply. And so as we continue to replace either outdated or worn signs or
damaged ones, what little bit of inventory we kept has been all but deleted and we've
been one-offing it for replacements. We also have a large number of stop signs that
were purchased with grant money back in the mid-2000s. Those signs are going to be
reaching their end of life in regards to their reflectivity.
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OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
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And oftentimes you'll hear me mentioning reflectivity. I think it's important to note that
the street department has a reflectometer. That is a device that we use after the sun
goes down to determine whether or not it meets the standards. And if it doesn't meet
the standards, based on the last time it was graded, approximately how much longer do
we have? That's part of our maintenance and inventory. And we know for a fact that
the total purchased in 2011, through $14 for the stop signs, was 75,000. Approximately
58,000 of that was a grant.
We also have just simply a large number of street name signs, warning signs, and
regulatory signs that are coming up. We're asking for a relatively large amount. The
primary reason for that is we know we spend between 50- and $60,000 on average for
signs and hardware. But we now need to build up one, our inventory, and we're also
looking over the next several years to begin phasing in the replacement of the
regulatory signs. Those are the stop signs that are going to be the primary factor there.
It's also important to note that this particular contract through the City of Peoria went
out to bid and our procurement officer was kind enough to be proactive and sent me
some information on this. For this bid, which was a 2021 Interwest Safety Supply bid,
Zumar Industries, Xcesssories Squared Southwest and Care Products LLC (ph.). So there
were four competitive bids, and the City of Peoria selected this one.
And we would like an opportunity to take advantage of this pricing prior to it going up,
which it most certainly will, based on past history.
Any questions related to this; I'll do my best to answer them.
MAYOR DICKEY: Thank you. Do we have any speaker cards?
MENDENHALL: No, Mayor, we do not.
MAYOR DICKEY: Thank you. Any questions about this item? Comments? No? Okay.
MCMAHON: I'm just going to make a motion.
MAYOR DICKEY: All right.
MCMAHON: I'd like to move to approve the first amendment to cooperative purchasing
agreement 2023-026 --
KALIVIANAKIS: Second.
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OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
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MCMAHON: -- with Interwest Safety Supply for signs and sign hardware in the amount
of $100,000 annually. Thank you.
MAYOR DICKEY: Thank you. Yeah, no kidding.
Roll call, please?
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: After hearing four bids, I'm an aye.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you. Thanks a lot, Justin.
WELDY: You're welcome.
MAYOR DICKEY: Our next item -- no, we're -- no.
FRIEDEL: No, not so fast.
MAYOR DICKEY: Our next item is our approval of employment agreement for the town
with Rachael Goodwin in the position for town manager. Aaron?
ARNSON: Mayor and Council, thank you. By way of introduction, you all know why
we're here on this item tonight. Ms. Goodwin has been serving as the interim town
manager for the town since April. And what a six months it has been.
We've had several discussions and executive sessions with the council to negotiate a
formal agreement with the now-interim town manager and hopefully soon to be town
manager, so that she can fulfill the position on a permanent basis.
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Staff is extremely pleased to present the agreement for the council's consideration and
approval. And if you'll indulge me a short personal aside? I've had the opportunity to
work with Ms. Goodwin for many years and in the last six months to work very closely,
and very often together, over the last six months. I work with many, many managers,
and many directors in my role as town attorney, here and elsewhere. And she's a
keeper. I would recommend that the council approve the employment agreement with
Ms. Goodwin.
And with that, I'm happy to answer any questions.
MAYOR DICKEY: Thank you. Aaron, do we have any speaker cards?
MENDENHALL: Yes, we do. They're in your packet. They just want to submit in writing,
Rory Wilson is for the agreement. J. P. Ward is also for the agreement. And that's it.
MAYOR DICKEY: Thank you so much. Comments? Questions?
FRIEDEL: Move to approve.
GRZYBOWSKI: Second.
MAYOR DICKEY: We have a motion to approve and a second. And obviously, everything
you said we agree with. And not only just for the last several months but for as long as
you've been there with the award-winning Parks and Rec department, and we are very
happy to be moving forward in this way. You've been very professional, and I look
forward to signing this agreement on behalf of the council and continuing to serve with
you for our community.
With that, can we have a roll call, please? Oh, I'm sorry. Were you going to say, I saw
your thing?
SKILLICORN: Oh, Madam Mayor, I mean, I'll just point out that I think that staff morale
has been very high. I appreciate some of our contract negotiations. Now, I do -- I have
to be critical of things. I do think that salaries for management positions should be
merit-based. I think that we do need to -- have to focus on trimming our budget and
also getting vacant spaces filled and I'd prefer a little more priority to that. And frankly,
I'd be glad to pay like a $200,000 salary if it was like a base-salary, plus incentives, to get
those things done. So those are my comments on that.
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MAYOR DICKEY: Roll call, please?
WELDY: Councilmember Skillicorn?
SKILLICORN: No.
WELDY: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Double aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Explain my vote? Thank you, Rachael, for the job you've done with the
employees and certainly it's well-deserved. Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye.
Thank you. Thanks a lot.
Again, I'm looking forward to the future with you, Rachael. I don't know if you want to
say anything. No?
GOODWIN: Nope. I'll just say thank you and I'm looking forward to it too.
MAYOR DICKEY: Thank you.
Our next item is the council discussion, direction to the town manager. I don't think we
had any questions or anything from call to public and our last item is future agenda
items? Councilman?
FRIEDEL: I have one, Mayor, thank you. It's come to my attention that there are several
cities right now that are doing inspections in transitional housing and detox facilities. I'd
like to have us bring that back and take a look at that, and I have some information here
that I can leave with you, Rachael, that will give you some details on the towns that are
currently -- some new ones that are currently doing this. So I can leave this with you
TOWN OF FOUNTAIN HILLS
OCTOBER 3, 2023 TOWN COUNCIL MEETING MINUTES
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afterwards. Thank you.
MAYOR DICKEY: Councilman?
SKILLICORN: Thank you, Madam Mayor. There's two items that I'd like to add to the
agenda. One of them, I'd like an opportunity to tweak some rules, specifically about
how the vice mayor, the roles are there. So I'd like to -- and I'd can give specifics on that
to write that up. And then the second one that I actually do have printed up a kind of a
sample ordinance here to not enforce lockdowns and mandates. So I'll hand one off the
clerk, I can hand one off to the staff also. To not enforce lockdowns and mandates.
MAYOR DICKEY: I mean, we're fine. You can bring them forward and we can figure out
what that even means, Aaron. Because mandates --
ARNSON: Is that the Queen Creek one, Allen? That you have a sample? Okay, I thought
maybe it was.
MAYOR DICKEY: Okay. All right. Thank you.
Thanks everyone, we're adjourned.
Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting
of the Fountain Hills Town Council held on October 3, 2023, at 8:02 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 3rd day of October 2023. I further certify that
the meeting was duly called and that a quorum was present.
DATED this 21st Day of November 2023.
_____________________________
Linda G. Mendenhall, Town Clerk
TOWN OF FOUNTAIN HILLS
MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL OCTOBER 17, 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 5:38 p.m.
Members Present: Mayor Ginny Dickey: Vice Mayor Sharron Grzybowski; Councilmember Gerry Friedel; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth; Councilmember Allen Skillicorn
Staff Present: Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately one hundred members of the public were present.
TOWN OF FOUNTAIN HILLS
OCTOBER 17, 2023, TOWN COUNCIL MEETING MINUTES
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Post-Production File
Town of Fountain Hills
Town Council Meeting Minutes
October 17, 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
OCTOBER 17, 2023, TOWN COUNCIL MEETING MINUTES
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MAYOR DICKEY: Good evening, everyone. Sorry about the late start, but you had some
good snacks before we got started. Please stand for the pledge. And if you choose,
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. Rev. Cathy Northrop from Community Church of the
Verde's. Hi.
NORTHROP: Hi. Will you bow your heads with me today?
Almighty God, we call upon your presence on behalf of this town council, town staff,
and others present here as participants or attendees, as well as for the town as a whole.
We do this seeking to solemnize the occasion and to bring your blessings and guidance
upon the proceedings. May you bless us all and keep us and be gracious to us. May
your face shine upon us and may we feel that this evening.
As we pray this evening, we remember that in your goodness we were born, in your
providence we've been kept to this day, and in your love revealed in Jesus Christ, you
have redeemed us for purposes unafraid. In Jesus' strong name, we pray. Amen.
ALL: Amen.
MAYOR DICKEY: Thank you. Roll call, please?
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Here.
MENDENHALL: Vice Mayor Gryzbowski?
GRZYBOWSKI: Present.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Present.
MENDENHALL: Councilmember McMahon.?
MCMAHON: Here.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Here.
MENDENHALL: Councilmember Toth?
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TOTH: Present.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Here.
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 a future council agenda.
Mayor, I also would like to make an announcement. Just for those of you who are not
aware, the council decided at a previous meeting to cancel the November 7th meeting
and we've added the December 19th meeting. The schedule on the website will be
updated and we'll also put a public notice in the newspaper.
MAYOR DICKEY: Thanks very much.
Our first item are reports by mayor and council and town manager. I'll start with
Rachael.
GOODWIN: Great. Thanks, Mayor.
Mayor and council, I have a couple of quick updates. As many of you know, I spent last
week in Dallas at the National Parks and Recreation Association Conference. It is it was
their largest ever. It was almost 9,000 people from across the U.S. as well as Canada
and Mexico. But we had the chance to sit on the National Gold Medal Board. So
Fountain Hills was represented very well on that stage and is seen as an industry leader.
So it was great to be part of that.
Some other updates. We have a new staff that joined us this week here in-house. We
have Jinnett Hancock. She is our new HR specialist. She's joined us specifically to help
us with the transition of our new fire department. So she joined us.
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In other updates. We had our we had our movie in the park last week. We have our
Make a Difference Day coming up this Saturday. If you're not already aware, we have
almost 400 volunteers that are joining us. We have 38 residential projects plus 5 town
projects. So it is a very large day of service with more than 18,000 service hours
donated. So we're looking forward to that. And then a reminder that next Saturday will
be our Spooky Blast over at Four Peaks Park to celebrate our Halloween. So we're
looking forward to a lot of great events.
MAYOR DICKEY: Thank you.
GOODWIN: Thank you.
TOTH: Thank you, Madam Mayor. This Saturday, as well as Make a Difference Day. So
before or after your volunteer time, be sure to stop by the Avenue of the Fountains
because the industry stakeholders group here in town under the Chamber for Health
Services has started a health walk. It will be on the avenue of the Fountains with a few
health-focused businesses here in town. We would love to see you there.
FRIEDEL: What time?
TOTH: It -- oh, yes. It is from 9 to noon and it's going to start -- the chamber booth is at
the executive suites area of the Avenue of the Fountains. So come join us before or
after your volunteer hours, of course.
MAYOR DICKEY: Vice Mayor?
GRZYBOWSKI: Okay. So Rachael stole my thunder on Make a Difference Day. She also
read my notes about Spooky Blast coming up. I got to stop leaving these things on the
counter for you to read. I also wanted to remind you that our farmer's market and Art
on the Avenue start the first Wednesday in November, and it runs through April. And of
course, the Festival of Fine Arts and Crafts is the weekend of November 10th through
12th. I got my new Fountain Hills Insider in the mailbox today. You guys should be
getting yours shortly. And all those fun things will be in there. If not, probably the town
has them out here. I meant to look, but there were so many people I forgot to look
today. If not, I know the community center has the Insiders as well, and you can always
find that on the website.
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And today is my favorite day of the month. Its Stellar Student Day. After you guys get
your certificates, the mayor is going to give you permission to leave. But I'm going to
tell you, you don't want to leave. These things are super fun. I promise you. Don't
mind the adults laughing either. Congratulations, guys. Thank you.
FRIEDEL: Thank you, Mayor.
Last week I attended the Regional Domestic Violence council meeting down in Phoenix,
and I had the pleasure of attending the post office dedication to Dr. C. T. Wright here in
town, so our post office is now named after Dr. C. T. Wright. It was a great a great
experience to be involved with that.
I want to remind everybody that we're still collecting food for the Extended Hands Food
Bank. We have a barrel out in the lobby. I didn't see anybody bring any canned goods
in tonight, so make sure you make a trip back with those. We need to help our food
pantry because they help a lot of our friends and relatives in this town. And then
recently, we also had the pleasure of attending a pro-Israel support at the Habad here in
town, just the other night. And it was quite a moving ceremony to be able to be with
those people and hear what they're going through and be there to support them.
So that's all I have. Mayor, thank you.
MAYOR DICKEY: Thank you. Councilwoman?
MCMAHON: Thank you, Mayor. Good evening, everybody. I would like to invite
everybody to our Cares forum on Thursday night, 6:30 at the community center. And
we are going to be having the FBI and the Arizona Attorney General's Office educate us
on elder scams and fraud, which is really, really important. It is happening more and
more and more, and all of us need to be educated about that, especially if you're a
caretaker for elderly. So please join us. There'll be a lot of vendor tables and a lot of
really good information. So thank you. I hope to see you there.
KALIVIANAKIS: Thank you, Ms. Mayor.
Hello, everybody. I hope everyone's doing well tonight with our late start. And thank
you for joining us on live streaming and on Cox Channel 11. A special shout out this
week to my friends. They'll be delivering the home-delivered meals this Friday with
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OCTOBER 17, 2023, TOWN COUNCIL MEETING MINUTES
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Councilman Friedel. And I know you're all watching out there, so we'll be there on
Friday to see you. And a special shout out to my friend, Banana29 (ph.). I know you're
watching.
This week, earlier, as part of the military courts and public safety committee, I was
attending a Zoom forum for the council on foreign relations, which we had an update on
the Israeli-Hamas war in the Middle East. It was a very grim update and it was a very
grim briefing. It was around an hour and a half long. I did share the results with the
Mayor and the council. It's much worse than it appears in the media. This is a
generational war. The accounts of what's going on over there are shocking, and it
shocks your conscience.
Four weeks ago, I reported from this dais that I had visited the presidential library of
Ronald Reagan, where they had the Auschwitz Holocaust exhibit. And what we're
experiencing right now is nothing short of Hitler's -- an extension of Hitler's final solution
for the Jews. The covenant of Hamas, which is what's dictating this war, is a
comprehensive manifesto comprised of 36 separate articles, all of which promote the
basic Hamas goal of destroying the State of Israel through jihad and consequently killing
all the Jewish people. We have dark days ahead of us, but evil was defeated then, and it
will be defeated now.
Which brings me to Sunday, which Councilman Friedel had mentioned, where we did
attend the Arizona Stands with Israel, with the mayor, with Councilman Friedel, and
Councilman Skillicorn. This was it was called, One Hour, One People to Pray for Israel at
the Habad Center of Fountain Hills. There's a popular adage among the Jewish people,
"Think good and things will be good". This implies that our positive thoughts influence
the actual course of events and assure us that in fact the ultimate outcome will be good.
Good always triumphs over evil, we must bear that in mind.
On a more lighter note. I did attend a ribbon cutting this week for Unbridled Beauty
with our vice mayor, where she filled in for the mayor admirably, I might add. Unbridled
Beauty is a medical esthetics practice to find a more beautiful you. It's located at 13125
North La Montana Drive, and I wish them success here in Fountain Hills.
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Like Councilwoman McMahon said, we do have the Fountain Hills Cares meeting this
Thursday, and I invite one and all to attend at the community center. Bad people are
always looking for ways to con you. Help protect yourself and your loved ones by
attending this and learn how not to be a victim. A special thanks goes out to Bo Larsen,
our town's communications manager, for all the time and effort he put into this very
special program. Thank you, Bo.
The last thing is, last Friday, I attended the PICO, the Pakistani Information and Cultural
Organization dinner. PICO is a Phoenix-based nonprofit organization, and they hosted
their 20th annual SAG Dinner on Friday night at the Sheraton in Wrigleyville. PICO is a
voluntary civic organization with a purpose to serve the greater Phoenix community
since 2001. PICO has volunteered over 15,000 hours with charitable organizations in
Arizona, some of which include the St. Mary's Foodbank Project C.U.R.E., St. Vincent de
Paul. PICO also sponsors and hosts other activities, including the largest kite festival in
Arizona every March. They have hosted the kite festival here for the past 13 years.
Hosting the kite festival was the idea of former Mayor Linda Kavanagh. I attended the
event with the former mayor and her husband, the Honorable State Senator John
Kavanagh. Our keynote speaker was our Governor Katie Hobbs.
And so thank you very much for attending tonight. Thank you for -- I know we went a
little bit long tonight. Thank you for listening.
MAYOR DICKEY: Councilman?
SKILLICORN: Thank you, Madam Mayor.
I do want to thank staff for lighting up the fountain blue. That was meaningful,
especially considering the murderous tragedy that we saw in Israel. So thank you very
much. I think we should discuss maybe doing that in weekends in the future to honor
the Shabbat. A few of us did Sunday night join the -- it definitely is not a celebration,
but the service at the Habad. It was it was great to basically be a family with our fellow
Fountain Hills residents and be a family with our friends and neighbors in Israel.
This last week was a busy one. One of the events that I actually was able to attend was
a seminar on the future of water here in Arizona. Very informative. Also this last Friday
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I was able to visit legislative council at the Capitol. I want to definitely shout out and
thank Representative Kolodin and Representative Matt Gress for making that possible.
And one of the things that we discussed is that there's a little bit of misinformation
about property tax levy and Cave Creek's penalty levy, and it really has nothing to do
with bonds and such. It has to do with growth there and a specific property tax levy. So
give you an example, if Cave Creek passed a dozen bonds, it wouldn't affect our penalty
levy. And there's a little bit of misinformation going around town about that. And just
to clear that up, that is definitely not the case and that is incorrect usage of what the
state law is. And that's kind of what we discussed there at the legislative council.
Councilmember mentioned about good overcomes evil, so I just want to really quickly
bring up Ephesians 4:29, let no corrupting talk come out of your mouths, but only such
as is good for building up, as it lifts the occasion and it may give grace to those who
hear.
Thank you very much.
MAYOR DICKEY: Thank you. The fountain was blue last weekend and several of us did
attend the Habad, One Hour, One People event. So that was very meaningful. We
wanted to show our support for Israel and it's fitting that we have visitors here from
other lands gathered together and recognition of our friendship and our partnerships.
Ukraine is on our minds, as are other areas that are troubled in the globe.
Some of us also attended an event -- you were there for the Fountain Hills Theater.
Longtime residents Sandy McGee and my sister Val Stasic brought award-winning live
theater to Fountain Hills 37 years ago, so it was a nice celebration.
I did have the honor to speak at the post office dedication for our friend and former
school board member Dr. C. T. Wright. Many of his family and friends were there, so it
was a very nice ceremony.
This October -- so this is Breast Cancer Awareness Month. I want to make sure that I
mentioned that. Also, as we discussed at our last meeting, October 23rd to the 31st is
Red Ribbon Week, which is the week for substance abuse prevention awareness. So it's
time. Sharron? Oh.
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FRIEDEL: Can I have one second?
MAYOR DICKEY: Yeah. Sure.
FRIEDEL: We are going to be lighting the fountain for the next several weekends in
unison with Israel. So look for that each weekend coming up for the next several
weekends as well. Thank you. Thank you, Rachael, for taking care of that.
MAYOR DICKEY: Oh, that's okay. So we are ready for our Stellar Students and we have
additional awards for our Little Falcons; I hope they're here. We're very excited to have
the little guys here. So as usual, I'll read what the teachers said from up here. And then
as I call your name you come up, and Angela right there with the has all your certificates
and she'll hand them to you. And then you come up and stay here. And then when I
come down, we'll just take like a quick picture, but then I will immediately be presenting
some proclamations. So hopefully, you had a chance to meet the president of Fountain
Hills' sister cities, and I will say this, Mr. Wnuk, and all of our visitors who are here to
experience Arizona and Fountain Hills. So I'll be reading a proclamation and we'll have
one that will be accepted from the sister city Vice President Elizabeth. And I know her
husband is here, Honorable Consul Emeritus from Poland, the Horchems.
Then I will be presenting to Fountain Hills' vice president sister city Christine Colley for
Germany, because it's also Germany Heritage Week or Month. And last but not least,
are Fountain Hill's Chamber of Commerce. We have our CEO President Betsy LaVoie
here and I'll be presenting that. So I'm going to do all that from down there.
All of the people that are accepting these are longtime residents, leaders, advocates for
our towns, our community. They volunteer hours and days and weeks for the good of
all of us, so it's an honor to be able to present this to them. So I will start with the kids
first.
Again, Little Falcons. Our first student is Jenny Belmont. Is Jenny here? Yay. Come on
up, honey. And see that pretty lady over there? You go right to her.
"Jenny greets everyone cheerfully every morning with a loud and cute voice. She says
good morning. She's always willing to lend a helping hand and set a good example for
her peers. She demonstrates the Falcon way: being kind, responsible, safe, and
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respectful on a daily basis". Thank you, Jenny. Stay right up there, though. Okay?
Our next Little Falcon is Wesley Yanachek. Is Wesley here? All right. Come on up,
Wesley. Oh, my gosh. "Wesley is a sweet and caring Little Falcon. Wesley has a good
sense of humor and loves interacting with his peers and adults. He comes to school
with a big smile and always has a zest for learning. He demonstrates the Falcon way on
a daily basis". That's our little buddy, Wesley.
So now we're moving on to the big kids at McDowell Mountain Elementary. We are
going to start with Lily Piwinski. Is Lily here? Hi, Lily. "Lily is always a stellar student in
P.E. class. She sets a good example with her positive attitude and effort. She's very
athletic and can run very fast. She plays hard and follows the rules. She always does
her best and is a good friend to others. She is kind, respectful, and a pleasure to have in
class". Thank you, Lily.
Also from McDowell, we have Deacon Romo. Is Deacon here? Come on up, Deacon.
"Deacon is a stellar student", with a very cool hat. "He always does his best and
activities. He's very athletic and an amazing baseball player". Maybe the Diamondbacks
need you tonight. "He's always kind, respectful and willing to help others by providing
support in the activities. He works hard, plays by the rules, and demonstrates good
sportsmanship". Thank you, Deacon.
Now we move on to the middle school. Isabella Furtado. Is Isabella here? Hey, Isabella,
come on up. "Isabella is a pleasant and conscientious student who gives her all in class.
She's a quieter student and has shown the ability to think deeply about the content she
is learning". Thank you, Isabella.
Also from the middle school, we have Payton Jenkins. Is Payton here? All right. Come
on up, Payton. "Payton is a well-mannered young man and he's eager to learn and is
not afraid to ask questions. He works well with others in small groups and is able to get
his team to stay on task". Whoa. Hey, you want to switch? Just kidding. "He is a stellar
example of the Falcon way. We are proud of him". That is Payton. Thank you, Payton.
You know I'm kidding.
And next to you is Ainsley McAloon. She is playing volleyball tonight, but I'm going to
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read all the good stuff about her. "Ainsley is a humble student who doesn't realize what
an impact she makes. She's eager to not only learn, but to excel academically. She will
put in effort above and beyond what is expected, not only for the grade, although that's
very important, but in order to further her understanding. She's respectful, responsible,
self-motivated, and consistent. She is respected by her peers and is very kind". And
that's Ainsley.
Our last high school student is Jack Irwin. Is Jack here? Hi, Jack. "Jack is a dependable
and exemplary student. He strives to understand the content in his classes. Jack is
organized, incredibly kind, and respectful. He's always prepared for class and readily
participates in discussions. Additionally, Jack looks for the good in others and
encourages them to also strive for excellence. I've been impressed with his character.
Without hesitation, I'd recommend him for this award. He deserves this recognition".
Jack Irwin.
All right, guys. Get close. Take a nice picture. Look at everybody and smile. Be happy.
These little ones might need a little help. There you go.
Right. Thank you.
Okay. So we are going to start with the first proclamation, which is for Polish American
Heritage Month. And I'm going to ask Elizabeth if you will come off, please, and hold
this and I'll read some words and then ask you to say a few things, if that's okay.
I read them with the big writing here, so. Okay.
"Whereas Polish people have played an important role in American history and culture
since 1608, when the first Polish settlers arrived in Jamestown, Virginia; and
"Whereas, the military genius of War Hero Thaddeus Kosciuszko and General Casimir
Pulaski was essential in defense of our freedoms in the Revolutionary War; and
"Whereas, Polish Americans have made significant contributions to the United States in
all fields, including business, education, government, the military, and the arts; and
"Whereas, there are an estimated 8.81 million self-identified Polish Americans
representing about 2.67 percent of the U.S. population; and
"Whereas, the Town of Fountain Hills is proud of its sister city relationship with Zamość,
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Poland, and has the strong cultural ties between our two communities which have
enriched our town in many ways. And we're very grateful for their friendship and their
partnership; and
"Whereas, the Town of Fountain Hills recognizes the importance of celebrating and
honoring the rich heritage and culture of Polish Americans. So now, therefore, I, Ginny
Dickey, Mayor of Fountain Hills, proclaim the month of October 2023 Polish American
Heritage Month and ask and urge you, all residents of Fountain Hills, to join me in
celebrating the many contributions that Polish Americans have made to our community
and our nation".
Thank you, Madam. On behalf of the Polish community, and we have quite a large
community in Fountain Hills, I want to thank you. And truly appreciate your help and
your good, good leadership. And thank you, the council. Congratulation, town
manager. And thank you for your help and your support of Fountain Hill's sister cities.
MAYOR DICKEY: Thank you so much.
Next, another friend that I've known for years and so appreciate her. I'll ask Christine
Colley to please come up for German-American Heritage Month.
COLLEY: Oh, thank you.
MAYOR DICKEY: So "Whereas, as early as 1683, families from Germany began settling in
Pennsylvania, beginning with them a legacy of ingenuity, perseverance, and a
commitment to building a better future for themselves and for our nation; and
"WHEREAS, German American Heritage Month provides an opportunity for all citizens to
learn more about the enduring impact of German immigrants on our nation's history,
arts, sciences, and cultural traditions; and
"Whereas," I like this one, "German Americans have made significant contributions to
the social, educational, and culinary fabric of the United States, introducing cherished
traditions such as the Christmas tree and the concept of kindergarten, as well as popular
foods, including hot dogs, hamburgers, pretzels, strudel, sauerkraut, and lager beer". So
you got me at that.
"Whereas, German Americans comprise the largest self-reported ancestry group in the
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United States, accounting for approximately 49 million people, which is 17 percent of
the nation's population;
"Whereas the Town of Fountain Hills has enjoyed a meaningful and lasting relationship
with our sister city, Deardorff, Germany, fostering friendship, cultural exchange, and
mutual understanding".
"Now, therefore, I, Ginny Dickey, mayor, proclaimed the month of October as German-
American Heritage Month and encourage all citizens to learn about and celebrate the
significant contributions of German Americans to our community and our nation."
Thank you.
COLLEY: Thank you, Mayor. Thank you, council. Thank you, town manager. We have a
good German population here in Fountain Hills, as you know, and celebrate Oktoberfest
one of the events that we brought to the United States. But I want to thank the
leadership of this town for the great support that we have to continue to maintain the
good relationships with our sister cities. And the help that we will be coming and asking
for our next sister city that we will do. But we have received continuous great support
and we really appreciate that. Thank you.
MAYOR DICKEY: Thank you, Christine.
So to bring it all together here we have our president and CEO of the Chamber and you
have to hold up -- she wants -- Tammy?
LAVOIE: Can I bring my staff?
MAYOR DICKEY: Yes, of course. Come on. Come on.
LAVOIE: Chamber staff.
MAYOR DICKEY: Come on up. You guys all look great. You're all coordinated.
LAVOIE: Great.
MAYOR DICKEY: It looks like it. Wonderful. Come on up. All right. So.
"Whereas, Chambers" -- no. I don't want to stay in front of you.
"Whereas, Chambers of Commerce strive to address the community's top challenges
and greatest opportunities through bold leadership and innovative problem solving; and
"Whereas, Chambers of Commerce fosters stronger, more vibrant communities by
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advocating for priorities to promote economic prosperity, boost quality of life, and
create access to meaningful employment and opportunity for all residents; and
"Whereas, Chambers of Commerce are champions of communities, serving as a trusted
resource for businesses, residents, and all stakeholders; and
"Whereas, Chambers of Commerce create catalytic community partnerships to build
resilient economies and promote community-wide prosperity; and
"Whereas, The Fountain Hills Chamber of Commerce is the largest nonprofit
organization in Fountain Hills, fully devoted to commerce; and will celebrate their 50th
anniversary in 2024 with approximately 1,000 members.
"So now, therefore, I, Ginny Dickey, Mayor, proclaim October 18th, 2023, as Support
Your Local Chamber of Commerce Day and encourage all residents to learn more about
our Fountain Hill's Chamber, its impact, and the support of our local businesses". Thank
you.
LAVOIE: Thank you so much, Mayor, Staff, Council, we so appreciate this and allowing
our staff to come up and receive this honor because it's truly a team effort, as you can
imagine. All of our board directors who are in the room, could you also please stand
because you represent this as well? Thank you.
The National Support Your Chamber of Commerce Day is from the United States
Chamber of Commerce and we, as a collective board and staff, want you to show that
support by supporting local. So dine local, shop local, experience local, worship local,
educate local; just enjoy and celebrate everything that is Fountain Hills. And thank you
so much, Mayor.
MAYOR DICKEY: So if anybody is leaving, you can go have some dinner or do something
local. Appreciate it. Thank you, guys. Enjoy.
Thank you all. We appreciate you being here.
Our first item is a presentation that we're going to hear about an update of our capital
improvement projects. Rachael?
GOODWIN: Thank you, Mayor. We have both Justin Weldy and Kevin Snipes here to
give us an update on the closeout from last year's CIP, as well as the beginning of this
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year. If you might -- you might recall a lot of our projects -- I shouldn't say a lot of them.
Some of them hinged on the financial audit that comes in. So we're going to be talking
about that at our next council meeting. So we thought this was timely to review where
we're at and what the next steps are. So with that, I will turn it over. Who's kicking us
off?
SNIPES: I'll kick it off.
GOODWIN: Awesome.
SNIPES: Mayor, council, good evening. Here to talk about our capital improvement
projects and give you an update here. So I'll kick it off with the ones that are going on in
the parks and rec world. So these are all the ones that were originally approved, and so
just the progress of them. The Golden Eagle Park field lighting project is complete. We
did come in a little under 20,000 under what we thought we were going to be at. And
we've gotten lots of compliments already on the difference it makes in that area. We
had one complaint when we first put them up and went out the next night and made
some adjustments while talking to him on the phone. And he asked me if we shut the
lights off because it made that much of a difference at his house. So just shows how
good that the lights out there are and the difference it can make.
The next one here is Desert Vista Park, multiyear improvement. So far this year, we
have put up the shade structure that was donated to us. And did the concrete
underneath it a week ago. So it is now ready for the next phase of that project, which is
putting in the fitness equipment. So you'll probably be seeing me back here shortly,
discussing that and showing you what we're looking at doing for that.
The other picture there is of the ramada by the playground. It was one of our -- it was
the only playground that we had that didn't have a ramada next to it. And now it has a
ramada and a nice big concrete pad underneath it. The picnic tables are ordered and on
their way. But as you can see, we still have a lot more work that's going to happen at
Desert Vista this year.
The Fountain Park, Panorama hillside erosion control. That's still in the planning and
design phase. We'll be looking at making some advances on that shortly. But right now
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we're still just trying to figure out exactly what the best way is to tackle this project.
The next one here is not a capital improvement project, but it is a grant that we were
told that we could go for -- two years ago now. And we were awarded the grant. So it's
a $500,000 grant in total. One grant paid for the matching, and then we had to come up
with 11,000 to get 500,000. So this was a really exciting grant that we were awarded.
We're really excited about it. And what that means for the town is that we'll be putting
a restroom over at Four Peaks Park. There you can see in the dark blue square. It'll be
next to the 5- to 12-year-old playground. It will have four stalls. And there's some
renderings of what it's going to look like. And then we also have a storage room
attached to the end of it, which we desperately needed at that park. So this is going to
be a win-win all the way around. We're really excited to get this put in. It will be a -- it's
a prefab model, so it'll come in on a trailer and be dropped into place. So you won't see
anything for nine months and then all of a sudden there'll be a restroom. So it will be
very exciting. It's the one complaint that we get about Four Peaks is there's not a
restroom on that side of the bridge. So this solves that problem and we're really excited
to bring this in.
So the next one here, this is one where we were waiting until you guys returned to start
this project. We're going to be planting trees during Make a Difference Day over there,
this Saturday. So we're excited to get that done. This is the project that we're looking
at doing 100 puzzle piece donation plaque that you can see there. That will help with
the funding of this project. And then there'll be other landscaping, as well as moving
around some artwork and redoing the Five Cs over there, to make it so those are legible
again. So we're really excited about this project as well.
This next one was one that was on the budget, that we were waiting on our funding to
come in, which we'll be talking about in November. So we'll be coming back to you with
this project. I've been working with a couple of different groups, getting some
renderings and some pricing to where we are ready. Moving with this project, I would
like to make sure that we do our best to get it done before the splash pad opens, so that
we're not mixing construction and five-year-olds running around tractors. So that's our
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main goal with this, that we're looking at about 21 picnic tables adding to the area,
which will be fantastic. We're working with the Plaza Fountain site group to meet up
with the business owners over there. As soon as we get that meeting scheduled, we'll
be showing them some renderings as well and make sure that we're all on the same
page. So with that, I'll hand it over to Justin.
WELDY: Madam Mayor -- excuse me. Councilmembers. This is just a brief update for
the capital for the public works department. All of these started with the budget, which
was July the 1st. This is actually a two-year project that was primarily paid for with
grant funding. However, we finished it in this budget year. There was a little bit of
work. For a reminder, this is down on Grande in the northeast corner of town. And this
one, the home on the right and a little bit of the home on the left or primarily the
homes on the bottom were flooded because this channel was not well maintained and
very narrow. This is a grant that we got from the Maricopa County Flood Control
District.
This one right here is very similar. In this particular case, two homes were badly
flooded. Again, this started last year with grant from the Flood Control District. We
were able to finish it up this year. We are excited about both of these projects and look
forward to working with the Flood Control on future grants.
This is a restroom facility that is approved as part of this year's capital budget to go on
the Avenue. It's important to note that we are still in the preliminary on this in regards
to the location, the size, and different types of design and final cost.
This right here is directly related to facilities. This is in the capital as $110,000. We are
currently working to determine if we can get something that is as efficient and effective
for less, or if there's a possibility that they may be able to do some reworking or
rebuilding on this one. We're working to do our best to arrive at a better price and a
longer lifespan.
For those of you not aware, the Shea Boulevard widening is a multiyear, I should say
multidecade at this time, because it started a considerable amount of time back. This is
the portion that will be widened east side between Palisades and Fountain Hills
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Boulevard. We expect that this project will remain within the budget. And as a
reminder, this project is a reimbursement from the Prop 400 money that we get
through MAG. This is the $3 million sidewalk that runs along both sides of Saguaro from
Colony to Fountain Hills Boulevard, and on the north side of Palisades, from Saguaro to
Fountain Hills Boulevard. The town's match for this is right now at $357,000 but the
total project cost is about 3.5. And we're hoping that when the bids open that there are
some eager contractors ready to come out and get to start later this fall or early next
calendar year on this one.
This project right here was the Fountain Hills Boulevard and Palisades Boulevard
intersection improvements. This one was canceled by the council.
This one right here is Palisades and La Montana. This is the intersection analysis. This
one is currently in process. We have encumbered $49,000 for this year for the analysis.
This is the bridge repair. And let me give you a little background on that. So every four
years, ADOT, free of charge, comes out and inspects all the town's bridges. And there's
different types of bridges, including the one in this photo, which we refer to as a
concrete box culvert. As you'll see in this one, we have an incredible amount of erosion.
That is referred to technically as head cutting. And what's happening here -- and this is
on the downstream side, is it eventually will expose the critical structure of that bridge
and the bridge would become in jeopardy. So we are using this money to shore not only
this one up, which is at Cholula Wash -- excuse me, Zapata, but we are also working on
one north of this at Cholula.
Now we're up to the community services, and this is the stuff that we'll be starting after
our pre-retreat -- is how we're going to describe it? This one right here is Panorama.
This is a multiyear project. The last phase of this one right here is actually going to be to
install the new electrical and the new pumps that allow us to recover more of this
surface water and move it back to Fountain Lake.
This is an ongoing multiyear project. Just a little heads up, staff will be returning to the
mayor and council later this calendar year or possibly early next calendar year and
asking for some additional funding to accelerate the next phase, in regards to the
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architectural and engineering firm that helped us with the current phase underway. As
a reminder, going a little bit back, this is the area that was formerly prone to flooding on
the west side of the building adjacent to the O'Flynn room. It's under construction right
now and very soon will be completed and will be an asset and a benefit, not only in the
form of additional storage for the community center, which is badly needed, but also a
covered patio for the residents to enjoy when the weather is nice out.
These are our fire alarm panel replacements. We're facing some challenges with this
one right now, primarily due to proprietary equipment that is creating some challenges.
And so we don't have this moving forward yet but we're currently working on it.
This is an old photo that I should have changed. But this is our -- every year we ask the
council for funding to do sidewalk infill and design. This is one that we did last year.
This year we are going to be within the budget and we're going to accomplish an
incredible amount. But it's in the north part of town and we'll share those locations
with you as part of the retreat and when we do our next update.
This one everybody is familiar with. This is the final design for the traffic signal at
Palisades Boulevard and Eagle Ridge. This one will be completed on budget, which you
see is just under $35,000.
These projects right here are actually what was approved as part of the budget in
regards to waiting. And the intent was to see where the revenue was as we approach
the end of the calendar year. These will start after we meet in November and
December. You'll see the park sidewalk replacement, which is $100,000 to replace
sidewalks there. We also have some additional work in Fountain Park. Public Works has
the Golden Eagle impoundment; town-wide storm drain infrastructure; low flow
roadway drainage crossing improvements, that's primarily a grant; town hall campus
exterior lighting and electrical upgrades; community center interior lighting; the
Maricopa County Sheriff's Office locker rooms' renovation, and the Saguaro and
Kingstree intersection drainage. And I'm going to stop right there for just a minute. And
I owe the town manager an apology on this.
We discovered in last year's budget for one of our projects related to drainage that we
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had unspent funding and an opportunity with two of our contractors to address an
ongoing issue at Saguaro and Kingstree. I spoke to the town manager at that time and
explained what we could do and when we could do it, and she agreed after I explained
that with one caveat. She asked me to please send her an email and an update when
the project was completed so she could share it with council. And I simply failed to do
that. And I was looking at it right now, remembered that she asked me to do that.
The good news is over 60 percent of the project was completed last year with funding
we had last year. And we anticipate that we'll be able to accomplish the next phase of
it, which is on the opposite side of the road, for less than the budgeted amount.
A lot of information. If you have any questions, Kevin, I will do our best to answer them.
MAYOR DICKEY: Thank you. Questions or comments for either of our presenters?
Yes, Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor. I'll go first. It's really exciting to see these
projects go from the retreat to the capital improvement budget, to fruition and
completion. I have to admit, it's fun. It's great. Thank you for all your hard work.
A couple of things I have. The splash pad renovation project that you talked about,
Kevin. I know Rachael, we were talking with a property owner about repairing the
sidewalk. Is there an update on the sidewalk?
SNIPES: Yes. So there's Mayor and Councilmember, I have talked to the property owner
as well as a contractor that's been working with them. And so what we're trying to do is
combine those two projects as best we can to where that contractor can use the town's
property to make it easier for him to complete their project, as well as work our project
from one end to the other as he's doing their project. So best-case scenario, that's what
our hope is, is to do it all at once. And I know that they are moving in that direction as
well.
KALIVIANAKIS: And we're getting cooperation?
SNIPES: Uh-huh.
KALIVIANAKIS: Okay. Good. The other one is the downtown restroom that we had the
picture of, with the blue doors. Can we get grant funding for that like we did with the
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park, or can we pay for that with development fees?
WELDY: Madam Mayor, Councilmember. So there is a downtown fund that we could
possibly use, and Mr. Pock would be the appropriate person to provide that
explanation. We will certainly look at grants. But historically, for this type of
application, no. It's a different situation when obviously you're meeting the needs of a
park.
KALIVIANAKIS: Right. And just as a side note, maybe I'm getting ahead of myself. But I
know we had discussed putting a two-stall downtown bathroom. It was like an open
stall with an open bottom, open air top. I don't think that would be appropriate for
Fountain Hills. I think that we should -- if we're going to do it, I think we should spend
the money and we should put a proper facility in there that our town can be proud of. I
just took a trip to California and I specifically was looking at bathrooms and areas.
That's how I spend my time now taking vacations and looking at toilets. And all the nice
towns in California, they had restroom facilities that were clean, had nice toilets,
mirrors, presentable. And I just think if we're going to do it, let's just do it right. So
maybe I'm getting ahead of myself.
And then the last thing I'd like to address is the Palisades and the La Montana project
that we're doing. Is that just in the design study right now, or where are we with that?
WELDY: Madam Mayor, Councilmember, the Palisades and La Montana?
KALIVIANAKIS: Yes.
WELDY: That is an intersection analysis. What they're going to do is they're going to
look at the geometry of the intersection and the vehicle counts, turning movement, the
crash data and make a recommendation on what would best be suited for that
intersection. And I'm glad you ask a question about that. It's important to note that
that project came forward as a result of not only some of the councilmembers that are
here with us tonight, but previous councilmembers receiving emails and phone calls,
none of them complimentary in nature, describing their frustration with that
intersection. So that that project is a past and current council-driven project.
KALIVIANAKIS: Okay. Good. Because if I could offer just a personal testimonial. I can't
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tell you how many times I've seen cars just blow right through that stop sign. And it's
obvious they're not doing it intentionally. They just don't see the stop sign. But that is
what we call in the business, an accident waiting to happen. And so the sooner we can
get on that, the better. Thank you, guys.
WELDY: You're welcome.
MAYOR DICKEY: Councilman?
FRIEDEL: Two questions. Kevin, that $500,000 grant that we got. Who was that
through?
SNIPES: It was through two different organizations, the State Parks and the --
GOODWIN: I think it's the Heritage Fund.
FRIEDEL: Heritage Fund? Okay. Thank you. And then the trees that are along that
sidewalk by the splash pad, is that going to be part of the project to get rid of those? I
know they're buckling up some of those sidewalks. Is that still in the works?
SNIPES: Yeah. That's all part of -- when we go in there to redo that, we'll be redoing
landscaping, we'll be redoing the trees, getting those trees out, bringing in trees that
should be there. Yeah, it was -- part of our conversation with the property owner was
that it doesn't make any sense for them to do the work and the tree continue to buckle
their sidewalks. It was trees that were put in by the developer when they developed
that property. But it's on our property. So in combination with that and it's wrong tree,
wrong location. So we'll be taking care of that as well.
FRIEDEL: Good. Thank you.
SNIPES: Uh-huh.
MAYOR DICKEY: Anything else? I just wanted to thank you for obviously getting the $2
million-plus for the sidewalks. That's mostly MAG money or -- yeah. And then obviously
the restroom. And when we talk about the Avenue of the Fountains restroom, I know
there's been a lot of discussion about where and when and you know, maybe not so
much of a money issue, but other things. So if there's anything we can do to help that
along, whatever the issues are, because I hear a lot of different things, please let us
know. Because I would really like to see that happen. And I think we budgeted for it
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and we all kind of agree that we would like that. So if there's somebody we can talk to
or something we can do, in order to do that.
And then last, just about the Avenue of the Fountains Palisades, we will be taking care
of those ADA issues. Because regardless of the fact that the council doesn't want to do
the whole intersection, we must and will. And I'm not saying this, telling you it, I know
that you've already said that you will take care of those.
WELDY: Madam Mayor, a point of clarification. Are we discussing Fountain Hills
Boulevard and Palisades?
MAYOR DICKEY: Oh, what did I say?
WELDY: Avenue of the Fountains.
MAYOR DICKEY: Fountains Boulevard?
WELDY: Correct.
MAYOR DICKEY: Safeway.
WELDY: We are currently working on three of the corners. We've already met with our
contractor. Surveyor will be out there. We'll bring some stuff back to the council in the
next couple of months.
MAYOR DICKEY: Perfect. Thank you. Thanks very much for all your work.
Our next item is call to the public. Do we have speaker cards?
MENDENHALL: Yes, Mayor, we do. First is Pam Cap and on deck is Lori Troller.
CAP: Good evening, Madam Mayor, Councilmembers --
MAYOR DICKEY: Hi.
CAP: -- and my fellow neighbors of Fountain Hills. My name is Pam Cap. I've lived here
for seven years. I've been following and paying attention to councilmembers who
promote Fountain Hills in a positive light. I recognize most of you are invested in making
Fountain Hills better. Whether you grew up here, you're raising your family, you have a
business, or it's your dedication to public service and making things better for every
resident in Fountain Hills, despite party affiliation. I see how you want to make our
community better. I respect that, and I thank you for that.
So imagine my shock and disgust on Sunday when I read an article titled, "'Woke' and
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'Sexual' Books Found in Second Grade Classroom Library in Fountain Hills". This was
published by a source out of Tennessee, of all places. And the person quoted in the
article is Councilmember Skillicorn. He states that over ten books were found in the
second and third grade classroom libraries by an anonymous parent. Skillicorn stated
that the books contain woke and sexualized topics, and the books were used for
grooming and indoctrination. No one from the school was quoted in the article.
One of the books in particular that caught my eye is this book. It's called "Just Ask: Be
Different, Be Brave, Be You". It's written by a United States Supreme Court Justice Sonia
Sotomayor. Oh, sorry. Anyway, this particular book is about including people that are
different. Justice Sotomayor uses flowers to demonstrate how kids are different. And
differences like Sonia, who was born with juvenile diabetes. Rafael (ph.), who was born
with asthma. Anthony (ph.) is in a wheelchair. Madison (ph.) is blind. Bianca (ph.) is
dyslexic. Jordan (ph.) and Tina (ph.) are on the autism spectrum. One is verbal. The
other is nonverbal. Nolan (ph.) is allergic to peanuts.
I've gone cover to cover, word for word, nothing about sexual identity or gender
identity. No hot button topics are mentioned. It's obvious Councilmember Skillicorn
never read this book. The author is one of our country's top experts on our Constitution
and our justice system. This is a clear example of Councilmember Skillicorn actually
trying to pluck others' rights away without doing his due diligence again. Skillicorn's
negative attention on Fountain Hills is inspiring negative attacks on local businesses.
Atticus Books, a local family-owned bookstore, is being attacked for being "woke".
I ask this council to consider censuring Councilmember Skillicorn, or at the very least
admonishing him for making Fountain Hills look in a negative light. Bring us together --
MAYOR DICKEY: We're out of time --
CAP: -- bring everybody together --
MAYOR DICKEY: -- ma'am. I'm sorry.
CAP: -- and make this community safe for everyone. That's all I ask of you.
MAYOR DICKEY: We're out of time. Thank you.
CAP: If you need any advice on inclusivity, it's right here.
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MAYOR DICKEY: Ma'am. Thank you. We've --
CAP: Thank you. And vote for the bond.
MAYOR DICKEY: -- run out of time. Would you like to respond?
SKILLICORN: No.
MAYOR DICKEY: Thank you.
TROLLER: Good evening Mayor, Council, Linda, Rachael, Aaron. Lori Troller, resident.
Before I get started, I just want to say I'm thankful to be part of a peaceful community in
light of what's going on in Ukraine and Israel. And I just want to take a moment of
silence for all the lives lost in these battles.
My topic tonight is broadband 5G, not to be confused with the cellular data service, 5G,
and specifically the moratorium. So to recap, what the moratorium is, is a brief pause in
time, which gives the town a chance to update the broadband ordinance without having
to juggle the incoming broadband applications at the same time. So the moratorium
was written as a resolution, not an ordinance. And for those not familiar with some of
the differences between the resolution and ordinance, I relied on staff and town
manager for an explanation. So in interest of time, I'll paraphrase.
A resolution is a temporary measure that, when not followed, does not result in civil or
criminal penalties. So that's to say if staff approved an application right now, there
would be no penalties for doing so.
So the moratorium is certainly a temporary measure, but it's also intentionally never
signed by the mayor. So if the staff were to receive a broadband application, then
reference the resolution that doesn't carry civil or criminal penalties, then ask guidance
from the mayor, who obviously doesn't support the protections the resolution provides,
and the town attorney, who has directly stated on public record that the resolution
doesn't have any teeth, it warrants the conversion of the resolution to an ordinance to
codify it in the municipal code to assure the intention of the resolution is followed.
So this will serve as goodwill to assure the members of the council that have supported
the resolution and to the community members that the assumed protection wouldn't be
threatened by a mayor's guidance of nonsignature.
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So it's my request for a future business agenda item to be considered for the next
council meeting to convert the resolution to an ordinance for codification to the
municipal code. Thanks.
MAYOR DICKEY: I think so.
FRIEDEL: Mayor?
MAYOR DICKEY: He could ask a question, right?
FRIEDEL: Can I ask a question?
ARNSON: Sure.
FRIEDEL: Why wasn't the resolution signed? And does that affect what we're doing
here?
ARNSON: No. The signatures are formalities, first of all, on resolutions and such. So
whether it's signed or not, it really doesn't -- the council voted for it, at the end of the
day. With respect to -- I will reiterate the point that I made earlier. The signature is
particularly irrelevant in this instance because the moratorium is of no legal force or
effect. Whether it goes in an ordinance, whether it goes in a resolution, it doesn't really
matter what form it takes, the point is, is that we are precluded by federal regulation
from enforcing any moratorium. So it's really a non sequitur, at least from a legal
perspective.
FRIEDEL: So if that's the case, would we be better off, then, not having that part of our
ordinance?
ARNSON: It makes no material difference at all.
FRIEDEL: No?
MAYOR DICKEY: Thank you.
MENDENHALL: Next, we have Rick Watts, and on deck, Kim Bartman.
WATTS: Mayor, council. Rick Watts, Fountain Hills resident. This is one of those issues
that just won't go away. This is the burr under the saddle, as you kind of refer to it. And
it's the dumping or storage of materials in the washes, and it's happening in several
different washes across town. So in the spirit of my trying to do my due diligence, I
went down, I looked at the signs that say clearly, "No dumping". I collected the
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information about the Arizona Revised Statutes. I read the Arizona Revised Statutes,
both of them in detail. And sure enough, it says, "No dumping". And there are actually
even criminal penalties, misdemeanors, and there's one as aggressive as felonies. So
then I said, okay, how can the town do this? Whether or not it's storage or dumping,
how can they mess up the views of the residents that are looking at the washes? So I
went and talked to MCSO and I said to MCSO, can the town ignore Arizona Revised
Statutes? MCSO look dumbfounded, and they said, no. I said, okay. That's two.
Then I went to our own ordinances and I looked at 9-3 and 10-3. And 10-3 is very
specific, as well as 9-3, that says no dumping, period. And if you store anything there, it
has to be for a 24-hour period and it has to be containerized. I said, okay. Well, I think
we're in breach of that.
But in the spirit of trying to find a legitimate solution, I said, where could we put this
material? And where we could put the material is actually on Falcon Drive in the streets
department. I was there the other day. I've been there twice, looking at the storage
facility and the capacity, and there's ample room to take the volumetric area of the
boulders and the millings and everything else that is now being stored in Sycamore.
There's plenty of room to put it there, so why don't we?
I do commend the staff for finding creative ways to save money and reutilizing the
materials, but not at the expense of the residents. Those were parks. They're supposed
to be protected. Our own ordinances state they're supposed to be protected and not
influenced. They're not supposed to influence water flows. So I asked the town to look
again and see if there isn't a way that we can utilize the streets department and its
ample, more than ample, areas to store that material. Thank you.
BARTMAN: Hello, Mayor and council. Kim Bartman, longtime resident Fountain Hills,
have a Fountain Hills High School senior who's been in the District since kindergarten.
And I'm happy to be here to speak to you. A few things that are mentioned about good
overcomes evil and that there's scammers out there trying to scam you. And then with
Councilmember Skillicorn mentioning in Ephesians 4:29, here's the Message version. It's
a different version. I think yours was the King James version. "Watch the way you talk.
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Let nothing foul or dirty come out of your mouth. Say only what helps, each word is a
gift." I encourage you, Councilmember Skillicorn, to think of this when you post things
on your social media, when you block constituents, and when you share thing across our
country with negative things about Fountain Hills, dividing our community with this talk
of woke schools, with you posting a meme with an LGBTQ transgender flag in a
classroom, that's just a meme. And then you say, people should homeschool. That is
not supporting our largest employer in Fountain Hills and the community and our
children. And I'm really sad that you are breaking this community apart because you're
bringing up vaccines tonight. Masks and vaccines. You're talking about woke schools.
Well, you know what? The school bond is up for vote. And there are so many people
from all different walks of life, different political backgrounds, who are voting yes for
our schools, yay for public schools, yay for our community. I support all of you that
support our schools and bringing our community together and not dividing us between
political groups. Thank you.
MAYOR DICKEY: No applause.
MENDENHALL: And then our last speaker for public comment is Mathew Corrigan.
CORRIGAN: Good evening, Madam Mayor, Councilmembers. Mathew Corrigan,
Homeowner, full-time resident Fountain Hills. On Sunday, August 7th, one day, the day
actually, of a Jewish holiday. Hamas terrorists from the Gaza Strip launched a massively
armed, brutal, and unprovoked invasion attack of thousands of Hamas terrorists, as they
murdered unarmed Israeli citizens, raping, torturing, decapitating, and murdering some
1,300 Israelis and 31 Americans. Hundreds are also being held captive as we speak, as
hostages. Should we be shocked that Black Lives Matter -- Chicago and Black Lives
Matter Global Network applauded the murders. In a May 27th, 2021, Heritage
Foundation article, writer Mike Gonzales explains three gut-wrenching facts:
"1. The main BLM group, the Black Lives Matter Global Network Foundation, supports a
primary objective of Hamas: the annihilation of the Jewish state. 2. Anyone who has
studied BLM will know that its animus is against Western culture, which it wants to
dismantle. 3. The reasons BLM takes the side of Hamas may have little to do with
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OCTOBER 17, 2023, TOWN COUNCIL MEETING MINUTES
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postcolonialism, and much more to do with its desire to bring down the U.S. and the
entire West."
As freedom loving Americans, we should always expose and condemn terrorism and
anyone or any organization that supports and praises terrorism, whether here at home
in the U.S. or abroad. So what can we do? We can support Congressman David
Schweikert's, H.R. 5932 Fortify Israel Act, authorizing $6 billion in now unfrozen assets
that would have gone to Iran, to go to Israel. Thank you.
MAYOR DICKEY: Thank you. I think that's the last card, right? All right.
Our next item is consent agenda. Can I get a motion, please?
GRZYBOWSKI: Move to approve.
MCMAHON: Second.
MAYOR DICKEY: Roll call, please?
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Yes.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you.
Our first regular agenda item is a public hearing. And we are considering changes in the
sign ordinance. As always, we will start with a presentation, then we'll take comment
cards from the public. And I will not be entertaining motions at the beginning of our
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discussion because of the complexity of it. So what I think we'll do after we hear from
the public, we'll discuss among ourselves so that we can get a good feel for what we
want to do. And we're not trying to amend and undo a bunch of motions and stuff like
that. So thank you.
Hi, John.
WESLEY: Mayor and Council, good evening. I've been looking forward to this
opportunity. So hopefully we can move through this in a clear way and get your take on
what's been recommended by the planning and zoning Commission and staff this
evening. So again, for those who might not be aware, the council directed staff to
review the current code, to consider various revisions that suggestions were made to
staff on some of those revisions back at a meeting of the council in February.
Primary goal that we received or understood from council was to better meet the needs
of businesses in the community for signage. Planning and zoning commission reviewed
possible modifications over a series of four meetings, and this goal of staff has been to
draft a code that meets the direction of the council and the P&Z commission, and that is
legally enforceable and understandable.
So as a brief overview and reminder, regulations in the code are based on sign types. So
A-frames, building wall, monument, those types of sign types. Also based on regulating
size, location, material, number, time. We cannot regulate the message contained on
the sign. So -- which is one of the things that kind of complicates things based on the
Reed decision by the Supreme Court a few years ago. And so there are multiple signage
options for both permanent and temporary signs.
So what I'm going to do first this evening is just go through reviewing what the
ordinance does allow for the different types of situations we have. And where there
have been changes, that's in green, so we kind of can clearly see where those are. This
isn't the detail of the code. We can go there as we need to, but I just want to make sure
the council and the public understands what options are available and where the basic
changes are.
So we talk about permanent signage for commercial and industrial uses and zoning.
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Awning signs are a possibility. Building wall signs, if you have a drive-thru, drive-thru
signs are available. And I want to remind the council too that there are no aggregate
maximums. We used to in a former code limit the total amount of the permit signage.
We don't do that anymore. So any combination of these are possible. You can have a
freestanding fence or wall sign. We have a hanging and under canopy sign, a monument
sign, directional signs, projecting signs, window signs. There were no changes to the
permanent sign requirements in the code or regulations in the code as it's coming to
you for consideration this evening. Are there any comments or questions about the
permanent signage available for commercial industrial development?
MAYOR DICKEY: Councilwoman?
MCMAHON: Thank you. I have a question about the signs that hang -- that's just
hanging down. The hanging under canopy?
WESLEY: Yes.
MCMAHON: Those are just for commercial, correct?
WESLEY: Correct.
MCMAHON: Okay. They're not for, like, porches or any residential uses or anything like
that?
WESLEY: Correct.
MCMAHON: Okay. Thank you.
WESLEY: So if we go then to temporary sign allowances for commercial and industrial.
So A-frame, T-frame. One change has been to instead of just one sign for business, is
one per entry with a maximum of two. The first sign at six square feet, three feet tall. If
you have that second sign, the maximum aggregate sign area in that case would be nine
square feet. Allowed in the right-of-way adjacent to commercial, including Shea. So
that was a change because currently the code would not allow them in the right-of-way
except in the town center area and then not allowed on the sidewalk, except in the
town center area. And then for those in the right-of-way elsewhere, would sunrise to
sunset. So they couldn't just stay out overnight. They would have to be brought in each
day.
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With regard then -- another option is balloons, 24 inch maximum diameter on the
balloons. One change there, as we discussed it with the planning and zoning
commission, it wasn't really clear. The height that was in there said six feet. We didn't
know if that was the top of the balloon or the bottom of the balloon. And we also
considered the idea of the possibility of the balloon blocking the site visibility. And so
we clarified that with ten foot to the top of the balloon.
Banner signs. So 32 square feet, one per occupancy. The discussion on this one that the
council had was the limited time frame currently in the code at 30 days per year, feeling
that many businesses needed more time than that. And so after reviewing various
options, what's being proposed is a maximum of 150 days out of a year, 30 days at a
time. So a business could decide how they want to spread that out over the course of a
year. And then also for a new business that may not want to go to the expense of
permanent signage, allowing a banner sign to be up for a maximum of a year. But the
possibility that could be switched out a little bit during that year, both to take care of
any maintenance issues when it starts to get frayed. It could be changed out or if they
would want to move from a grand opening to a more permanent type of, but still
banner, temporary sign.
MAYOR DICKEY: John, are you going to get to an end of this and then ask if there's
questions --
WESLEY: So I do have --
MAYOR DICKEY: -- at the end of the section?
WESLEY: -- that at the end. But if the council would like to go ahead, Mayor, I'll have
you go and do it, if you want to discuss it --
MAYOR DICKEY: Just --
WESLEY: -- as we go over each of these, that's fine too.
MAYOR DICKEY: Okay. Yeah, well, I do for the one before, but just before I forget. So
the banners can have anything written on them?
WESLEY: That's correct.
MAYOR DICKEY: Anything at all?
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WESLEY: Right. And the one question that was not -- as I finished this up with the
planning and zoning commission and started working on the council, I realized one thing
we never discussed with the planning and zoning commission, with that one-year
allowance for a banner for a new business, does that still apply if they put up the
permanent sign? And so that's -- right now is just a blanket allowance for that banner
sign regardless. But I thought maybe the council would want to consider that. And if
they put up a permanent sign, does that then negate the allowance for the banner sign
for a full year? So would you like to go back, Mayor, to the previous one or how would
you like to proceed?
MAYOR DICKEY: Well, the previous one has to do with the zoning on Shea because the
way that you -- it says they're in the right-of-way adjacent to commercial, including
Shea. But in the resolution or whatever it says all commercial and industrial zoned areas
and in the right-of-way adjoining these zoning districts. So is it zoning that's -- other
zones that are adjoining zoning business zoning districts? I mean, it feels like you're
basically allowing it all along Shea. Not you, but it feels like it's allowing them along
Shea.
WESLEY: So yes, it would allow them along Shea. Commercial portions of Shea, but not
all of Shea.
MAYOR DICKEY: And anything that's a multiuse that has commercial use in it, then we
could have signs along Shea? If we had something that was a multiuse that had
residential and commercial, they'd be able to put a sign along Shea? I'm trying to figure
out what's happening to Shea, right?
WESLEY: Right. Let's see. Remember -- whoops, let me go up one.
MAYOR DICKEY: It's like E, Roman or three tiny Is. Three --
WESLEY: Yeah. Here we go.
MAYOR DICKEY: -- there's no page numbers on. I printed this out, unfortunately.
WESLEY: Right. So all commercial and industrially zoned areas. So they'd have to have
the commercial zone. If that commercial zone is there and also been allowed to have
multi-residences as a part of it, then yes.
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MAYOR DICKEY: All right. So it's -- okay. Thank you.
Councilwoman? Vice mayor?
GRZYBOWSKI: I'm a little worried about how many signs that means that we're going to
have up and down Shea. We get complaints right now with the bond issue and limited
permissions. So there's -- and I don't just mean Shea, I kind of mean everybody,
everywhere. But the real reason why I pressed the button was the banner switch out
conversation that you switched to. Sorry to move you back forward again, but you said
that the new business can have a banner for a year. It can be switched out if it's frayed
or whatever. When you say, "must be maintained", we're saying if it is frayed, we
expect replacement.
WESLEY: Correct.
GRZYBOWSKI: Okay. All right. That's what I was really pressing the button for. Thank
you.
WESLEY: Yes. There are maintenance provisions in the ordinance, Vice Mayor, that
would apply. So if it does become frayed or is falling apart in some way, then we could
use the code and say, well, you've got to take it down or replace it.
MAYOR DICKEY: Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor.
Could you go back to the last slide? There we go. We're getting A-frame, T-frame signs.
The previous code just allowed one per business. Correct?
WESLEY: Correct.
KALIVIANAKIS: And now we're allowing two?
WESLEY: Right.
KALIVIANAKIS: Okay. No, I thought in discussion that we had talked about allowing two
if there were two distinct points of access and egress.
WESLEY: Correct.
KALIVIANAKIS: Do you address that?
WESLEY: Yes. Yeah. It's two, one per --
KALIVIANAKIS: Okay. So it's coming?
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WESLEY: Yeah, it's in here. Yes.
KALIVIANAKIS: Okay. I just want to make sure we're on the same page. Okay. Because
that was important. And then as far as the signage on Shea, would the business be
allowed to put A-frame, T-frame sign on Shea, if they own the property? Or would
anybody that owns a business be able to put an A-frame, T-frame sign on Shea? So like,
say you've got a business that's a mile away down the street but they want to promote
it, could they just put that on the right-of-way?
WESLEY: Yes.
KALIVIANAKIS: Okay.
MCMAHON: Oh, I'm sorry.
MAYOR DICKEY: Yeah, you can.
MCMAHON: Sorry. I thought it said adjacent to the commercial property?
WESLEY: Right. It's adjacent to commercial property. It doesn't mean it's adjacent to
their commercial property.
MAYOR DICKEY: Right.
MCMAHON: Right.
WESLEY: Once we say an A-frame is allowed in the right-of-way, it basically opens up to
anybody to put an A-frame at that location because we're regulating the size, number,
and location of the signs, not the content on it.
MAYOR DICKEY: Right. And it can say anything?
MCMAHON: Well, I'm not questioning what it says. I'm just questioning the concern
about the number that is going to be lining on Shea for businesses that may or may not
be on Shea. And I just thought that it had to be adjacent to the business.
The proliferation of these signs, it's just going to be outrageous, I think. But we can
discuss that as we delve into the ordinance. Thank you.
MAYOR DICKEY: Councilwoman?
KALIVIANAKIS: Yeah. And just one more point, Ms. Mayor, that you made about the
signs can say anything. Would that be because we can't regulate the content?
WESLEY: Correct.
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KALIVIANAKIS: Okay.
WESLEY: Moving forward, do you want to discuss this at this point, Mayor, whether if
they get their permit sign, can they still have the banner sign or is that --
MAYOR DICKEY: So what you were saying is -- so say they have a permanent sign, but
they want to say, "new buffet" for this month or something, then that would be a
banner. So it's probably okay to have a banner and a permanent sign if it's something
like that. I don't like the 150 days a year, I'll tell you the truth. I think that's a lot. I'd
rather have it be -- well, again, we can't say what it can say, so it can say anything it
wants. So but as far as permanent versus having the banner --
WESLEY: Mayor, let me explain that again just a little bit more. Because certainly any
business with a permanent sign can have the banners, that's the 150 days, 30 days at a
time. So the question is, on that allowance for the one year, basically. For a new
business, they get a new business license. We allow them to put up a banner for one
year so they don't have to go to the expense of the permanent sign. If they do put up
the permanent sign in that case, is their one year over? Can they still have that one-
year banner? That's different than the 150 days.
MAYOR DICKEY: Well, you're saying that they would be using the banner instead of a
permanent, and then when they get the permanent --
WESLEY: That's what it's there for. That was the idea, but we didn't make that clear in
the code. So that's why I'm having to ask. We didn't discuss it at P&Z. So I'm having --
MAYOR DICKEY: Because I thought the banner -- sorry to have this back and forth. But I
thought the banner was a -- like this, "first-one-free thing" not like "Joe's bar", but that
the banner was for something special.
Councilwoman? Vice Mayor?
GRZYBOWSKI: The new business banner for the first year, if they don't have a
permanent sign, makes sense to me. Once you get a permanent sign, you lose the
ability, in my opinion, to then also have the banner.
MAYOR DICKEY: Councilwoman?
TOTH: Just to clarify, it would be if they have a permanent sign, they don't get the
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banner for a full year, but they can still do a banner for 150 days a year?
WESLEY: Right.
TOTH: Okay. Just super-duper checking. Thank you.
MAYOR DICKEY: Councilwoman?
MCMAHON: For new businesses when they come into town, is there a time frame when
they need to have a permanent sign on the building? Especially, like, if it's they rent or
lease a place, the old sign's been taken down, it looks awful. Are we requiring any time
frame for them to put up a sign? And if not, why not?
WESLEY: Mayor, Councilmember, no, that's totally up to the business and what they
feel like their businesses need is for signage. Some get signs up early, even before the
business opens. Others wait, want to see how they're doing, maybe have a little bit
more of a temporary sign. We'd have regulations if the building becomes vacant and
the business is no longer there for ultimately taking the sign down, but not for when
one has to go up.
MCMAHON: Okay. And that leads me to another question and concern is that if the
business never puts up a permanent sign, does the banner get -- then hopefully, the
banner doesn't get to remain there permanently as a banner or flag or something like
that, correct? I mean, there's no way it can be converted into a permanent sign,
correct?
WESLEY: Mayor, Councilmember. So yes, the allowance for the first year for a new
business, that would expire at the end of that first year and then after that, they could
do the 150 days, if that stays in the code, 30 days at a time maximum. But they certainly
couldn't extend that as a permanent nature.
MCMAHON: Do you think that six months might be better because then that might be
the impetus for them to get a permanent sign instead of having a banner up there? And
then they would still be able to have a banner for other things pursuant to the code for
other reasons.
WESLEY: Mayor, Councilmember, the P&Z commission discussed everything from six
months to a year and ended up staying with the one year that had been initially
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mentioned by council. But certainly anything in there is an option as directed by the
council.
MAYOR DICKEY: Councilwoman?
GRZYBOWSKI: I don't think we can say to a new business owner, you got to buy a new
sign within six months. I think that's unfair. A year does sound like a long time, I get
that. But we're already telling them that the sign has to be maintained and replaced as
necessary. I don't approve of also saying, hey, thanks for spending hundreds of
thousands of dollars with us, now you got to go buy a sign, too. So I do approve the
banner there for the year and not lowering that time frame. Thank you.
MAYOR DICKEY: Just to be clear, the maximum 150 days a year is for any business, not a
new business? And were at 32 square foot maximum banners on any business, 150
days a year, no renewals or anything like that required. Just they can change --
WESLEY: At 30 days at a time. So they'd update their permit after that time, so we keep
track of the 150 days.
MAYOR DICKEY: They do have to get a permit? Because that's still there too.
WESLEY: Right.
MAYOR DICKEY: Okay. All right. Okay. Thanks.
WESLEY: I heard, I guess, one comment --
KALIVIANAKIS: Yes. Thank you, Ms. Mayor.
And on the 150 day banner signs, what would be the fee, initial fee? And then what is
the renewal fee after 30 days?
WESLEY: Mayor, councilmember, that's one thing I didn't look back at. I think it's either
25 or $50. It's not much, but it's --
KALIVIANAKIS: Okay. And then every 30 days it'd be another 25 or 50?
WESLEY: Right.
KALIVIANAKIS: Okay. Thank you.
WESLEY: So Mayor, I think I heard a little bit of, well, if they put up the permanent sign,
then they're done with this one-year banner sign; is that correct? Okay. So we can
make that adjustment.
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Going on to temporary signs for commercial and industrial post and board signs. So a
change here. Currently, post and board signs are allowed in the right-of-way only in a
couple of unique situations. You've got a building that's built to the property line, so
there's no place in a commercial area where you can put the post and board sign, so you
could put it in the right-of-way in that situation. And then if the topography is such that
because of the hillside slope, whatever, once you put it in the right-of-way or on the
property, it's so far down a hill that you can't see it. Other than that it can't go on the
right-of-way in the current code. So this is a change to allow just post and boards in the
right-of-way regardless.
MAYOR DICKEY: That's the right-of-way just in front of their own property?
WESLEY: Yes. Yes.
MAYOR DICKEY: And then are you allowed to see how that house, that sign says, "For
sale - open house", but there's a sign on Saguaro that I think says, like "For rent" but
then it has like a "No vacancy" swipe on it. Is there anything about not letting swipes,
having swipes.
WESLEY: That's content.
MCMAHON: Content?
MAYOR DICKEY: Well, no. I mean, it's having another sign across another sign. Well,
actually, this is like two signs, but it says like, "No vacancy", or something like that?
WESLEY: Right. Yes. I know what you're talking about. But Mayor, as long as that's
within the area, total area allowance for the sign, then it's --
MAYOR DICKEY: What about -- well, okay. Well, what if it doesn't look like a sign? If it
just looks like you tacked something on? I mean, does that go to, like, materials or is
there a way to make it that it has to look nice? I mean, people can put swipes on every
sign, you know, I mean.
WESLEY: I understand what you're saying there. I'm not sure how we could get to that.
I could think about it and come back if you'd like me to. But a little bit challenging.
MAYOR DICKEY: Okay. Yes.
KALIVIANAKIS: Yes. Thank you, Ms. Mayor. I'm kind of with the mayor on this one. I
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don't like the sign-on-sign deal. We're giving him a sign and we're telling him, put a
second sign on the same pole. It doesn't seem right to me. I think that that should be
looked into. And then the one that you're specifically referring to is leaning, and it looks
like in a state of disrepair. And I've always wondered why code enforcement doesn't say
either fix your sign or take it down. I hate to put you on the spot.
WESLEY: Mayor and Councilmember, I see that too as I drive along Saguaro. It's usually,
I think, more when I'm leaving because I'm on the side of the street then. And so I don't
think about it when I come back in the morning. But I've thought about that sometimes,
too, that code enforcement probably ought to take a look at that. And so with the
discussion this evening, hopefully, tomorrow I'll remember to have them take a look.
Because there's a maintenance issue, the way it is leaning. So it may get fixed, but that
wouldn't necessarily get rid of it.
KALIVIANAKIS: Yeah. It just looks like it's in a state of disrepair and it's tacky. Thank
you.
WESLEY: So last part then of temporary signs for commercial industrial would be the
yard signs. One per business allowed in the right way, but not on Shea. And then again,
sunrise to sunset.
MAYOR DICKEY: Councilwoman?
MCMAHON: How does this jive with the other commercial signs allowed on Shea
Boulevard, temporary signs? This is like a yard sign. A yard sign, you're saying
temporary, commercial, and industrial. So that's not -- we're not talking commercial
signs here, right? Are we talking yard signs? I mean --
WESLEY: Right now I'm talking just yard signs--
MAYOR DICKEY: The other ones were --
WESLEY: -- in commercial industrial areas.
MCMAHON: So it says one per business?
WESLEY: Right. You can put them in the right-of-way --
MCMAHON: It's allowed in the right-of-way adjacent to commercial --
WESLEY: Right.
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MCMAHON: -- except on Shea.
WESLEY: Except on Shea. So Saguaro, wherever there's commercial, but not on Shea.
MAYOR DICKEY: I think, maybe, because we were talking about A-frames and post or --
WESLEY: Post and board --
MAYOR DICKEY: -- T-things, and this is yard signs. These are the wire thingies?
WESLEY: Right?
MAYOR DICKEY: Okay. Vice Mayor?
GRZYBOWSKI: How will we enforce this sunrise to sunset condition on all of this stuff?
Do we have to hire a new code enforcement person? Are we shifting the hours of an
existing person? How are we going to make this happen?
WESLEY: So Mayor, Vice Mayor, as we currently have two and a half code officers and
they're currently enforcing very similar provisions in the code, mostly just on the
weekends; so it would extend it to each day of the week. The hours they work
currently, particularly this time of year when it gets light later and dark earlier, it won't
be too much of a stretch in terms of their normal days. We previously did have them
working seven days a week and we can move back to that to help make sure we get that
enforcement on a daily basis.
GRZYBOWSKI: What about summertime?
WESLEY: Summertime would be a little bit more of a challenge, but the hope is that
between now and summertime, people will have learned the rules and the enforcement
issue won't be quite as significant. But still they can adjust their times without too much
difficulty to make that work.
GRZYBOWSKI: Thank you.
MAYOR DICKEY: I'm not sure how you compare, though, like having to worry about
when they can put them up on Fridays and then they can take them down on Sundays.
That's two times. This is going to be every single day, seven days a week, every
morning, every night. I mean, that's a lot more enforcement than just a Friday morning
and a Sunday night, or a Monday night if there's a holiday. And now every single day is
going to be like, when was the official sunrise? No, darn it, that was really there? I
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swear to God, the sun was up. And every single day, seven days a week, on every right-
of-way in town. I don't know.
WESLEY: It will be a challenge, but one we hope is manageable.
MAYOR DICKEY: Yes, Councilwoman?
MCMAHON: Also, I have a -- I also have a big concern with enforcement. I think it's
more realistic in the prior sign ordinance, where we only had certain days that you could
have the signs, I think it's better for staff and the community. Also, if they can have
these signs up every day from sunrise to sunset, so what? They're not going to remove
it. They're not going to get up at sunrise and put the sign back out there because why?
I mean, they're going to gamble on the fact -- I would assume they're going to gamble
on the fact that we're not going to have enough staff or code enforces to enforce it. So
therefore, why? What's the impetus for them to take it down? I don't think that
allowing these signs daily is appropriate, given the staff and the inability to enforce it. I
like the prior ordinance where we were only -- there's only a couple of days a week that
these signs can be -- signs like this can be up. I don't think that it's going to damage or
whatever, business or whatever, to not have it every single day. But it's worked so far. I
don't understand. And I'm not for that type of a change. Thank you.
MAYOR DICKEY: Councilman?
FRIEDEL: I can't disagree more. I think there's no question it'll take a little bit of
education. I don't see 10,000 signs that we're dealing with here. And secondly, I think
most of these business owners, you're right, they're not going to put them up at sunrise.
They might open at 9 or 10 o'clock; that's when the signs will go up. No, I don't see
signs out there at sunrise. The signs go out when they're ready to engage with their
customer base. The customer base then knows that they're open and ready to serve
them. So I think, yes, there'll be a little bit of a learning curve because it's going to be
new. But I think we need to give these businesses every opportunity to make a living in
this town. I don't think it's going to be a big burden. Will there be a few offenders?
Probably, there always are. But I think the majority of our businesses will respect what
this town does, and we're open for business and that's what this tells them.
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MAYOR DICKEY: Vice Mayor?
GRZYBOWSKI: When we ask them to take it down at sunset, we may have some people
that are literal. Take it down, fold it, leave it where it is, and on my way in to work
tomorrow, I'll pull to the side of the road, unfold it, and put it back up. How do we feel
about it being folded and right exactly where it is?
WESLEY: Mayor, Vice Mayor, if we see it and it's in the right-of-way, we'll pick it up. If
they've folded it and set it aside where we don't see it, and maybe it does stay there but
then nobody else is seeing it either.
MAYOR DICKEY: And with what Gerry was saying, I agree, that with businesses when
they open and such. But you don't have to be a business to put a sign in a right-of-way
now. Anybody can put any sign in a right-of-way, that says anything. That's what this is
opening the door to. It's residential areas in a right-of-way. And it can say anything. So
I agree with you on commercial, on businesses. This sign ordinance is not going to do
that. It's opening up a door to: "Vote no. Vote yes. I hate you. I love you"; whatever
you want to say on every right-of-way in this town. Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor. I'm looking at the screen that says temporary,
commercial, and industrial and I don't think they would be able to put these in
residential, with all due respect.
MAYOR DICKEY: We didn't get there yet, sorry.
KALIVIANAKIS: Oh. So we're -- okay. We're jumping ahead. Okay. Because I'm still
here.
MAYOR DICKEY: Yeah, no. I'm sorry about that. But I just know what it says about
residential areas, too.
KALIVIANAKIS: Okay. Just maybe a word of caution, we should take it in order. I get
confused, and so I thought we were talking about this, and I just want to make sure they
can't put commercial and industrial signs in residential areas to promote some business.
Okay.
WESLEY: Are we ready to move? Okay. So moving then to multifamily and permanent
signage. So again, they can have awning, canopy signs, building wall signs, freestanding
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wall fence signs, and monument signs. I guess that is the list of what multifamily could
have in terms of permanent signage. No changes. In terms of temporary signs, very
similar discussion. So we won't have to really, necessarily touch on every one of these.
But multifamily can use the A-frame as a directional only. So again, it would be allowed
in the right-of-way at turning movements any day, and on-site plus five additional.
Banner signs, again, we had a discussion at P&Z that they couldn't quite come to a
conclusion on but wanted me to bring it up with council. The code allows a banner sign
if you're an apartment complex of at least 20 units or more. There were some P&Z
commissioners who thought that should maybe be reduced for smaller apartment
complexes, down to maybe nine or ten unit complexes. Again, they couldn't quite come
to a conclusion but wanted to make sure that the council was aware of that, in case
you'd like to discuss lowering it below the 20.
GRZYBOWSKI: If I may?
MAYOR DICKEY: Go ahead, Vice Mayor.
GRZYBOWSKI: I went out to leaddeveloper.com and according to them, and another
website that I neglected to make the note of, an apartment complex is a structure with
five or more housing units. So I would support, if we're going to do this kind of thing, I
would support reducing the number of units. The four-unit is considered a quad, but
from five and up, it's actually considered an apartment complex. Thank you.
MAYOR DICKEY: So if you have a four-unit complex, then there are nine or ten or what
we're talking about, then they would be able to have a banner. But again, like Brenda
said, they have to get a new permit every 30 days. But I guess part of it is whether the
banner overwhelms a smaller thing. That's probably what went into the 20 units or
more. But I'm going to say something that you already know. I don't know how we're
allowed to call something a directional sign without that being content based, it can
have anything written on it. So I just keep getting to that same thing all the time. It can
say anything, it's not really just directional. It's not just like, here's a yard sale or this
place is open. It can say anything.
WESLEY: Yes, that is correct. Mayor, one thing that maybe a little bit -- that's been lost
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in some of the discussion, however, about these directional signs really proliferating.
The code does require them to be at turning movements, so you can't just put them all
along the block. You have them at your property, at the turning movements to get
there. So you can have a whole cluster at the corners but not necessarily spread along
the block.
MAYOR DICKEY: So if I want to put five -- because we're going to get to that -- five signs
up at turning places that lead to my house, but I'm not really trying to get anybody to
lead to my house. I'm just trying to say vote for whoever or eat wherever or have a nice
day, I can do that?
WESLEY: Yes.
MAYOR DICKEY: I can do five signs. And we were hoping they're directional signs
because the whole idea of it is for yard signs, yard sales, and open houses, and normal
good uses. But I can do that and my neighbor can do that and their neighbor can do
that, and we can all put five signs out if we want. And if there's politics involved or
something like that, even if it's not, quote-unquote, a political sign, you can have a
political message?
WESLEY: Yes.
MAYOR DICKEY: Thank you.
WESLEY: Okay. So I heard some support for reducing the 20 or more, down to 10?
Five?
GRZYBOWSKI: But I'm fine with ten, if that's where you guys want to go.
WESLEY: Okay. And then the discussion earlier in terms of the, they get a permanent
sign, then we'll make that adjustment here too that -- or I guess, the adjustment we
make to the banner signs will carry through to every place in terms of if you get a
permanent sign, then your one-year allowance is gone.
MAYOR DICKEY: So you're considering this a banner sign in the same way that they're
actually, like, advertising apartments for rent or something?
WESLEY: Vacancies, right?
MAYOR DICKEY: But it could say anything?
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WESLEY: Right. Okay. So temporary, again for multifamily. The same thing as
elsewhere would be allowed in the right-of-way. Yard signs, two per lot. So that's an
increase, it has been one per lot. And then we recognized some challenges maybe with
condominium projects where you don't really own the lot and you might have a couple
of units there and how to handle that. So we made an allowance there to two- or three-
unit condo development that you could have two per unit. But after that it's treated
similar to any other larger commercial or apartment complex.
And then again, back to the directional signs in the right-of-way. So we had that
discussion.
Permanent for nonresidential uses in a residential district. Permanent signs: the
awning, the building wall, the monument signs. And similar thing again then on the
temporaries. Now you can have balloons again with a change to allow the ten foot to
the top. Same conditions on the banner signs. You can have a flagpole options.
MAYOR DICKEY: Can you put ten-foot balloons on any one of those A-frames or
anything that you put -- any of those? Like if you do those five signs, can you put
balloons on each one of those signs?
WESLEY: You can put a balloon on them, right, to two-foot diameter. Balloon, right.
MAYOR DICKEY: All right. Thanks.
GRZYBOWSKI: Sorry. Stutter. Stutter. I can't wait to see that in the verbatim. Okay.
Yes, I can't wait to see verbatim next week. So I thought the balloons had to be a
certain distance from the street or from the ground, and then ten foot -- help me.
Because I feel like we're missing something on this page.
WESLEY: Yeah. Mayor, Vice Mayor. Right, I didn't put all the details in here, but the
bottom of the balloon, seven feet up top, ten feet up, two-foot diameter balloon.
GRZYBOWSKI: Thank you. That helped.
WESLEY: Okay. Poster boards, again the same. Yard signs, multifamily zone allowed a
little bit larger yard sign than the single family zone. Okay? Permanent signs. Single-
family, actual single-family use doesn't really have a permanent sign, but the subdivision
could have the wall sign or the monument sign. Otherwise temporary signs and single
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residence, you can have the directional signs, the flagpole, the posting board, the yard
sign. That is an overview of what the code would allow in terms of signage, with the
changes highlighted for each of the sign types.
MAYOR DICKEY: Thank you. So since we asked questions while we were doing it, let's
hear from the public.
WESLEY: We do have a few more slides with the other changes.
MAYOR DICKEY: Oh, I thought that said questions.
WESLEY: Sorry, Mayor. It's not that easy.
MAYOR DICKEY: I thought you were done.
WESLEY: No, I'm not totally done.
MAYOR DICKEY: Continue.
WESLEY: This may be a good breaking point to discuss that piece, but it's just a couple
of slides, Mayor. So just a few other changes were made. In definitions, we added a
definition of right-of-way. There was some concern about some businesses sort of
maybe having some traveling, flashing kind of light things. So we made some
modifications there about light displays. We combined sections 604 and 605 on
violations and enforcement into one section, divided it into permanent and temporary
to make all that clearer how we would handle those. Changed the penalties so they do
just reference the Section 183, which does increase the penalties. Which again,
hopefully, would be a deterrent to the proliferation of the temporary signs. And we're
making some slight adjustments in our policy for how we would enforce those. The
changed ordinance section 607, we clarified language with regard to signs in the right-
of-way. We moved the prohibited signs. We changed the prohibited signs. It was a
long list before, divided it into some groups to make it a bit easier to read and follow.
We added language with regard to the state preemption for elections. So that can apply
to any election, not just those with a primary. Whereas the ones with a primary is a 71-
day in advance, we put this with 60 days in advance of elections without a primary.
MAYOR DICKEY: So John, that last one is obviously a sticking point. The state law is in
violation of Reed v. Gilbert and cities are forced to try to come up with something that
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will comply with federal and state law, which is impossible, but we're doing what we
can. How are we allowed to change what the state is saying, as far as when you can put
political signs out? If we start to define them as political signs, then we're judging
content. And so I don't understand how we can -- how can we change what the state is
saying? State's wrong, but we still have to do it. But now we're jumping in the boat
with them, it seems to me, by making a change that's based on content.
CLERK’S NOTE: Councilmember Toth stepped away from the dais at 7:28 p.m.
WESLEY: Mayor, thank you for asking. I don't know if I can give a clear answer because
this is, unfortunately, confusing because we do have two things we're trying to meld
together and meet both the best that we can. And so what the state statute does do, is
allow for, or basically mandate, a preemption of our local ordinance for primary
elections. And 71 days in advance of the primary election in areas outside of the sign-
free zone -- which is another complication we'll talk about in just a second -- in
residential areas, you're going to have in the right-of-way what they call political signs,
up to 16 square feet by our code. Closest we would have would be a post and board
sign because of the nature of the sign. And so during those seasons along all residential
streets and in a sign-free zone, a person can put as many of those 16-square-foot signs
in the right-of-way in front of their house. It doesn't have to have a political message,
though. It could be a commercial message. We won't be regulating the message
because that's where our code comes back in and our attempt to follow Reed.
The state says we've got to allow that size sign. So we'll allow that size sign, but we're
not going to regulate the message. Similarly, in commercial areas, it can be a 32-square-
foot sign that can go in those areas or up to that size; they can be smaller. And so
outside of a sign-free zone. And so again, the message on the sign, we're not going to
regulate anything smaller. So during those times we could see a proliferation of other
types of -- I'll call them bandit signs, that get put in these areas. And they'll just be
allowed because the state's preempted us from enforcing our sign code in those sign-
free zone areas.
MAYOR DICKEY: No. We should not refer to the state at all. We're just saying the Town
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of Fountain Hills is now considering during X number of days before a primary, you can
put four by four signs up now and they can say anything they want. So we're
piggybacking onto something that's content-based. But if we refer to the state, they do
this because it's political season, we're going to extend that political season. Then we're
defining, because we're using them as the reference. If you want to change the law and
say, okay, from June till the end of November, you can put six, four by fours up, then
you're doing what you're saying. It's content neutral, but you're allowing big, different
signs during that period, which is an election time, but it doesn't have to have an
election message.
So I don't know if the actual language does refer to the state or not. But if that's the
intention, is to allow four by fours everywhere in rights-of-way from June or whatever it
is -- May till the end of November, then we just need it to say that.
WESLEY: So Mayor, here's the language, 2(a)(I)(3). So going back up to the top, though,
"Signs are prohibited in the following locations: Town rights-of-way", except as allowed
by A.R.S. 16-1019. So that's recognizing our requirement to allow the preemption of the
state statute and then extending that to also then apply 60 days prior.
MAYOR DICKEY: Right. That's not our fault that we have to do the first part. Brenda?
KALIVIANAKIS: Yeah. The state statute does cover election laws. This might be some --
if you could weigh in without going into executive session Aaron, I would really
appreciate it. Because can you expand or contract as a municipality, a state law?
CLERK’S NOTE: Councilmember Toth returned to the dais at 7:33 p.m.
ARNSON: So the general rule of thumb, Mayor and Councilmember, the general rule of
thumb is that when any statute guarantees minimum rights, you can't fall below the
level of rights guaranteed by the statute. Right? We can't take away from a right that
the state has granted. A municipality is always entitled to provide additional protections
if they want to, so long as they don't conflict with or take away from what's already
been established by the state. So to weigh in with respect to what the mayor was
talking about, there's no better way to say it than how direct Director Wesley said it.
You know, during the time that election season is happening and when those election
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signs are posted, the simple answer is in order to straddle both First Amendment
requirements and state law requirements effectively; we're not looking at content of
the sign. That's just what the practical reality is. It's impossible to comply with both,
without simply saying if a sign's out, the sign's out there during election season. Mayor,
that was the point you were driving at, I think.
MAYOR DICKEY: Right. And again, if that's the desire to allow the large signs in rights-
of-way everywhere, only extend the time of it, don't hook it on to an illegal -- then we're
doing the illegal thing and we're creating a sign ordinance because of the state. Let's
just come right out and say you want to have big signs for a longer period of time
everywhere, and it has nothing to do with the state because it's content neutral. The
state's the one calling it political.
So you take that whole thing out about A.R.S. and just say for non-primary or just say
from May until whatever or 60 days before or after an election we're allowing big signs.
Because that's really what this is doing.
MCMAHON: 60 days?
MAYOR DICKEY: 60 days. Yeah.
WESLEY: It's 71 days.
MAYOR DICKEY: 60 days --
WESLEY: 71 days prior to a --
MAYOR DICKEY: Yeah. After, they have to take it out sooner.
WESLEY: For 15 days, right.
MCMAHON: No, before. I think there was a shorter period.
MAYOR DICKEY: Yeah, after.
MCMAHON: I thought there was a shorter period to take down the signs after.
FRIEDEL: It's 15 days.
MCMAHON: But 60 days is reasonable before an election and then the state statute
governs after. It's a shorter, much shorter period of time.
WESLEY: Right. Mayor and Councilmembers, for an election with a primary it's 71 days
before, and there's 15 days after that they have to come down.
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MAYOR DICKEY: And if you lose the primary, supposedly, you're supposed --
WESLEY: Right.
MAYOR DICKEY: -- to take them down before that.
WESLEY: Correct.
MAYOR DICKEY: Brenda?
KALIVIANAKIS: Thank you, Ms. Mayor. The Town of Fountain Hills does have a political
sign ordinance, and -- we don't?
MAYOR DICKEY: No. We don't.
KALIVIANAKIS: What about the red line ordinance?
MAYOR DICKEY: So the State of Arizona, when they passed the mandate that cities had
to put up political signs, they threw a bone and said you can create a political sign-free
zone. So it's the state law. That's what the political sign-free zone is based on. It had to
be three square feet or something like -- or three square miles. It had to be like a
touristy area, that kind of thing. So it was created in 2012 to help mitigate the fact that
the state was making us put these signs up during that period of time. So that's basically
the reason we have the sign-free zone. But we really can't have anything based on
whether it's a political sign or a directional sign or any sign.
WESLEY: So Mayor, if I may? Here's the map of the sign-free zone. The complication
becomes, if our ordinance now is allowing you to put your directional sign on any of
these streets, any day, we can't control that message. So that message in the sign-free
zones could be a political message for signs that are put up and taken down each day as
allowed by the code.
MAYOR DICKEY: All right. And I was wrong before. We're not extending the time. We
just want to be able to have big signs during elections that are just general elections. So
that's what we're doing. We didn't extend the time. We just said you can have big signs
now if it's just a November election.
WESLEY: Correct.
MAYOR DICKEY: And when we had the right-of-way thing -- don't forget, we passed no
temporary signs at all in this town. And then we tried to be compromising and put it
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back the way it was so that it was Fridays to Sundays. Now, with it every single day -- so
during the election season, political sign-free zone, it was just easier. Now it's just going
to be every day. So it's going to be very difficult to enforce, that's for sure. And to look
at.
WESLEY: So some other changes that are included. It has been recommended that we
eliminate any further additional electronic message signs. And so that was taken out of
6.08B. The language has moved up to 6.07C, in the nonconforming section. So we'd still
have the rules available to regulate the existing signs and added that also into the list of
prohibited signs. Added some language in the illumination section with regard to
traveling lights to deal with that situation. And section 6.08C was renamed B because
we took out the previous B, and then there's a table in the current code about
aggregate temporary sign area that really didn't work very well. So we took that out
and restructured that to more clearly discuss construction signs.
And I believe that is it. So now here, I'm done.
CLERK’S NOTE: Vice Mayor Grzybowski stepped away from the dais at 7:35 p.m.
MAYOR DICKEY: Thank you. Now we'll hear from the public unless you have -- do you
have a question for the --
SKILLICORN: Yeah. Madam Mayor, I just have one question for Director on this one.
The biggest complaint I get is about like trucks, RVs and stuff, that are wrapped as signs.
And I'm not talking about delivery -- like, a delivery truck, you put your name and phone
number on there. I'm not talking about that. Some that are skirting the sign ordinance
by putting a large vehicle with a wrap on it and not intending to move it, and it's
supposed to be a billboard. The only thing I can think about addressing that is that
having a requirement that it has to move every 72 hours. Again, I don't want to penalize
the delivery truck or the plumber or something like that. Right? But the specific people
that want to put a billboard in the middle of town and that billboard happens have
wheels on it. So the only thing I can think of is some sort of amendment that it says that
that type of billboard has to move every 72 hours. Obviously, I've got to be respectful if
it's weekend or something, if it is the plumbing truck. But I'm trying not to target the
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plumbing truck.
CLERK’S NOTE: Vice Mayor Grzybowski returned to the dais at 7:37 p.m.
WESLEY: Councilmember --
MAYOR DICKEY: Are you finding it? The language error that we have?
WESLEY: Yes, there is, Mayor. Let me get to it. It's at the very end, unfortunately. So
currently, starting in "e" must be parked on a legal parking space, and not distinct from
any other parking area. And it goes on here in terms of it must be operable. Has to be
as far back from the right-of-way as possible and can't stay in one space for more than
72 hours. It was --
SKILLICORN: So that seems to be already addressed. Now, when you say -- I do see that
right-of-way as far as possible, but if it's in a parking spot, it's in a parking spot. Yeah.
So it isn't the parking spot that's farthest away from the right-of-way, but -- okay. Thank
you.
MCMAHON: I appreciate all your hard work. Thank you, John, and also the planning
and zoning commission. But to me, this sign ordinance does not reflect our Town of
Fountain Hills. It really is convoluted. It creates a big mess. It makes it more confusing
not only for businesses but residential properties, et cetera, to understand what and
what they cannot do with signs. I'm all for reenacting the prior sign ordinance. It was
understood. It worked well. The town was able to enforce it. So I am absolutely not
for -- no offense -- for this particular sign ordinance when we already have one, an
excellent one that was in place. Thank you.
MAYOR DICKEY: Why don't we hear from the public, from public speaker cards, please?
MENDENHALL: Okay. Mayor, we have. Let's see. It looks like seven cards, maybe six.
Six cards. First, we'll start with Stephen Gay. And then on deck is Cindy Couture.
GAY: Good evening. I'll keep this one short. The sign ordinance as it stands is pro-
business. Keeps the town looking clean and pleasing to the eye. The proposed
ordinance would allow a greater variety of signs, with less permitting and oversight. It
would give our wonderful town a jumbled look. Maybe not as bad as Times Square in
New York, but you get the idea. Some people might use the vernacular eyesore. Thank
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you.
COUTURE: I'm going to be even faster. Cindy Couture, Fountain Hills. We've got a big
election coming up, and if you don't think there are going to be nine million signs
wanting to be out there and making our town look really bad, you're wrong. And we
need to go back to the old sign ordinance.
MENDENHALL: Next we have Gene Slechta and on deck, Linda Somo.
SLECHTA: I'm Gene Slechta, 28-year resident. I also feel that we need to return to the
original sign ordinance. This should be voted down. There's lots of suggested changes
that are a problem, but the major ones are around the A-frame temporary signs and
Shea Boulevard. Signs can be placed in the public right-of-way anywhere. So businesses
on Colony Drive can place their signs on Shea. Businesses on Palisades can place their
signs on Shea. Businesses on Rio Verde Drive can place signs on, you guessed it, Shea
Boulevard. Maximum number of signs is one per street frontage. So one or two, the
businesses can have any number of signs on Shea Boulevard or in front of their business.
But if a business puts signs on Shea and Saguaro and Palisades, you tell me how code
enforcement is going to monitor that? And what is a business? Can it be a business out
of their home? How many signs can be out there on Shea Boulevard then?
As for requiring businesses to bring signs in every evening, good luck with that. The
proliferation of tacky, temporary signs with these changes will cause a nightmare
challenge for the town. The beauty of our town and surrounding desert and mountains
is too precious to cheapen. Temporary sign abuse and clutter damages our property
values. We need to think about that. Temporary sign abuse is dangerous. Putting signs
out and retrieving them on Shea Boulevard? We're adding risks for employee safety
and risk for vehicle traffic on Shea. Those signs are hard to read at 30 miles an hour, let
alone at 50 miles an hour. This creates a serious distraction. These signs were always
meant for the walkable environment, not for a main highway. The only proper signage
for Shea businesses are monument type signage.
And finally, why are we doing business in a 20th century manner? My business locator
is my smartphone or my vehicle that has voice driven internet. Please vote this down.
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Thank you.
SOMO: Madam Mayor, councilmembers. I do applaud the planning and zoning
committee and the council for trying to change the sign ordinance. However, as a
famous philosopher once said, if it ain't broke, don't fix it. I think that philosopher might
have been Yogi Berra, but regardless, it's sound advice. The current ordinance that we
have, that was unanimously adopted in 2021, has served us well in this community.
Every time I come back to Fountain Hills after driving elsewhere, I am again just awed by
the beauty of the scenery and the beauty of our town. Please don't mess it up. From
what I've heard tonight of what this new sign ordinance could do to our town, it'll be a
disaster. Please vote this down and keep our current sign ordinance. Thank you.
MENDENHALL: Next, we have Suzanne Brown.
BROWN: Good evening, Mayor, and councilmembers. I am Suzanne Brown, the
director of community and government affairs for the Scottsdale Area Association of
Realtors. I'm here this evening on behalf of the Scottsdale Area Association of Realtors
to extend our thanks and support of the proposed amendments to the sign ordinance.
We appreciate all the hard work that has gone into drafting the current version that you
have before you tonight and support its adoption. Thank you for your time and
consideration.
MENDENHALL: That's it for public comment. But I do want to point you to your packet.
We will not be saying each person's name, but to let you know that we had 18
comments in writing, one was also in here. And we have 15 against, and three for
approval of the ordinance.
MAYOR DICKEY: Thank you. So I'm going to close the hearing and then we can continue
speaking and asking questions or comments among ourselves. Councilman?
SKILLICORN: Thank you, Madam Mayor. A quick question for Director Wesley. When
planning and zoning approved this, they voted on it, correct?
WESLEY: Correct.
SKILLICORN: Did it pass?
WESLEY: Yes.
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SKILLICORN: What was the vote?
WESLEY: I believe we have it right there. Seven, zero.
SKILLICORN: So unanimous?
WESLEY: Yes, it was unanimous.
SKILLICORN: Okay.
MAYOR DICKEY: Thank you. Councilwoman?
TOTH: Thank you, Madam Mayor. I know we've done a lot of discussion on this already.
So I'll keep my comments fairly short and sweet. I want to thank the staff and planning
and zoning commission for a lot of work on an issue that we do a lot of talking about. I
know we do.
I have heard the comments from my fellow councilmembers that essentially equate to
"if it ain't broke, don't fix it". However, it was broke. When I was running for council
and I was kind of figuring out what are my main talking points, what are the main issues
in town? The number one thing I heard about from business owners and residents alike
was the sign ordinance. And I understand that we're not seeing a lot of those people at
the meeting tonight, but that's probably because a lot of them are working or running
their business at the moment. When we go on these amazing visits to hear from
business owners, one of the number one things we hear about is the sign ordinance.
This is something that affects residents and business owners here in town. I made the
promise to do something to fix their concerns because that was the number one thing
that I heard about. It's not something that I pulled out of thin air. It's not something I
brought back because I enjoy fighting with people. This is something that they feel
passionate about, so I feel passionate about it. And that's why we're bringing this back.
That's why we're proposing these changes.
Now, with all of that being said, my only concerns with the new proposed ordinance
would be in 6.07E, the change that, I guess, we can make it a little bit easier if I just go to
our lovely summary. Thank you again to our town staff. Within our summary it says
that the P&Z had expressed concerns with seeing an increasing number of businesses
placing traveling LED lights inside their windows. Now personally, I have not seen very
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many of these. However, I, being the person who ran very specifically to make this
more broad for the sake of our business owners, I would be against having more
prohibitations (sic) or barriers to our business owners.
So my proposal would be a motion to amend resolution 2023-03, the proposed
resolution or ordinance. To strike 6.07E, items 3 and 13, which I will read to the
audience as well, and 6.07F to remove the new term "traveling".
Now, to bring the crowd in on what's going on, I know we've had a lot of feedback on
that so give me just one moment while I pull that up. 6.07E would be -- sorry. There's a
lot of pages here.
WESLEY: Let me see if I can pull it up, councilmember.
TOTH: Thank you for that. Okay. 6.07E, item 3 is, "Any animated or moving sign,
including televisions or signs with streaming video". And 6.07F is -- oops, sorry. Item
13 in 6.07E is, "Electronic message centers". And 6.07F is that new inclusion of the
term, "Traveling" as listed in our summary that I read earlier.
So I'll repeat that I'd like to make a motion to amend Resolution 2023-03 by striking
6.07E, items 3 and 13, and 66.07F, with the term "traveling".
MAYOR DICKEY: Aaron, I don't think anybody made a main motion yet. And so yours is
amending it. I don't know --
ARNSON: Yeah.
MAYOR DICKEY: -- you can make a motion to accept it with those but it wouldn't be an
amendment yet because we didn't have a motion.
ARNSON: Yes. So --
TOTH: Thank you, Madam Mayor. Can I fix that --
ARNSON: Yeah.
TOTH: -- to be a motion to approve with those amendments?
ARNSON: Yes.
TOTH: Thank you.
ARNSON: Or with those changes --
MAYOR DICKEY: Changes?
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ARNSON: -- yep.
MAYOR DICKEY: Yeah. Not amendments. Changes. Yeah. Okay.
WESLEY: Mayor, may I? Well, I don't know. Maybe you need a second first before I say
anything. But I do have a question about the councilmember's amendment, and that is
with 6.07 13. That's a different issue than the traveling lights in the windows. This
relates to the electronic message center. So if you're taking that out of the prohibition
list, are you leaving then -- are we not removing electronic message centers as an
allowed sign type down here in 6.08? Let's see. Are we leaving them as allowed sign
type here and not eliminating them here?
TOTH: Okay. Thank you, Director Wesley. So you are correct, it is a slightly different
issue. I had skipped ahead in my notes.
WESLEY: Okay.
TOTH: The electronic message centers, I would like to ensure that those are allowed for
businesses. So that was part of the changes. But your second comment was that saying
that if that is removed, that's removing the definition?
WESLEY: And the reason we added electronic message centers to the list of prohibited
signs was because we were moving the allowance for them down in 6.08 B.
TOTH: Understood.
WESLEY: So if we're taking this out here, that doesn't necessarily make them allowed
because we've removed it elsewhere but it does create some confusion, at that point,
what the intent is.
TOTH: Okay. Thank you. Thank you, Director Wesley. I'd rather we handle that now
than later. Right? In that case, can we add to my motion to approve with changes, and
one of those changes being to return -- what is that, 6.08B, you said?
WESLEY: Correct.
TOTH: Okay. Thank you.
WESLEY: Which also again means that here in 6.07C where we move the statements
about the electronic message centers to the nonconforming section, we wouldn't need
to do that because they're still going to be allowed sign. So that would be another
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change.
TOTH: Okay. Thank you. What Director Wesley said. Thank you, Director Wesley.
MAYOR DICKEY: Is there a second?
GRZYBOWSKI: I would.
FRIEDEL: Second.
GRZYBOWSKI: Oh, go ahead. I was going to actually say I would put a second in for the
traveling open signs. I don't see any reason to totally negate them. But one of the
biggest sign complaints I get is the electronic message center. So I can't second both of
those things combined.
MAYOR DICKEY: So we do have a motion for both those things and a second. So we can
discuss that. I agree about the message centers. Councilman?
SKILLICORN: So thank you, Madam Mayor. I'm not sure if this is going to be a question
for the councilmember or Director Wesley, but I do want to get a clarification on this
message center. So when I think of message center, I think of like a red scrolling LED
like, you know, "New weekend hours", blah, blah, blah. Right? That's a message, right?
Or is this all-encompassing? Is this allowing electronic signs, this is allowing Las Vegas-
style signs in Fountain Hills? And that would be an area that I will not approve of. So I
want to make sure that we are allowing a scrolling message or are we allowing a
electronic LED sign? Please, please give us a clarification there?
WESLEY: You can go up here. So. Mayor, Councilmember, so you can think of the MCO
sign. They have the theater sign on Saguaro, the one for Pete's Fitness Center, the
chamber electronic message center sign, those are what we're talking about. So there's
a kind of a variety of types. But they're all --
SKILLICORN: So those are all-encompassing? So we're basically -- these would allow Las
Vegas-style signs in Fountain Hills?
MAYOR DICKEY: They're allowed right now.
SKILLICORN: Yeah. They're allowed right now, and that's something that I asked to not
allow anymore as part of this. So okay. That's all I need to know, and that would
actually mean that I need to vote no on this type of thing.
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MAYOR DICKEY: And again we can -- if we do end up voting no, or if you amend it or not
amend it -- if we vote no, you can make another motion. Let's put it that way. Brenda?
KALIVIANAKIS: Yeah, I would have to concur with Councilmember Skillicorn on that.
One of the things that, right from the beginning, I don't like the electronic message
boards. I don't like the electronic signs. I do believe we'll grandfather the ones that we
have in there at the moment. But do I want to see any more of those signs in our town?
No. And the other thing is, and maybe this is just me and I'm kind of confused tonight,
but those electronic message boards, when they display white background, how can
those be Dark Sky compliant? I don't think they are. So I think it goes in the face of our
Dark Sky community. I think they're obnoxious, and I would be a real hard no on this
one.
TOTH: I thank you, Madam Mayor, and thank you fellow councilmembers. My first
comment is, just for the record, our previous ordinance did require that it was not a
plain white background in mind of dark skies, however. With that, I would now like to
amend my motion to approve with changes. See, I'm learning. I would like to amend
that to not include the changes to 6.08B, or 6.07E. But to still include the change for
6.07F to remove the traveling new language.
MAYOR DICKEY: Can we do it that way? I know she said amend, but --
ARNSON: Sure.
MAYOR DICKEY: -- I mean that --
ARNSON: Yeah.
MAYOR DICKEY: -- that's just her motion.
ARNSON: With the --
MAYOR DICKEY: She changed --
ARNSON: Who gave the second? Sorry, who gave the second? Do you consent to the
withdrawal of that previous motion? Okay. So Councilmember Toth has now made a
second motion to do something. Well, what was it? I'm sorry. I lost track.
TOTH: OKAY. For those watching at home, my second motion is just a motion to
amend --
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ARNSON: Motion to approve.
TOTH: -- motion to approve with changes to 6.07F. Going back to what I was talking
about earlier, the traveling signs in the windows that were a referenced by P&Z and
therefore listed in 6.07F, I want to remove that new word.
MAYOR DICKEY: So I have a question for you, Aaron. In the past, when we amended a
motion, it had you couldn't amend it with something that would completely substitute a
motion or not? Like there was one time I remember that. And I'm trying to say if -- I
heard some people say, keep what we have now; is that a proper amendment? Not at
all.
ARNSON: Oh, well, I'm not sure that that is a proper amendment. The reason being is
because I remember what you're talking about, Mayor. If it changes the whole
underlying purpose of the motion, right? Like if the motion is to approve and whatever
the substitution would be, would effectively make it a motion to deny, that wouldn't be
a proper amendment. My recommendation would be assuming we get a second and I
don't know if we have -- okay. Gerry gave a second. So my suggestion would be to vote
on what's been proposed. And if you have an amendment to a portion of it, you can
make an amendment to a portion of it. Otherwise, if the motion carries. It carries if it
fails.
MAYOR DICKEY: If we vote on that, then we are approving the whole sign ordinance
with the changes?
ARNSON: Yep.
MAYOR DICKEY: So I think we would need to amend it then. And if we don't want to
approve the whole sign ordinance, including the changes that you made, then if
somebody says, well, I want to take out, for example, the part about rights-of-way,
being able to put signs in rights-of-way, or any of these other items that somebody
might want to remove about --
ARNSON: Yes, Mayor, that's true. My legal caution would be -- and Director Wesley
might be able to add his two cents from the code writing perspective. Just bear in mind
that with an ordinance that's of this size and scope, the more we start to tinker through
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amendments, the more it requires domino effect changes throughout the ordinance. So
let's just be really careful as we're making amendments perfectly permissible to do, but
let's just be careful as we're making amendments to ensure that we're consulting with
Director Wesley about what the impact of any one suggested change might be
throughout the ordinance. But that's my only suggestion.
MAYOR DICKEY: Okay. So if we if somebody wants to amend and say we don't -- just
for example, we want to go back to the three signs instead of five being allowed and we
want to go back to weekends and not sunrise, sunset, those amendments would be
allowed if anybody wanted to do that?
ARNSON: Yeah. Those are amending portions of what's been moved. Yes. As opposed
to saying we just want to go back to the whole thing as it was.
MAYOR DICKEY: Okay. Councilwoman?
GRZYBOWSKI: So I actually would like to have a right-of-way conversation. One of the
discussions I've had with people during the course of the past couple of days is, okay, so
I have a right-of-way in my front yard, right? So does that automatically mean
somebody can put a sign in the right-of-way of my front yard? So I would like Director
Wesley or Aaron, however it has to happen, I want your average homeowner resident to
be able to understand what their right-of-way is in the front yard. And if we approve
this as is, with what we just talked about, about the traveling open signs, what does that
mean for your average homeowner's front yard?
WESLEY: Mayor, Vice Mayor. So it happens today under the current code for the
weekend directional signs, those get put in the right-of-way. Typically, they're at
corners. They should be at corners because it's supposed to be a turning movements.
So that doesn't change. It just would be expanded to every day of the week now
instead of just weekends. So yes, you could have one in your yard in front of your house
as that directional sign.
GRZYBOWSKI: And a resident is not allowed to remove the sign that may be in their
right-of-way, in their front yard or their side yard or whatever. Correct?
WESLEY: Correct.
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GRZYBOWSKI: Okay. Thank you.
MAYOR DICKEY: So. And somebody could put a sign in front of your house every day
now, instead of just on the weekends.
MCMAHON: And not take it down?
MAYOR DICKEY: Well, they have to take it down, then they can put it back up. All right.
Are there any amendments along the lines of changing the time or the Shea Boulevard
stuff or the right-of-way stuff or anything else? Yes, ma'am?
KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. I'm not ready to vote on this ordinance at
this time. I would like to discuss the Shea Boulevard problem. If you go back and look at
the tapes from probably eight months ago, I was for letting people that own businesses
on Shea put signs in front of their business, "Joe's Car Repair", and have Joe put out a
sign every morning and taking it in at night. I thought that was a pretty darn good idea
because I am pro-business and I was in support of this because I wanted to be
supportive of realtors and businesspeople. And then all of a sudden, we started having
Reed v. Gilbert, and there was a lot of confliction in what we could do and what we
couldn't do. If we pass this ordinance as is, and if anybody went to the planning and
zoning meetings, which I did, it could be a problem with stacking. Which would be
multiple signs for many businesses or not businesses on all the intersections or up and
down Shea Boulevard. Director Wesley, could you address that issue and what was
addressed at planning and zoning?
WESLEY: Mayor, Councilmember. Yes. The planning and zoning commission had this
concern as we talked about it and got into the details a little bit. And as we've already
touched on a little bit here this evening, once we say that an A-frame, for example, is
allowed in the right-of-way in a given location and the right-of-way is a public area, we
really do lose control of who can ultimately put an A-frame in that location. So while on
the surface of it, you look at the number of businesses and what we're trying to do is
very reasonable, the number of signs that could go there. But since we really can't
ultimately control who puts the sign there, once it's opened up, it could become
cluttered with numerous businesses from some other distance or people just desire to
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put a sign in the location, stacking signs. So that was a concern that the planning and
zoning commission had.
KALIVIANAKIS: Thank you, Director Wesley. And you know, just to reaffirm what you're
saying, we can't control the message, we can't control the signs, and we can't control
the number of signs. And so if you don't think this is going to lead to mischief, it's going
to. Shea Boulevard gets, what? 30,000 cars a day that drive through Fountain Hills?
And Fountain Hills is known to be an affluent community. People move here because
it's an affluent community. And if we start cluttering up our main streets with this
stacking problems, with signs that could have any message out there, it may marginally
help some businesses to have 20 signs there. And maybe you can pick the one out that
you want to go to, a submarine sandwich special today. But it's going to be difficult to
even read one of the signs. The fact is, is if you let multiple signs then it negates the
effectiveness of all the signs. And then I would start worrying about property values and
I start worrying about our community. We're living in a place that's just swamped with
these temporary signs that we can't control the message, we can't control the number.
And so whereas -- and I will admit, eight months ago I was for changing this, reality has
set in and I'm sorry, I just can't go along with it. And if I'm the sole dissenter, let it be.
But as long as I'm on this council, I will vote against this. I'll take the heat from anybody
that wants to give it to me. But I under my watch, I don't want to turn Fountain Hills
into what I see it becoming. And it's like back in the future when Biff took over and it
changed the complete direction of the town. And so and unless we can change the Shea
Boulevard, I would be a no.
MAYOR DICKEY: Councilman?
SKILLICORN: Thank you, Madam Mayor. And Madam Mayor, Council. Is there a certain,
like, compromise? Like a number or something that would work? I mean, I just think of
the businesses along Laser south of Shea there, and they're like, you know, no one
knows I'm here, right? And I want to toss those people south of Shea a bone.
MAYOR DICKEY: Councilman, can I mention something? Because I wanted to go back to
something that Hannah said, which was about people that were having issues with the
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unanimously passed 2021 bill by four of us up here. We did talk about that. And there
were, I can remember two issues that we talked to the chamber about. And one of
them was what you just said about Shea and Laser Drive and all that. And the other was
about the Euro Pizza-type place, which they have a front and a back. And would they
want two signs? That was it. And then maybe a little later about somebody that was
upset that they had to buy a banner. So Gerry, you remember too, we talked about like,
what would you want to change with the sign ordinance? Because we knew that there
were still a few lingering things and there was a willingness to address those things. But
then obviously, we peeled the whole thing and it got out of our hands a little bit. We
brought it back because we saw what was happening. But to your point, there are
definite changes that can be made, that could have been made, that are working with
Betsy, working with the council. I think a lot of the changes that you made in here John
and P&Z that doesn't say permit, says allowed, a lot of those make a lot of sense putting
everything into one place. Those are great. But I mean, everything else, you know, the
balloon, ten feet, everything is just like you can put a balloon on each one of those signs
you're talking about. We just said that. So I think there are things we can do to make
this better for businesses, that aren't going to affect the residential area so much.
We worked with the realtors. We had the three signs. I didn't hear anything from
realtors. And I think even at P&Z one time a realtor said it has been working okay.
So it's not that we haven't been watching it and we're just stubborn. But this has
ramifications that go beyond helping businesses. And I'm willing to help businesses, but
I can't, I really can't support all of these changes in this.
Councilwoman? Or no, I'm sorry you wanted to say something. You were on there first.
Sorry.
TOTH: I had turned mine off, but if I could make a request to hear Councilmember
Kalivianakis' answer to Councilmember Skillicorn's question?
KALIVIANAKIS: Yeah. Thank you, Councilmember Toth. I have had discussions with
staff on whether we could, like maybe have designated zones at various intersections
and maybe limit it to five signs. To let some -- certain business owners put business
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signs out there. Designate the area, ten by ten, only five. It turned out that that wasn't
going to be very practical because you would have to have somebody to be there in the
morning to see who is there first, second, third, fourth, fifth. And then, I'm sorry, you're
number six, you can't put your sign up there. So although it sounds good to let some
signs up there for certain businesses, it would be completely unenforceable. And you
couldn't do it. We couldn't hire enough staff to go to all the intersections and to say,
okay, we'll let five signs up here on this intersection, this one, this one. And so I did try
to go down that road, and it just wasn't practical.
MAYOR DICKEY: Councilwoman?
TOTH: Oh, thank you. Sorry, Councilmember McMahon. Just very quickly. So to be
clear, Director Wesley, in the case that we were to say, if you're on Shea, you can put
signs on Shea. That would not include things like our peach market or those types of
events that are occurring at -- the tractor supply parking lot is just what comes to mind,
but I'm sure that there could be or would be other examples of that.
WESLEY: Mayor, Councilmember. I'm trying to think through that, what you just said
and how to apply it to that situation. But I can start with, as they got their temporary
permit to do the peach market, we talked about where they could put signs and they
had to be off the right-of-way, under the current code. That became a little bit
challenging, I think, because of the topography. And so they might have ended up right
on the edge of the right-of-way along Shea. But we did restrict those to be as close to
the code as we could. As it stands today with the revisions that are proposed, there
would be no issue of the signs being in the A-frames for that event in the Shea right-of-
way.
TOTH: Okay. Thank you, Director Wesley.
MAYOR DICKEY: Councilwoman?
MCMAHON: I too, have visited businesses with Amanda Jacobs. And you know, we had
one or two questions about the signage. And when we explained it, they're like, oh, I
completely understand. I heard the rumor was this and that. And we completely,
thoroughly, and objectively explained the sign ordinance as far as businesses. We went
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to Crosswords (sic) Auto, which is on Technology Drive behind where Walgreens is. He
made a comment about not being able to have a sign out on Shea. But again, once we
spoke with him and explained it, he understood. And I happened to personally know
that his business is absolutely thriving and he does not have a sign on Shea Boulevard.
And again, I'm going to reiterate the fact that I'm pro-business. Why wouldn't I be?
Why wouldn't any of us not be pro-business? I don't think the proliferation of millions
of signs is going to make a huge financial difference or financial difference in a business.
Again, I think that the ordinance that we voted in, in the prior council, unanimously,
works. Our businesses are supported. It protects our community as far as beauty, et
cetera. It prevents sign graffiti all over the place, and disrespect of our property and our
views. I think that this particular ordinance -- and again, Corey and P&Z, thank you very
much, we appreciate your recommendations. However, as a councilmember, we have
to make, even though unanimously you recommended it with reservations, we have an
obligation as councilmembers to dig a little bit deeper into this and, no offense, not
accept it hook, line, and sinker. That's our job. So to even denote that otherwise, I
think, is inappropriate. But again, I think that the sign ordinance, given everything that
Mayor Dickey said, Brenda said, et cetera, I just think the proliferation of signs is just
outrageous and unacceptable for our community and our property values. Thank you.
MAYOR DICKEY: Councilman?
SKILLICORN: Thank you, Madam Mayor. And I just kind of want to make a compromise
suggestion to Councilmember Kalivianakis and I'll explain it a little bit. Is, one, I think the
current or the as-proposed restriction the only daytime hours. So you can only put it up
in the morning, you have to take it back in, I think that's going to lead to some self-
policing. If you're not getting a benefit from that sign, you're not going to haul it out
there every single day and take in every single night before you go home if you're not
getting some real benefit from it. So I have a feeling that the significant number of
these are going to go away if they're not getting a benefit, especially if that's enforced.
So you might only get two or three businesses that are actually going, hey, I'm really
able to get some traffic because of this sign, and two or three is manageable. So I
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wonder if the -- so we have that set. We already know it's only sunrise to sunset, that's
already in the language. What if we compromise and say it's limited to five? And I know
we have that like, oh, if it's six. But again I think we go back to that sunrise to sunset; it's
probably only going to be a couple of individuals that's really worth their time to do it.
So all of a sudden we're not even at five. But I think this would be good for the
businesses and good for the town with something like that. Limit to five, compromise,
work, and I would love to make this compromise work tonight.
MAYOR DICKEY: I'll call you in a second, Sharron, but I just want to that point. What
you're saying, though, is assuming that the people putting the signs out are businesses.
These signs can be put out by anyone and say anything. And so just looking at what's
going on with the yes-sign with a no-sign, or a no-sign with a yes-sign right in front of it.
So what you're saying makes sense for businesses, but this opens the door to much
more than that. Sorry, Vice Mayor?
GRZYBOWSKI: Going back to Councilmember Skillicorn's comment of -- I wrote will stop
if no benefit. I think the concept was, the business owner is going to realize that they're
not really getting benefit of the sign and maybe they won't put it out anymore. I'm
going to tell you, as somebody that is either been a businessowner or a child of a
businessowner my entire life, that's not what you do. You see it as this might be the
one day that that magic person drives by, and if I don't put the sign out today, I'm going
to miss it. So I feel like that's a great thought. But honestly, I don't see that happening.
And I would really like to call for a vote for what has been moved already instead of
continuing the discussion, if that's okay with people? And I just want to reiterate that
the vote is the amendment with the traveling lights being allowed now. Traveling lights
open sign being allowed now, but to approve everything else as written. Is that what
we were looking at?
MCMAHON: That's my understanding.
GRZYBOWSKI: Thank you.
MAYOR DICKEY: Aaron, remind me what we do when you call for the question? Do we
have to have a second?
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ARNSON: Well, if everyone's ready to vote, we can do that. But for an actual call for the
question, you need a second and a two thirds vote and all that.
TOTH: Second.
KALIVIANAKIS: Can I have more conversation? I had my light on.
FRIEDEL: What?
TOTH: There was a second.
MAYOR DICKEY: We have a call for the question and a second. So we have to vote on
that, right?
ARNSON: I think our rules -- I'll check the rules, but -- one sec.
MAYOR DICKEY: Oh. He's going to check to see if it --
ARNSON: Council, before we continue discussion --
MAYOR DICKEY: -- has to be a supermajority or a --
ARNSON: -- Councilmember Skillicorn said he thinks it's a simple majority.
MAYOR DICKEY: I think it has to be five.
ARNSON: I'm pretty sure it has to be five.
MENDENHALL: It has to be two-thirds.
ARNSON: Yeah. So I think it's two-thirds. So I think it's two-thirds. So which is why I'm
going to check, so we can--
MAYOR DICKEY: Okay.
WESLEY: Madam Mayor, may I --
MAYOR DICKEY: Okay. All in favor? Oh, go ahead.
WESLEY: If I may, real quick? Sorry to throw another monkey wrench into it, but as we
talked about the code going through it, we talked about on the banner signs for the new
business, that we amend that so that if they put up the permanent sign that that comes
down.
MAYOR DICKEY: Yep.
WESLEY: So that hasn't been discussed in terms of the motion and also on the
apartments that we could potentially move that down to ten-unit apartments or larger.
MAYOR DICKEY: I think that's understood.
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WESLEY: So that hasn't been discussed. I just wanted to know for sure if those were
included?
MAYOR DICKEY: Yeah, those would be, right? Right, Hannah? The changes that we
talked about, we all seem to agree with for the ten apartments and the --
TOTH: That's correct.
MAYOR DICKEY: Okay.
TOTH: Yes.
MCMAHON: I have a question, please, before a vote is taken. So that we don't vote
wrong or the opposite of the way we want, what's the motion? And if you vote aye or
nay, consequence, please?
MAYOR DICKEY: We're voting to call for the question, which means if you vote yes, you
want to vote.
ARNSON: Yeah. If we vote yes, which requires a two-third vote, it terminates debate
on the main motion --
MAYOR DICKEY: And the --
ARNSON: -- on Hannah's motion. And then you vote on Hannah's motion.
MAYOR DICKEY: Right.
MCMAHON: So is the motion to approve?
MAYOR DICKEY: No, the motion is to call for the question. We have a motion to call for
the question, which means we need five people to vote yes. And then we have the vote
on the motion.
ARNSON: Yeah. If you call for the question, two-thirds of the council are saying I'm
done with discussion. I want to cut off debate and I want to vote on the main motion.
So right now, if it's a call for the question, was there a second?
MAYOR DICKEY: Yes. Hannah was the second.
ARNSON: So it would just be --
MAYOR DICKEY: So all in favor --
ARNSON: -- yes, I want to vote.
MAYOR DICKEY: We're going to take a roll call vote on calling for the question, which
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means if you vote yes, you want to vote on the --
ARNSON: Underlying motion.
MAYOR DICKEY: Underlying motion. So roll call?
MENDENHALL: Councilmember Friedel?
FRIEDEL: Yes.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Explain my vote?
MAYOR DICKEY: No. Just vote.
SKILLICORN: I don't think we can. I know how I'm going to vote on this, but I also want
to reiterate, we can always amend something. If there's something we don't like about
it, we can always amend it down the road. So my vote is yes.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Well, I want to continue discussions, so I assume I would vote no. Okay.
I have to check with the town attorney on that one. Yeah, I'll vote no on this one.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Yes. I'm ready to vote.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye.
ARNSON: So Mayor, the motion did carry.
MAYOR DICKEY: Okay. The motion --
ARNSON: Did carry.
MAYOR DICKEY: Yes. So we have enough votes to say we're going to vote on the
motion, which was Hannah's motion, as understood. We all understand.
MCMAHON: I'm sorry.
MAYOR DICKEY: I'm sorry, what?
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MCMAHON: Is that on the whole?
MAYOR DICKEY: It's the entire thing, except she wanted to add back the traveling lights.
TOTH: Removing traveling -- well --
MAYOR DICKEY: We want to leave them in.
TOTH: Leave them in.
MAYOR DICKEY: And it also is instead of 20 apartments, it's 10. And there was one
other thing.
ARNSON: So --
GRZYBOWSKI: The banners.
MAYOR DICKEY: The banner thing, you can keep it for a year. Okay.
ARNSON: So Mayor and Council, if you are in support of Hannah's motion, vote yes. If
you are not in support of Hannah's motion, vote no.
MAYOR DICKEY: Thank you.
ARNSON: That's where we're at.
MAYOR DICKEY: Roll call, please?
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: So we can always amend it down the road. So yes.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Explain my vote. I think it's really unfortunate that we can't have more
conversation and further amendments to this ordinance. I wish we could discuss what I
had discussed on Shea Boulevard, because I think a vote for yes on this is going to lead
to a lot of mischief. And I feel very passionate about this. On the other hand, there's so
much good in this ordinance for businessowners and for realtors that unfortunately, I'm
going to have to vote yes.
MENDENHALL: Councilmember McMahon?
MCMAHON: Nay.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
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FRIEDEL: Yes.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Nay
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: No. Thank you.
MENDENHALL: Passes.
MAYOR DICKEY: Yeah. We'll take a five minute recess or so. Thank you.
[Recess]
MAYOR DICKEY: We love our breaks. But we're back. Thank you.
Our next item is our intergovernmental agreement with Maricopa County for law
enforcement. Do we have any -- okay. David, thank you.
POCK: Good evening, Mayor, and Council. There isn't a presentation on this. I tried to
include as much background in the staff report as possible, so hopefully that answered
most of your questions. I will note, I was going back through this, we started preparing
for this about three years ago. So there's been a lot of people that have looked at our
contract, either through the contract review, looked at our law enforcement services
and the services that were provided by Matrix Consulting just about a year ago, or just
over a year ago is when we saw their report.
So tonight after extending the existing contract or the existing IGA for a year and a half
past its original expiration date, we're here for another IGA that will go until 2026, the
end of June 2026, with an optional three-year extension with the ability to extend that
as well.
So if the council has any questions, I'm here. Hopefully I can remember some of those
items from the last three years. I've got all kinds of notes and things that I've tried to
compile, so hopefully I can help. But that is it.
MAYOR DICKEY: Thank you very much. Do we have any speaker cards on this item?
MENDENHALL: Yes, Mayor, we do. We have three speaker cards. And then -- we'll
start with Barry Wolborsky, and then on deck will be Kim Wolborsky.
BARRY WOLBORSKY: Barry Wolborsky, Fountain Hills. I'm beyond amazed at this
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contract has been brought before the council today. On page 14, there's the following
section, it's section II.B.4. "MCSO's failure to staff a contracted duty post for 60
consecutive days or more for any reason may result in an annual credit being applied to
the personnel services section of the next annual worksheet Exhibit A". Which means
they cannot give us people for 59 days, give us people for one day. So what that means
basically as I read this, and remember I'm the statistics guy, this only means that MCSO
has to fully man our sheriff's detachment six days a year. Okay? That's once every 59
days. And if that's not bad enough, they may be one deputy short, two deputy shorts or
more. We don't know, they didn't say. It's just if they do it for 60 days they get in
trouble.
Why in the world would anyone approve this contract at all? And especially given the
history of MCO and their staffing issues? This section definitely needs to be changed to
limit the number of days to less than ten, make the days not consecutive. After all, we
do pay for each day. Change the word "made" to "will". It says, by the way, "may", they
may pay after 60 days. It doesn't say they will.
Would anyone hire an employee that could be absent from work for 59 consecutive
days every two months? I very strongly urge the council to vote against this contract
until this section has been corrected. That's all.
KIM WOLBORSKY: Madame Mayor, council, everyone else. I'm Kim Wolborsky and I am
a resident of Fountain Hills. And first I have to apologize to Councilmember Friedel
because I forgot my canned goods. I do have them. I will bring them.
I'm speaking on the same issue that my husband spoke on, and I wasn't going to
because he was going to. But I had lunch with a couple of neighbors who don't attend
the council meeting today and I mentioned this issue to them. I explained it to them
and they were both so shocked with the whole thing of the 59 consecutive days. And
there is no limit on how many 59 consecutive days that this could -- or say it could be 45
days. What if they just don't staff for 45 days? Then they staff for a day? It's really
shocking you know. Barry and I have been coming to the council meetings for a while
and we've heard a lot of complaints about the contract. But actually the only
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complaints that I've mainly heard have been with the overall price and with the quantity
of deputies that we've had. I've heard no complaints about the quality of the deputies
or the service. Everyone's very happy with the people we have working for us. But this
has been the big issue, is the quantity of people we have and that we weren't getting
what we expected to get. And it was a big deal. And here's our new contract and it's
not addressed, and I just don't understand it. So I really hope that you can vote this
down, make an amendment, get it fixed. Thank you.
MENDENHALL: Gene Slechta.
SLECHTA: The next item on the agenda. I don't (indiscernible) to speak.
MENDENHALL: 9B. Are you wanting to go to 9C?
SLECHTA: 9C.
MENDENHALL: Okay. And then in your packet you have 17 written comments. We also
have two people who wanted to voice their support in person but not speak on it. So
we have a total of 19 comment cards, and 19 for it and no people against it.
MCMAHON: I moved to adopt Resolution 2023-34.
MAYOR DICKEY: You can. Is there a second?
GRZYBOWSKI: Second.
MAYOR DICKEY: Thanks. Okay. Councilman?
FRIEDEL: Thank you, Mayor. I'm going to make a statement on this contract. I think
people know where I stand already on this contract. But with the recent developments
all over the world, we can all agree that we need public safety, and it's of the utmost
importance. That being said, I wish to make it clear that I'm not in favor of this contract
even though I'm going to vote yes for it. I don't think anything that was requested by
former Councilman Spelich and myself, that we worked on for over two years on this
contract, had been properly addressed in this contract. And I feel like I'm being held
hostage and that this contract is the reward at the tail end. So I will consider all options
in the future as a backup plan to this at some point in time. And I just want to make it
clear that I'm for public safety. I think the deputies in this town do a wonderful job for
this town. But I don't think that the issues that we had brought up and needed
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addressed in this contract were taken care of. Thank you, Mayor.
MAYOR DICKEY: Vice Mayor?
GRZYBOWSKI: I just wanted to remind people that the motion may have been jumped
to very quickly. And you all need to know that this is a conversation that has been had
in executive session. And this is not something that we're just jumping to. So we, as
councilmembers, had an opportunity to discuss with each other and ask questions
whether it be of our attorney or of the MCSO. This is jumping into a motion did not
mean we didn't review this and did not already have a chance to discuss it. Thanks for
that opportunity. I just wanted to make sure people understood that.
MAYOR DICKEY: Thanks. Just give me an opportunity to explain that when we make a
motion, we always have an -- that we can always talk as long as we want after one. So
there's no -- making motion doesn't prevent discussion. Yes, Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I tend to agree with Councilmember
Friedel. I think this contract could be a lot better. There's a lot of things in it that I don't
like. And what Mr. Wolborsky said tonight, I think are all fair statements about this
contract. But what people have to understand at this point is, if we don't approve this
contract tonight, we might not have public safety on January 1st. And so it's imperative
that we pass this tonight. It's gone through quite a process, a number of meetings, a
number of executive sessions, had our lawyers look at it, our manager look at it. And it's
I guess, what I can just say, is the best that we could do. It does leave room for
improvement, but I'll vote yes for it because it's got to be done.
MAYOR DICKEY: Councilwoman?
TOTH: I'd like to echo the comments of Councilmember Friedel. The contract itself,
there's a lot of areas that I would have wished we could have had a fair negotiation on.
However, the reality is, is that this is the contract that we have and with having started
the Fountain Hills Fire Department, which is so exciting, we're not in a financial position
to look at those alternate options at the moment. I do wish to consider these options in
the future. And I would encourage my fellow councilmembers to look into, possibly, an
exploratory committee or something to look into what we could do in the future.
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However, for this contract, I'll be voting yes as well.
MAYOR DICKEY: Thank you. Oh, Councilman?
SKILLICORN: You can go ahead.
MAYOR DICKEY: No, that's okay.
SKILLICORN: Madam Mayor, thank you. Well, first off, I do want to thank town
manager, finance director, for negotiating this. This was a difficult thing. I know it took
a long time. And when any contract, if there isn't pain on both sides, it's not a very good
contract. So that's also to be considered. Of course, there's some things that we don't
like about this. But again, that's part of negotiation. There is a caveat I had, but I also
wanted to see maybe we could ask the attorney a little bit about that. The concern of
the 59 days of consecutive staffing, you know, I'm not sure there's so much we can do
about that. I mean, theoretically, we could do an amendment. It does appear that we
might have representatives from the MCSO here. I don't know if they would be
amendable to addressing that.
ARNSON: Yeah. Mayor and councilmember, they are not amenable to -- I think we can
very safely say that we've had represented to us from County Administration that no
further amendments will be entertained on their end. The original length of time was
substantially longer. This is the negotiated down number.
SKILLICORN: Okay. So thank you for negotiating that down. We very much appreciate
that, and again, that's part of the pain. And there is a caveat that I have and that is the
staffing number. I would prefer it to have more staffing. Now, I've been told that the
County does not have the manpower to produce the staffing numbers I'd like, but this is
also a question maybe for the council, is this doesn't preclude us for -- let's say the
County has new recruits and there could be a possibility we could pay more for having
one or two more deputies, I assume. This, as it's written out, doesn't mean that at six
months from now or a year from now, we go, hey, there's more recruits. We can pay
more and we can get more deputies. In approving this tonight, and especially with this
caveat being on a public record, that isn't a problem for us; correct?
ARNSON: Mayor and Council, that's not an issue. Assuming that they have the ability to
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staff those individuals at some point in the future. If we wanted to up staff here, I'm
sure that's something we can approach the County about. I can't see why they would
object to that. Rachael do you think --
SKILLICORN: All right. Thank you. And that's really my big caveat. I think the number of
deputies is too low. I do not want to scrimp on public safety. And frankly, if I had to pay
for another deputy, obviously, it would be the salary and whatever costs go along with
that, I'm happy paying for that because I want to make sure our town is protected. So
with that caveat on the record, I can support that. And there is obviously pain for
everyone involved.
MAYOR DICKEY: Much as I'm loathe to bring this up again because we've been talking
about it for a long, long time. We had a Matrix report, we had an audit done that we
paid for, and they recommended even less than we're getting. And many, many of the
conversations that I had of the items that we wanted are included here; most of them
are. So that to me -- this was negotiated in good faith. We've got one of the safest zip
codes in the Valley, and we have the least per capita, except maybe Carefree now or
Cave Creek. And if we did what Queen Creek did, we would be spending north of $14
million a year, not to mention the 4 and a half to 5 million to get started. And to say
that this is the best we can get. I'm sorry, but you can't point to somebody and just
disparage where they work and who's been keeping us safe for 20 years, more probably,
and act like we're down in the dumps about this thing. This is a very good contract and
we can always speak. They are law enforcement experts, and I'm not going to second
guess law enforcement experts by sitting here as a citizen. But I did listen and take a lot
of advice and we took that to them, and that's reflected in this. And so I just -- I don't
like the idea that we're just taking something because we have to. It's a good -- they've
kept us safe for years. I've had people throw it back at me, oh, since you were mayor, it
went up this much. Well, we went back to 2004, and it's up and down the entire time,
based on what's going on; inflation, whatever. Just fill in the blank. So a fair
comparison would be to go back to 2004 and see how long and how well they've been
keeping us safe. And we thank you for that. Any further comments?
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FRIEDEL: Mayor, I have a comment.
MAYOR DICKEY: Yes, Councilman?
FRIEDEL: I don't think we're disparaging anybody. This isn't personal. This is a business
decision for this town. It's not disparaging anybody, and if anybody mistook that as
disparaging somebody, I apologize for my comments. But it's not a personal attack. It's
not disparaging anybody.
MAYOR DICKEY: Any further discussion? Okay. Can we have a roll call, please? Oh, do
we have a -- we already had a motion.
MENDENHALL: Yeah.
MAYOR DICKEY: Yeah. Okay. Yep. Thank you.
MENDENHALL: Yes. Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Thank you for keeping us safe. Yes.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you.
Our next item is a resolution. Who's going to introduce this? Aaron or Rachael?
GOODWIN: So again, this is the result of a request put forward by Councilmember
Skillicorn, wanting to discuss and review a recent resolution that was adopted with the
Town of Queen Creek, for discussion and possible consideration here within Fountain
Hills. With that, I'm going to turn it over to Councilmember.
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MAYOR DICKEY: Well, since we don't have a further presentation, do we have any
speaker cards?
MENDENHALL: Yes, we do. First is Stephen Gay. And on deck is Cindy Couture.
GAY: Good evening. The first paragraph of this COVID restrictions agenda item states
that our rights and liberties are enshrined in the Constitution and then adds that these
same rights and liberties are endowed or given to us by God and/or the Creator. I agree
with the first statement. Our rights in this country are established by the Constitution,
which majestically opens with, "We, the People", and not, "Please, dear God in heaven".
We are ruled by the Constitution and not the Declaration of Independence where we do
find references to nature's God, rights endowed by their Creator, and Divine Providence.
God is never mentioned in the Constitution except in an exclusionary manner. The
prohibition against religious tests for holding public office and the First Amendment's
prohibition regarding the establishment of religion specifically excludes any binding
involvement with a deity. Because we are ruled by the Constitution, the Supreme Court
uses the Constitution and not the Declaration of Independence to issue its decisions. As
such, the Constitution is the ultimate lawgiver in this country, not God or His dictates in
Leviticus. Since the resolution's author mentioned that these rights are endowed by
God, I'd like to ask what rights he thinks are given by God to our lesbian, gay, bisexual,
transgender, and queer citizens here in Fountain Hills? I was reading opinions by some
prominent Christian writers and organizations on this topic, including God's own
mandates on homosexuality in his own Bible. And let's just say it's slim pickings for our
LGBTQ brothers and sisters. I doubt drag queens fare any better in the "rights endowed
by the Creator" lottery. So when we start talking about which bathrooms both children
and adults can use in public buildings, are we going with the rights given by God to
LGBTQ citizens, or are we going with what we, the people, decide after open discussion
and a vote by accountable elected representatives? If we decide that God endowed no
rights to LGBTQ people, we may get more incidents like the one in Wadsworth, Ohio, in
March 13th of this year, when an LGBTQ youth center held their annual drag brunch. A
determined group of Nazis associated with the blood tribe chanted loudly, "No
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transgenders on our streets". Yeah. Sorry. Thanks. I appreciate it.
MAYOR DICKEY: Thank you.
GAY: Thank you.
COUTURE: Cindy Couture, Fountain Hills resident. I want you up there to pretend it's
2018. Did any of you predict the COVID pandemic would occur in 2018? Did you know
what was going to happen? When COVID was going to come? None of us did. No one
can predict what health or safety crisis will arrive in the future. With this in mind, I ask
you to vote against this resolution. You'd be tying the hands of future town council
members to act for the safety of our townspeople. Health decisions should be made
and mandated by those with medical degrees. During COVID, the county and the state's
health departments mandated the actions needed to keep our citizens safe. Our town
followed those mandates. Don't tie the hands of our future town officials. Don't set up
our town for legal costs if this new resolution causes us to go against future state or
county mandates. Thank you.
MENDENHALL: Next, we have Gene Slechta. And then on deck is Linda Somo.
SLECHTA: Gene Slechta. Mayor, thank you. You must reject this dangerous and
insulting proposal to adopt an anything goes approach on masks and vaccinations in our
community-wide health. The most important responsibility of government is to keep us
safe. We have speed limits in town and stoplights and seat belt laws to protect all of us.
We just do not leave that up to the individual. And we have requirements to vaccinate
our children prior to registering for schools to protect them all. We do not leave those
decisions up to individuals. These are just some examples of what we call the common
good. Without government and the professional advice and the medical community, we
have anarchy. Without the professional advice and services and government at all
levels, we would not have had COVID vaccines developed and implementation
strategies that saved, conservatively, 20 million lives worldwide, and two to three
million American lives. Millions more avoided hospitalization and long-term health
issues. Mask usage protected millions as well. Were there unintended consequences?
Of course. However, nobody should be questioning the results or rewriting history on
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this. Or worse yet, nobody should be trying to make a name for themselves or create
division. And by the way, why are we revisiting a past pandemic anyway? They only
come every hundred years. The vast majority of Americans have had enough
vaccinations and boosters to protect our nation from having to implement the tough
measures we had to endure. What do we do about X, Y, Z virus or ABC or Bacteria 123,
when they arrive? Do we have resolutions for those too? This is silly to promote health
anarchy. Leave the research and advice to the professionals, the experts, and not to the
individuals. Let government and experts handle these decisions. Don't tie our hands.
Reject this resolution. Thank you.
SOMO: Linda Somo, resident. I don't have anything to add to the last two speakers
except that in 2020, I was a 75-year-old woman who was petrified of catching COVID.
And like many others, the only defense I had was a mask, prior to the mass production
of the vaccines. We can't possibly predict what will happen in the future. We don't
want to tie the hands of the people who actually can try to keep us safe, at least. There
may be mandates again in the future. I hope not. But if there are, it would help me if
people would obey them. So if you're trying to tie the hands of a future city council or
trying to deny the scientific community, we lost a million people here in the States due
to COVID. Do we want to say that's not important? Do we want to say, well, you know,
because people were uncomfortable with masks or vaccines, we shouldn't ever require
that again? We need to do whatever is necessary to protect people. And I hope that
you will not adopt this resolution. Thank you.
MENDENHALL: That's it for speaker cards. But in your packet, you had 23 written
statements and 18 were against it and 4 were for. Thank you.
MAYOR DICKEY: Councilwoman?
MCMAHON: I would like to make a motion to move that agenda item 9C be tabled.
COVID is not at issue. It was a past occurrence. In addition, our AZ legislature has
already addressed this matter by statute. Government entities cannot require COVID
face masks of government employees, nor can a government entity require Arizona
residents to be vaccinated. Accordingly, this is a moot subject. And I request that it be
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tabled. Excuse me. I move that it be tabled. Thank you.
MAYOR DICKEY: Is there a second?
GRZYBOWSKI: Second.
MAYOR DICKEY: Now, again, when something's tabled, do you discuss it? No.
ARNSON: Mayor, the rule says that the motion to table shall not be debatable and shall
preclude all amendments or debate of the subject under consideration.
MAYOR DICKEY: Okay. Thanks. So we can --
KALIVIANAKIS: We can't debate the motion to table? Certainly we can debate the main
motion.
ARNSON: After we vote on it.
ARNSON: After we vote on the motion to table. Correct.
KALIVIANAKIS: Okay.
ARNSON: And if the motion to table passes, then obviously there is no debate to be
had. But if it fails, then clearly there will be further discussion.
MAYOR DICKEY: Motion to table due to state statute. Roll call, please?
MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: No.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Nay.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: No.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Nay.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Yes.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye.
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Okay. So we will debate the item. Anybody want to start off?
GRZYBOWSKI: I'd like to.
MAYOR DICKEY: Okay. I'm sorry. Vice Mayor?
GRZYBOWSKI: Sorry.
MAYOR DICKEY: Yeah. It came up first.
GRZYBOWSKI: The first thing I want to mention is in the very first paragraph, it
discusses God and/or the Creator. The verbiage brags on trusting residents in their
personal choices. Not everybody believes in a higher being. So why we felt the need to
put this in there other than whatever other town did, I don't get it. We have quite a few
people in this town that are either agnostic or atheist. I'm going to tell you I actually
used to be agnostic until I ran for office the first time in 2018. Now I realized I'm
actually an atheist. We do not know what the future holds. Recently we had a
presentation, a really good presentation, on emergency preparedness. It is unfair for us
to limit the resources of our first emergency responders and our future town councils.
What happens if there is a large fire in town or at the landfill? Worldwide epidemics
and pandemics happen, like the 1855 bubonic plague, or the 1918 H1N1 flu. Our
concern as a council should be first and foremost for the health and safety of our
residents. We have no way of predicting the future. By putting this into place, we are
taking away one of the resources that we have to help with our health and safety of our
residents. The only thing I appreciate about this document is four times the phrase
"personal responsibility" is mentioned. I appreciate that you know that I know what's
best for my body, but that's the only thing that I've got in this document that I approve
of. Thank you.
MCMAHON: Thank you, Vice Mayor. I agree with you. And again, this is not a current
issue. It's not an emergency matter. It's a very presumptuous and overbroad and
overreaching proposed ordinance. It's mandating that mayor and council not act
reasonably to protect our community in a crisis. Yet per our oath of office and our
council duties and obligations, this is one of our primary responsibilities to our town and
to ourselves. You can't have it both ways. This cancels itself out and is really useless. In
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fact, if you look at the second "Whereas", it states the government, our town,
responsibly planned and took measures to prevent the spread of COVID and
appropriately prepared for needed emergency actions in response to the spread of
COVID, without infringing on the rights and liberties of our citizens. Again, this
ordinance contradicts that very statement in it. Also the federal government, the
governor, and Maricopa County Department of Health collectively directed and set
parameters when COVID masks were required and did not mandate private citizens to
be vaccinated; it wasn't the town. These facts, coupled with the current Arizona
statutes addressing COVID masks and vaccines, shows that there is absolutely no need
for this ordinance and is basically moot by its own language. And accordingly, I make a
motion to not adopt Resolution 2023-35 in its entirety.
MAYOR DICKEY: Is there a second? Sorry. Is there a second on the motion to --
GRZYBOWSKI: So she just made a motion to deny it? Is that what I understood?
MAYOR DICKEY: Yes.
GRZYBOWSKI: Second.
MAYOR DICKEY: Councilwoman?
KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. I would like some discussion before we go
to a vote. It's been said tonight, why are we revisiting this? This happened a couple of
years ago. Well, because that's how you learn. You make mistakes and you learn from
your mistakes. Had we not gone back and looked at how we do things and we just keep
going forward, we'd be like animals. We're not animals. We're rational people. And we
look at the mistakes that have been made and we learn from those mistakes. George
Santayana, a professor of philosophy at Harvard, said, "Those that do not learn from
history are doomed to repeat it". Humorist and writer, Mark Twain, famously said in the
matter, "History doesn't repeat itself, but it does rhyme". If that's true, then these
sayings ought to guide, not only our public, but our private policy.
When COVID first came, the President of the United States at that time went to get a
vaccination. He boasted that this is going to be the fastest vaccination in the history of
this country. And he was right. They didn't take precautions. They didn't do the normal
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clinical trials. They didn't take all the normal protocols and procedures that you would
to pass a vaccination. And so they hurriedly put this vaccination together. They got
together with the drug companies and they said, we're going to waive any liability for all
the damage that this experimental vaccination is going to do.
And yes, it was an experimental vaccination that they forced us to take as a member of
the United States Coast Guard Auxiliary. They came knocking on my door and they said,
you're going to get vaccinated, otherwise you're going to have to stand down. And I
said, I will stand down, sir, okay? Because I am not going to take this vaccination. If you
look at the masks, it's like trying to prevent mosquitoes from biting you by putting up a
chain link fence. Cloth masks do not work to prevent a virus. It's simply ridiculous.
When they say we should be following the science, well, what science are we talking
about? Because when it seemed to me that this, again, was a politically charged issue
where they forced this on us, they took the licenses of doctors that disagreed, doctors
that prescribed hydrocodone or whatever, Hydroxychloroquine, lost their medical
license. They lost their jobs. The WHO and the CDC and the President of the United
States got it wrong. And we made a lot of mistakes. I have never seen a time in the
history of my life when football players and soccer players drop dead on the field of play
because of myocarditis, which is exactly what's been going on.
And if you look at the research, it shows to me that there may have been more deaths
as a result of taking the vaccinations than of getting the COVID virus itself. And so I am
glad that Councilmember Skillicorn has put this on there, and I think other towns and
cities around the state should do the same thing. Because we have to learn from our
mistakes. I'm not going to stand in the line and get a forced vaccination by an
oppressive government. I am not going to wear a mask of obedience by an oppressive
government. And so when Allen talks about personal responsibility, that's the key. And
so I'm proud to vote for this ordinance. Thank you for putting it on, Allen. And that's all
I have to say.
MAYOR DICKEY: Councilwoman?
TOTH: That's a hard one to follow. That was beautiful. So this resolution, I can
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understand the argument of whether or not it was relevant to have on the agenda. But
here it is. And where my opinion lies, and where it will always lie, is that a person's
freedoms come first. We don't know what will happen in the future. We don't know if
there will be another COVID, a new thing, but your freedoms don't change.
The people who wrote the Constitution, they did not know what the future was going to
hold. But your right to make the decisions for your own body and what you're putting in
it does not go away. And when we talk about a mask, that is a -- that's a device that you
choose to wear or you don't choose to wear. I chose not to wear it because I was born
two months preemie. I had double pneumonia at one point, as a baby. I have very
unhealthy lungs. That's something that is restricting my breathing. And my personal
family doctor -- I don't know where he lies politically and I don't care. I know that he
said I should not be wearing a mask. That was not a decision I made on a political level.
And I don't want that choice taken away from me. I don't want that choice taken away
from you. You know your body, your doctor knows your body, I don't know your body. I
don't get to tell you what to do, and neither does a future council.
If you believe that a mask helps you and that it's more important, wear a mask. If you
believe the vaccine works, get the vaccine. I don't want to stop you from that either.
But don't try to make me do it.
MCMAHON: Again, we have an obligation under oath and as our duties to protect the
health and welfare of our community. And to sit here and mandate things in here that
ties our hands of that, is so contradictory and cancels out itself. To sit here and say that
we know, and future councilmembers know certain things is ridiculous. We don't know
everybody's personal convictions, et cetera. And frankly we don't want to. It's none of
our business and it's none of your business what your personal conviction is.
So to sit here and have, whereas required mandates that we know and future
councilmembers are going to know something. I can't attest to that. I can't agree with
it because, like you say, things change every single day. Facts change every single day.
We don't know. We don't know what the future's going to hold. I can't abide by this. I
can't mandate tying the council's hands to act on behalf of the health and welfare of our
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town.
COVID's past, doctors and pharmacists have even said they treat it like the flu today,
that the vaccines are going to be available, they're not required. They're going to be
available just like flu shots. And again, there are two Arizona statutes that prevent the
requirement of mandating COVID masks and mandating that people get vaccinated.
So to me, this is not just about COVID. It's overreaching. It's tying our hands from acting
on the behalf of our community and dereliction of our duties and should not be
enacted.
MAYOR DICKEY: Councilwoman Toth?
TOTH: I'd like to make one final comment. I could not disagree more on the comment
that it is overreaching. Overreaching is requiring residents to wear a mask or get a
vaccine or to not wear a mask or to not get a vaccine. That's overreach. Government
overreach is when I'm reaching into your life, when it's not my business. Overreach is
not restricting me from doing so. That goes completely against the definition of the
term.
MCMAHON: I disagree. Again, we have statutes in place that don't allow this to
happen. And again, it's preventing us from doing our job. You took an oath to do a job
and now you're mandating not doing that job. It doesn't make sense. It's nonsensical.
MAYOR DICKEY: Councilman?
SKILLICORN: Thank you, Madam Mayor. I do want to point out that if facts change
every day, then they aren't facts. It is interesting that we had a motion to table. That
motion was denied. Now we're going to have a motion that we're going to vote on
about denying. I suspect that that's going to fail. And then after that, we're going to
have yet another motion. So why don't we just go ahead and have a roll call?
MAYOR DICKEY: I'd like an opportunity to speak, and anyway we won't have to do it
again. I don't think if the motion to -- if the motion to fail, I mean --
ARNSON: There's been a motion to approve.
MAYOR DICKEY: A motion, if it fails, then it's approved. So we don't have to do it again.
SKILLICORN: So we'll have a motion to approve. It sounded --
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MAYOR DICKEY: We won't need one. Let's put it that way. So number 5 says the
Fountain Hills Town council recommends its citizens and the general public exercise
personal responsibility. Then it says, but the council commits to not implementing
measures such as mask mandates, business closures, vaccination requirements,
curfews, or any similar measures. So this particular part doesn't say anything about
COVID. And then with the -- or any similar measure, it's really not specific. Business
closures, like we had talked about, that came from the state and such.
But I know like during COVID, let's just use that as an example, when -- if people wanted
to have a party and they wanted to get together at the community center. So basically
this is saying we wouldn't have a right to say they couldn't have their party. And there's
no doubt that when people got together during COVID, people died afterwards. And we
all have our personal things that happened and family members that got very, very ill
and children and babies and all of those things that were going on. And you're darn
right I got the vaccine. Nobody made me get it, but I got it. There are certain things
that you do for your own entity or whatever, you make your own decisions.
I mean, does that consider being pro-choice, too? I mean, what you said was almost a
quote that anybody could use for being able to control your whole body. And parts of
this sound very similar to that. So that's just neither here nor there for this. But I'm just
saying it's a very similar argument that we hear about a lot of different things, birth
control, and what have you.
Anyway. I don't know why we would ever give up, as an elected body, our vote to take
away our own ability to make decisions in the future, because that's what we're doing.
We're basically saying that we or any future mayor or any future council will not be
thoughtful enough to act in the way that the beginning of this ordinance says we did,
which we didn't mandate anything, we followed orders. But we didn't mandate
anything at the time. So you're basically saying we will not -- you can't trust ourselves or
any future mayors to govern thoughtfully. I don't know why we would undermine
police and fire or health professionals. We talk about opinions that these things
weren't -- these decisions weren't made on opinions they were made on -- and yes,
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sometimes you do learn things and facts can change. But this is talking about something
in the future. So maybe COVID, someone will say, you know, two or three things could
have gone differently, but that vaccine saved lives. And I don't understand why we
would vote to take away our own ability to govern in the future or future mayors.
Yes, Councilwoman?
TOTH: Thank you, Madam Mayor. I would like very much to address your previous
comment. The reason that it is different than the pro-choice conversation is that the
pro-choice conversation is giving you the ability to choose this medical procedure. I'm
not going to go into the abortion argument. However, the difference here is me saying
that you have to have a medical procedure, that you have to have a vaccine, that you
have to be wearing a mask. That is me forcing something onto you. And when we talk
about the pro-life argument, this is me saying that you can't do something.
If that belief is that you're ending the human life, then that would be where that pro-life
argument comes into play. When we're talking about COVID, this is not me saying that
you can't wear a mask, that you can't get a vaccine. This is me saying that you can't
force someone to wear a mask or get a vaccine. And why we would give up that right as
a government is because it's the right thing to do.
MCMAHON: We don't have that right because the statute preempts us from doing that.
So we don't have that right. So why don't you read the statute? The statute specifically
states that we can't do that, period. This is not necessary. In addition, in section 5, it
says we can't take emergency measures. The fire department can. If there's a fire, they
can evacuate. So can the police department, if they're SWAT. You know why? It's
within their powers and job duties to do so. So is ours. To put in section 5, at a
minimum, and say that measures such as masks, business closures, curfews, or similar
measures. Why are we preventing ourselves from acting reasonably like we did in the
second "Whereas" in here and implementing for the safety and recognizing the safety
that we need for our community. It doesn't work both ways. You can't have it both
ways. It contradicts itself.
TOTH: I actually do agree with Councilmember McMahon on that, that the second
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whereas is contradictory. And so once we voted on the motion to deny, if it is to fail, I'd
like to encourage my fellow councilmembers to maybe consider striking that second,
whereas.
MAYOR DICKEY: Okay. Let's just vote on it. A roll call to -- oh.
SKILLICORN: If you don't mind, Madam Mayor.
MAYOR DICKEY: Yeah.
SKILLICORN: I do want to bring up our pilot friend brought up the beginning of the
Constitution in the United States, and that starts with "We, the People". And this is
about personal responsibility. And I prefer to give this power back to the people. So I
don't think it's the proper role of government for politicians or bureaucrats or whoever
to mandate masks. I don't think it's the proper role of government to close down
businesses. I don't think it's the proper role of government to force someone to take a
jab. And I certainly don't think it's the proper role of government to force curfews on
the people. Let's give this power back to the people. And that's all I have to say.
MCMAHON: It was never taken away from them.
MAYOR DICKEY: Well, and this discussion proves why having this on the agenda was
just like, why are we talking about COVID? Why are we talking about governments
doing things to our bodies, which, you know, either way, I don't know why. But let's just
take the vote. Vote to deny it.
MENDENHALL: Councilmember Toth?
TOTH: No. Right? Voting to deny? No.
ARNSON: Wait a minute. Say again?
TOTH: Voting not to deny. Right?
GRZYBOWSKI: You're right. You voted no.
TOTH: Okay.
MENDENHALL: Councilmember Friedel?
FRIEDEL: No.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: No. And I want to remind that this council in June of 2020 voted against
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mask mandates, but one person at this dais imposed them on everyone without a vote.
MAYOR DICKEY: Huh?
MENDENHALL: Councilmember Kalivianakis?
MAYOR DICKEY: That's not true. What are you talking about?
KALIVIANAKIS: Nay.
MENDENHALL: Councilmember McMahon?
MCMAHON: I vote to not adopt the resolution.
MAYOR DICKEY: So it's a yes.
MENDENHALL: So it's a yes.
KALIVIANAKIS: It's a yes.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: I also vote yes. Thank you.
MENDENHALL: Mayor Dicke?
MAYOR DICKEY: Yes. So Aaron, if Hannah wants to change it, then she can make a --
can she make a motion for approval without the part that says that we did the right
thing in 2020?
ARNSON: Mayor and Council. Yes, she could make a motion to approve with the
exception of striking the second recital.
MAYOR DICKEY: Okay.
ARNSON: You make that motion? Yeah. Okay.
MCMAHON: Can we vote on it?
ARNSON: Well, we need a second.
SKILLICORN: In section 2?
TOTH: Yes.
ARNSON: The second whereas. The second --
TOTH: The one that would contradict your argument.
MAYOR DICKEY: The one that acknowledges that we did it right in 2020.
KALIVIANAKIS: I'd like to just make a motion to pass the resolution 2023-35.
SKILLICORN: Second.
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MAYOR DICKEY: Okay. Well, Hannah already.
KALIVIANAKIS: I did (indiscernible).
ARNSON: We need a second.
MAYOR DICKEY: All right. All right. Okay. Roll call, please?
MCMAHON: What are we voting on?
MAYOR DICKEY: Passing it.
MCMAHON: I thought we passed it?
GRZYBOWSKI: As written.
MCMAHON: We didn't pass it?
ARNSON: Right. So now --
MAYOR DICKEY: So now I guess you don't have to vote.
MCMAHON: Yeah. They don't have to. There's no point -- there's no second.
SKILLICORN: It still needs an affirmative vote.
ARNSON: I don't think it means you automatically adopt it just because it's denied. I
think you need to affirmatively vote for it.
MAYOR DICKEY: Now, let's just do that.
ARNSON: Yeah.
MENDENHALL: Okay. Just clarification. The motion was from?
FRIEDEL: Brenda. As written.
KALIVIANAKIS: Yes.
MENDENHALL: Okay.
FRIEDEL: Yes.
MENDENHALL: Okay. Yes.
KALIVIANAKIS: Yes. The motion was --
MENDENHALL: And then you -- and Councilmember Skillicorn second. Okay.
UNIDENTIFIED SPEAKER: (Indiscernible) three guys at a time.
MENDENHALL: Okay.
MCMAHON: It got a second?
MAYOR DICKEY: Yes.
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MENDENHALL: All right. Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Yes.
MENDENHALL: Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
MENDENHALL: Councilmember McMahon?
MCMAHON: No.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Nay.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: No. Thank you.
Our next item is an update for the payment analysis from Justin. Thank you.
WELDY: Madam Mayor, Councilmembers, thanks for staying late for us. Back in June
the staff brought forward not only the payment analysis, but also a report from the
citizen's advisory committee on streets. During that time frame and that meeting that
night, you were given a report about the current conditions and the future, and how
that looked with different funding scenarios.
Each one of them basically stated that we currently are not budgeting enough money.
The street's advisory committee basically said the same thing but had some different
options. When we went into the regular session, I brought forward a contract and that
contract was to approve an amendment to the M.R. Tanner, to spend the first half of
the federal funding in this year. I did note, as part of that, that the geotechnical report
was not done at that time. And we're going to get to that here very shortly. But the
first thing that we're going to cover is the upcoming pavement schedule.
As you can see from this first map right here, which is Kiwanis, Enterprise, Colony in that
area, which is the business district or one of several. The first phase of this is going to
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be starting in the end of November, after Thanksgiving, and ending just before the next
holiday. There are several reasons behind that, and we're going to get to one that's
quite challenging. There is simply no convenient time for this type of construction,
regardless of when you have the funds available or the materials or the staffing. There
are going to be some improvement challenges. These challenges are going to be slightly
different from some we've encountered in the past because we're going to be removing
the road to a depth of approximately one foot and replacing it. During that time frame,
some of these driveways will be in accessible for a period of time. That creates
challenges, especially in these types of areas, for us to assume that we are going to stop
just after lunch each day and establish access to all of the driveways is not reasonable or
realistic, nor is it affordable.
There are a couple of things I'm going to ask of tonight. One of them is that you bear
with us and I'll take the brunt of this. Rest assured, my phone doesn't go off and we will
do our best to make all of the most reasonable accommodations necessary. The second
one, and this one is going to be really unpopular. With little to no exception, the Town
of Fountain Hills is a little bit unique. When paving operations are underway, regardless
of the type of treatment, when a motorist disobeys all of the warnings, the signs, the
flaggers, and even police officers chasing them and they drive into these improvements
and do damage, the Town of Fountain Hills is the only one that requires staff to write an
apology to that driver for their actions and also requires the contractor to pay for the
damage that was done. This creates a challenge. And so I'm going to ask you to think
about that without any obligation tonight. But we are going to be facing that type of
challenge here, rest assured.
This is the next one and this is considerably further out. The reason for that is skipping
over the end of the year and the holiday season, and then we're going to jump right
back into this on January 15th. Now we're moving into some residential areas. These
roads are considerably narrower than the ones along Colony and Enterprise, but
nonetheless, they're going to be some improvement challenges and pains in regards to
growing in this area too. Once again, we will do all we can to minimize the disruptions
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and the disruptions to the residents. Bottom line is, it's still going to happen, simply
because we're not just painting the road or putting a topcoat on it but removing it and
replacing it.
FRIEDEL: Will this be one foot depth too?
WELDY: Madam Mayor. Yes, Councilmember. So the cross-section, which we'll get to
on the end of this, and we're going to be making a recommendation as part of this
tonight, the town engineer and myself. Is -- it's going to be basically three inches of
asphalt with five inches of select material under that. So in order to get to that point,
we're going to have to remove a little bit of the existing subgrade and grade it and
subcompact it, then come back in with the select materials. 12 inches is about an
average, if you would.
This phase right here is scheduled to end just before Valentine's Day. Again, some of
this seems like in the beginning, we're obviously working around some major holidays.
The next part of that is really driven by the availability of the materials and the staffing
to accomplish this. For this type of work, M. R. Tanner, which has been doing this for
50-plus years, that type of contractor's in demand. And so they're squeezing us in every
opportunity they get.
This is the third phase. The one on the left, which is Firebrick, is in the southeast corner
of town, just south of Shea. Not a lot of challenges there. There are a couple of
driveways that will create some problems. But for the majority of the rest of them,
there are other ways around for them to get to their home. I cannot say the same for
the one on the right. This is an exceptionally long road and a lot of driveways are going
to be impacted here. This one is in, obviously, between February 19th and March 22nd,
the phone is going to be ringing, emails are going to be coming in. Not only myself, but
the street superintendent and the town engineer and assistant engineer, all hands on
deck. We're going to be doing all we can. But again, we're going to have some
improvement challenges here that come with some growing pains.
This perhaps is going to be one of the less challenging longer ones. The primary reason
for that is there's a few sections of this that we have an opportunity to do to our people.
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This is on Panorama around the back of the park and the lake. And also this area right
here, we close several times a year for different types of special events. You'll note that
the activity taking place here and the time frame is minimizing the disruption to those
activities. They're a big part of this community, from the Turkey Trot to other events
that are held by applicants for special events. This one will be a little less challenging,
but nonetheless there will be some challenges for the section that's closer to Saguaro on
the southern end. We're looking at possibly being able to do half at a time because it's
about 60 feet wide there. If we can work that out safely and maintain access, we will
certainly look at that.
Lastly, on behalf of the town engineer and myself, there's a geotechnical report that was
attached to my staff report, and I have the entire thing here, if you'd like to go through
it. It's 77 pages. I've highlighted some key areas in it. What we're recommending in
early next calendar year, we're going to be bringing back to you a proposal to amend the
subdivision standard. Currently, the standard is two inches of asphalt for our, what we
refer to as local streets. That is not adequate for a couple of reasons. One, it's just too
thin. And two, in 15 or 20 years or depending on the type of treatment, maybe 20 years
later, when you come back to mill it, milling an inch and a half is very challenging. But if
you're three inches thick, taking an inch and a half or an inch and three-quarter or two,
leaves you a stable base. And that allows you to prolong the life of not only the
remaining asphalt, but the new asphalt you're putting on top of it. Again, this will be an
amendment to the subdivision ordinance. That is all I have for the slides.
I'll go backwards so we can look at the first one. In regards to this report. And I think
that this is an important. I've highlighted a section here and it's on page 6. This is a
summary of what was discovered with the geotechnical report. For those of you that
have an opportunity to see this, on the right hand column is an indication of what lies
underneath this very thin section of asphalt. You'll note that there's only one, two,
three, four, five journal entries for about 25 lines. That means there's nothing under
there. They go on in their report, to state that the roads that they tested, including
primarily the local roads and some of the arterials and collectors that the pre-
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incorporation cross section did not meet Maricopa County Department of
Transportation standards at that time, and they've never met the Town of Fountain Hills
adopted subdivision standards. That's what's encouraging us to change our paving
profile and our overall cross section.
Do you have any questions in regards to some of the items that I brought up here?
SKILLICORN: Thank you, Madam Mayor. Director, actually, you have that slide showing
right now. Just a couple of really quick questions. Is the one on Quantas? Does that all
go all the way across El Lago to the Veterans Memorial or does it just stop there at El
Lago?
WELDY: Madam Mayor, Councilmember, that stops at El Lago.
SKILLICORN: Okay. That's a good clarification. And then you mentioned kind of
cryptically, something unpleasant that we'd have to deal with people and I don' t know
if it's about damage to cars or something. Would you mind just explaining that and
being a little more specific?
WELDY: Speaking on behalf of myself and my experiences over the last 17 years as a
member of this staff, whenever we're out doing different types of treatment, we have
signs up that say, "Do not enter" or "Closed". We have flaggers. We have deputies out
there. We have staff contractors. Motorists have gone around all of those warnings
and driven through this stuff up to their house, into their garage across their driveway.
As a result of that, there are a minimum of two tracks down this that now have to be
repaired and then into the driveway and up into the garage. They become enraged.
They contact management and elected officials historically, with little to no exception,
the outcome of that is someone like myself or the town manager issues an apology that
that happened to that motorist. And then we direct the contractor to not only make the
repairs to the damaged asphalt or slurry seal, but also clean the driveway, the garage,
and pay to have the car cleaned.
KALIVIANAKIS: Oh, boy.
MAYOR DICKEY: Brenda?
KALIVIANAKIS: Thank you, Ms. Mayor. Is this codified in our town code, or is this just
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standard operating procedure as you've experienced it in the past?
WELDY: Madam Mayor, Councilmember. I'm not aware of any mandate that requires
us to pay for someone else's poor decisions in anything that we have adopted.
KALIVIANAKIS: So we do it voluntarily?
WELDY: I do it under direction.
KALIVIANAKIS: Under direction. Okay. Good to know. And then there's one more
thing, if I could? I think it's great we're doing Panorama Drive, El Lago, and you
mentioned the Turkey Trot, which is coming up. And I have had constituents give me
some concern over the potholes and the Turkey Trot route. Is there any way we could
do some patches or something before November? So we can make that more safe for
the drivers?
SKILLICORN: Which (indiscernible).
KALIVIANAKIS: Just someone out there. It's someone my constituents know.
WELDY: Madam Mayor, Councilmember. We already have that location. And just for
the record, prior to the special events, we, not only town staff but our contractors, we
go out and identify what I'm going to refer to as hazards. It may or may not be a
pothole, it may be tree branches, and we do our best to address that. The community
services director is directly included in that because some of those trees may or may not
be in one of our prized parks. So we certainly will address it and we'll do that one as
well.
KALIVIANAKIS: Thank you.
WELDY: You're welcome.
SKILLICORN: Madam -- and I just a quick follow-up. I think that our staff are excellent,
the person that does press releases and social media. The elected officials, the
newspaper, our neighbors will do a very good job communicating that. We probably
shouldn't go around barricades and stuff, and occasionally it could happen. But because
we're going to do such a great job communicating that this is going on and people in our
town are calling out for these repairs. And even though it's so inconvenient and I
understand that I have a feeling we have better compliance than normal. And if their
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compliance still fails, boo-hoo. So and then the last thing is that there was the -- would
you mind just briefly scrolling through the slides of what's going to be repaired? Go to
the next one, please. And one more. Okay. That answered my question.
MAYOR DICKEY: Rachael.
GOODWIN: I just wanted to chime in on two comments. One was Justin's update on his
previous direction on how those types of incidents have been handled in the past. I
want to clarify. That was previous direction, and I believe we will be moving in a
different way this time. Secondly, to the point of Councilmember Skillicorn, we do do
extensive public awareness up to -- and I'm going to ask Justin if you can clarify notice
into individual homeowners; is that correct?
WELDY: There will be three notices in advance. There'll be one two to three weeks in
advance, and then one two weeks, and then one the week of. Not to mention there will
be large black on orange signs going up on each of these, identifying that the work is
coming and the dates. So in regards to notification, we, because it not everyone uses
their front door, we also put one on the garage door and we tape one to the side of the
mailbox. Because using the mailbox is not allowed. But we tape them to the side. It'll
also be on the town's website. And obviously for the people that are watching here
tonight and the conversations that'll take place over the next several weeks, they'll be
an opportunity for lots of people to become aware of this.
Lastly, last summer when we presented all of this information, we indicated that we
would be coming back and seeking direction for the future. So we are currently
scheduled to spend approximately half of that federal funding this year. Immediately
next year, based on the analysis and the roads selected, we will spend the balance of
that federal funding. Then we will be back to the limited amount of funding allocated by
the state, which has remained flat for several years, and the allocation granted by the
Mayor and Council. The town manager and I have had several discussions related to
this and we would like to at least get some sort of consensus for the many retreat
coming up and see whether or not you would like to allot 30 minutes, two hours, a day
and a half to discuss the possible funding scenarios for the future. Because before we
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know it, it's going to be here and we're going to be having those tough discussions again
with limited funding.
I appreciate the opportunity to share this with you tonight and ask for your guidance. If
there are any additional questions or comments related to that, I'll be happy to do the
best I can to answer them.
MAYOR DICKEY: Councilwoman?
MCMAHON: Thank you very much for your presentation and your thoroughness. It's
really appreciated. It helped me better understand what's going on in town with the
streets today and the future. And I would also like to thank Jerry Butler for being part of
the Roads Committee. Your contributions are numerous, appreciated, and again, thank
you.
FRIEDEL: Can I ask a question?
MAYOR DICKEY: Sure.
FRIEDEL: So some of those pre-incorporated roads for the future, they'll be easier to
maintain because if we have to do a mill and overlay, then the base will be much better;
is that right?
WELDY: Madam Mayor, Councilmember, that's correct. So basically, all the work that
we're doing and the previous work that we've done, obviously, we bring that up to the
subdivision standards, or in some cases we have slightly exceeded that because we are
well aware of the commercial traffic that utilizes that as what we refer to as a cut
through. So yes, it will be less expensive and they will last longer.
MAYOR DICKEY: Did we have any speaker cards?
MENDENHALL: Actually, you do have one in your packet that is for this item.
MAYOR DICKEY: Thank you.
MENDENHALL: Just a written statement.
MAYOR DICKEY: Who is it? No. So we'll go into the next item then. Right? Which is an
action item.
WELDY: Madam Mayor, Councilmembers, thank you. I know I owe a thanks to the town
manager and the town clerk. Just a few short days ago, I was working on some invoicing
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and working with our community services staff, when I discovered that our current
contract had reached its dollar threshold and we didn't have enough to pay for the
upcoming Turkey Trot. With that said, they allowed me to get into the agenda quick
system a day and a half after it was closed, provided I worked quickly, and I did, so to
get this on the agenda. Thank both of you for that. I really appreciate it.
This contract right here is one that we have used for many years. It's a cooperative use.
The procurement officer that historically does these contracts, Rob, he and I both
looked through the history of this so we could tell you how many solicitations the
county received on this. We can tell you for certain that they at least received two, and
they selected two of them. And so there was some competition. This primarily covers
the street department, anything that we have here on the town hall campus. It also
covers the temporary traffic control devices for our special events. And I always include
this, we have on file and readily available to those that need it, emergency procedure
traffic control plan, should we need to at any time -- let's just pick Shea. Shea is an
evacuation route. We have procedures to make Shea through road with no left turns,
so everybody can get out faster. We also have separate traffic control plans that should
we have prolonged traffic signal outages, we have the standard operating procedure to
address that for safety reasons.
So it's not just for the here and now and the special events, but it also covers future
planning. With that, you have any questions about temporary traffic control devices, I'll
do my best to answer.
MAYOR DICKEY: Anybody. A motion?
GRZYBOWSKI: Moved to approve as written.
MCMAHON: Second.
MAYOR DICKEY: Any other further questions or anything? Okay. Roll call, please?
MENDENHALL: We do have a written statement but they're for this item --
MAYOR DICKEY: Oh. Thank you.
MENDENHALL: -- in your packet. Councilmember Kalivianakis?
KALIVIANAKIS: Aye.
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MENDENHALL: Councilmember McMahon?
MCMAHON: Aye.
MENDENHALL: Councilmember Toth?
TOTH: Aye.
MENDENHALL: Councilmember Friedel?
FRIEDEL: Aye.
MENDENHALL: Councilmember Skillicorn?
SKILLICORN: Aye.
MENDENHALL: Vice Mayor Grzybowski?
GRZYBOWSKI: Aye.
MENDENHALL: Mayor Dickey?
MAYOR DICKEY: Aye. Thank you very much. Appreciate all the work. Thanks, Gerry.
For the items for consideration discussion, we might want to look at the storage of our
stuff. I mean, I don't know. I mean, I know it's not dumping, but if we have any
alternatives, and that would be for you too, Justin, to just see. Maybe connect with
them and see what he had in mind for that. I don't think there were any other things
that were brought up at call to the public.
Future agenda items, anybody?
SKILLICORN: I've actually got a pair and one of them was brought up. And I know Aaron
comment on it a little bit, and I have a little bit different perspective on the moratorium
versus resolution. I think that we can do a resolution to instruct our staff, even though
something like that may not be challengeable in court, but that's something I'd like to
discuss. And the other one was that I did email a group home inspection, so I did want
to -- have their copy to give to Aaron. I did want to bring that up for a future agenda
item, especially since I -- and I wrote it up. Basically, I took it from Phoenix.
MAYOR DICKEY: That's already on the agenda. Councilmember Friedel mentioned that.
SKILLICORN: Okay. Cool. We could have two. I just have my own writeup. I know
there's something working on staff --
MAYOR DICKEY: Oh, it's not just one thing. I mean, it's the whole thing. We're going to
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look at what it is.
SKILLICORN: Well, this is my request.
MAYOR DICKEY: And we can talk to Aaron about the moratorium thing. It's obviously
it's an illegal thing that we have going and it doesn't have any --
SKILLICORN: But it's my request to agendize it, though.
MAYOR DICKEY: How did you define the moratorium? It has no what and what?
ARNSON: I don't remember. Legal force or effect.
MAYOR DICKEY: Yeah.
ARNSON: That sounds like me.
MAYOR DICKEY: So in order to discuss this at a council meeting, I would ask for two
people to want that to be brought up at a council meeting, to turn it into an ordinance.
ARNSON: Was that the request? Okay.
MAYOR DICKEY: Is that what it was? Do you want to turn it into an ordinance?
FRIEDEL: I'm in.
MCMAHON: I thought that you said it wasn't --
MAYOR DICKEY: I think it's something we can talk about without it being on an agenda.
But does anybody else want to see it on an agenda? Okay. We'll follow up about it.
SKILLICORN: All right.
MAYOR DICKEY: Thank you very much. We're adjourned.
Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting
of the Fountain Hills Town Council held on October 17, 2023, at 9:57 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 17th day of October 2023. I further certify
that the meeting was duly called and that a quorum was present.
DATED this 21st Day of November 2023.
_____________________________
Linda G. Mendenhall, Town Clerk
ITEM 8. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 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 for Fountain Hills Chamber of
Commerce for a wine walk on the avenue on December 08, 2023.
Staff Summary (Background)
The purpose of this item is to obtain the Council's approval regarding the Special Event Liquor License
application submitted by Tammy Bell, representing the Fountain Chamber of Commerce, submission
to the Arizona Department of Liquor. The applicant and Fountain Hills Chamber of Commerce are
keenly aware that the final issuance of a liquor license, as well as approval to hold the Wine Walk on
December 08, 2023, is contingent upon the state, county, and local ordinances and guidelines as it
relates to public health. All special event liquor license applicants are required to submit an
application and pay a $25 fee for processing. Once the fee is paid, and the application is reviewed by
Town staff, the application is forwarded to the Town Council for review and consideration. After the
application is approved by Town Council, the applicant will bring the signed paperwork to the Arizona
Department of Liquor and be issued a physical license to be displayed for the duration of the event.
The special event liquor license application was reviewed by staff for compliance with Town
ordinances, and staff unanimously recommended approval of the 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
NA
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
G:\SPECIAL EVENTS\Special Events\Liquor Apps\2023
Form Review
Inbox Reviewed By Date
Finance Director David Pock 11/08/2023 01:32 PM
Town Attorney Aaron D. Arnson 11/08/2023 01:34 PM
Town Manager Rachael Goodwin 11/13/2023 06:04 PM
Form Started By: Ryan Preston Started On: 11/07/2023 04:52 PM
Final Approval Date: 11/13/2023
ITEM 8. C.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Development Services
Prepared by: Paula Woodward, Executive Assistant
Staff Contact Information: John Wesley, Development Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of the First Amendment to the Contract 2021-028.1, a Services Agreement with
Online Solutions, LLC, for Citizenserve electronic application processing software and ongoing
maintenance
Staff Summary (Background)
On January 1, 2021, the Town Council approved the Citizenserve software technology to better serve
customers and staff for processing Planning and Building Safety development applications. The
software was implemented in October 2021. The original contract was for the implementation of the
electronic permit software program in the amount of $58,000 for the first year and $27,000 annually
for the next four years. The $27,000 annual bill was for fifteen Citizenserve user subscriptions. One
additional user has been added for a total of 16 which changed the annual subscription amount to
$28,800 thus necessitating this revision to the contact.
With this update to the contract, the Town has the opportunity to adjust the contract to include
potential future users. Over the next year we anticipate adding one additional user, an inspector for
Shums Coda in association with Park Place development. Staff is also exploring adding the Citizenserve
Code Enforcement Module to provide more streamlined service for staff and the community. If that
occurs, a contract amendment will be processed for those additional users.
Related Ordinance, Policy or Guiding Principle
N/A
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of amendment #1 to contract 2021-028.1.
Staff recommends approval of amendment #1 to contract 2021-028.1.
SUGGESTED MOTION
MOVE to approve amendment # 1 to the Services Agreement with Online Solutions, LLC, for
Citizenserve and any associated budget transfers.
Fiscal Impact
Fiscal Impact:$1,800
Budget Reference:Dev Services
Funding Source:General Fund
If Multiple Funds utilized, list here:
Budgeted: if No, attach Budget Adjustment Form:
Attachments
Contract Amendment #1
Original Contract
Form Review
Inbox Reviewed By Date
Development Services Director John Wesley 09/21/2023 07:56 AM
Finance Director David Pock 09/21/2023 08:28 AM
Town Attorney Aaron D. Arnson 09/21/2023 03:29 PM
Interim Town Manager Rachael Goodwin 09/26/2023 10:12 AM
Development Services Director John Wesley 10/26/2023 09:30 AM
Finance Director David Pock 10/26/2023 09:45 AM
Town Attorney Aaron D. Arnson 10/26/2023 12:04 PM
Interim Town Manager Linda Mendenhall 10/26/2023 01:53 PM
Town Manager Rachael Goodwin 11/14/2023 07:39 AM
Form Started By: Paula Woodward Started On: 09/19/2023 11:08 AM
Final Approval Date: 11/14/2023
1
Contract No. 2021-028.1
FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS
AND ONLINE SOLUTIONS, LLC DBA CITIZENSERVE
THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this
“First Amendment”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Online Solutions, LLC DBA Citizenserve, a(n) Nevada corporation (the “Consultant”).
RECITALS
A. The Town and the Consultant entered into a Professional Services Agreement (the “Agreement”), dated January 5, 2021, for the Consultant to provide electronic permitting system to include on-line plan submittal, electronic plan review, and remote logging of inspections. (the
“Services”). All capitalized terms not otherwise defined in this First Amendment have the same
meanings as contained in the Agreement. B. The Town has determined that it is necessary add funds to the Agreement with the Consultant for Services.
C. The Town and the Consultant desire to enter this First Amendment to (i) amend the Agreement to provide for compensation to the Consultant for the Services and (ii) provide for an annual amount not to exceed for the 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 Consultant hereby agree as follows:
1. Compensation. The Town shall pay Consultant an aggregate amount not to exceed $37,500 for the Services, resulting in an increase of $5,100, for the remaining renewal terms. Each additional renewal term, as referenced in Exhibit D, shall not exceed $37,500 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.
2
2. Effect of Amendment. In all other respects, the Agreement is affirmed and ratified
and, except as expressly modified herein, all terms and conditions of the Agreement shall remain
in full force and effect. 3. Non-Default. By executing this First Amendment, the Consultant affirmatively asserts that (i) the Town is not currently in default, nor has it been in default at any time prior to
this First Amendment, under any of the terms or conditions of the Agreement and (ii) any and all
claims, known and unknown, relating to the Agreement and existing on or before the date of this First Amendment are forever waived. 4. Israel. Consultant certifies that it is not currently engaged in, and agrees for the
duration of this Agreement that it will not engage in a “boycott,” as that term is defined in Ariz.
Rev. Stat. § 35-393, of Israel. 5. 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. 8. Conflict of Interest. This First Amendment and the Agreement may be cancelled
by the Town pursuant to Ariz. Rev. Stat. § 38-511.
[SIGNATURES ON FOLLOWING PAGES]
1855004.1
SERVICES AGREEMENT BETWEEN
THE TOWN OF FOUNTAIN HILLS AND Online Solutions, LLC
THIS SERVICES AGREEMENT (this “Agreement”) is entered into as of January 5th,
2021, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and Online Solutions, LLC (DBA Citizenserve), a(n) Arizona Corporation (“Citizenserve”). RECITALS
A. The Town issued a Request for Proposals, “Electronic Permitting System” (the “RFP”), a copy of which is on file in the Town Clerk’s Office and incorporated herein by reference, seeking proposals from vendors for implementation of an electronic permitting system to include on-line plan submittal, electronic plan review, and remote logging of inspections. Vendor to
provide all set up and training and yearly subscriptions and support.
B. The Citizenserve responded to the RFP by submitting a proposal (the “Proposal”), attached hereto as Exhibit A and incorporated herein by reference, and the Town desires to enter into an Agreement with the Citizenserve for implementation of electronic permit review software
(the “Services”).
AGREEMENT NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated
herein by reference, the following mutual covenants and conditions, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and Citizenserve hereby agree as follows: 1. Term of Agreement. This Agreement shall be effective as of the date first set forth
above and shall remain in full force and effect until December 31st, 2021 (the “Initial Term”),
unless terminated as otherwise provided in this Agreement. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (each, a “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) at least 30 days prior to the end of the then-
current term of the Agreement, the Citizenserve invoices the Town for an additional one-year term
and (iii) the Town approves the additional one-year term in writing (including any price adjustments approved as part of this Agreement), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. Citizenserve’s failure to seek a renewal of this Agreement shall cause the 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 Citizenserve, 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.
919425.2 2
2. Scope of Work. Citizenserve shall provide the Services as set forth in the Scope of
Work, attached hereto as Exhibit B and incorporated herein by reference.
3. Compensation and Payments. The Town shall pay Citizenserve an amount not to exceed $58,000.00 for the Services at the rates as set forth in the Fee Proposal, attached hereto as Exhibit C and incorporated herein by reference for the Initial Term. The Town shall pay the
Citizenserve as set forth in the Billing Schedule, attached hereto as Exhibit D, and upon submission
and approval of invoices. All invoices shall document and itemize all Milestones completed to date. 4. Delivery of Services. Citizenserve grants to Town a non-exclusive, non-
transferable, limited subscription to access and use the CitizenServe software service in
consideration of the fees and terms described in Exhibit C. The subscription will begin as of the date first set forth above which is the date CitizenServe will begin providing services. On this date CitizenServe’s responsibilities begin regarding providing support services, infrastructure, backing up data, performing setup and configuration. Implementation and “go live” timelines vary based
on the availability and responsiveness of Customer’s personnel and on the Customer’s priorities
and objectives. CitizenServe and Customer agree that they will work collectively on a best efforts basis to satisfactorily achieve the Customer’s implementation objectives. Customer acknowledges it is receiving only a limited subscription to use the Software Service and related documentation, if any, and shall obtain no title, ownership nor any other rights in or to the software, service and
related documentation, all of which title and rights shall remain with CitizenServe. In addition,
Customer agrees that this subscription is limited to applications for its own use and may not lease or rent the Service nor offer its use for others. All Customer data is owned by the Customer. Town represents and warrants that the Services will only be used for lawful purposes, in a manner allowed by law, and in accordance with reasonable operating rules, policies, terms and procedures.
CitizenServe may, upon misuse of the Services, request Customer to terminate access to any
individual and Customer agrees to promptly comply with such request unless such misuse is corrected. 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. Citizenserve Personnel. Citizenserve shall provide adequate, experienced personnel, capable of and devoted to the successful performance of the Services under this Agreement. Citizenserve agrees to assign specific individuals to key positions. Citizenserve
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, Citizenserve 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 Citizenserve’s performance. Citizenserve shall provide and
maintain a self-inspection system that is acceptable to the Town.
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8. Licenses; Materials. Citizenserve shall maintain in current status all federal, state
and local licenses and permits required for the operation of the business conducted by the Citizenserve. The Town has no obligation to provide Citizenserve, 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 Citizenserve.
9. Performance Warranty. Citizenserve warrants that the Services rendered will conform to the requirements of this Agreement and to the highest professional standards in the field.
10. Indemnification. To the fullest extent permitted by law, the Citizenserve 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 Citizenserve, 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 Citizenserve, Citizenserve 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 Citizenserve. 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 Citizenserve
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 and self-insured
retention or deductible portions, except Workers’ Compensation insurance and
919425.2 4
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. Citizenserve’s insurance shall be primary
insurance with respect to performance of this Agreement and in the protection of the Town
as an Additional Insured. F. Claims Made. In the event any insurance policies required by this Agreement are written on a “claims made” basis, coverage shall extend, either by keeping
coverage in force or purchasing an extended reporting option, for three years past
completion and acceptance of the services. Such continuing coverage shall be evidenced by submission of annual Certificates of Insurance citing applicable coverage is in force and contains the provisions as required herein for the three-year period.
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 Citizenserve. Citizenserve 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. Citizenserve 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, Citizenserve shall execute written agreements with its
subcontractors containing the indemnification provisions set forth in this Section and
insurance requirements set forth herein protecting the Town and Citizenserve. Citizenserve 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, Citizenserve 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 Citizenserve’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
919425.2 5
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 Citizenserve’s responsibility to forward renewal certificates and declaration page(s) to the Town 30 days prior to the expiration date. All certificates of insurance and declarations required by this Agreement shall be identified by referencing the RFP number and title or this Agreement. A $25.00
administrative fee shall be assessed for all certificates or declarations received without the
appropriate RFP number and title or a reference to this Agreement, as applicable. Additionally, certificates of insurance and declaration page(s) of the insurance policies submitted without referencing the appropriate RFP number and title or a reference to this Agreement, as applicable, will be subject to rejection and may be returned or discarded.
Certificates of insurance and declaration page(s) shall specifically include the following
provisions: (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) Citizenserve’s insurance shall be primary insurance with
respect to performance of the 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 Citizenserve 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.
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A. Commercial General Liability. Citizenserve shall maintain
“occurrence” form Commercial General Liability insurance with an unimpaired limit of not less than $1,000,000 for each occurrence, $2,000,000 Products and Completed Operations Annual Aggregate and a $2,000,000 General Aggregate Limit. The policy shall cover liability arising from premises, operations, independent contractors, products-
completed operations, personal injury and advertising injury. Coverage under the policy
will be at least as broad as ISO policy form CG 00 010 93 or equivalent thereof, including but not limited to, separation of insured’s clause. To the fullest extent allowed by law, for claims arising out of the performance of this Agreement, the Town, its agents, representatives, officers, officials and employees shall be cited as an Additional Insured
under ISO, Commercial General Liability Additional Insured Endorsement form CG 20 10
03 97, or equivalent, which shall read “Who is an Insured (Section II) is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of “your work” for that insured by or for you.” If any Excess insurance is utilized to fulfill the requirements of this subsection, such Excess insurance shall be
“follow form” equal or broader in coverage scope than underlying insurance.
B. Vehicle Liability. Citizenserve shall maintain Business Automobile Liability insurance with a limit of $1,000,000 each occurrence on Citizenserve’s owned, hired and non-owned vehicles assigned to or used in the performance of the Citizenserve’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 Citizenserve engages in any professional services
or work adjunct or residual to performing the work under this Agreement, the Citizenserve shall maintain Professional Liability insurance covering negligent errors and omissions arising out of the Services performed by the Citizenserve, or anyone employed by the Citizenserve, or anyone for whose negligent acts, mistakes, errors and omissions the
Citizenserve 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. Citizenserve shall maintain Workers’ Compensation insurance to cover obligations imposed by federal and state
statutes having jurisdiction over Citizenserve’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.
919425.2 7
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 Citizenserve of written notice
by the Town. Upon termination for convenience, Citizenserve shall be paid for all undisputed services performed to the termination date. Should Town terminate without cause after the Initial Term or any Renewal Term(s) first date of the term, Town must pay the balance of the current contracted subscription term and this payment obligation will immediately become due.
12.2 For Cause. If either party fails to perform any obligation pursuant to this Agreement and such party fails to cure its nonperformance within 30 days after notice of nonperformance is given by the non-defaulting party, such party will be in default. In the event of such default, the non-defaulting party may terminate this Agreement immediately for cause and
will have all remedies that are available to it at law or in equity including, without limitation, the
remedy of specific performance. If the nature of the defaulting party’s nonperformance is such that it cannot reasonably be cured within 30 days, then the defaulting party will have such additional periods of time as may be reasonably necessary under the circumstances, provided the 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 Citizenserve 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 Citizenserve 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 Citizenserve for the undisputed portion of its fee due as of the termination date. . Should Town terminate due to work stoppage after the Initial Term or any Renewal Term(s) first
date of the term, Town must pay the balance of the current contracted subscription term and this
payment obligation will immediately become due. 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 the Agreement or any extension of the Agreement is in effect, an employee of any other party to the Agreement in any capacity or a Citizenserve to any other party of the Agreement with respect to the subject matter of the Agreement.
12.5 Gratuities. The Town may, by written notice to the Citizenserve, 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 Citizenserve or any agent or representative of the Citizenserve 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
919425.2 8
to this provision, the Town shall be entitled, in addition to any other rights and remedies, to recover
and withhold from the Citizenserve 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 Citizenserve fully informed as to the availability of funds for the 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 Citizenserve shall be relieved of any subsequent obligation under this Agreement.
13. Miscellaneous.
13.1 Independent Contractor. It is clearly understood that each party will act in its individual capacity and not as an agent, employee, partner, joint venturer, or associate of the other. An employee or agent of one party shall not be deemed or construed to be the employee or
agent of the other for any purpose whatsoever. Citizenserve 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. Citizenserve, 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 Citizenserve, its employees or subcontractors.
Citizenserve, and not the Town, shall determine the time of its performance of the services
provided under this Agreement so long as Citizenserve meets the requirements of its agreed Scope of Work as set forth in Section 2 above and Exhibit B. Citizenserve is neither prohibited from entering into other contracts nor prohibited from practicing its profession elsewhere. Town and Citizenserve 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. Citizenserve 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 Citizenserve 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 Citizenserve.
919425.2 9
13.5 Provisions Required by Law. Each and every provision of law and any clause required by law to be in the 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, the 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 the Agreement which may remain in effect without the
invalid provision or application. 13.7 Entire Agreement; Interpretation; Parol Evidence. This Agreement represents the entire agreement of the parties with respect to its subject matter, and all previous
agreements, whether oral or written, entered into prior to this Agreement are hereby revoked and superseded by this Agreement. No representations, warranties, inducements or oral agreements have been made by any of the parties except as expressly set forth herein, or in any other contemporaneous written agreement executed for the purposes of carrying out the provisions of this Agreement. This Agreement shall be construed and interpreted according to its plain meaning,
and no presumption shall be deemed to apply in favor of, or against the party drafting the 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 Citizenserve without prior, written permission of the Town, signed by the Town Manager. Any attempted assignment or delegation by Citizenserve in violation of this provision shall be a breach of this Agreement by Citizenserve.
13.9 Subcontracts. No subcontract shall be entered into by Citizenserve with any other party to furnish any of the material or services specified herein without the prior written approval of the Town. Citizenserve 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 Citizenserve.
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 Citizenserve 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
919425.2 10
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 Citizenserve any amounts Citizenserve
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 Citizenserve any amounts Citizenserve owes to the Town for delinquent
fees, transaction privilege taxes and property taxes, including any interest or penalties.
13.14 Notices and Requests. Any notice or other communication required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been 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: Grady E. Miller, Town Manager With copy to: Pierce Coleman, P.L.L.C. 7730 East Greenway Road, Suite 105
Scottsdale, AZ 85260
Attn: Aaron D. Arnson If to Citizenserve: 1101 E. Warner Road Suite 160, Tempe, AZ 85284Attn:James Garvey
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.
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13.15 Confidentiality of Records. The Citizenserve 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 Citizenserve’s duties under this Agreement. Persons requesting such information should be referred to the Town. Citizenserve also agrees that any
information pertaining to individual persons shall not be divulged other than to employees or
officers of Citizenserve as needed for the performance of duties under this Agreement. 13.16 Records and Audit Rights. To ensure that Citizenserve and its subcontractors are complying with the warranty under subsection 13.17 below, Citizenserve’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 Citizenserve 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 (A) evaluation and verification of any invoices, payments or claims based on
Citizenserve’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 Citizenserve’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, Citizenserve 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 Citizenserve pursuant to this
Agreement. Citizenserve 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 Citizenserve or its subcontractors reasonable advance notice of intended audits. Citizenserve 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 Citizenserve 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). Citizenserve’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 Conflicting Terms. In the event of any inconsistency, conflict or ambiguity
among the terms of this Agreement, the Scope of Work, any Town-approved Purchase Order, the
Fee Proposal, the RFP and Citizenserve’s Proposal, the documents shall govern in the order listed herein.
919425.2 12
13.19 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. 13.20 Cooperative Purchasing. Specific eligible political subdivisions and nonprofit educational or public health institutions (“Eligible Procurement Unit(s)”) are permitted
to utilize procurement agreements developed by the Town, at their discretion and with the
agreement of Citizenserve. Citizenserve may, at its sole discretion, accept orders from Eligible Procurement Unit(s) for the purchase of the Materials and/or Services at the then current prices located at https://www.citizenserve.com/municipal-software-pricing/prices (“PRICING PAGE”), in such quantities and configurations as may be agreed upon between the parties. All cooperative
procurements under this Agreement shall be transacted solely between the requesting Eligible
Procurement Unit and Citizenserve. Payment for such purchases will be the sole responsibility of the Eligible Procurement Unit. The exercise of any rights, responsibilities or remedies by the Eligible Procurement Unit shall be the exclusive obligation of such unit. The Town assumes no responsibility for payment, performance or any liability or obligation associated with any
cooperative procurement under this Agreement. The Town shall not be responsible for any
disputes arising out of transactions made by others.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date
and year first set forth above.
“Town”
TOWN OF FOUNTAIN HILLS,
an Arizona municipal corporation
Grady E. Miller, Town Manager
ATTEST:
Elizabeth A. Burke, Town Clerk
APPROVED AS TO FORM:
Aaron D. Arnson, Town Attorney
[SIGNATURES CONTINUE ON FOLLOWING PAGES]
Grady E. Miller (Jan 26, 2021 09:49 MST)
Grady E. Miller
Elizabeth A. Burke (Jan 28, 2021 08:49 MST)
Elizabeth A. Burke
“Contractor”
____________________________________,
By:
Name:
Title:
Online Solutions LLC (DBA Citizenserve)
Ray Barker (Jan 25, 2021 16:44 MST)
Ray Barker
Account Manager
Ray Barker
Page 1
EXHIBIT A
TO
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND
[Citizenserve’s Proposal] See following pages.
Page 2
Proposal for Fountain Hills, Arizona
Electronic Permitting System, RFP #2021-014
Prepared by
Kara McFall, PMP
Online Solutions, LLC (DBA Citizenserve)
800.325.9818 x709
kara@citizenserve.com
September 28, 2020
3:00 PM
Page 3
September 18, 2020 Mr. John D. Wesley, Development Services Director
Mr. Peter Johnson, Building Official
16705 East Avenue of the Fountains
Fountain Hills, AZ 85264
Dear Mr. Wesley and Mr. Johnson,
Online Solutions, LLC (DBA Citizenserve) is pleased to submit this response to the Town’s RFP
for Electronic Permitting System. Citizenserve® is a comprehensive software and service
solution for community development. The major advantages of Citizenserve include:
1. A Citizenserve subscription provides you with a world class, integrated solution. All modules and
functionality are included. In addition to the Permitting, Planning & Zoning, Code Enforcement,
and Licensing modules, your users have access to the electronic plan review tool, online portal, and
integrated document management with unlimited storage.
2. Your users have secure access from any location. Citizenserve is accessed via any browser from any
device, accommodating remote staff and providing full functionality in the field.
3. Citizenserve is low maintenance and quick to deploy because there is no hardware or software to
install, secure, and maintain. Our cloud-based system is already designed, developed, and
implemented – Citizenserve customers can start using the software quickly.
4. Citizenserve has the best and most comprehensive support in the business. Citizenserve is already up and running with thousands of users for hundreds of municipalities.
Implementations move quickly and can be conducted entirely remotely. Times are changing,
and the whole approach to government services has altered. Citizenserve is ready to respond
with technology that is ready now and flexible enough to meet whatever changes the future
brings. This proposal and pricing are valid until September 28, 2021.
Sincerely,
Kara McFall, Manager
Online Solutions, LLC (DBA Citizenserve)
1101 E Warner Rd, Suite 160, Tempe, AZ 85284
800-325-9818 x709
kara@citizenserve.com
SECTION A.1 – COVER LETTER
Page 4
Section A.1 – Cover Sheet and Cover Letter Page 1
Table of Contents Page 3
Section A – General Information
A.2 – Citizenserve Identification Information A.3 – Citizenserve Location A.4 – Citizenserve Description A.5 – Citizenserve Contract Termination (None) A.6 – Citizenserve Litigation (None) A.7 – Vendor Information Form
Page 4
Page 4 Page 4 Page 4 Page 6 Page 6 Page 6
Section B – Citizenserve Experience and Qualifications
B.1 – Citizenserve Experience B.2 – Citizenserve References
Page 8
Page 8 Page 9
Section C – Citizenserve Project Approach/Software Functionality C.1 – Citizenserve Project Approach
C.1.1 – Citizenserve Contract Management Approach C.1.2 – Citizenserve Implementation Approach C.1.2.1 – Implementation Steps
C.1.2.2 – Integration Approach C.1.2.3 – Migration/Conversion Approach C.1.2.4 – Training Approach C.1.2.5 – Maintenance and Administration C.1.2.6 – Customer Service and Unlimited Support C.2 – Citizenserve Integrated Solution C.2.1 – Permitting C.2.2 – Planning & Zoning C.2.3 – Plan Reviews C.2.4 – Inspections C.2.5 – Online Portal C.2.6 – Mobile Capabilities C.2.7 – GIS Functionality
C.2.8 – Reporting and Dashboards
C.2.9 – Role-based Security C.3 – Optional Modules C.3.1 – Licensing C.3.2 – Code Enforcement
Page 11 Page 11
Page 11 Page 12 Page 12
Page 14 Page 15 Page 15 Page 17 Page 18 Page 21 Page 21 Page 25 Page 25 Page 28 Page 28 Page 32 Page 38
Page 38
Page 44 Page 47 Page 47 Page 48
Section D – Project Schedule D.1 – Project Schedule Assumptions D.2 – Project Schedule
Page 50 Page 50 Page 50 Section F – Citizenserve Pricing Separate Cover
TABLE OF CONTENTS
Page 5
A.2 Citizenserve Identification Information
Online Solutions, LLC is a limited liability company, doing business as Citizenserve. Members
who are authorized to act on the company’s behalf are Julie Langdon, James Garvey, and Kara
McFall.
Address: 1101 E Warner Rd, Suite 160, Tempe, Arizona 85284
Federal Tax ID Number: 57-1152874
DUNS Number: 601104124
Proposal Contact Person:
Kara McFall
1101 E Warner Rd, Suite 160
Tempe, AZ 85284
800-325-9818 x709
A.3 Citizenserve Location
The principal office of Online Solutions, LLC (DBA Citizenserve) is: 1101 E Warner Rd, Suite 160,
Tempe, Arizona 85284
We do not have satellite offices.
A.4 Citizenserve Description
Online Solutions, LLC (DBA Citizenserve) has 17 years of experience solving the problems the
Town seeks help with; we have used the names Online Solutions and Citizenserve since the
inception of the company in 2003. Our existing client base consists of towns, cities, villages,
counties, and other municipalities with community development functions. We have over 300 of
these public sector customers, some of whom have been using Citizenserve since the inception
of the company. Each of these customers faced similar challenges to those facing the Town,
and with Citizenserve have completed successful projects. Community planning and
development software and services are the only software and services the company has ever
provided.
SECTION A – GENERAL INFORMATION
Page 6
Citizenserve does not have a traditional software salesforce. Our entire organization is focused
on customer service and customer-requested product enhancements. Citizenserve uses
resource forecasting to determine when our resource capacity may be exceeded due to the
addition of new customers, and we hire new team members before the forecasted need to
ensure that we have the capacity to meet our schedule commitments. We recently hired two
new implementation team members in anticipation of upcoming project needs. We also have
extremely low turnover; the average tenure of Citizenserve employees is over 10 years.
We do not and have never used subcontractors. All of our team members are employees who
have received extensive training on the Citizenserve software and our methodology; the
majority of employees have years of experience with the company.
We leverage technology for web conferencing to minimize unproductive travel and resource
downtime. This model also enables us to assign the same project team members to support
customers once their systems are live, as the team members working with the Town will not be
traveling when a support request comes in. The traditional software model has implementation
and training team members traveling almost 100% of the time, and support teams often know
little about the customer processes, unique setups, and challenges. Our business model
provides higher-level, more qualified resources in real-time.
The Citizenserve solution is a cloud-based software-as-a-service (SaaS) for municipal
community planning and development. The solution covers all aspects of permitting, planning
and zoning, inspections, code enforcement, licensing, request tracking, and case management.
All functionality is extended to an online portal, creating a complete electronic relationship with a
jurisdiction’s constituents.
There is only one version of the software; the Citizenserve software has been developed
organically and continually improved based on customer feedback for 17 years. Citizenserve is
only provided as a cloud-based subscription and there is one database in a multi-tenant
architecture. With this model, the effectiveness of innovation and research and development are
exponentially increased, while at the same time the complexity of delivery are dramatically
decreased. The Citizenserve subscription includes all current and future features and
functionality in the software, as well as unlimited support. The subscription is pay-as-you-go,
typically paid for in advance on an annual basis. This model provides municipalities with
maximum flexibility and cost savings.
Our online support extends beyond assisting with support requests; we also offer unlimited user,
administrator, and technical training. If a user requires additional assistance with an infrequently
used function, our support staff will provide training. If an administrator is not sure of how to add
a custom field or change a template, our support staff will provide training. If your technical staff
requires assistance with browser configurations, our support staff will provide training. Our
Page 7
unlimited support and training eliminate the stress of changing to a new system and ensure that
all of your stakeholders are supported when they require assistance.
A.5 Citizenserve Contract Termination (None)
Citizenserve has never had a contract dispute, failed implementation, or contract termination.
A.6 Citizenserve Litigation (None)
Citizenserve has never been and is not currently the subject of litigation. We have never had a
contract dispute or failed implementation.
A.7 Vendor Information Form
We have included the completed and signed Vendor Information Form on the following page.
PaAg-e97
TOWN OF FOUNTAIN HILLS
SECTION A Electronic Permitting System
IV. VENDOR INFORMATION FORM
By submitting a Proposal, the submitting Vendor certifies that it has reviewed the administrative
information and draft of the Professional Services Agreement’s terms and conditions and, if
awarded the Agreement, agrees to be bound thereto.
Online Solutions, LLC (DBA Citizenserve) 57-1152874
VENDOR SUBMITTING PROPOSAL FEDERAL TAX ID NUMBER
Kara McFall, Manager
PRINTED NAME AND TITLE AUTHORIZED SIGNATURE
1101 E Warner Rd, Suite 160 800-325-9818 x709 800-325-9818
WEB SITE:
www.citizenserve.com
E-MAIL ADDRESS: kara@citizenserve.com
SMALL, MINORITY, DISADVANTAGED AND WOMEN-OWNED BUSINESS
ENTERPRISES (check appropriate item(s):
Small Business Enterprise (SBE) Minority Business Enterprise (MBE) Disadvantaged Business Enterprise (DBE)
Women-Owned Business Enterprise (WBE)
Has the Vendor been certified by any jurisdiction in Arizona as a minority or woman-owned business enterprise? No
If yes, please provide details and documentation of the certification.
ADDRESS TELEPHONE FAX #
Tempe, AZ 85284
CITY STATE ZIP DATE
Page 8
B.1 Citizenserve Experience
Online Solutions, LLC (DBA Citizenserve) has been in business selling and supporting
Citizenserve for 17 years. Citizenserve is a cloud-based software-as-a-service (SaaS) solution
for municipal community planning and development. Community planning and development
software and services are the only software and services the company has ever provided. There
is only one version of the software; the Citizenserve software has been developed organically
and continually improved based on customer feedback for 17 years. We have never acquired
another company or been acquired by another company; all company growth has been organic.
Citizenserve is continually improving based upon customer feedback and requested
enhancements. Requests for new features and functionality are tracked in the Support Center
that is built into Citizenserve. In addition, we keep abreast of advancements in the industry, and
are continually working on improving and advancing our solution. Research and development
are ongoing and are reflected in the number of employees we have engaged in developing,
testing, and implementing improvements to our offering.
Our existing client base consists of towns, cities, villages, counties, and other municipalities with
community development functions. We have over 300 of these public sector customers, some of
whom have been using Citizenserve since the inception of the company. The majority of our
customers have populations between 10,000 – 50,000. Each of these customers faced similar
challenges to those facing the Town, and with Citizenserve have completed successful projects.
The company has never had a customer dispute or litigation. Our unlimited support model
extends our relationships with our customers, ensuring that when they have a question or issue,
we are available to provide timely assistance and problem resolution.
We have extensive experience with the following common project elements:
Rapid implementations. While we occasionally have customers who do not have hard
deadlines, most of our customers have constraints that require rapid implementations. Our
implementation managers are all experienced and excel at meeting deadlines We will work with
the Town to understand any required milestone dates and to schedule the work to
accommodate deadlines whenever possible.
SECTION B – CITIZENSERVE
EXPERIENCE AND QUALIFICATIONS
Page 9
Integration to GIS. The vast majority of our customers require integration to a GIS to load
layers and, for some customers, parcel data. Our integration team is skilled and experienced in
implementing and testing GIS integrations.
Integration to a Payment Gateway. We have already developed an integration to
Authorize.Net; the Town can either elect to use the Authorize.Net payment processor or select
another compatible payment processor.
Daily Financial Batch File. A majority of our customers require a daily closeout/payment batch
file that will be uploaded into their financial system. The Citizenserve team is experienced in
developing closeout files that map to a municipality’s GL codes and financial system data
structure; Tyler Munis is a common financial system among customers.
Data Migration. While the Town has indicated it does not want to migrate data from its existing
legacy system to the new system, we have vast experience migrating data from a wide variety
of legacy community development systems if the Town later decides migration makes sense.
B.2 Citizenserve References
We have included references for three customers of similar size to the Town who are using
Citizenserve to fulfill similar permitting and planning functions as the Town. In addition, we have
included a reference for an Arizona customer, Yavapai County.
Reference 1: Spanish Fork, Utah 40 South Main Street Spanish Fork, UT 84660
Contact Name: Dave Anderson Contact Title: Community and Economic
Development Director
Contact Phone: 801-804-4582 Contact Email: danderson@spanishfork.org
Citizenserve Modules: Permitting, Code
Enforcement, Licensing, Online Portal,
Portal Chat
Additional Services: N/A
Page 10
Reference 2: Lawndale, California 14717 Burin Avenue Lawndale, CA 90260
Contact Name: Michael Reyes Contact Title: Municipal Services Director
Contact Phone: 310-973-3226 Contact Email: mreyes@lawndalecity.org
Citizenserve Modules: Permitting, Code
Enforcement, Licensing, Online Portal,
Portal Chat
Additional Services: Systems Integration, Data
Migration/Conversion
Reference 3: Marina, California 211 Hillcrest Avenue Marina, CA 93933
Contact Name: Brian McMinn Contact Title: Public Works Director
Contact Phone: 831-884-1215 Contact Email: bmcminn@cityofmarina.org
Citizenserve Modules: Permitting,
Planning & Zoning, Code Enforcement,
Online Portal
Additional Services: Data
Migration/Conversion
Reference 4: Yavapai County
10 S. 6th Street Prescott, AZ 86326
Contact Name: Jeremy Dye Contact Title: Assistant Director, Yavapai
County Development Services
Contact Phone: 928-639-8151 Contact Email: jeremy.dye@yavapai.us
Citizenserve Modules: Permitting,
Planning & Zoning, Code Enforcement,
Licensing, Online Portal, Portal Chat
Additional Services: Systems Integration and
Data Migration/Conversion
Page 11
C.1 Citizenserve Project Approach
C.1.1 Citizenserve Contract Management Approach
Citizenserve projects are true partnerships between the Citizenserve and customer team
members. We use an agile process and do not restrict scope; the only firm scope on the project
is related to the data migrations and system integrations. We will continue to work on the
permits, configurations, workflows, reports, forms, letters, etc. until the Town decides they are
comfortable going live; we will never try to force the Town to go live before they are ready.
With traditional IT projects, scope management is the most stressful aspect of the project for
both the vendor and the customer. Traditional waterfall methodologies often fail because it is
challenging to identify every requirement at the beginning of a project, and the vendor often
turns to change orders to pay for missed or misunderstood requirements. Citizenserve
continues our weekly walkthrough meetings and work on the configuration of the customer’s
setup until the customer is comfortable and ready to go live. We will engage in as many rounds
of testing as the individual customer requires to have confidence in going live.
With Citizenserve the hardware and software implementations are already complete, and the
software has been developed with continual input and best practices from hundreds of
customers. Rather than starting from scratch with a vendor who will have to engage in a full-
scale development effort, you will be focusing on the configuration that most closely matches
your processes, workflows, forms, etc. It literally takes minutes to set up your installation and
create departments and users. We can immediately begin setting up permit applications, fees,
workflows, system outputs, and other system configurations. Our flexible configuration options
mean that delivering your requirements is a matter of setting up the system configurations rather
than developing and testing code.
Because we are an internet-based software and service company we cut out most of the risks of
the traditional software model and can therefore offer unlimited support for our customers. This
means there really isn’t a scope over which to haggle because new requirements are included
in the subscription. This is one of the reasons Citizenserve has never had a failed
implementation.
We do not and have never used subcontractors. All of our team members are employees who
have received extensive training on the Citizenserve software and our methodology; the
average tenure of a Citizenserve employee is over 7 years. Citizenserve uses resource
SECTION C – CITIZENSERVE PROJECT
APPROACH/SOFTWARE FUNCTIONALITY
Page 12
forecasting to determine when our resource capacity may be exceeded due to the addition of
new customers, and we hire new team members before the forecasted need to ensure that we
have the capacity to meet our schedule commitments. We recently hired two new
implementation team members in anticipation of upcoming project needs.
The Citizenserve staff members who are assigned to the Town’s implementation will remain
with the Town’s project through go live and will be available for support once the Town
transitions to full production mode. Citizenserve has never pulled a team member from a project
before the team member’s scope of work was completed, and has not experienced an
emergency that would result in the removal of a team member for an extended period of time or
an unscheduled reduction in the team member’s availability for the project. Occasionally,
unforeseen emergencies arise, such as an implementation manager who recently suffered a
house fire the week his new baby came home from the hospital. While the implementation
manager was off work for a week finding housing and navigating insurance and repair
contractors, the project manager and another implementation manager stepped in to continue
the weekly walkthroughs and configuration edits on his project, with no schedule delay.
Citizenserve implementation staff are all highly trained and capable of providing backup when
emergencies arise.
We will assign an Account Manager to the Town’s project who will be available for any needs
that arise.
C.1.2 Citizenserve Implementation Approach
It is important to understand we are not designing, developing or implementing a system. The
system is already designed, developed, implemented, and serving thousands of community
development professionals, citizens, contractors, and businesses for hundreds of municipalities.
In other words, with a cloud or SaaS solution the Town is renting a building rather than
constructing a building and will be moving into a software solution that is already in place.
C.1.2.1 Implementation Steps
Our implementation approach involves the following steps. Completion of the Setup Checklist: The Citizenserve account manager will provide a Setup
Checklist of supporting documentation that will be required to begin the setup. The supporting
documentation typically includes items like copies of permit applications, fee structures, notices
and forms, etc. The Town’s team will work to gather all of the documentation and information
included in the Setup Checklist. Gathering all of the documentation on the setup document prior
to project kickoff ensures the most efficient implementation.
Project Kickoff: The project kickoff meeting includes the key Town and Citizenserve team
members. The Citizenserve project manager will work with the Town’s project manager to
develop the agenda for the kickoff meeting and any supporting materials such as a PowerPoint
Page 13
presentation. Key components of the project will be discussed including roles, responsibilities,
timeline, and objectives. The Citizenserve project manager will provide a report summarizing the
meeting and assigning action items.
Initial Setup: The Citizenserve implementation manager will work from the information on the
Setup Checklist to configure the system; typically, the initial setup comprises 50% of the entire
setup.
System Walkthroughs: Once the initial setup is complete a weekly meeting will be scheduled
with the Town team members and the implementation manager. During the walkthrough
meetings, the team will review each area of the system and make a list of changes or additions.
The walkthroughs are an iterative process that allows the client to clarify or improve upon
existing processes and configure Citizenserve to support those processes.
Data Migration: The Town has specified that they do not require data migration; we have
included the following information in case the Town decides at a later time to include migration.
We perform data migration by module/function. Once the setup for a module/function is nearly
complete, the Citizenserve team begins developing programs to convert and import the related
client data; this process cannot take place until all custom fields for the module/function that are
related to a legacy system have been identified and configured in Citizenserve. The Town team
members have the opportunity to review the converted data; changes will be made to the
conversion script as needed. The data conversion import can be modified and run as many
times as needed to ensure the accuracy of imported data.
Configuration of the integrations. The requirements for the configuration of the integrations
will be gathered during the weekly walkthroughs. The Citizenserve system architect will develop
the scripts for the integration points on the Citizenserve side (development of code to export
data from or accept data into Citizenserve); if an API is not available, the Town’s technical
resources will be responsible for developing the code to export data to Citizenserve or accept
data from Citizenserve. The Town’s team will test the data exchanged between Citizenserve
and the external systems and will provide feedback on needed changes.
Training: Prior to go live, staff members will be trained in small groups. Each training session
will focus on that group’s core job responsibilities. Most users attend one or two training
sessions that last up to four hours; additional one-on- one training sessions can be scheduled
for users who would benefit from additional training. We can record any or all of the training
sessions and make the training videos available online.
Go Live: Final data is typically provided on a Friday afternoon. Over the weekend all test data is
removed from the system and the data is imported. The weekly walkthrough meetings typically
continue for 2-4 weeks after go live to identify any issues or changes that could be beneficial;
the Town decides when they are comfortable with the system and no longer require the weekly
walkthrough meetings.
Page 14
Ongoing Support: Users can request support for any needs or questions through the
Citizenserve support center. Response time to a support request is within 4 hours; urgent
requests receive a response within an hour. Our support staff members are available to help
you utilize existing and new features, develop custom reports, and modify your setup for
process changes as needed.
C.1.2.2 Integration Approach
We have vast experience creating custom integrations for a wide variety of integration points.
Our experience includes developing custom web services for integration with external systems,
creating daily closeout export files for upload into financial systems, integrating with GIS
systems to pull address and GIS information, exporting calendar invites to Microsoft Outlook,
sending emails from the system, creating payment gateways to accept customer credit card
payments online, and many more integration points with external systems.
Typical integrations are accomplished via web services. The Citizenserve system architect will
develop the scripts for each integration point to send data to target systems and receive data
from providing systems, including any data conversions required. The Town’s team will test the
data exchanged between Citizenserve and the external systems and will provide feedback on
needed changes.
Payment Gateway. We have already developed an integration to the Authorize.Net gateway;
the Town can either elect to use the Authorize.Net payment processor or select another
compatible payment processor.
Maricopa County Assessor’s Database. Integrating to a county assessor’s database to import
parcel data for a municipality into Citizenserve is a common integration. We will work with the
Town to identify the required data and frequency of imports, depending upon how often the
Town wishes to update parcel data.
GIS. The Town has indicated that they use EMSFieldMap for their GIS. Our research of this tool
did not identify any published APIs for data integration. If it is not possible to use EMSFieldMap
to provide the Town’s layers, we will work with the Town to identify an alternate solution.
The Town has also requested integration with GIS mapping to provide active and approved
cases. Citizenserve can create any number of JSON Reports that can be consumed by your
GIS; the design and development of these reports is included in the implementation.
Munis. During implementation we will match fees to the Town’s GL codes. We can develop the
end-of-day payment report according to the Town’s specifications; typically these reports are
run for a set time span (e.g., midnight to 11:59 PM) and payments and refunds are summed by
GL code, but we will develop the code to meet the Town’s requirements. We will send the daily
payment file to a secure FTP site that Citizenserve provides; the Town will then load the batch
file into Munis via API or custom code
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C.1.2.3 Migration/Conversion Approach
While the Town has specified they do not require data migration/conversion as part of the
project, we are including a description of our approach in case the decision is made later to
migrate the Town’s historical permit data.
For the past 17 years we have worked exclusively in community development and have
extensive experience working with community development data such as permitting and
planning data. We have experience with legacy systems and the architecture of systems
development and databases extending back to the late 1980s. Our approach is to first complete
the setup of your permit applications and associated fees in Citizenserve. We ask customers to
provide the databases that are to be converted in an unmodified state; we then map the data
from the legacy system to the Citizenserve setup. Once this step is complete, we write a
conversion script and run a test conversion. We do walkthroughs with key users to make sure
files are getting set up properly. All converted records are marked so that we can delete the
conversion and rerun it. We typically run the conversion by department/function. A data
conversion environment is available for test runs of the data conversions, where we load the
customer’s Citizenserve configuration and setup. We can run the conversion scripts as many
times as necessary to identify and resolve any scripting errors.
C.1.2.4 Training Approach
Web-based training led by the project’s implementation manager is included as part of the
implementation costs, and Citizenserve’s unlimited support includes unlimited web-based
training. The Town can save staff time by relying on Citizenserve to provide needed training
during and after the implementation.
The key users who engage in the weekly walkthroughs will be fully trained by the time of go live
after having spent time each week reviewing the screens, workflows, fee structures, templates,
etc. and practicing before the next meeting. Staff members are trained prior to go live. Our
traditional approach to training is to conduct training via web conferencing in small groups, and
the vast majority of our customers employ this method of training. With web conferencing we
can transfer screen control to the users so they obtain experience using the system during
training. Any of the web conferences used for training can be recorded and edited for later
viewing.
Each training session will focus on that group’s core job responsibilities. We provide
comprehensive training on the full functionality of the system; for each group we will provide
training on the functionality the Town decides is needed, in as much detail as required. Most
users attend one or two 4-hour training sessions; additional one-on-one training sessions can
be scheduled for users who would benefit from additional training.
Page 16
We will create a training environment that contains your configuration and data; your users,
system administrators, and technical staff will therefore be training using an environment with
which they are familiar. This training environment will be available in the pre go-live training
sessions and can be made available for additional post go-live training, as necessary.
We provide end user training and, when needed, can train your technical staff who will be
configuring the system. The configuration of Citizenserve is mostly performed using HTML and
SQL scripting. These skills are helpful for any technical users who will be configuring the
system, and we can provide technical training to your staff through our unlimited support.
Administrative support is included in the subscription, and we can either provide training to
administrators or provide direct administrative support throughout the life of the subscription as
required or desired. We have customers who are using both means of support to achieve
successful administration of Citizenserve; most customers opt to save staff time and expense by
using Citizenserve for system administration. As a cloud-based solution, Citizenserve staff
perform all administration related to system operation, management, and monitoring. The
application servers and database are monitored continuously with alerting to ensure the
continued optimal performance of the system.
Unlimited user, system administrator (as needed), and technical (as needed) training is
available as part of Citizenserve’s unlimited support. We can also create introductory, on-
demand videos for staff to review before their initial training. Here are a few examples of training
videos from a recent Citizenserve project:
Getting Started:
https://www.citizenserve.com/training-videos/getting-started-how-to-training-video/
Create New Permit Project:
https://www.citizenserve.com/training-videos/permitting-how-to-training-video/
Create New Code Enforcement Case:
https://www.citizenserve.com/training-videos/code-enforcement-how-to-training-video/
Business License Renewal Overview:
https://www.citizenserve.com/training-videos/business-license-renewal-notice-how-to-training- video/
Schedule and Complete License Inspection:
https://www.citizenserve.com/training-videos/license-inspections-how-to-training-video/
Reporting:
https://www.citizenserve.com/training-videos/reporting-how-to-training-video/
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C.1.2.5 Maintenance and Administration
Maintenance
We release new features and any fixes twice a month; all are included in the Citizenserve
subscription. Our model is not the typical “big bang” version upgrade that combines long lists
of enhancement requests that have been gathered over months or years. Citizenserve is
continually improving based upon customer feedback and requested enhancements. There is
only one version of the software that all customers use; no one gets left behind in an old,
unsupported version. Updates and enhancements to the software are provided twice monthly
and are included in all subscriptions.
We have 17 years of experience managing the twice monthly software updates. We test
changes in a full test environment; customers who are involved in the changes can also access
the test environment. When a new version is ready we move it to production; the process
happens at night and only takes an application server restart, which requires less than 5
minutes total. The prior version of the software is always available if there is a critical issue with
the new version and the decision is made to roll back.
Requests for new features and functionality are tracked in the Support Center that is built into
Citizenserve. Users can subscribe to the updates and get a list of all the changes and fixes in
the most recent version before it is released. With new major features and major upgrades, the
customers who requested these features are in the vanguard of testing the feature in the test
environment and in moving to the feature or upgrade, providing us with great feedback early on
so we can refine the features and fix issues without affecting other customers, all while still on
one software code base.
A test version with a full database copy is set up to test new versions. Once a version is tested it
is moved to production. If an unexpected problem occurs with the new version, a roll back to the
previous version is possible in minutes. Full database backups are performed when each new
version is released and the full backup is restored so it is online for any necessary real-time
troubleshooting.
New major features are oftentimes done with a configuration option. For example, if we update
a component like the HTML editor with a better version, we will convert customers one-by-one
to make sure that existing letter and email templates are not affected. This is as simple as
changing a flag in the database, but allows switching back and forth while any issues are
resolved. Major upgrades are usually accomplished by setting up a new application server and
migrating customers over time. An example of a major upgrade is moving to a new version of
Java.
When new patches are released for server operating systems we start by patching all non-
production servers to ensure there are no issues, then patch production environments last. The
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exception to this approach is when known issues are imminent threats, like the famous
WannaCry ransomware threat. In this case everything gets patched immediately. Since we
maintain one high availability, multi-tenant environment rather than hosted instances for each
customer, the patching process is greatly simplified.
Citizenserve System Administration
Citizenserve staff perform all system administration and monitoring. The application servers and
database are monitored continuously with alerting to ensure the continued optimal performance
of the system. For example, the processor utilization, pages, memory utilization, and replication
are all monitored. Expensive queries are easily identified and can be optimized on a continual
basis.
We have firewalls with intrusion detection enabled; the firewall is monitored continuously with
alerting. Features and protection types include:
• Stateful packet filtering – rule-based port and device access to resources.
• GeoIP – Allows traffic filtering based on geographic location.
• Gateway Anti-Virus – Enforces virus scanning on all incoming data for HTTP, FTP, and
SMTP.
• Intrusion Prevention – Protects against agent and script-based attacks.
• Anti-Spyware - Protects against specific trojan and adware-based attacks.
• Botnet filtering - Blocks connections to/from Botnet Command and Control Servers.
• Real time alerting – Monitors and alarms at critical conditions.
• Syslog and analysis – Provides long-term log recording and traffic analysis.
Citizenserve Support can also provide system administration tasks such as adding new users,
configuring user roles, changing workflows, etc. Most customers choose to use Citizenserve’s
unlimited support for system administration tasks, thus saving staff time.
C.1.2.6 Customer Service and Unlimited Support
We offer unlimited support for Citizenserve. Citizenserve’s support is truly unlimited,
comprehensive, and unique. The support extends to addressing any issues, setting up new
processes, improving existing processes, adding new permits, setting up new workflows,
developing custom reports, system administration, training, and configuring new features. Your
users, administrators, and technical staff will never be assessed an additional charge for
support. For our customers, knowing that we are available to resolve issues and meet new
requirements as part of our unlimited support removes the stress of the project implementation,
while having a trusted partner who provides unlimited support for the software provides for a
smooth transition to operations mode.
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Help Desk Processes
We have a toll-free support line that users can call for end user, administrator, and technical
support. The software has a built-in Support Center for the submission of support and
enhancement requests and we encourage users to use this feature to submit requests.
Support Center Request Submission Form
As a Software-as-a-Service company, we remotely service customers who are geographically
distributed. We use web conferencing, conference calls, and email to provide support. Using
web conferencing for support allows us to provide higher quality resources in a more timely
fashion while providing consistency in the people with whom your staff will be working. We can
also view the user’s screen; the user can walk us through the issue he or she is experiencing,
and this visibility supports rapid troubleshooting.
The employees who staff the support desk are the same resources that work on project
implementation; each of our implementation staff is assigned to a full day of support once a
week. This structure means that when you contact support, you will be working with someone
who is extremely familiar with all aspects of the system. If a question arises that involves the
Town’s specific setup, the implementation manager who is assigned to the Town’s project will
be assigned to the support ticket, and the system architect assigned as needed.
Citizenserve Service Level Agreement
Support requests can be marked as standard or urgent. For standard requests, our service
level agreements are as follows:
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• For standard requests submitted between the hours of 5:00 a.m. Pacific time through 6:00
p.m. Pacific time Monday – Friday (non-holidays), we will respond on the same business day
within four hours.
• For standard requests submitted outside of these hours, we will respond on the next business
day prior to 9:00 a.m. Pacific time.
For urgent system requests, defined as the system being down/inaccessible or a security
concern, Citizenserve staff are available 24/7 and will respond within one hour; our average
response time is 15 minutes. We realize that sometimes support is needed when a customer is
waiting at the permit counter, so urgent requests are immediately addressed by the support
team.
Hours of Support
Support requests can be marked as standard or urgent.
• For standard requests, support staff are available from 5:00 a.m. Pacific time through 6:00
p.m. Pacific time during non-holiday business days (Monday – Friday).
• For urgent system requests, defined as the system being down/inaccessible or a security
concern, Citizenserve staff are available 24/7
All support staff are seasoned Citizenserve employees. Customer Feedback on Citizenserve’s Support
Citizenserve has provided remote support for implementations, training, and customer support
for 17 years, and have found this model to be extremely effective in providing superior and
timely service. Some recent customer feedback we have received on our support includes:
“Citizenserve has proven to be one of the most responsive software vendors I have ever
worked with. Building permitting is immensely complicated, as are health citations.
Citizenserve has proven to be an excellent partner in building complex, multi-faceted
and integrated solutions to meet the city’s needs in these areas. We have submitted
literally hundreds of requests for enhancements, improvements, changes since launch,
and they responded quickly to every one of them.” City of Revere, Massachusetts
“Since the project their support team has continued to deliver quickly on all of the
requests we’ve made, including building a whole new permit in a day when the Mayor
identified an online outdoor seating permit as a priority for re-opening during the
pandemic.” City of Urbana, Illinois.
“We have been using Citizenserve for approx. 2+ years and considering we had a
previous software program and now moving into Citizenserve we are thrilled. Everything
they promised to do was done. Everything they say about the support response time and
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help is TRUE usually done immediately. I have no problem giving them an Excellent
rating.” – Town of Norfolk, Massachusetts
C.2 Citizenserve Integrated Solution
Citizenserve is a Software-as-a-Service (SaaS), cloud-hosted solution that fully meets the
Town’s scope of work. As a SaaS solution, our customers have no hardware or software to
install and maintain. Citizenserve is a comprehensive community development solution that has
been developed and improved organically over 17 years; all modules are integrated and
included in the subscription. The integrated nature of Citizenserve means that you will not have
to re-enter the same information in multiple modules; all of Citizenserve’s modules use the
same database and data.
The two modules we are proposing for the Town are the Permitting and Planning & Zoning
modules. We have also included information on Citizenserve’s Licensing and Code
Enforcement modules; these modules are included in the Citizenserve annual subscription if the
Town elects to implement them at a later time.
C.2.1 Permitting
Citizenserve permitting software accommodates multiple types of permits, including all of the
permits listed by the Town in the RFP and any future permits the Town adds. Any permit can be
easily added and workflows built that include both administrative and public review workflows.
You can add an unlimited number of permit types in Citizenserve. Permits, inspections, and associated
workflows can be designated by department/function. Permits are automatically associated with the
property and address.
Your contractors, business owners, and property owners can apply for a permit, upload digital
plans, pay application fees, and check on the status of applications online through the
Citizenserve online portal. Staff can also enter permit applications and upload digital plans at
the counter or in response to emailed applications; because Citizenserve is accessed from a
browser, staff can access the full functionality while working at any location.
An unlimited number of permit documents can be created, including applications, permits,
certificates of occupancy, placards, etc. Each permit document can have mandatory or warning
conditions based on issues with the file. Custom rules will ensure that permits are not issued
without the required approvals. The Town can specify the statuses associated with milestones
in each workflow, including Received, Accepted, In Process, Returned for Correction, Approved,
Denied, Public Hearing Scheduled, etc.
Citizenserve can accommodate complex fee structures, and all fee schedules can be end dated
to ensure that the correct fees are applied. Citizenserve will develop the fee structures for each
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of the Town’s permits and other applications during implementation; maintenance of the fee
structures is included in Citizenserve’s unlimited support.
Inspections can be requested through the online portal, and inspectors can enter inspection
results directly from the field using a tablet, laptop, or other mobile device. After the final
inspection has been completed, you can easily generate approval documents that can be
printed, emailed, or downloaded by the applicant, contractor, property or business owner.
Citizenserve enables inspectors to track their time spent on inspections. Workflows can be easily configured and changed in Citizenserve, and users can quickly identify
the status of each of the steps in the workflows for permits. Workflows can be configured to
determine the appropriate route based on a variety of criteria such as permit type, property
details, and specific fields in the application. Permit reviews are activities in a workflow and can
be configured to dynamically route a permit application to different departments based on the
information entered during the review. Citizenserve’s role-based security enables you to decide
who can view permit information and feedback. Citizenserve maintains a complete,
timestamped history of all actions taken on a permit.
The below example shows the Review steps that have been configured in a workflow for a
building permit. The application has completed the Application Intake and Application Review
steps and has completed the Required Inspections, and is awaiting Application Review by the
Fire, Planning & Zoning, and Building Departments before the Review is complete.
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Building Permit Route Display Customers who submit permit applications can check on the status through Citizenserve’s online portal. The below screen shot
shows the View Permit screen from the online portal; the customer who is logged in has previously submitted an application for a
building permit and has now accessed the Reviews tab to see the status of the reviews for the permit.
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View Permit Screen from the Online Portal (Reviews Tab) You
can view demos of Citizenserve’s permit solution at:
https://www.citizenserve.com/portfolio/#category_id_17
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C.2.2 Planning & Zoning
Citizenserve planning and zoning software completely automates the process of application,
review, routing, resubmittals, and public notification. Applicants can submit applications, attach
plan documents, pay application fees, and view the status of their applications through the
online portal. Applicants can submit zoning and zoning variance applications. Applications are
automatically routed to the appropriate reviewers based on your workflow routes. Plan
reviewers have access to searchable electronic reference materials including building code
handbooks, GIS layers, and property history.
You can track due dates for public notices and legal advertisements based on the hearing dates
you select. Citizenserve’s user friendly calendars enable staff and supervisors to view individual
or consolidated schedules to enable decision making and task prioritization and scheduling.
Property data is handled the same for all Citizenserve modules. Alerts can be set on parcels; for
example, an alert can be set to prompt for administrative approval when an address cannot be
verified. Documents can also be attached to parcels, applicants, and projects.
You can view demos of Citizenserve’s planning and zoning solution at:
https://www.citizenserve.com/portfolio/#category_id_35
C.2.3 Plan Reviews
You can create customized workflows that mimic your plan review processes and digitally and
visually track plan review statuses and comments. The plan review function is highly flexible and
accommodates any plan reviews and associated workflows. We will develop the applications
and letter and email templates to match the Town’s current forms, including Town logos and
graphics.
Workflow status can be tracked internally by Town staff, while customers, business owners, and
contractors can check on the status of an application on the portal. Each application type can
have a specific review route or workflow route, and each workflow route can contain different
activity types and assignments; activities can be assigned to occur linearly or in parallel. An
unlimited number of activity types can be created in Citizenserve. Each activity can have a
specific form or custom fields and template outputs. A review activity can be completed and a
template email or letter sent to the contractor, business owner, or other stakeholders.
You can view a demo of Citizenserve’s workflow routing at:
https://www.citizenserve.com/portfolio-view/workflow-routing/
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Citizenserve has robust and flexible Electronic Plan Review tools to enable professional,
engineering-level reviews. Our review tools can be used for any plan review and any document
type, including PDFs of building plans, PDF fillable applications, drawings, photos, etc.
The Electronic Plan Review tools include functions to measure areas and linear distances and
accurately scale drawings. The Electronic Plan Review tool supports electronic plan comments
for each reviewer by adding notes, standard comments, highlights, measurements, and other
annotations. During implementation we will work with the Town to build Common Comment
Books for each type of plan review; a plan reviewer can therefore simply select the comments
that are relevant for the current review.
Measure Areas and Linear Distances with Citizenserve’s Review Tools
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Create Custom Lists of Electronic Plan Comments for Each Department
Create and Share Custom Stamps
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C.2.4 Inspections
Citizenserve supports the creation of an unlimited number of inspection types. Each inspection
type can have a specific form or custom fields and template outputs such as an inspection
report. Templates can be created as reports, letters, emails, or any other combination of text
and graphics. Forms and documents can be changed, and configuration changes made, on the
fly with no system downtime.
Citizenserve is device and browser independent, which means your inspectors can access the
full functionality of Citizenserve from the field from any tablet, laptop, or other mobile device. For
example, an inspector can receive an inspection request while in the field, complete the
inspection while on the site, fill out the inspection form, and generate an inspection report for
mailing or emailing to a citizen, business owner, or contractor. Inspectors can look up property
ownership information, add violations, take and attach photos, mark up images using the
Electronic Plan Review tool, generate tickets or notices of violation, and schedule re-inspections
in the field from a laptop, iPad, or other mobile device. Citizenserve enables your inspectors to
write tickets for violations from the field using any mobile device, provide a signature, and print
tickets from the field using a Bluetooth printer. Pictures can be added directly from device
cameras. Your inspectors can schedule follow-up activities, or Citizenserve can be configured
with automatic follow-up activities based on the types of violations. Your inspectors can also
track time spent on individual inspections in Citizenserve.
Your inspectors can select from multiple code sections, including building, environmental,
health, property maintenance, and fire codes. As part of Citizenserve’s unlimited support, we will
ensure that your codes are kept current. Citizenserve also enables violations and tickets to be
easily displayed on maps or other management reports; parcel data can be retrieved by clicking
on the map layer. Inspectors using iPads and other devices that support speech-to-text can also
add inspection comments using speech-to-text, saving valuable time and enabling the entry of
comments while the information is fresh.
Citizenserve has a built-in device and browser independent calendar feature that allows
inspections and tasks to be easily assigned and managed. When tasks or inspections are
assigned to a user there is an option to have an email reminder sent. The email can contain an
ICS file that adds an appointment to the inspector’s Outlook or Google calendar. Your
constituents can also schedule inspections through the online portal. Citizenserve provides the
ability to view the locations of your inspections due. If GIS integration is requested, we will assist
you in loading your GIS layers such as zoning districts and parcel lines to enable you to view or
look up inspections due on a map.
C.2.5 Online Portal
The portal is fully integrated into all of the Citizenserve modules, which means information and
data entered into an application, documents uploaded as part of an application, and requests for
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inspections are immediately available in the associated Citizenserve modules. The configurable
and customizable online portal allows citizens, contractors, workers, and businesses to
participate electronically in the processes of permitting, planning and zoning, inspections,
complaints and service requests, licensing, and code enforcement. Because the same portal is
used for all functions, the user is provided with a consistent experience. The portal has been
built into the solution from the beginning, meaning users are provided with a cohesive and
optimized interface. All portal pages use responsive design, which means the forms morph into
the available form factor, automatically resizing to fit the user’s device.
The portal can be configured as a link off of the Town’s website. Functionality that is available
from the portal includes:
• With Citizenserve permitting software your business owners, contractors, architects, engineers,
and property owners can apply for a permit, upload digital plans, schedule an inspection, pay
application fees, and check on the status of an application online. The permit application can be
configured with mandatory fields; the portal can also be configured to provide information on the
requirements when applying for each type of permit.
• Planning and zoning applicants can submit applications, attach plan documents, schedule an
inspection, check on the status of an application, and pay application fees through the online
portal.
• Citizens can report possible code violations and check on the status through the online portal.
You can communicate with your citizens effectively and efficiently by using Citizenserve’s
automatic notifications, automated letters, and email templates. NOTE: this information is
provided for informational purposes, as the Town did not request code enforcement.
• The Citizenserve online portal enables businesses, contractors, workers, and others seeking
licenses to submit applications, schedule required inspections, upload copies of required
documents, pay application fees, check on the status of an application, and download approved
License Certificates and ID cards through the portal. Businesses, contractors and workers
seeking to renew licenses can do so through the portal. NOTE: this information is provided for
informational purposes, as the Town did not request licensing.
• Citizens can submit complaints and service requests online, then track the status of their
complaint or request. Automatic notifications, letters, and email templates can be configured to
reduce the communication burden on Town staff. NOTE: this information is provided for
informational purposes, as the Town did not request complaint and service request tracking.
The image below shows one configuration of the portal for the fictitious Town of Buena Vista.
Visitors can learn about and apply for building permits, development projects, and licenses and
can submit code complaints or requests for services. For the Town, we would configure the
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portal to enable permit and planning applications, including Planning, Building Safety, and
Engineering.
Sample configuration of the Citizenserve Portal
One critical feature in Citizenserve is the ability to set User Notifications and Assignments for
each permit and case type so staff and departments are notified when citizens, business
owners, contractors, or workers take action on the portal. For example, if a staff member
requests a revised plan document, the notification matrix will let the staff member know when
the document is uploaded. Without notices of actions taken on the portal, the staff would have to
keep checking the file for the uploaded document or worse – forget to check, resulting in a call
from the business owner wondering why his or her permit has not been issued.
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Sample Citizenserve User Notifications and Assignments Configuration Screen (Permitting)
Customers who submit permit and planning applications have access to the status of the permit
reviews and inspections through the online portal. Below is a screenshot that shows a partial
view (due to space constraints) of the View Permit screen that is accessible by a customer from
the portal; the tabs for Permit, Review, Documents, and Inspections show the status information
that is available to the applicant.
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Online Portal View Permit Screen
You can view demos of Citizenserve’s online portal at:
https://www.citizenserve.com/portfolio/#category_id_34
C.2.6 Mobile Capabilities Citizenserve is fully functional in the field: there is no distinction between desktop or tablet
users. Citizenserve uses a device and browser independent architecture. There is no software
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required on the local desktop or device. Examples of activities that can occur from the field
include:
• Inspections. For inspections required for building permits, business licenses, and other
applications that require an inspection, an inspector can receive an inspection request while in the
field from a tablet or laptop, complete the inspection while onsite, fill out the inspection form,
and generate an inspection report for mailing or emailing to a business owner, citizen, or
contractor. Inspectors can look up property ownership information, add violations, take and
attach photos, access the full functionality of the plan review tool, generate tickets or notices of
violation, and schedule re-inspections – all in the field from a tablet or laptop. The inspection
forms use a responsive design, which means the forms morph into the available form factor,
automatically resizing to fit the user’s device. We will be rolling out a new offline inspection
capability in 4th quarter 2020.
• Code Enforcement. Code inspectors are notified of inspections due and can look up property
ownership information, add violations, take and attach photos, generate tickets or notices of
violation, and schedule re-inspections while in the field from a tablet or laptop. NOTE: this
information is provided for informational purposes, as the Town did not request code
enforcement.
• Complaint Tracking and Inspections. Citizenserve’s mobile capabilities enable your
inspectors to perform inspections associated with complaints and enter their findings from the
field. Using an iPad or other mobile device, inspectors can enter their findings from an
inspection, including uploading photos taken in the field and other documents. Notices of
Violation, Warnings, and other enforcement documents can be generated in the field using an
iPad or other mobile device and Bluetooth printer. NOTE: this information is provided for
informational purposes, as the Town did not request complaint tracking.
Citizenserve is device and browser independent, which means your inspectors can access the
full functionality of Citizenserve from the field from any tablet or laptop. The following pages
show an example inspection conducted from an iPad. Because the software is device and
browser independent, Citizenserve’s full capabilities are available from an iPad or Android
tablet, or other mobile device.
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Staff can customize
their dashboard to
display
appointments, tasks,
key performance
metrics, etc.
In this scenario, the
Inspector opens
Citizenserve on his
iPad and selects an
inspection to be
completed from his
calendar.
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The inspector switches to
landscape view and
completes the inspection
from the field. He can
access the full history from
the field.
Available tools enable him
to retrieve plans through the
Electronic Plan Review tool,
add violations, schedule a
follow up inspection, upload
documents and photos,
generate form letters, or
send emails.
The inspector can copy
comments from a previous
review, open the common
comments book, or add
manual comments.
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The inspector
selected the
common
comments
book tool and
checks
applicable
comments to
use in this
inspection.
He can also
type or use
voice to text to
create his own
comments.
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The inspector
can preview
and edit the
inspection
report prior to
sending.
This report
includes a
photo taken
on site,
inspector’s
comments,
and
electronic
signature.
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C.2.7 GIS Functionality
Google Maps and all associated functionality are built into Citizenserve. While most customers
elect to integrate Citizenserve with their GIS system to pull in layers, parcel information, etc.,
some customers choose to use the base functionality of Google Maps integration. We are
experienced in creating interfaces to GIS systems, and have included this integration point for
the Town.
You can use Citizenserve’s mapping functions to track inspections and other tasks. You can
display all tasks assigned to a user, filter by types of tasks such as inspections, and further filter
by the type of inspection or review. Citizenserve’s map viewing options are fully customizable.
We have also included the export of active and approved cases from Citizenserve to the Town’s
GIS in our bid.
Citizenserve Map View of Due and Overdue Tasks
C.2.8 Reporting and Dashboards
Reporting Capabilities
The creation of an unlimited number of custom reports is included in the Citizenserve subscription.
Citizenserve reports can be tabular, maps, and charts. The reports are rendered in HTML and the software
has built-in features to interactively display data. HTML can be used
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within the reports; for example, a link to a GIS system or a graphic displaying status can be
included within a report.
The reports are interactive; a click on a map report will show the underlying tabular information
and provide a link to the underlying file, such as a permit. Citizenserve also supports merge
reports where the information from the report is merged with a Microsoft Word template letter or
an email; merge reports can save a copy of the letters generated to the respective files. Tabular
reports can be exported to CSV/Excel format. All reports can be put on the online portal for
public consumption, and reports can be placed anywhere on the portal pages.
Reports can also be used to create special features, such as a property zoning lookup. Reports
can perform processing, such as a report that generates invoice statements, late fees, or
penalties, and can be added to the file. Any report can be saved as a PDF for archiving; tabular
reports can be exported to CSV format for input into other systems.
There is a built-in end-user reporting wizard in Citizenserve that allows non-technical users to
design their own reports and share the reports with others. The reporting tool allows you to
report on any custom fields in the database. End users can create their own tabular, map, chart,
and merge reports.
If the Town prefers, users can request the creation of a custom report at any time as part of
Citizenserve’s unlimited support. Citizenserve has same-day turnaround on most reports. Our
staff will create a SQL script in a stored procedure that is rendered by the software and can
contain process features and HTML. The SQL scripts create maximum flexibility.
The following link is to a video overview of the Citizenserve reporting features:
https://www.citizenserve.com/portfolio-view/reporting/
Below is an example Permits Issued map report from Citizenserve:
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Sample Citizenserve Map Report
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Citizenserve has a robust offering of standard reports; a partial list is depicted below:
Partial List of Citizenserve Standard Reports
User/Role-Based Dashboards
Citizenserve provides multiple dashboards to enable your users to quickly obtain the information
they need. Dashboards are very easy for individual users to configure and change by simply
selecting the desired metrics from a list of available metrics, or Citizenserve will create a custom
metric containing the data a user requests as part of our unlimited support. The user
dashboards are flexible and can be configured to meet the specific needs of individual users
filling different roles. We have provided one example of a dashboard below for Lucas Andrews,
a code enforcement supervisor. Lucas has configured his dashboard to show open code cases,
pending tasks for his department by user, inspections due this week for his department, and
unassigned inspections. The items in blue indicate the availability of drill down information for
each item.
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Sample Citizenserve Dashboard for a Code Enforcement Supervisor
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Clicking on the map icon opens a map view of Lucas’ tasks that are due today:
Map View of Lucas’ Tasks, Due Today
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Each user can configure his or her individual dashboard to display the metrics of interest, and
it’s easy to request custom metrics from Citizenserve’s Support Center.
The My Metric Settings popup enables each user to configure his or her dashboard
C.2.9 Role-based Security
Security in the system is role-based. All Citizenserve file types, permit types, license types,
activity types, and templates have a scope that can be shared for sub-departments or
departments only. Departments set up roles such as manager, read-only, etc. Roles are added
to users and the rights for each department and sub-department roll up into a security matrix for
each user. Specific rights can also be controlled for access to different application features,
such as Code Compliance or Permitting. The ability to access fee tracking and edit payments
are also available, as well as the ability to edit and add properties.
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Sample Citizenserve User Setup, Including Role Assignment
Each department/sub-department can set up roles that are assigned to users. Each department
can have different roles and assign rights to create, view, modify, delete, delete file, edit closed
files, edit completed items, assign activities, and accept activities.
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Sample Citizenserve Roles Screen
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Sample Citizenserve Role Setup Screen (Manager – Building Role)
C.3 Optional Modules
Citizenserve is a comprehensive community development solution; all modules are integrated
and included in the subscription. We have provided information below on Citizenserve’s
Licensing and Code Enforcement modules in case the Town elects to implement them at a later
time.
C.3.1 Licensing
Permits and licenses are similar in Citizenserve, so if you are familiar with one the other is easy
to use and understand from both end user and technical perspectives. Citizenserve licensing
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software automates the application, payment, review, and renewal of business, contractor,
worker, and any other licenses. An unlimited number of license applications can be created with
an unlimited number of custom fields and one or multiple review or workflow routes. Businesses
and contractors can submit applications, upload copies of required documents, check on the
status of applications, and pay application fees through the Citizenserve online portal. You can
create customizable deficiency checklists based on application types and quickly generate and
email Deficiency Notices. License documents can be configured with mandatory or warning
conditions.
If an inspection is required before issuance, Citizenserve can automatically notify your
inspectors of pending applications and required inspections. Upon final approval, you can
generate License Certificates and ID cards that can be mailed, emailed, or downloaded from the
online portal. An unlimited number of inspection types with custom forms and fields can be set
up in licensing.
When it comes time for renewal, you can create batch email or mail renewal notices quickly.
Custom renewal processes can be created, and renewal letters can direct contractors, workers,
and businesses to the online portal for renewal and payment. Citizenserve can be configured to
automatically calculate penalties and interest for late renewals. License holders can submit
required documentation such as proof of identity and insurance verification through the online
portal as part of their license renewals.
You can view demos of Citizenserve’s licensing solution at:
https://www.citizenserve.com/portfolio/#category_id_19
C.3.2 Code Enforcement
Citizenserve code enforcement software completely automates the process of opening cases,
scheduling inspections, recording violations, and coordinating resolutions. Property ownership,
inspection results, photos, notices, violations, and notes become an electronic record of each
case. The Code Enforcement module is part of Citizenserve’s integrated solution, so code
violations are visible in other modules such as the Permitting and Licensing modules.
For cases that are initiated by a complaint, Citizenserve provides fully automated complaint
initiation, tracking, and inspections. Citizens can enter complaints via the online portal
anonymously or with contact information. Images/pictures and other data can easily be
uploaded and attached to a complaint. You can configure business rules to automatically route
a complaint to the appropriate department for quick action. Individual workflows can be
configured for multiple violation types, and you can associate violation types to multiple permits
and permit types, with relevant code violations. Complaints can be prioritized and escalated.
Inspections can be scheduled automatically according to complaint type, or can be added
manually.
Page 49
Citizenserve’s robust case management capabilities enable code enforcement cases to be
created with multiple violations, and each violation can be tracked and resolved separately. An
unlimited number of people, businesses, and other contact types can be associated with a case,
and each person or entity can have a different association with the case. An unlimited number
of notice or letter types can be created; each letter type can be completely customized, and
letters can initiate database processes such as fee assessment or file status changes. Code
enforcement case processes can take a case from courtesy notice, citation, abatement, to court.
Violations can also be associated with specific permits or licenses.
As a fully mobile solution, code enforcement inspectors are notified of inspections due and can
look up property ownership information; enter their findings from an inspection; add violations;
take and attach photos; generate tickets, notices of violation, or warnings; close violations after
verifying the required fix; and schedule re-inspections – all in the field from a tablet or laptop.
Enforcement documents can be generated in the field using an iPad or other mobile device and
Bluetooth printer.
You can view demos of Citizenserve’s code enforcement solution at:
https://www.citizenserve.com/portfolio/#category_id_18
Page 50
D.1 Project Schedule Assumptions
We have included a project schedule for the Town’s scope based upon our experience with
similar projects. Below are the assumptions we made when developing the project schedule for
the project:
• We do not know how quickly the Town will be able to proceed with the project following contract
award; we made the assumption that contract award and notice to proceed will occur within one
month.
• Because we do not know when the Town will be ready to proceed, we have labeled the schedule
with “Month 1,” “Month 2,” etc. We can be ready to move forward quickly upon contract award.
• We use an agile implementation approach; process mapping and refinement will occur during
the walk throughs rather than as a single task.
• We assume that the Town team will collect the required information on the setup checklist
provided by Citizenserve at the beginning of the project in a timely fashion; such information
includes copies of permits, fee schedules, letters and notifications, etc. The timely start of the
project depends upon the collection of this information.
• We assume that knowledgeable subject matter experts from each area will be available for the
weekly walkthrough meetings as scheduled.
• We assume that Town team members will complete their assignments in the days between
the weekly walkthrough meetings; typical tasks include testing the system, reviewing
changes, documenting needed changes, etc.
• We assume the Town will ensure the attendance of key end users and, if needed, system
administrators in training classes. We will have a schedule of training classes prior to Go
Live, but online training is included as part of the unlimited support offered through the
subscription, and we can be flexible in scheduling additional training as required.
D.2 Project Schedule
The draft project schedule is on the following page.
SECTION D – PROJECT SCHEDULE
Page 51
Draft Project Schedule for Fountain Hills, Arizona (Page 1 of 2)
919425.2
Draft Project Schedule for Fountain Hills, Arizona (Page 2 of 2)
EXHIBIT B
TO
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND
Citizenserve
[Scope of Work] See following page(s).
Scope of Work
1. Information gathering (all modules)
1.1. Create setup checklist 1.2. Document workflows, users, security 1.3. Gather all needed information per checklist 2. Project kickoff
3. Provide complete and functioning Permitting and Inspections module
3.1. Initial set up 3.2. Provide weekly walkthrough meetings to review progress, test processes, and make modifications to address Town needs and requirements 3.3. System integration
3.3.1. Payment gateway
3.3.2. Maricopa County Assessor’s database 3.3.3. GIS 3.3.4. Munis 3.3.5. Bluebeam
3.3.6. Provide integration documents and test system integration programs
4. Provide complete and functioning Planning and Zoning module 4.1. Initial set up 4.2. Provided weekly walkthrough meetings to review progress, test processes, and make modifications to address Town needs and requirements
5. Testing and training
5.1. Provide training to Town staff on using the system 5.2. Make adjustments to processes as needed to address any issues identified during training 6. Acceptance and go live 6.1. Town acceptance of the system as meeting the system requirements and functionality
6.2. Delete test data
6.3. Activate system for use by citizens to begin processing applications 7. Ongoing support and maintenance 7.1. Ongoing technical support and system maintenance
EXHIBIT C
TO
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND
Citizenserve
[Fee Proposal] See following page(s).
Fee Proposal
ccount Name: Town of Fountain Hills, Arizona
Term: Components to be Implemented:
Billing Cycle: Annual
Initial Term: 01/01/2021 – 12/30/2021
Renewal Term 1: 01/01/2022 – 12/30/2022
Renewal Term 2: 01/01/2023 – 12/30/2023
Renewal Term 3: 01/01/2024 – 12/30/2024
Renewal Term 4: 01/01/2025 – 12/30/2025
Building Permits
Planning and Zoning
Citizen Access Pages
Fees:
15 User Subscriptions $1,800 per named user per year $27,000.00
Setup, Training and Implementation $1,200 per named user $18,000.00
System Integration Maricopa County Assessor’s Database
Fountain Hills GIS
Bluebeam
Authorize.Net Payment Processor
Munis Financial Daily Batch File (Payments)
JSON Reports for Consumption by GIS
$5,000.00
$5,000.00
$3,000.00
$0.00
$0.00
$0.00
Total Initial Term Fees $58,000.00
Each Additional Renewal Term Fees $27,000.00
EXHIBIT D
TO
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND
Citizenserve
[Billing Schedule] See following page(s).
Invoice Milestones Year 1 Due Upon Subscription Setup Assessor GIS Bluebeam Total
Contract Effective Date 1/1/2021 $27,000.00 $4,500.00 $1,250.00 $1,250.00 $750.00 $34,750.00
Permitting and Inspections First Go Live $6,750.00 $6,750.00
Planning and Zoning First Go Live $6,750.00 $6,750.00
Integration Completion $3,750.00 $3,750.00 $2,250.00 $9,750.00
Total Year 1 $27,000.00 $18,000.00 $5,000.00 $5,000.00 $3,000.00 $58,000.00
Implementation Integration
Town of Fountain Hills Contract 2021-028
Final Audit Report 2021-01-28
Created:2021-01-20
By:David J. Pock (dpock@fh.az.gov)
Status:Signed
Transaction ID:CBJCHBCAABAATMsUsrojsfYYg5DzSydIw8oooXIRrmnc
"Town of Fountain Hills Contract 2021-028" History
Document created by David J. Pock (dpock@fh.az.gov)
2021-01-20 - 1:27:46 PM GMT- IP address: 184.178.192.162
Document emailed to Ray Barker (ray@citizenserve.com) for signature
2021-01-20 - 1:32:29 PM GMT
Email viewed by Ray Barker (ray@citizenserve.com)
2021-01-20 - 5:46:58 PM GMT- IP address: 72.208.165.71
Document e-signed by Ray Barker (ray@citizenserve.com)
Signature Date: 2021-01-25 - 11:44:07 PM GMT - Time Source: server- IP address: 72.208.165.71
Document emailed to David J. Pock (dpock@fh.az.gov) for approval
2021-01-25 - 11:44:11 PM GMT
Email viewed by David J. Pock (dpock@fh.az.gov)
2021-01-26 - 2:15:56 PM GMT- IP address: 184.178.192.162
Document approved by David J. Pock (dpock@fh.az.gov)
Approval Date: 2021-01-26 - 2:16:48 PM GMT - Time Source: server- IP address: 184.178.192.162
Document emailed to David Pock (dpock@fh.az.gov) for approval
2021-01-26 - 2:16:51 PM GMT
Email viewed by David Pock (dpock@fh.az.gov)
2021-01-26 - 2:17:05 PM GMT- IP address: 184.178.192.162
Document approved by David Pock (dpock@fh.az.gov)
Approval Date: 2021-01-26 - 2:17:50 PM GMT - Time Source: server- IP address: 184.178.192.162
Document emailed to Aaron Arnson (aaron@piercecoleman.com) for signature
2021-01-26 - 2:17:52 PM GMT
Email viewed by Aaron Arnson (aaron@piercecoleman.com)
2021-01-26 - 3:47:50 PM GMT- IP address: 69.53.213.227
Aaron Arnson (aaron@piercecoleman.com) verified identity with Adobe Sign authentication
2021-01-26 - 3:49:13 PM GMT
Document e-signed by Aaron Arnson (aaron@piercecoleman.com)
Signature Date: 2021-01-26 - 3:49:13 PM GMT - Time Source: server- IP address: 69.53.213.227
Document emailed to Grady E. Miller (gmiller@fh.az.gov) for signature
2021-01-26 - 3:49:16 PM GMT
Email viewed by Grady E. Miller (gmiller@fh.az.gov)
2021-01-26 - 4:48:07 PM GMT- IP address: 184.178.192.162
Grady E. Miller (gmiller@fh.az.gov) verified identity with Adobe Sign authentication
2021-01-26 - 4:49:17 PM GMT
Document e-signed by Grady E. Miller (gmiller@fh.az.gov)
Signature Date: 2021-01-26 - 4:49:17 PM GMT - Time Source: server- IP address: 184.178.192.162
Document emailed to Elizabeth A. Burke (eburke@fh.az.gov) for signature
2021-01-26 - 4:49:20 PM GMT
Email viewed by Elizabeth A. Burke (eburke@fh.az.gov)
2021-01-26 - 6:08:15 PM GMT- IP address: 184.178.192.162
Email viewed by Elizabeth A. Burke (eburke@fh.az.gov)
2021-01-28 - 3:48:10 PM GMT- IP address: 184.178.192.162
Elizabeth A. Burke (eburke@fh.az.gov) verified identity with Adobe Sign authentication
2021-01-28 - 3:49:03 PM GMT
Document e-signed by Elizabeth A. Burke (eburke@fh.az.gov)
Signature Date: 2021-01-28 - 3:49:03 PM GMT - Time Source: server- IP address: 184.178.192.162
Agreement completed.
2021-01-28 - 3:49:03 PM GMT
ITEM 8. D.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Consent Submitting Department: Public Works
Prepared by: David Janover, Town Engineer
Staff Contact Information: Justin Weldy, Public Works Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of Resolution 2023-36, abandoning a 20' Public Utility and Drainage
Easement along the southwest side of 16414 N Dixie Mine Trail (Application A23-000012).
Staff Summary (Background)
This is a proposal to abandon the pre-incorporation 20' Public Utility and Drainage Easement along
the southwest property line of Plat 505-D, Block 2, Lot 36 (16414 N Dixie Mine Trail). Gianni DeRosa,
the owner of the property, is planning to construct a pool deck and pool plumbing, which will
encroach into the existing easement. Staff have reviewed the site to determine the potential on-site
drainage issues in addition to the Town's general interest in the easement. There is no need for the
Town to retain the drainage easement proposed to be abandoned, with the understanding that the
owner of the lot is required to pass the developed flows generated by the upstream lots across their
property. All public utilities have approved the abandonment of this easement.
Related Ordinance, Policy or Guiding Principle
N/A
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends adoption of Resolution 2023-36
SUGGESTED MOTION
MOVE to adopt Resolution 2023-36
Attachments
Attachments
Vicinity Map
Aerial Photo Map
Res 2023-36
Exhibit A: Survey
Form Review
Inbox Reviewed By Date
Development Services Director John Wesley 11/06/2023 11:52 AM
Town Attorney Aaron D. Arnson 11/06/2023 12:04 PM
Town Manager Rachael Goodwin 11/08/2023 08:05 AM
Form Started By: David Janover Started On: 10/31/2023 05:17 PM
Final Approval Date: 11/08/2023
BEELIN
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VICINITY MAP
TOWN OF FOUNTAIN HILLS
NORTH
SCALE: 1" = 3500'
All that is Ar i z o n a
F O U N TAIN HI
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OWN OF INC. 1989
TOWN HALL
DEVELOPMENT SERVICES DEPARTMENT
SCOTTSDALE
McDOWELL MOUNTAIN PARK
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SALT RIVER PIMA MARICOPA INDIAN COMMUNITY
TOWN BOUNDARY
SCOTTSDALE
16414 N
DIXIE MINE TR
A23-0000012
DEVELOPMENT SERVICES
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ZONING: R1-10
LEGEND:
PHOTO MAP
2022 AERIAL
LOT 37
A23-0000012
LOT 36
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ABANDON 20'
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LOT 35
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RESOLUTION 2023-36
A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,
ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE-
INCORPORATION 20' PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE
SOUTHWESTERN PROPERTY LINE OF PLAT 505-D, BLOCK 2, LOT 36 (16414 N DIXIE MINE
TRAIL) FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY
RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 158 OF MAPS,
PAGE 41
WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the
governing body of real property located in the Town of Fountain Hills (the “Town”), may require the
dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any
proposed subdivision; and
WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private
property by easement, deed, subdivision, plat or other lawful means; and
WHEREAS, all present utility companies have received notification of the proposed abandonment.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, as follows:
SECTION 1. That the certain public utility and drainage easements, located at the
SOUTHWESTERN property line of Plat 505-D, Block 2, Lot 36 (16414 N Dixie Mine Trail) Fountain
Hills, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 158 of Maps,
Page 41, and as more particularly described in Exhibit A, attached hereto and incorporated herein by
reference, are hereby declared to be abandoned by the Town. Certain lots within this subdivision are
subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated
by the upstream lots across their property.
SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for
the purpose of removing any potential cloud on the title to said property and that the Town in no way
attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting
there from or existing previous to any action by the Town.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills
November 21, 2023.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Ginny Dickey, Mayor Linda Mendenhall, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney
EXHIBIT "A"
TOWN OF FOUNTAIN HILLS
EASEMENT ABANDONMENT
LOT 36
A23-0000012
ITEM 9. A.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: Linda Mendenhall, Town Clerk
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of the recommendations for the appointment of members to the Town's Boards,
Commissions, and Committees.
Staff Summary (Background)
The Council Subcommittees for the Towns Boards, Commissions, and Committees conduct interviews
and make recommendations for membership based on the term expiration, vacancies from
resignations, or changes in membership eligibility status. Appointments are made each year in April
and October.
The October recruitment consists of vacancies on the Strategic Planning Advisory Commission, the
Sister Cities Advisory Commission, the History and Culture Advisory Commission, the Board of
Adjustment, and the McDowell Mountain Preservation Commission.
Strategic Planning Commission
The vacancy on this commission is due to the resignation of Cynthia Magazine. The appointment to
this commission will be for a partial term.
Board of Adjustment
Two board members’ terms will expire at the end of October; both members have requested
reappointment.
Sister Cities Advisory Commission
Two board members’ terms expired in October of last year; two board member's terms expired in
October of this year, and they have elected to term out of their appointment.
McDowell Mountain Preservation Commission
Two board member’s terms will expire at the end of October; they have both requested
reappointment.
History and Culture Advisory Commission
The four vacancies on this commission are due to the resignations of Sandra Ursini, Dianne Price,
Deborah Skehen, and Jackie Miles. The appointments to this commission will be for a partial term.
One board member's term will expire at the end of October and they have requested reappointment.
The Council Subcommittee for the Boards, Commissions, and Committees held a meeting on October
24, 2023, and November 1, 2023, to conduct interviews of residents who applied for the vacancies on
the Towns Boards, Commissions, and Committees and made recommendations for appointment to
those committees.
Related Ordinance, Policy or Guiding Principle
Chapter 2A of the Town Code.
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
Recommendations to the Mayor have been made by the Council Subcommittees A and B.
Staff Recommendation(s)
To approve the Council Subcommittee recommendations for appointments to the Boards,
Commissions, and Committees, as well as recommendations by staff for the remaining boards and
commissions, as follows:
Make the following appointments of citizens to the boards and commissions as follows:
Strategic Planning Advisory Commission
Appoint ___________________________ for a partial term (11/1/2023 to 4/30/2026)
History and Culture Advisory Commission
Terms will be determined by lot at the commission's next meeting.
Appoint ____________________________ for a partial term (11/1/2023 to 10/31/2024)
Appoint ____________________________ for a partial term (11/1/2023 to 10/31/2025)
Appoint ____________________________ for a partial term (11/1/2023 to 10/31/2025)
Appoint ____________________________ for a partial term (11/1/2023 to 10/31/2025)
Sister Cities Advisory Commission
Appoint ___________________________ for a partial term (11/1/2023 to 10/31/2025)
Make the following reappointments of citizens to the boards and commissions as follows:
Board of Adjustment
Reappoint __________________________for a full term (11/1/2023 to 10/31/2026)
Reappoint __________________________for a full term (11/1/2023 to 10/31/2026)
McDowell Mountain Preservation Commission
Reappoint _________________________for a full term (11/1/2023 to 10/31/2026)
Reappoint _________________________for a full term (11/1/2023 to 10/31/2026)
History and Culture Advisory Commission
History and Culture Advisory Commission
Reappoint _________________________ for a full term (11/1/2023 to 10/31/2026)
To fill the vacancies at a future date for the following commission:
Sister Cities Advisory Commission
Appoint ___________________________ for a partial term (11/1/2023 to 10/31/2025)
Appoint ___________________________ for a full term (11/1/2023 to 10/31/2026)
Appoint ___________________________ for a full term (11/1/2023 to 10/31/2026)
SUGGESTED MOTION
MOVE to approve the Council Subcommittees' recommendations for the appointment of members to
the town's boards, commissions, and committees, as presented:
Form Review
Inbox Reviewed By Date
Town Attorney Aaron D. Arnson 10/31/2023 02:39 PM
Finance Director David Pock 11/01/2023 08:37 AM
Finance Director David Pock 11/01/2023 08:37 AM
Town Attorney Aaron D. Arnson 11/06/2023 12:03 PM
Town Manager Rachael Goodwin 11/08/2023 07:55 AM
Form Started By: Linda Mendenhall Started On: 09/26/2023 03:52 PM
Final Approval Date: 11/08/2023
ITEM 9. B.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: David Pock, Finance Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: FY23 Year-End Summary, Q1FY24 Revenue Update, and Council Direction on FY24 Transfers
and CIP
Staff Summary (Background)
Staff will present a summary of the audited FY23 year-end financials and a revenue update for the first
quarter of FY24. Staff will then seek formal direction on the transfers of year-end unassigned fund
balance and the delayed-start capital projects presented during the final budget adoption.
The current Council-adopted Financial Policy states, "Any revenues collected in excess of expenditures
and interfund transfers made from the General Fund will be used to satisfy fund balance requirements
first. Any remaining fund balance will be transferred to the Capital Projects Fund."
Related Ordinance, Policy or Guiding Principle
Council-adopted Financial Policy
Risk Analysis
Deviating from adopted financial policies could result in capital projects not being funded/completed
in future years.
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends the following actions:
Transfer $2.0M from the General Fund to the Facilities Reserve Fund for the Lake Liner
Replacement project, which would bring those reserves to $4.0M
Transfer an additional $500K from the General Fund to the Facilities Reserve Fund for
anticipated major maintenance items and replacements
Transfer $4.9M from the General Fund to the Capital Projects Fund for future capital projects
Authorize delayed start capital projects as outlined in the presentation and the associated
budget transfers from General Fund Contingency
SUGGESTED MOTION
MOVE to approve transfers of FY23 year-end unassigned fund balance as presented, and authorize the
delayed-start capital projects and associated budget transfers as presented.
Attachments
Presentation
Form Review
Inbox Reviewed By Date
Town Attorney Aaron D. Arnson 11/07/2023 08:17 PM
Town Manager Rachael Goodwin 11/13/2023 06:05 PM
Form Started By: David Pock Started On: 11/07/2023 04:16 PM
Final Approval Date: 11/13/2023
FY23 Year-End Results &FY24 Revenue Update
David Pock, Chief Financial Officer
November 21, 2023
FY23 Year-End Results
FY23 Year-End Summary
•General Fund revenues exceeded expectations by a total of $3.3M
•General Fund expenditures were below adopted budget amounts by a total of $9.5M, which includes $4.2M in savings from using American Rescue Plan Act (ARPA) funds for public safety contracts that was transferred to the Streets Fund in FY23
•After reserve requirements are met and budgeted FY24 transfers are made, a total of $7.4M is available to be transferred to other Funds
Restricted Funds
(Externally restricted by statute or entity)
6/30/2022
(actual)
6/30/2023
(actual)
Streets Fund $3,553,984 $6,922,858
Special Revenue Fund (Grants)8,441 114,597
Debt Service Funds (GO, MPC, EMCFD)180,121 185,847
Cottonwood Maintenance District Fund 13,357 15,338
Fire & EMS Development Fee Fund 388,545 419,221
Streets Development Fee Fund 340,478 546,764
Parks Development Fee Fund 1,216,141 1,164,139
Total Restricted Fund Balance $5,701,067 $9,368,764
Committed Funds
(Imposed by Council action)
6/30/2022
(actual)
6/30/2023
(actual)
Stabilization Fund (Rainy Day)$3,595,599 $3,980,307
Capital Projects Fund 4,068,310 5,692,029
Downtown Strategy Fund 518,590 625,922
Economic Development Fund 316,134 591,811
Tourism Fund 205,872 133,017
Public Art Fund 68,641 64,583
Court Enhancement Fund 402,375 415,678
Total Committed Fund Balance $9,175,521 $11,503,347
Assigned Funds
(Imposed by town policy)
6/30/2022
(actual)
6/30/2023
(actual)
Environmental Fund $266,339 $394,618
Facilities Reserve Fund 5,925,921*6,784,057*
Vehicle Replacement Fund – Streets 349,312 410,409
Vehicle Replacement Fund 1,278,191 1,639,184
Total Assigned Fund Balance $7,819,763 $9,228,268
Unassigned Funds
(Budgeted operational expenditures)
6/30/2022
(actual)
6/30/2023
(actual)
Total Unassigned Fund Balance $9,466,833 $11,644,005
* Includes $4.2M General Fund
savings as a result of ARPA
Summary All Funds
6/30/2022
(actual)
6/30/2023
(actual)
Restricted $5,701,067 $9,368, 764
Committed 9,175,521 11,503,347
Assigned 7,819,763*9,228,268*
Unassigned 9,466,833 11,644,005
Nonspendable 55,562 59,791
Total Fund Balance $32,218,746 $41,804,175
Stability Metrics
As of 6/30/2022 As of 6/30/2023
5-Year General Fund Annual Average Revenues $17,962,721 $19,894,224
Unassigned Balance As % of Average Revenues 53.3%58.5%
Unassigned Balance As # of Months of Average Revenue 6.4 7.0
* Includes $4.2M General Fund
savings as a result of ARPA
1st Quarter FY24 Revenue Update
Net Taxable Activity
•Total Net Taxable Activity for Q1FY24 was $154.4M
•Increased by $15.8M from the same period in FY23
1st Quarter Revenue Update
$0
$20
$40
$60
$80
$100
$120
Jul
1
Aug
2
Sep
3
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4
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5
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6
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7
Feb
8
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9
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10
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11
Jun
12
Mi
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i
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s
Net Taxable Activity by Fiscal Year & Period
2019 2020 2021 2022 2023 2024
Total TPT Collections
•Includes all TPT reporting categories for all funds
•Budgeted $3.24M
•Collected $4.19M
•$950K more than
expected
•Decrease of $292K compared to FY23
1st Quarter Revenue Update
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
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Total TPT Collections by Fiscal Year & Period
2020 2021 2022 2023 2024
Retail Sales
•Includes Local and Online Retail Sales and Use Tax
•Budgeted $2.01M
•Collected $2.31M
•$300K more than
expected
•Increase of $100K compared to FY23
1st Quarter Revenue Update
$0
$200
$400
$600
$800
$1,000
$1,200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
Th
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TPT Collections by Fiscal Year & Period
Retail Sales
2020 2021 2022 2023 2024
Construction
•Includes Prime Contracting and Speculative Builders
•Budgeted $287K
•Collected $638K
•$351K more than
expected
•Decrease of $301K compared to FY23
•Audit collection of $450K in FY23
1st Quarter Revenue Update
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
$1,100
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
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TPT Collections by Fiscal Year & Period
Construction
2020 2021 2022 2023 2024
Utilities & Communications
•Includes Water, Sewer, Electricity, Cable, Natural Gas, and Internet Services
•Budgeted $231K
•Collected $500K
•$269K more than
expected
•Increase of $16K compared to FY23
1st Quarter Revenue Update
$-
$50
$100
$150
$200
$250
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
Th
o
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TPT Collections by Fiscal Year & Period
Transportation/Communications/Utilities
2020 2021 2022 2023 2024
Real Estate
•Includes Long-Term
Residential and
Commercial Rentals
•Budgeted $216K
•Collected $263K
•$47K more than
expected
•Increase of $5K compared to FY23
1st Quarter Revenue Update
$0
$50
$100
$150
$200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
Th
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TPT Collections by Fiscal Year & Period
Real Estate
2020 2021 2022 2023 2024
Restaurants and Bars
•Includes Local
Restaurants (drive
thru, sit-down, and
delivery) and Bars
•Budgeted $222K
•Collected $253K
•$31K more than
expected
•Decrease of $15K compared to FY23
1st Quarter Revenue Update
$0
$50
$100
$150
$200
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
1 2 3 4 5 6 7 8 9 10 11 12
Th
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TPT Collections by Fiscal Year & Period
Restaurant & Bar
2020 2021 2022 2023 2024
Services
•Includes Hotels,
Golf, Tours, and
Short-Term
Residential Rentals
•Budgeted $271K
•Collected $227K
•$44K less than
expected
•Decrease of $90K compared to FY23
1st Quarter Revenue Update
$0
$50
$100
$150
$200
$250
$300
$350
$400
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
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TPT Collections by Fiscal Year & Period
Services
2020 2021 2022 2023 2024
State Shared Revenue
1st Quarter Revenue Update
•Budgeted $896K
•Collected $868K
$400
$350
$300
$250
$200
$150
$100
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
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State Shared Revenue -Sales Tax
2020 2021 2022 2023 2024
$400
$375
$350
$325
$300
$275
$250
$225
$200
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Th
o
u
s
a
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d
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State Shared Revenue -Income Tax
2020 2021 2022 2023 2024
•Budgeted $1.60M
•Collected $1.58M
State Shared Revenue
1st Quarter Revenue Update
•Budgeted $462K
•Collected $435K
•Budgeted $305K
•Collected $290K
$350
$300
$250
$200
$150
$100
$50
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
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Highway User Revenue Fund (HURF)
2020 2021 2022 2023 2024
$150
$125
$100
$75
$50
$25
Jul
1
Aug
2
Sep
3
Oct
4
Nov
5
Dec
6
Jan
7
Feb
8
Mar
9
Apr
10
May
11
Jun
12
Th
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a
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State Shared Revenue -Vehicle License Tax
2020 2021 2022 2023 2024
Year-End Transfers & CIP
Year-End Fund Transfers
•Previously approved during FY24 Final Budget process
•$500K from General Fund to Environmental Fund
•$500K from General Fund to Facilities Reserve Fund (maint./repl.)
•$4.2M from Facilities Reserve Fund to Streets Fund (FY22 ARPA)
•Council direction on allocation of excess revenues over expenditures of $7.4M
•$2.0M from General Fund to Facilities Reserve Fund (lake liner)
•$500K from General Fund to Facilities Reserve Fund (maint./repl.)
•$4.9M from General Fund to Capital Projects Fund
FY24 Delayed Start Projects
Department Project NumberRequest Title FY2024
Community Services P3054 Park Sidewalk Replacement $100,000.00
P3056 Fountain Park $550,000.00
Total Community Services $650,000.00
Public Works D6057 Golden Eagle Impoundment Area Improvements $500,000.00
D6060 Town-Wide Storm Water Infrastructure Rehabilitation $150,000.00
D6064 Low-Flow Roadway Drainage Crossing Improvement Program $200,000.00
F4041 Town Hall Campus Exterior Lighting and Electrical Upgrade $157,500.00
F4043 Community Center Interior Lighting Upgrade $200,000.00
F4044 MCSO Locker Room Renovation $125,000.00
S6059 Wayfinding Signs $250,000.00
S6071 Saguaro & Kingstree Intersection Drainage Improvements $165,000.00
Total Public Works $1,747,500.00
Total Departments $2,397,500.00
Delayed Start - Will Return to Council in Nov/Dec
Recommended Motion
•Move to approve transfers of FY23 year-end
unassigned fund balance as presented and
authorize the delayed-start capital projects and associated budget transfers as presented.
ITEM 9. C.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Development Services
Prepared by: John Wesley, Development Services Director
Staff Contact Information: John Wesley, Development Services Director
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of Ordinance 23-10, amending Town Code Chapter 8, Business Regulations, by
amending Section 8-3-5 D 8 regarding mobile food vendors at special events, adding a new Article 8-7,
Mobile Food Vendors.
Staff Summary (background)
Food trucks and other types of mobile food vendors have been around for many years, but have
increased in popularity in recent years. Mobile food vendors are a popular part of many special
events. They also operate outside of special events and will set up in locations on a regular basis to
attract business.
Several years ago the state enacted legislation which allows mobile vendors to occupy public parking
spaces. Cities and towns cannot prohibit this, but can enact rules to ensure the health and safety of
the community around this type of use. Several cities and towns have enacted such ordinances. In
Fountain Hills, we have relied on policies and use of administrative temporary use permits to provide
some oversight to this land use.
With the increased popularity of the use and some conflicts which have been experienced with regard
to mobile food vendors and special events, staff felt it was time to prepare and recommend an
ordinance to specifically regulate this use. Staff from Development Services, Community Services, and
the Town Attorney have collaborated to prepare the attached ordinance for Council consideration.
The proposed ordinance will amend provisions in Town Code Section 8-3-5 and add Article 8-7 titled
Mobile Food Vendors. Following is a review of this ordinance.
Section 8-3-5 D
This section currently provides some requirements associated with holding a special event. An
additional paragraph is being added to state that if mobile food vendors are part of the event, that
information needs to be collected by the event organizer regarding the mobile food vendor. This will
ensure these vendors have the licenses and inspections required for other mobile food vendors.
Section 8-7-1 - Purpose
This section defines this purpose of this ordinance, which is to protect the health, safety and welfare
of the public my establishing minimum standards of safety and security.
Section 8-7-2 - Definitions
This section contains definitions used in this article. Most of the definitions are typical for the use of
the word or phrase. The unique ones are "mobile food unit" which is a name to cover all types of
mobile food vendor vehicles and "mobile conveyance unit" which is a subset of mobile food units that
covers only the types of mobile food vendors that travel from one place to another and make quick
stops, such as an ice cream truck.
Section 8-7-3 - Compliance with State Licensing Requirements
This section requires the mobile food unit to have a state health license, to display that license and
makes it a misdemeanor to not comply.
Section 8-7-4 - Town Licensing Requirements
Town licensing requirements include:
A of this section states that these licensing requirements do not apply to mobile food units that
come to Town just for a special event or approved temporary event. The amendment to
Section 8-3-5 D ensures mobile food vendors at special events must have a state license, a fire
inspection, and valid insurance. It was determined that for the one-time vendor, the additional
requirements of this ordinance were unnecessary.
B states that except for those cases where the license is exempt, this local license is required to
operate.
C states the license is good for one year and then lists the application requirements for the
license.
D states the standard for a license renewal, applications need to be received at least 30
calendar days before expiration of a current license.
E establishes some standards for the issuance of a new license or a license renewal. This list
includes completing the application form, paying the fee, providing truthful information, any
current fees owed to the Town, whether the person applying or in control has complied with
health requirements, if the applicant or controlling person has had a felony or misdemeanor,
and if they have surrendered a license within the last five years.
F establishes the timeframes for review of a license application. The Town is given 15 days to
determine if the application is complete. Once a complete application has been established the
Town has 45 days to review the application. The Town must approve or deny the application
within 90 days of receipt.
G provides for the fee. The current fee for a mobile merchant is $250.
Section 8-7-5 - Violations; Revocation
This section provides the conditions under which the Town could revoke a license. The Finance
Director is given the authority to revoke a license. A hearing can be requested. If a license is revoked,
the applicant cannot reapply for one year.
Section 8-7-6 - Operational Requirements
Operational requirements include:
A requires compliance with this section and that a copy of a passed fire inspection and
certificate of insurance available if operating on Town property.
B requires the mobile food unit to comply with the Fire Code.
C requires the mobile food unit to be inspected by and pass a fire department fire inspection.
D requires the operator to provide for refuse collection.
E addresses potential noise issues and prohibits the use of amplified sound, loudspeakers, etc.
F provides standards for safety which includes cleanliness, lighting, and movement of
pedestrians and vehicles.
G requires insurance if operating on public property or in the Town right-of-way.
H provides some location requirements and time limitations for one location.
I establishes standards for where and how the units can be parked. Key elements include
occupying only one parallel parking space or two angled spaces; no more than 9 hours in one
location; not operating within 300' of an approved special event; having the serving window
way from travel lanes, and being at least 50 feet from an intersection.
J prohibits any signage in or around the space where the food unit is parked.
K addresses street and sidewalk vending. This section addresses ice cream type activities as
well as pushcarts on a sidewalk.
Section 8-7-7 - Penalties
This section establishes violations (except the one noted above) as civil violation subject to the
processes set forth in Section 1-8-3 of the Town Code.
On August 22, 2023 staff sent the draft ordinance out to several stakeholders for review and
comment. A few comments were received and staff has responded to those comments. Following
review by the Town Attorney, a revised ordinance was sent out for review on October 4. A couple of
additional comments were received and staff has responded to those comments with the final
ordinance. The final ordinance has been posted on the Town website for review. The one outstanding
question or concern that staff is aware of is the required separation from a special event.
Related Ordinance, Policy or Guiding Principle
N/A
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends adoption as presented.
SUGGESTED MOTION
MOVE to adopt Ordinance 23-10.
Attachments
Ordinance 23-10
Form Review
Inbox Reviewed By Date
Development Services Director (Originator)John Wesley 10/31/2023 09:22 AM
Town Attorney Aaron D. Arnson 10/31/2023 04:04 PM
Town Manager Linda Mendenhall 11/02/2023 12:10 PM
Development Services Director (Originator)John Wesley 11/02/2023 01:41 PM
Town Manager Rachael Goodwin 11/14/2023 07:39 AM
Form Started By: John Wesley Started On: 07/19/2023 07:48 AM
Final Approval Date: 11/14/2023
ORDINANCE NO. 23-10
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN
HILLS TOWN CODE BY AMENDING SECTION 8-3-5 D, AND BY
ADDING A NEW ARTICLE 8-7 MOBILE FOOD VENDORS
ENACTMENTS:
NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF
FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. That Chapter 8, Business Regulations, of the Fountain Hills Town Code, Section 8-
3-5 D 8 is hereby amended as follows:
8. A description of the Special Event including activities, anticipated attendance, entertainment,
and type of retail sales, if any.
a. If there will be vendors, artists or concessionaires, supply a list including business names,
owner names, booth numbers, addresses, Arizona state sales tax number (TPT number) and
Fountain Hills business license numbers no later than 10 days prior to the Special Event. Any
changes or additions shall be submitted to the Town prior to the end of the first day of the
Special Event.
B. IF THE EVENT INCLUDES MOBILE FOOD VENDORS, VENDORS MUST PROVIDE
THE PROMOTER WITH A VALID LICENSE FROM THE STATE OF ARIZONA
DEPARTMENT OF HEALTH SERVICES OR FROM A COUNTY DELEGATED AUTHORITY
FROM THE STATE TO ISSUE SUCH LICENSES PURSUANT TO ARS 36-1761,
DOCUMENTATION OF A PASSED FIRE INSPECTION, AND PROOF OF INSURANCE.
PROMOTER MUST SUPPLY THIS INFORMATION TO THE TOWN ALONG WITH THE TPT
AND BUSINESS LICENCE NUMBERS.
SECTION 2. That Chapter 8, Business Regulations is hereby amended to add a new Article 8-7,
Mobile Food Vendors, as contained in Exhibit A.
SECTION 3. In accordance with Article II, Sections 1 and 2, Constitution of Arizona, and the laws
of the State of Arizona, the City/Town Council has considered the individual property rights and
personal liberties of the residents of the City/Town and the probable impact of the proposed
ordinance on the cost to construct housing for sale or rent before adopting this ordinance.
Copies of Exhibit A, Article 8-7, Mobile Food Vendors, are on file with the Town Clerk and available
for inspection.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa
County, Arizona, this 21st day of November 2023.
(Signatures are on the next page)
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
___________________________________ __________________________________
Ginny Dickey, Mayor Linda Mendenhall, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
____________________________________ __________________________________
Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney
EXHIBIT A
Article 8.7 - Mobile Food Vendors
Section 8-7-1 - Purpose.
This article is adopted to protect the health, safety and welfare of the public by enacting
reasonable regulation for mobile food vendors, their employees, agents, lessees or
independent contractors by requiring compliance with minimum standards for safety and
security.
Section 8-7-2 - Definitions.
A. The following words, terms and phrases, when used in this article, shall have the
meanings ascribed to them in this article, except where the context clearly
indicates a different meaning:
(1) “Applicant” means the person who applies for a license pursuant to this
Article.
(2) “Controlling person” means a natural person who either has a ten percent
(10%) or greater interest in the ownership or earnings of the business, or is any
of the following:
a. An officer, director, or any stockholder who owns ten percent
(10%) or more, of a corporation licensee/applicant;
b. A general partner of a limited partnership licensee or applicant
or partner of a non-limited partnership licensee or applicant;
c. An officer, president, or secretary of a limited liability
company/corporation licensee or applicant; or
d. The sole proprietor of a sole proprietorship licensee or applicant.
(3) “Designated agent” means the person designated by the licensee,
applicant, or any other legal means to receive notice(s) from the Town pursuant
to this article.
(4) “Intersection” has the same meaning as in A.R.S. § 28-601.
(5) “Legal parking space” means an area designated for the legal parking
of a vehicle in the Town right-of-way that may be paved or unpaved and may
be delineated by road surface markings. It does not include a parking space in
a parking lot on property owned by the Town.
(6) “Licensee” means the person or entity who applied for a license
pursuant to this Article and in whose name such license was issued.
(7) “Mobile food unit” means an establishment designed to be readily
movable from which food is composed, compounded, processed, or prepared
and from which food is vended, sold, or given away. This definition shall include
ORDINANCE 22-10 PAGE 4
but not be limited to food establishments in operation from a vehicle, enclosed
trailer, cart, or pushcart.
(8) “Mobile food vendor” means any person who owns, controls,
manages, leases, or is employed by a mobile food unit or contracts with a
person to prepare foods and vend from, drive or operate a mobile food unit.
(9) “Mobile conveyance unit” means a subset of mobile food unit, and
one, which moves quickly and readily from place to place, stopping only to
complete a point-of-sale transaction. This definition shall include but not be
limited to ice cream trucks or other food service trucks moving in a route type
fashion, stopping for no longer than fifteen (15) minutes per stop.
(10) “Right-of-way” means land which by deed, conveyance, agreement,
easement, dedication, patent, reservation, usage or process of law is reserved
for or dedicated to the general public for use as a street or highway.
(11) “Semi-permanent structure” means equipment, or any dining area,
including, but not limited to, tables, chairs, booths, bar stools, benches, and
standup counters.
(12) “Special event” means any event that will take place on Town property,
including but not limited to parks, open space, streets, sidewalks or rights-of-
way, or on private property, and which by its nature could cause a significant
disruption of pedestrians or vehicular traffic in the area and/or that requires
traffic safety measures. An event is not a “Special Event” for the purposes of
this Article if all of the following are true: (1) the event takes place on private
property, (2) the event does not require the closure of any Town street,
sidewalk or right-of-way, and (3) the event does not require any municipal
services beyond the currently existing, permanent, in-ground infrastructure.
Section 8-7-3 - Compliance with State Licensing Requirements.
A. It shall be unlawful for any person to operate a mobile food unit or act as a
mobile food vendor without having first obtained a valid license from the State
of Arizona Department of Health Services or from a county delegated authority
from the state to issue such licenses pursuant to A.R.S. § 36- 1761.
B. It shall be unlawful for any person operating a mobile food unit to fail to display
in a conspicuous location for public view the mobile food unit’s state license.
C. It shall be a class one misdemeanor to violate this section.
Section 8-7-4 – Town Licensing Requirements.
A. A Town license as required by this Article is not required for a mobile food unit
that is operating solely as part of either a Town approved special event or an
event that has been approved through an administrative temporary use permit.
A business license, and proof of an approved fire inspection is still required.
B. Except as provided in 8-7-4 A, it shall be unlawful for a person to operate a
mobile food unit at any location within the Town without obtaining a license
ORDINANCE 22-10 PAGE 5
from the Town in accordance with this article and any other licenses required
for the lawful operation of a business.
C. A license issued or renewed pursuant to this article is valid for a period of one
(1) year from the date of issuance so long as the mobile food unit is in
compliance with this article. The license is nontransferable.
1. Application Requirements; Procedure. Any person desiring to obtain a
new or renewal license must apply by presenting a complete
application, the applicable fee, and proof of identity sufficient to
conduct civil and criminal background checks to the Town.
2. The application shall include, but not be limited to, the following
information:
a. The names, addresses, and contact information for the
applicant, including all controlling persons and designated
agents;
b. A general description of the goods to be sold by the mobile
food vendor;
c. A description, license plate number and photograph of the
mobile food unit;
d. A valid driver’s license;
e. Proof required by A.R.S. § 41-1080 that the applicant
is a citizen of the United States or a non- citizen
authorized to work in the United States; and
f. Copies of required certificate(s) from the health services
department in Maricopa County.
g. Copies of a passed fire inspection, as applicable.
h. Proof of insurance.
D. Complete renewal applications shall be submitted to the Town no later than
thirty (30) calendar days prior to the expiration of a license; otherwise the
license shall be deemed expired and non-renewable. If the renewal application
is not received as stated above, the licensee shall submit an application for a
new license and provide all information and fees required for a new license
application.
E. A new or renewal license shall be issued to an applicant pursuant to this article
unless:
1. The applicant fails to provide a completed application, the required
application fee, or the proof of identity sufficient to conduct a
background check;
2. The applicant fails to pay the applicable license fee for a new or
renewal license when the application is received;
ORDINANCE 22-10 PAGE 6
3. The applicant or a controlling person is currently in violation of this
article;
4. The application contains false or misleading information;
5. The applicant has a current debt related to any open or closed account
maintained or formerly maintained with the Town;
6. The applicant or controlling person failed to comply with any federal
and state laws, regulations promulgated by the Arizona Department of
Health Services, the County that issued the food truck permit, or the
Town Code; or
7. The applicant or controlling person, within the five-year period
immediately preceding the submission of the application, was
convicted of any of the following:
a. A felony;
b. Misdemeanor involving fraud, theft, dishonesty,
assault or moral turpitude.
8. Within five (5) years preceding the application date, have
voluntarily surrendered a mobile food vendor or similar
license as a result of or while under investigation or have had
a mobile food vendor or similar license revoked.
F. Timeframes for Issuance of Licenses.
1. Administrative timeframe: Unless the license has already been issued,
within fifteen (15) calendar days after receiving a license application
under this Article, the Town shall determine whether the application
is administratively complete, and notify the applicant as set forth in
this Article.
2. Substantive timeframe: Within forty-five (45) calendar days after the
Town notifies the applicant that the application is administratively
complete, the Town will complete its substantive review of the license
application.
3. Overall timeframe: Within ninety (90) calendar days after receiving an
application under this Article, the Town will grant or deny a license.
4. An application is deemed withdrawn if, within thirty (30) calendar days
after the date of a request for additional information during the
substantive timeframe, the applicant does not supply the requested
information or provide justification for delay. On receipt of justification
for delay, the Town shall allow the applicant thirty (30) additional
calendar days to provide the requested information before deeming
the application withdrawn.
5. Except as otherwise provided, the timeframes in this section may be
extended and suspended as provided by state law.
ORDINANCE 22-10 PAGE 7
G. Fees. Every application shall be accompanied by the appropriate application
fees in the amounts set forth in the Town’s fee schedule, as adopted by the
Town Council as part of the Town’s annual budget or by separate resolution.
License fees are non-refundable.
Section 8-7-5 - Violations; Revocation.
A. The Town may revoke a license issued pursuant to this article if the Town
determines that:
1. A licensee or designated agent or controlling person, following the
issuance of a license, is convicted of any offense listed in Section 8-7-4
D 7.
2. The licensee or designated agent operated or attempted to operate a
mobile food unit without a license;
3. The licensee or controlling person has not complied with a provision of
this Article or has failed to provide information as required by this
Article;
4. The licensee or applicant has provided false information on a license
application;
5. The application fee, license fee, or any transaction privilege tax has not
been paid;
6. The licensee has received three or more violations within a one-year
period;
7. The licensee fails to pay outstanding fines or resolve any violations; or,
8. A mobile food vendor fails to display the current, valid license or other
required documents, including proof of insurance or fire inspection, to
a law enforcement officer, fire official, or Town official on demand.
B. Licenses issued under the provision of this Chapter may be restricted,
suspended or revoked by the Finance Director, after notice and hearing as set
forth in Sections 8-1-11 (B) and (C).
C. The licensee or designated agent receiving a notice under this section may
request a hearing pursuant to Section 8-1-12.
D. If a license is revoked pursuant to this section, the license and its controlling
person(s) may not apply for a license under this article for a period of one (1)
year from the date of revocation.
Section 8-7-6 - Operational Requirements.
A. It is unlawful for any person to operate a mobile food unit or act as a mobile food
vendor that does not meet the requirements in this section. A business
desiring to operate a mobile food unit on Town-owned public property shall
have evidence of passing a fire inspection and a copy of the Certificate of
ORDINANCE 22-10 PAGE 8
Insurance listed below on their possession.
B. A mobile food vendor must ensure that all mobile food units comply at all times
with the version of the International Fire Code in effect at the time when the
state license issued by either the state or a county delegated authority from
the state to issue such licenses pursuant to A.R.S. § 36-1761 for the mobile food
unit was issued.
C. A mobile food unit shall be inspected by the Town Fire Department, or the
mobile food vendor shall provide evidence that the mobile food unit passed a
fire inspection by another municipal fire department in this state within the
preceding twelve (12) months. It is unlawful for a mobile food vendor to fail to
provide proof of the required fire inspection to a law enforcement officer or
fire official on demand.
D. Refuse, Trash and Litter Maintenance. A mobile food unit shall:
1. Provide a minimum of one fifteen (15) gallon trash receptacle available
for immediate use within fifteen (15) feet of each individual mobile food
unit for customers and employees;
2. Maintain an area around the mobile unit clear of litter, garbage, rubble
and debris; and
3. Transport the trash from the area of operation to an authorized waste
disposal location. Disposing of grease in a dumpster is prohibited.
E. Noise. A mobile food vendor shall not use, play, or cause to be used or played
any amplifier, loudspeaker, microphone, amplified music, or any other
amplified instrument or device used for the production of any sound in a
vending area when the motor vehicle or mobile food unit from which mobile
food vendor is vending is stationary or mobile upon any right-of-way or other
public place. Generators used in conjunction with the mobile food unit must
be maintained in good repair and placed so as to minimize impact on adjacent
uses. Ancillary screening and/or sound-absorbing devices may be required to
deflect or absorb generator noise away from adjacent uses or activities.
F. Security. A mobile food vendor shall ensure that:
1. The mobile food unit and the surrounding vending area be maintained
in a safe and clean manner at all times;
2. A mobile food unit shall have adequate lighting to ensure customer
safety in the vending area. Lighting shall be in conformance with
the Town’s Outdoor Lighting Control Ordinance. Non-decorative
lighting shall be directed downwards and away from street traffic and
adjacent properties. At no time shall lighting exceed the height of
eight (8) feet; and
3. The mobile food unit and its customers shall not obstruct the
movement of pedestrians or other vehicles using the sidewalk, street,
alley, or other public right-of-way, or drive aisle. A mobile food unit
shall ensure that there is a minimum four-foot clearance in any
ORDINANCE 22-10 PAGE 9
direction on sidewalks in order to provide pedestrian and accessible
movement.
G. Insurance.
1. If the mobile food unit operates at an event sponsored by the Town or
operates on public property, including rights-of-way or property
owned by the Town, the mobile food vendor shall obtain insurance
naming the Town as an additional insured and shall maintain at all
times a commercial general liability insurance policy in the amount of
at least one million dollars ($1,000,000) per occurrence and two
million dollars ($2,000,000) annual aggregate and commercial auto
insurance in the amount of $1,000,000 combined single limit.
2. The insurance company issuing the policy shall be authorized to issue
commercial liability policies in Arizona by the Arizona Department of
Insurance.
3. The policy shall designate by manufacturer’s serial or identification
number all mobile food units for which coverage is granted regardless
of size of the mobile food unit.
4. The policy shall insure the person named in the policy and any other
person using the mobile food unit with the express or implied
permission of the named insured against any liability arising out of the
ownership, maintenance or use of the mobile food unit in Arizona.
5. It is unlawful for a mobile food vendor to fail to provide proof of
insurance to a law enforcement officer or Town official on demand.
H. Location. A mobile food vendor shall operate a mobile food unit subject to the
following limitations and conditions:
1. Within Town Right-of-Way
a. Residential Area. Only mobile conveyance units are permitted to
operate in the right-of-way in residentially zoned areas.
b. Commercial and Industrial Area. A mobile food vendor may
operate in a legal parking space within the right-of-way in areas
with commercial or industrial zoning.
2. Locations not on Town Right-of -Way
a. If the mobile food vendor desires to operate on Town property
other than a legal parking space in the right-of-way, the mobile
food vendor shall:
1. Obtain from the Town a separate licensing for use, services
contract, or similar agreement, which will be entered into at
the Town’s sole discretion and applicable law; or
2. Be part of a special event approved in accordance with Article
8-3 of this code.
ORDINANCE 22-10 PAGE 10
b. Private Property. A mobile food vendor may operate on
commercially or industrially zoned private property if the vendor
obtains an administrative temporary use permit and written
permission to use the private property where the mobile food unit
will operate. Any such permission shall be in writing and the
vendor shall provide it to Town officials or law enforcement
officers on demand.
c. Notwithstanding the permission of a person owning or having
lawful control of private real property, a mobile food unit shall not
be in one location on private property for longer than four (4)
consecutive days, unless the Town grants permission for a
permitted event greater than four (4) days. For purposes of this
subsection, one location means a location within a parcel of land
and includes movements from different parked positions within
the same parcel.
I. Parking and Other Operational Regulations. A mobile food unit shall comply
with this subsection and all other applicable law as it pertains to parking and
operations.
1. Except as provided for in subsection 8-7-6 K 1, a mobile food unit shall
only operate in legal parking spaces.
2. A mobile food unit shall abide by all parking regulations, including
posted time limits. If there are no other time restrictions on the use of
a legal parking space, a mobile food unit shall not occupy a legal
parking space for more than nine (9) hours in a twenty-four (24) hour
period. For purposes of this subsection, occupy means within one
hundred (100) feet of the place in which the mobile food unit was
initially parked.
3. A mobile food unit, including any semi-permanent structure used or
associated with the mobile food unit, may use no more than one (1)
legal parallel or 2 (two) legal angled parking space(s), unless the mobile
food vendor has a separate agreement with the Town to use additional
legal parking spaces or parking spaces on Town property other than
right-of-way.
4. A mobile food unit shall not utilize a legal parking space in a parking lot
with insufficient parking capacity, which includes occupying a legal
parking space that reduces the number of available parking spaces
surrounding the area which is required for the principal use or uses of
the property associated with the parking spaces.
5. Except for mobile conveyance units for periods of not more than 30
minutes, a mobile food unit shall not conduct business in any Town
public park.
6. Except as provided for in subsection 8-7-6 K 2, a mobile food unit shall
not conduct business from a street or sidewalk adjacent to a Town
public park as set forth in Section 12-3-3 B,.
7. As set forth is Section 12-3-3 C, mobile food vendor shall not conduct
ORDINANCE 22-10 PAGE 11
business within three hundred (300) feet of a special event boundary
or an event that has been approved through an administrative
temporary use permit, unless registered as part of the event.
8. A mobile food vendor shall not claim or attempt to establish any
exclusive right to park at a particular street location, unless the parking
space is part of a permitted event.
9. A mobile food unit shall not operate within fifty (50) feet of an
intersection.
10. No mobile food unit shall operate with the serving window
immediately adjacent to and facing a street or driveway open to
vehicular traffic.
11. A mobile food unit shall comply with all requirements of the Americans
with Disabilities Act during operations.
12. A mobile food unit shall comply with all Town Code sections relating
to noise, parking, fire restrictions, late night operations, or any other
Code sections restricting specific activities.
J. Signage. A mobile food vendor shall not place any signage in or around the space
where the mobile food unit is parked. A menu board near the order window
is allowed.
K. Street, sidewalk, building storefront vending:
1. No street vending by a mobile food unit shall be allowed unless it is a
mobile conveyance unit that operates by moving quickly with the flow
of traffic and readily from place to place stopping only to complete a
point-of-sale transaction for no longer than fifteen (15) minutes per
stop.
2. No mobile food units, other than a mobile conveyance unit that is non-
motorized may operate on the Town’s sidewalks. The mobile
conveyance unit shall operate by, moving quickly and readily from
place to place stopping only to complete a point-of-sale transaction for
no longer than fifteen (15) minutes per stop.
3. No mobile food units, other than non-motorized ones may operate at
a building front. Mobile food units operating at a building's front must
be located immediately adjacent to an occupied commercial building,
whether freestanding or within a commercial retail center, and only
within the building envelope extending from one end of the building
front to the other end, with such depth to still allow a minimum five-
foot unobstructed walkway parallel to the building front wherein
neither the mobile conveyance unit operator nor the customers
occupy or obstruct any portion of a driving aisle, landscaped area, fire
lane, or doorway entrance/exit.
4. No building front vending shall be allowed by more than two (2) non-
motorized mobile food units at a time per parcel.
ORDINANCE 22-10 PAGE 12
Section 8-7-7 - Penalties.
Enforcement of violations of this section shall be made through the use of the civil citation
process as set forth in Section 1-8-3 of the Town Code.
ITEM 9. D.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Development Services
Prepared by: John Wesley, Development Services Director
Staff Contact Information:
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of Ordinance 23-14, amending Chapter 12 of the Town Code, Section 12-3-3
regarding parking adjacent to schools, parks, and special events and Section 12-3-8 regarding parking
in the right-of-way.
Staff Summary (background)
Staff has prepared this ordinance for Council consideration to address two items in regard to parking
in the public right-of way. The first part of the ordinance addresses parking in conjunction with the
new regulations for mobile food vendors. The second part of the ordinance addresses a concern with
inoperable vehicles being left on Town streets. We have had a couple of issues with these and found
our current ordinances do not adequately address these issues.
Chapter 12 of the Town Code addresses Traffic, Article 12-3 is Parking. Section 12-3-3 currently
provides a limitation on parking adjacent to school property. The proposed Mobile Food Vendor
ordinance includes some limitations on mobile food vendors using parking spaces in parking lots
associated with parks as well as adjacent to parks and special events. To assist with enforcement of
the regulations in the Mobile Food Vendor ordinance, it was determined it would be beneficial to add
language to this section of the Code regarding parking in these areas.
The proposed ordinance language is:
Section 12-3-3 - Parking AT OR Adjacent to Schools, PARKS, AND SPECIAL EVENTS
A. SCHOOLS. When signs are erected indicating no parking on that side of the street adjacent to
any school property, no person shall park a vehicle in any such designated place for one hour
before school opens until one hour after school closes on any school day.
B. PARKS. DUE TO INSUFFICIENCIES IN PARKING CAPACITY AND CONCERNS OVER
PEDESTRIAN AND TRAFFIC SAFETY, MOBILE FOOD UNITS SHALL NOT CONDUCT BUSINESS IN
ANY TOWN PUBLIC PARK OR FROM THE STREET OR SIDEWALK ADJACENT TO A TOWN PUBLIC
PARK UNLESS OTHERWISE AUTHORIZED BY THE TOWN AS PART OF A SPECIAL EVENT.
C. SPECIAL EVENTS. DUE TO INSUFFICIENCIES IN PARKING CAPACITY AND CONCERNS OVER
PEDESTRIAN AND TRAFFIC SAFETY, MOBILE FOOD UNITS MAY NOT CONDUCT BUSINESS AT
OR WITHIN THREE HUNDRED (300) FEET OF A SPECIAL EVENT OR AN EVENT THAT HAS BEEN
APPROVED THROUGH AN ADMINISTRATIVE TEMPORARY USE PERMIT, UNLESS THE MOBILE
FOOD UNIT IS REGISTERED AS PART OF THE EVENT.
Chapter 12, Section 12-3-8 currently prohibits someone from parking their vehicle for sale on a public
street. This section is being amended to also not allow inoperable or unregistered vehicles from
being parked on a public street.
The proposed ordinance language is:
Section 12-3-8 Stopping, Standing or Parking Vehicles on Streets or Right-of-Way for the
Purpose of Sale
INOPERABLE OR UNREGISTERED VEHICLE ON RIGHT-OF-WAY.
NO PERSON SHALL STOP, STAND OR PARK ANY VEHICLE THAT IS INOPERABLE ON
ANY STREET OR PUBLIC RIGHT-OF-WAY. IT IS AN AFFIRMATIVE DEFENSE TO A
VIOLATION OF THIS SUBSECTION THAT THE VEHICLE WAS REMOVED FROM THE
STREET OR PUBLIC RIGHT-OF-WAY WITHIN TWENTY-FOUR (24) HOURS OF
BECOMING INOPERABLE.
1.
NO PERSON SHALL STOP, STAND OR PARK ANY VEHICLE THAT DOES NOT DISPLAY
CURRENT REGISTRATION ON ANY STREET OR PUBLIC RIGHT-OF-WAY.
2.
" INOPERABLE MOTOR VEHICLES " ARE DEFINED AS MOTOR VEHICLES, WHICH BY
REASON OF DISMANTLING, DISREPAIR, LACK OF LICENSING OR OTHER CAUSE
ARE EITHER INCAPABLE OF BEING PROPELLED UNDER THEIR OWN POWER OR
ARE PREVENTED BY LAW FROM BEING PROPELLED ON A PUBLIC HIGHWAY.
3.
VEHICLES IN VIOLATION OF THIS SECTION MAY BE REMOVED AS PROVIDED FOR
IN SECTION 11-1-1 C OF THE TOWN CODE.
4.
A.
FOR THE PURPOSE OF SALE. No person shall stop, stand or park any vehicle, wholly or
partly, on any public street or right-of-way within the Town for the purpose of selling the
vehicle.
B.
Related Ordinance, Policy or Guiding Principle
Town Code Chapter 12
Ordinance 23-10, Mobile Food Vendors
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends approval of this text amendment.
SUGGESTED MOTION
MOVE to adopt Ordinance 23-14.
Attachments
Ordinance 23-14
Form Review
Inbox Reviewed By Date
Development Services Director (Originator)John Wesley 10/31/2023 01:24 PM
Town Attorney Aaron D. Arnson 10/31/2023 04:05 PM
Town Manager Linda Mendenhall 11/02/2023 01:44 PM
Development Services Director (Originator)John Wesley 11/06/2023 02:02 PM
Town Manager Rachael Goodwin 11/14/2023 07:39 AM
Form Started By: John Wesley Started On: 10/25/2023 03:32 PM
Final Approval Date: 11/14/2023
ORDINANCE NO. 23-14
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN
OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN
HILLS TOWN CODE BY AMENDING SECTION 12-3-3, PARKING
ADJACENT TO SCHOOLS AND SECTION 12-3-8, STOPPING,
STANDING OR PARKING VEHICLES ON STREETS OR RIGHT-
OF-WAY FOR PURPOSE OF SALE
ENACTMENTS:
NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF
FOUNTAIN HILLS, ARIZONA, as follows:
SECTION 1. That Chapter 12, Traffic, of the Fountain Hills Town Code, Section 12-3-3, Parking
Adjacent to Schools, is hereby amended as follows:
Section 12-3-3 Parking AT OR Adjacent to Schools, PARKS, AND SPECIAL EVENTS
A. SCHOOLS. When signs are erected indicating no parking on that side of the street
adjacent to any school property, no person shall park a vehicle in any such designated place for
one hour before school opens until one hour after school closes on any school day.
B. PARKS. DUE TO INSUFFICIENCIES IN PARKING CAPACITY AND CONCERNS OVER
PEDESTRIAN AND TRAFFIC SAFETY, MOBILE FOOD UNITS SHALL NOT CONDUCT
BUSINESS IN ANY TOWN PUBLIC PARK OR FROM THE STREET OR SIDEWALK
ADJACENT TO A TOWN PUBLIC PARK UNLESS OTHERWISE AUTHORIZED BY THE TOWN
AS PART OF A SPECIAL EVENT.
C. SPECIAL EVENTS. DUE TO INSUFFICIENCIES IN PARKING CAPACITY AND
CONCERNS OVER PEDESTRIAN AND TRAFFIC SAFETY, MOBILE FOOD UNITS MAY NOT
CONDUCT BUSINESS AT OR WITHIN THREE HUNDRED (300) FEET OF A SPECIAL EVENT
OR AN EVENT THAT HAS BEEN APPROVED THROUGH AN ADMINISTRATIVE TEMPORARY
USE PERMIT, UNLESS THE MOBILE FOOD UNIT IS REGISTERED AS PART OF THE EVENT.
SECTION 2. That Chapter 12, Traffic, of the Fountain Hills Town Code, Section 12-3-8, Stopping,
Standing or Parking Vehicles on Streets or Right-of-Way for the Purpose of Sale, is hereby
amended as follows:
Section 12-3-8 Stopping, Standing or Parking Vehicles on Streets or Right-of-Way for the Purpose
of Sale
A. INOPERABLE OR UNREGISTERED VEHICLE ON RIGHT-OF-WAY.
1. NO PERSON SHALL STOP, STAND OR PARK ANY VEHICLE THAT IS INOPERABLE
ON ANY STREET OR PUBLIC RIGHT-OF-WAY. IT IS AN AFFIRMATIVE DEFENSE TO
A VIOLATION OF THIS SUBSECTION THAT THE VEHICLE WAS REMOVED FROM
THE STREET OR PUBLIC RIGHT-OF-WAY WITHIN TWENTY-FOUR (24) HOURS OF
BECOMING INOPERABLE.
2. NO PERSON SHALL STOP, STAND OR PARK ANY VEHICLE THAT DOES NOT
DISPLAY CURRENT REGISTRATION ON ANY STREET OR PUBLIC RIGHT-OF-WAY.
3. " INOPERABLE MOTOR VEHICLES " ARE DEFINED AS MOTOR VEHICLES, WHICH
BY REASON OF DISMANTLING, DISREPAIR, LACK OF LICENSING OR OTHER
CAUSE ARE EITHER INCAPABLE OF BEING PROPELLED UNDER THEIR OWN
POWER OR ARE PREVENTED BY LAW FROM BEING PROPELLED ON A PUBLIC
HIGHWAY.
4. VEHICLES IN VIOLATION OF THIS SECTION MAY BE REMOVED AS PROVIDED FOR
IN SECTION 11-1-1 C OF THE TOWN CODE.
B. FOR THE PURPOSE OF SALE. No person shall stop, stand or park any vehicle, wholly or
partly, on any public street or right-of-way within the Town for the purpose of selling the vehicle.
SECTION 3. In accordance with Article II, Sections 1 and 2, Constitution of Arizona, and the laws
of the State of Arizona, the City/Town Council has considered the individual property rights and
personal liberties of the residents of the City/Town and the probable impact of the proposed
ordinance on the cost to construct housing for sale or rent before adopting this ordinance.
PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa
County, Arizona, this 21st day of November 2023.
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
___________________________________ __________________________________
Ginny Dickey, Mayor Linda Mendenhall, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
____________________________________ __________________________________
Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney
ITEM 9. E.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: Linda Mendenhall, Town Clerk
Staff Contact Information:
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of Ordinance 23-17, amending Town Code Section 2-2-2 regarding the process for
the selection of a Vice Mayor, and approval of Resolution 2023-39 updating the Rules of Procedure
Section 4 - Notice and Agenda adding setting the meeting agenda.
Staff Summary (background)
Ordinance 23-17
Councilmember Allen Skillicorn has proposed an amendment to the Town Code that would change
the process for selecting the Vice Mayor. He suggests that the Vice Mayor be selected by a simple
majority vote of the council. Currently, the Vice Mayor role is filled through a rotation of the council
members, with each council member serving an eight-month term. The order of rotation is
determined by the number of votes each member received in the election in which they were elected.
A.R.S. 9-236 provides: "The mayor of the common council shall be the chief executive officer of the
town, and shall perform such duties as may be prescribed by law and ordinance. In case of the
absence of the mayor the council may appoint one of their number to act in his stead."
Because the statute does not specify a process for selecting the vice mayor, the Council has
discretion to amend the current selection process. Although no change is recommended, the Council
may adopt this change if it wishes to do so.
Resolution 2023-39
Councilmember Skillicorn has also proposed an amendment to the Council Rules of Procedure
that would require the Mayor to set the agenda for Council meetings "with the consent of the Vice
Mayor." With the proposed update to the Council Rules of Procedure, the Vice Mayor would need to
work alongside the Mayor to set the meeting agenda, an obligation that currently falls on the Mayor
and Town Manager.
Because A.R.S. 9-236 provides that the vice mayor acts only "in the absence of the mayor," expanding
the role of the vice mayor to include approving the agenda is likely not statutorily permissible. Staff
recommend against this change.
Related Ordinance, Policy or Guiding Principle
A.R.S. 9-236
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff do not recommend modifying the current process for selecting the vice mayor, but will proceed
as directed by the Council.
Because the role of vice mayor is restricted by statute, staff recommends against modifying the Rules
of Procedure to modify the agenda setting process.
SUGGESTED MOTION
MOVE to APPROVE/DENY Ordinance 23-17
and
MOVE to APPROVE/DENY Resolution 2023-39.
Attachments
Ordinance 23-17
Resolution 2023-39
Form Review
Inbox Reviewed By Date
Town Attorney Aaron D. Arnson 11/14/2023 08:13 AM
Town Manager Linda Mendenhall 11/14/2023 10:22 AM
Town Attorney Aaron D. Arnson 11/14/2023 11:12 AM
Town Manager Rachael Goodwin 11/14/2023 05:10 PM
Form Started By: Linda Mendenhall Started On: 11/13/2023 10:04 AM
Final Approval Date: 11/14/2023
ORDINANCE NO. 23-17
AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS, ARIZONA, AMENDING THE TOWN OF FOUNTAIN HILLS
TOWN CODE, CHAPTER 2, SECTION 2-2 VICE MAYOR AMENDING THE
SELECTION PROCESS TO FILL THE VICE MAYOR POSITION BY VOTE OF
THE TOWN COUNCIL.
RECITALS:
WHEREAS, the Mayor and Town Council wish to amend the selection process to fill the Vice
Mayor position.
ENACTMENTS:
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND COUNCIL OF THE TOWN OF
FOUNTAIN HILLS as follows:
SECTION 1. The recitals above are hereby incorporated as if fully set forth herein.
SECTION 2. Section 2-2-2 Vice Mayor is hereby amended to add the following process:
THE VICE MAYOR SHALL BE ELECTED BY FELLOW COUNCILMEMBERS. THE VICE MAYOR
ELECTION CAN BE INITIATED BY ANY TWO COUNCILMEMBERS AND NEEDS A SIMPLE
MAJORITY TO BE ELECTED. TERMS AS VICE MAYOR SHALL NOT EXTEND PAST THE VICE
MAYOR’S TERM AS COUNCILMEMBER. THE VICE MAYOR SHALL PERFORM THE DUTIES OF THE
MAYOR DURING THE MAYOR’S ABSENCE OR DISABILITY.
SECTION 3. If any section, subsection, clause, phrase, or portion of this Ordinance is for any
reason held invalid or unconstitutional by the decision of any court of competent jurisdiction, such
decision shall not affect the validity of the remaining portions of this Ordinance.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills, this 21st day
of November 2023.
[Signatures of the following page]
ORDINANCE 23-17 PAGE 2
FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO:
Ginny Dickey, Mayor Linda G. Mendenhall, Town Clerk
REVIEWED BY: APPROVED AS TO FORM:
Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney
RESOLUTION 2023-39
A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS,
MARICOPA COUNTY, ARIZONA, APPROVING THE TOWN OF FOUNTAIN HILLS,
ARIZONA TOWN COUNCIL RULES OF PROCEDURE, AMENDED AND RESTATED
NOVEMBER 21, 2023
ENACTMENTS:
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF
FOUNTAIN HILLS as follows:
SECTION 1. That the Town of Fountain Hills, Arizona Town Council Rules of Procedure,
Amended and Restated November 21, 2023, are hereby approved and set forth herein.
SECTION 2. Rules of Procedure, Agenda, is hereby amended to add the following language to
Section 4 – Notice and Agenda:
G. THE MAYOR SHALL SET THE MEETING AGENDA WITH THE CONSENT OF THE VICE
MAYOR.
SECTION 3. That the Mayor, the Town Manager, the Town Clerk, and the Town Attorney are
hereby authorized and directed to execute all documents and take all steps necessary to carry
the purpose and intent of this Resolution.
PASSED AND ADOPTED by the Mayor and Council of Fountain Hills, Maricopa County,
Arizona, this 21ST day of November 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, Town Manager Aaron D. Arnson, Town Attorney
ITEM 9. F.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda 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 the Two Way Radio Equipment Maintenance Agreement between the City of
Mesa and the Town of Fountain Hills for repair and maintenance of our two way radio
communications systems.
Staff Summary (Background)
This agreement letter sets the parameters and hourly rate for repair and maintenance of our mobile,
portable, and station alerting package radios. The City of Mesa Radio Technicians are familiar with our
systems and equipment. This includes work at their shop as well as on-site at our locations. The
$100/hr service rate is less than the $125/hr rate for service at Motorola Solutions.
Related Ordinance, Policy or Guiding Principle
N/A
Risk Analysis
N/A
Recommendation(s) by Board(s) or Commission(s)
Staff Recommendation(s)
Staff recommends approval of the Two Way Radio Equipment Agreement with the City of Mesa.
SUGGESTED MOTION
MOVE to Approve the Two Way Radio Equipment Maintenance Agreement with the City of Mesa.
Attachments
Radio Maintenance
Form Review
Inbox Reviewed By Date
Fire Chief (Originator)Dave Ott 11/07/2023 04:45 PM
Fire Chief (Originator)Dave Ott 11/07/2023 04:45 PM
Finance Director David Pock 11/07/2023 05:38 PM
Town Attorney Aaron D. Arnson 11/07/2023 08:17 PM
Town Manager Rachael Goodwin 11/08/2023 08:04 AM
Form Started By: Dave Ott Started On: 11/07/2023 04:28 PM
Final Approval Date: 11/08/2023
{00028844.DOC /}
Two- Way Radio Equipment Maintenance Agreement
between
The City of Mesa and The Town of Fountain Hills
This Agreement (“Agreement”) is made and entered into this xx day of month, 2023 (“Effective Date”) by and between
the City of Mesa (MESA) and the Town of Fountain Hills (“CUSTOMER” or “USER”).
Article 1. Effective Date, Term and Termination
1.1 Term. The term of this Agreement shall begin on the Effective Date and shall continue until terminated or
cancelled pursuant to the provisions of this Agreement.
1.2 Voluntary Termination on Notice. Either CUSTOMER or MESA may terminate this Agreement by providing
sixty (60) days written notice to the non-terminating party of its intention to terminate. Such termination shall be
effective sixty (60) days after the date the termination notice is issued.
1.3 Termination for Cause. MESA may terminate this Agreement if CUSTOMER fails to timely make any payment
under this Agreement and such nonpayment continues for more than ten (10) days after MESA providing written
notice to CUSTOMER of such non-payment.
1.4 Cancellation. This Agreement may be canceled pursuant to Section 38-511, Arizona Revised Statutes.
1.5 Priority of Agreement. This Agreement supersedes and replaces any previous Agreement entered into by the
Parties for the maintenance of CUSTOMER radio equipment by MESA. Upon execution of this Agreement, such
prior Agreement(s) shall be of no force and effect except for any payment obligations remaining to be paid to
MESA under such prior agreement(s).
Article 2. Maintenance Costs and Conditions
2.1 MESA radio technicians shall perform Maintenance services and repairs to CUSTOMER’s radio equipment that
operates on the TOPAZ Regional Wireless Cooperative (“TRWC”) Network or any MESA communications
systems at the rate of $100.00 per technician hour, plus costs for parts. This rate may be subject to change over
time as labor costs change. Advanced notice of one-hundred eighty
(180) days will be provided when labor rates are expected to change.
2.2 CUSTOMER may deliver to MESA’s Communications Division warehouse all eligible radio equipment
uninstalled from any vehicle from which it operates. Subject to prior arrangement with MESA, CUSTOMER
also may bring to MESA the vehicles containing the radio equipment for repair.
2.3 CUSTOMER is required to request and pay for all radio manufacturer warranty service. Radios sent by MESA
to manufacturer’s repair service for warranty covered services and/or depot repair service must be done so
pursuant to CUSTOMER’s written request and CUSTOMER must pay for all shipping and estimated costs not
covered by the manufacturer.
2.4 MESA is not responsible for repair of equipment that has been damaged due to physical, liquid, and/or chemical
damage, accidents, physical abuse or misuse, force majeure, and fires. CUSTOMER shall be required to pay
MESA all service costs for evaluating any such equipment.
2.5 Minimum billing time for service is one hour, including any service which may be less than one hour to perform.
2.6 Until changed by MESA, services under this Agreement shall be performed during the work hours of
7:00 AM to 3:30 PM, Monday through Thursday, excluding MESA holidays.
{00028844.DOC /} 2
2.7 On or before the 10th day of each month, USER shall pay to MESA any amount due from the previous
month’s billing. After the 10th day of each month, a five-dollar ($5) per day late fee will be added to
such payment until payment is received or agreement is terminated. In addition, MESA shall be entitled
to interest at the annual rate of 12% for any payments not timely made under this Agreement.
Article 3. Request For Service
3.1 USER must complete a Request for Service form for each piece of radio equipment for which service is
desired.
3.2 USER must bring radio equipment along with the completed Request for Service form to the MESA
Communications Division warehouse, at 161 East 6th Place, to receive service on that piece of equipment.
The serial number for the piece of equipment must be on the Request for Service form.
3.3 A MESA radio technician will perform a performance check on the piece of radio equipment to
determine the required services.
3.4 All accessory items brought in for repair without the radio equipment with which it is used must reference
the serial number of the radio equipment on the Request for Service form.
Article 4. Services
4.1 The USER’s radio equipment will be serviced by a MESA radio technician at levels set forth in the
manufacturer’s product manuals.
4.2 Radio equipment that is determined to need service under the manufacturer’s warranty service will be
sent to the manufacturer’s depot service by MESA, at the USER’s or manufacturer’s expense, as
determined by the warranty service plan the USER has with the manufacturer.
4.3 The manufacturer’s parts, new or warranted as new, or parts of equal quality will be used by MESA for
all repair services required that are not covered by the manufacturer’s warranty with the USER. Cost
for these parts will be in addition to the hourly service fee.
4.4 The radio equipment will be tested and serviced by MESA’s radio technician to return them to the
equipment specifications set forth in the manufacturer’s product manuals.
4.5 Routine service procedures, as updated by the manufacturer for its products, will be followed.
4.6 The USER’s radio equipment will be reprogrammed with the USER’s template, as provided by the
USER, after the radio equipment has been serviced.
4.7 The USER may bring radio equipment for operating template changes or flash upgrades (as provided by
the manufacturer). This service will be available at the hourly rate charge for service fees.
4.8 MESA warrants its service will be free of defects in materials and workmanship for 90 days following
the completion of each repair. USER’s sole remedy is to require MESA to re-perform the affected
service. This warranty will apply only with respect to products which have not been abused, misused,
neglected, improperly installed, repaired, altered or damaged including being operated or maintained not
in conformance with manufacturer’s instructions or specifications.
4.9 Each piece of radio equipment will be adjusted to operate within the terms of FCC license authorization
and the manufacturer’s specifications by MESA’s radio technicians.
4.10 This Agreement does not cover services for the installation and removal of radio equipment or services
for sirens, light bars, antennas, wig wags, and other equipment which is mounted or installed on vehicles
of the USER.
{00028844.DOC /} 3
Article 5. Miscellaneous
5.1 The USER shall have the responsibility of budgeting for and funding its participation in this Agreement.
5.2 This Agreement shall be governed by the law of Arizona.
5.3 MESA is not responsible for any damages or loss to the USER’s radio equipment while in the possession
of MESA for services.
5.4 City may assign its right to receive payment under this Contract.
5.5 In the event that any term or provision of the Agreement is held to be invalid or unenforceable, the
validity of the other provisions shall not be affected, and the Agreement shall be construed and enforced
as if it did not contain the particular term or provision that is deemed to be invalid or unenforceable.
5.6 The waiver by any Party of any breach of any term, covenant or condition of this Agreement shall not
be deemed a waiver of such term, covenant or condition or any subsequent breach of the same or any
other term, covenant or condition of this Agreement.
5.7 Any notice, consent or other communications (“Notice”) required or permitted under this Agreement
shall be in writing and either delivered in person, or, deposited in the United States mail, postage prepaid,
registered or certified mail, return receipt requested, or deposited with any commercial air courier or
express service addressed with confirmed receipt as follows:
MESA: City Manager
Address: P O Box 1466
Mesa, AZ 85211-1466
Telephone: 480-644-3333
USER: [to be filled in]
Address:
Telephone:
Notices shall be deemed received at the time it is personally served, on the day received as confirmed
by any commercial air courier or express services, or if mailed, upon the date that registered or certified
mail confirms that it was delivered. Any time period stated in a Notice shall be computed from the time
the Notice is deemed received. Either Party may change its mailing address or the person to receive
Notice by notifying the other party as provided in this paragraph.
5.8 No term or provision of this Agreement is intended to be, nor shall be, for the benefit of any person not
a party to this Agreement, and no such person shall have any right or cause of action hereunder.
5.9 The Parties agree that a waiver of any provision of this Agreement shall not act as a waiver of any other
provision of this Agreement. If a provision of this Agreement is for any reason declared invalid, illegal
or unenforceable, that declaration shall not affect the remaining provisions of this Agreement.
5.10 MESA DISCLAIMER OF WARRANTIES. USER ACKNOWLEDGES AND AGREES THAT MESA
DOES NOT REPRESENT OR WARRANT: THAT THE USER RADIO EQUIPMENT OR TRWC
SYSTEM MAY NOT BE COMPROMISED OR CIRCUMVENTED; OR THAT THE USER RADIO
EQUIPMENT OR TRWC SYSTEM WILL OPERATE ERROR- FREE, FREE OF ANY SECURITY
DEFECTS OR IN UNINTERRUPTED MATTER; OR THAT THE USER RADIO EQUIPMENT OR
TRWC SYSTEM OR SERVICE PROVIDED WILL PREVENT ANY LOSS BY BURGLARY,
HOLDUP, FIRE OR OTHERWISE: OR THAT THE USER RADIO EQUIPMENT OR OTHER
EQUIPMENT OR SERVICES PROVIDED OR THE TRWC SYSTEM WILL IN ALL CASES
{00028844.DOC /} 4
PROVIDE THE COMMUNICATIONS FOR WHICH THEY ARE INTENDED. USER DISCLAIMS
ALL WARRANTIES WHETHER WRITTEN, ORAL, IMPLIED OR STATUTORY, APPLICABLE
OR RELATING TO THE EQUIPMENT, SUPPLIES, MAINTENANCE OF THE EQUIPMENT, OR
OTHER OR ITEMS PROVIDED UNDER THE AGREEMENT BY MESA, INCLUDING BUT NOT
LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE. USER ALSO HEREBY WAIVES ANY RIGHTS AND REMEDIES TO
MAKE A CLAIM INCLUDING, WITHOUT LIMITATION, ANY GENERAL, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, FOR ANY REASON WHATSOEVER, BASED
ON THE OPERATION AND MAINTENANCE OF THE USER RADIO EQUIPMENT OR THE
TRWC SYSTEM BY THE CITY OF MESA. ALL EQUIPMENT AND SERVICES PROVIDED
PURSUANT TO THIS AGREEMENT IS ON AN “AS-IS” BASIS WITH ALL FAULTS. USER
FURTHER ACKNOWLEDGES AND AGREES; THAT ANY AFFIRMATION OF FACT OR
PROMISE SHALL NOT BE DEEMED TO CREATE AND EXPRESS WARRANTY, AND THAT
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THE FACE OF THE AGREEMENT
HEREOF. USER FURTHER ACKOWLEDGES AND AGREES: THAT MESA IS NOT AN
INSURER AND THAT USER ASSUMES ALL RISK OF LOSS OR DAMAGE RESULTING FROM
A FAILURE OF THE USER RADIO EQUIPMENT PRWN OR THE TRWC SYSTEM OR THE
EQUIPMENT OR SERVICES PROVIDED UNDER THIS AGREEMENT.
5.11 This Agreement shall be governed by the law of Arizona. The forum selected for any proceeding or suit
in law or equity arising from or incident to this Agreement shall be Maricopa County, Arizona.
5.12 If any provision of this Agreement is declared void or unenforceable by a court of competent jurisdiction,
the provision shall be severed from this Agreement, which shall otherwise remain in full force and effect
if the remaining provisions permit the Parties to obtain the practical benefits of this Agreement. If any
law or court of competent jurisdiction prohibits or excuses any Party from undertaking any contractual
commitment to perform any act under this Agreement, this Agreement shall remain in full force and
effect, but the provisions requiring such action shall be deemed to permit the Party to take such action
at its discretion, if such a construction is permitted by law.
5.13 This Agreement may be signed in counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
5.14 This Agreement constitutes the entire agreement between USER and MESA with respect to the subject
matter hereof and supercedes all other oral and written representation, understandings or agreements
relating to the subject matter hereof. This Agreement may be amended only in writing signed by both
of the parties.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized officers and agents on the day and year written below.
CITY OF MESA USER AGENCY
By:____City of Mesa______________________ By:____Town of Fountain Hills________________
Name:___________________________________ Name:__________________________________
Title:____________________________________ Title:___________________________________
Date:____________________________________ Date:___________________________________
ATTEST: ATTEST:
________________________________________ _______________________________________
City of MESA USER Agency
{00028844.DOC /} 5
ATTORNEY: ATTORNEY:
________________________________________ _______________________________________
City of MESA
ITEM 9. G.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda 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 the IGA with the TOPAZ Regional Wireless Cooperative (TRWC) for planning,
design, operations, and maintenance of the dispatch network used by the Mesa Regional Dispatch
Center (MRDC).
Staff Summary (Background)
The TOPAZ Regional Wireless Cooperative (TRWC) operates and maintains the network system
necessary for emergency service dispatch provided by the Mesa Regional Dispatch Center (MRDC).
The MRDC dispatch is contingent on membership in the TRWC. FHFD has been approved for
membership in the TRWC. The IGA and Resolution are the final pieces for Regional Dispatch.
Related Ordinance, Policy or Guiding Principle
Dispatch through MRDC and membership in the TRWC improves communication between public
safety entities in a relatively seamless manner. This allows for increased safety for large-scale events
as well as day to day operations.
Risk Analysis
Without this agreement, dispatch services would be severally impacted, affecting public safety within
Fountain Hills
Recommendation(s) by Board(s) or Commission(s)
N/A
Staff Recommendation(s)
Staff recommends the approval of the IGA with the TRWC for for use of the dispatch network used by
the MRDC.
SUGGESTED MOTION
MOVE to Approve the IGA with the TRWC and Resolution 2023-38 for use of the dispatch network
MOVE to Approve the IGA with the TRWC and Resolution 2023-38 for use of the dispatch network
utilized by the MRDC.
Attachments
2023-38
Intergovernmental Agreement
Form Review
Inbox Reviewed By Date
Fire Chief (Originator)Dave Ott 11/07/2023 04:21 PM
Finance Director David Pock 11/07/2023 05:39 PM
Town Attorney Aaron D. Arnson 11/07/2023 08:17 PM
Town Manager Rachael Goodwin 11/08/2023 08:08 AM
Form Started By: Dave Ott Started On: 11/07/2023 03:51 PM
Final Approval Date: 11/08/2023
{0002503.0001/01508342.DOCX / }
Resolution No. 2023-38
RESOLUTION APPROVING THE SECOND AMENDMENT TO THE AMENDED AND
RESTATED INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN,
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE TOPAZ REGIONAL
WIRELESS COOPERATIVE NETWORK
WHEREAS, the Town Council (“Town Council”) is the governing body of the Town of Fountain
Hills (“Fountain Hills”); and,
WHEREAS, the Town Council wishes to protect the public safety of Fountain Hills and provide
for the public welfare through the establishment of modern and reliable radio communication
systems; and,
WHEREAS, TOPAZ Regional Wireless Cooperative Network
links local radio communication systems of multiple jurisdictions to maximize public safety and
service-oriented communications and promote interoperability; and,
WHEREAS, the Town Council, desires to execute the Second Amendment to Amended and
Restated Intergovernmental Agreement to Plan, Design, Construct, Operate, Maintain and Finance
the TRWC (“IGA”), incorporated herein and attached to this Resolution as Exhibit A; and,
WHEREAS, the Town Council agrees to be bound by terms and conditions imposed by the
TRWC Board including, without limitation,
1. Fountain Hills will be primarily served from the Thompson Peak site and will
accept any resulting coverage and network performance as-is; with (1) no
guaranties as to coverage and (2) no right to assert any claims against any TRWC
Member, individual or entity based on the operation or maintenance of the TRWC
Network as more fully stated in Section 8.1 of the Governance Agreement.
Furthermore, Fountain Hills also agrees that no network improvements (outside of
any future planned capital projects) are required for ongoing Fountain Hills
participation in the TRWC.
2. The Town of Fountain Hills agrees to provide the Promenade location and facilities
for network coverage and expansion or a substantial equivalent location and
facilities to the location for network coverage and operational capacity of the
Promenade location/facilities, along with a commitment by Fountain Hills to work
with the TRWC for any needed facilities now or in the future.
3. No equity buy-in will be required for Fountain Hills’ admission to the TRWC, so
they will therefore start with a $0 equity balance, which will be adjusted through
any future capital project assessments.
{0002503.0001/01508342.DOCX / }
4. This Resolution being recorded with the Maricopa County Arizona, Recorder’s
Office.
5. Fountain Hills executing, without modification, a Counterpart of the Second
Amendment to the Amended and Restated Intergovernmental Agreement to Plan,
Design, Construct, Operate, Maintain and Finance the Topaz Regional Wireless
Cooperative Network (“Second Amendment”) as may be amended and becoming
a Party to the TRWC Governance Agreement as may be amended.
WHEREAS, the Town Council finds it is in the best interests of Fountain Hills to enter into the
IGA and become a TRWC Member bound by both the terms of the IGA (including the Governance
Agreement attached as Exhibit A to the IGA) and the written policies and procedures developed
under the Governance Agreement for the TRWC.
NOW, THEREFORE, BE IT RESOLVED that the Town Council hereby authorizes the Town
Manager or his designee to execute the Second Amendment to Amended and Restated
Intergovernmental Agreement to Plan, Design, Construct, Operate, Maintain and Finance the
TRWC for the purpose of fulfilling the need for the establishment of modern and reliable radio
communication systems.
BE IT FINALLY RESOLVED that the Town of Fountain Hills’ Public Safety Departments are
authorized to conduct business in a manner that fulfills the intent of this Resolution.
PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills,
this 21st day of November 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, Town Manager Aaron D. Arnson, Town Attorney
{0002503.0001/01475570.DOCX / 2}
When Recorded Return to:
William H. Anger
Engelman Berger, P.C.
2800 N. Central Ave., Suite 1200
Phoenix, AZ 85004
INTERGOVERNMENTAL AGREEMENT
The parties to this agreement are the Topaz Regional Wireless Corporate Network
(TRWC), and the Town of Fountain Hills, Arizona and the Town of Fountain Hills has
become a party to the Second Amendment to the Amended and Restated Intergovernmental
Agreement to Plan, Design Construct, Operated, Maintain and Finance the Topaz Regional,
Wireless Cooperative Network (“Second Amendment”) recorded with the Maricopa
County Recorder at Document Number 2018088417 by executing a counterpart of the
Second Amendment.
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 2
When Recorded Return To:
William H. Anger
Engelman Berger, P.C.
3636 N. Central Ave., Suite 700
Phoenix, AZ 85012
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
1. Parties. This Second Amendment to the Amended and Restated Intergovernmental
Agreement (“Second Amendment”) is entered into by the signatories below. The Amended
and Restated Agreement (defined in Section 2.2. below) as amended by the First
Amendment (defined in Section 2.3 below) and this Second Amendment shall be
collectively referred to as the “Agreement.” The Parties (individually, a “Party”) to the
Agreement consist of all of the signatories to the Agreement. Parties to the Agreement
shall automatically become Members of the TOPAZ Regional Wireless Cooperative
Network (“TRWC”), as detailed in the attached Exhibit A.
2. Recitals.
2.1 The City of Mesa, the City of Apache Junction, the Apache Junction Fire
District, the Town of Gilbert and the Town of Queen Creek entered into an
Intergovernmental Agreement to Plan, Construct, Operate, Maintain and Finance the
TRWC Network, Contract Number 2008-3002-0359 and dated August 7, 2008 (“August
7, 2008 Agreement”).
2.2 The City of Mesa, the City of Apache Junction, the Apache Junction Fire
District, the Town of Gilbert, the Town of Queen Creek and the Rio Verde Fire District
entered into an Amended and Restated Intergovernmental Agreement to Plan, Construct,
Operate, Maintain and Finance the TRWC Network, Contract Number 2008-3002-0359
with an Effective Date of May 1, 2012 (“Amended and Restated Agreement”) that
superseded and replaced in its entirety the August 7, 2008 Agreement.
2.3 The City of Mesa, the City of Apache Junction, the Superstition Fire and
Medical District (formerly known as Apache Junction Fire District), the Town of Gilbert,
the Town of Queen Creek, the Rio Verde Fire District and the Fort McDowell Yavapai
Nation entered into a First Amendment to the Amended and Restated Intergovernmental
Agreement to Plan, Construct, Operate, Maintain and Finance the TRWC Network, with
an Effective Date of February 1, 2016 (“First Amendment”).
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 3
2.4 The Amended and Restated Agreement as amended by the First
Amendment is valid and enforceable in all respects.
2.5 The Parties enter into this Second Amendment to replace Exhibit A to the
Amended and Restated Agreement with Exhibit A attached to this Second Amendment,
among other revisions to the Amended and Restated Agreement as amended by the First
Amendment.
2.6 The Parties are authorized to enter into this Second Amendment by the joint
exercise of powers provisions of Title 11, Chapter 7, Article 3 (§§ 11-951 et seq.), Arizona
Revised Statutes and the authorization of their legislative or other governing bodies.
2.7 The rules and policies governing the TRWC’s regulation and management
are set forth in a governance document (“Governance Agreement”), which is attached to
this Second Amendment as Exhibit A and incorporated herein and made a part of this
Second Amendment by this reference. The attached Governance Agreement replaces in its
entirety the governance agreement attached to the Amended and Restated Agreement as
Exhibit A. Certain terms that are defined in the Governance Agreement are used in the
Amended and Restated Agreement, the First Amendment and this Second Amendment.
Those terms shall have the same meaning in the Amended and Restated Agreement as
amended by the First Amendment and this Second Amendment as such terms are defined
in the attached Governance Agreement.
2.8 It is the Parties’ intention that the Governance Agreement be enforceable to
the same extent as the Agreement. The Governance Agreement shall be subject to
amendment as provided herein and shall be valid for the duration of the Agreement. The
Governance Agreement is approved by all Parties and shall be binding upon any parties
that are admitted hereafter. No additional parties shall be admitted to the TRWC without
first agreeing to be bound by the Governance Agreement and the Agreement as are the
Parties hereto.
3. Incorporation of Recitals; Date and Duration of Second Amendment.
3.1 The accuracy of the Recitals set forth in Subsections 2.1 through 2.8 above
is hereby acknowledged and such Recitals are incorporated into this Second Amendment
by this reference.
3.2 The “Effective Date” of this Second Amendment is December 1, 2018. All
Parties shall execute this Second Amendment and comply with the requirements of A.R.S.
§ 11-952, which includes appropriate action by the legislative or other governing body of
the Party for the approval of this Second Amendment, determination by the Party's attorney
that the Second Amendment is within the powers and authority of the Party, and the proper
filing of the Second Amendment.
3.3 The Parties agree to modify and amend the Amended and Restated
Agreement as amended by the First Amendment under the same terms and conditions as
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 4
originally agreed subject to the additional terms and modifications set forth in this Second
Amendment. The Parties reaffirm their respective rights and obligations under the
Amended and Restated Agreement and the First Amendment except as modified by this
Second Amendment.
4. TRWC Network Definition.
4.1 When used in the Amended and Restated Agreement as amended by the
First Amendment and this Second Amendment the “TRWC Network” shall mean the
public safety and general government communications system(s) that is planned, designed,
constructed, operated, maintained, and financed by the TRWC and its Members, including
all real estate, real property and personal property that is purchased, leased or licensed by
the TRWC or owned or licensed by a Member and allowed to be used by TRWC in
connection with the TRWC Network. The definition of “TRWC Network” set forth in this
Section 4.1 of this Second Amendment replaces the definition of “TRWC Network” set
forth in the Amended and Restated Agreement. Unless the context clearly requires
otherwise, capitalized terms used herein shall have the same meaning as in the Amended
and Restated Agreement.
5. Section 25 of the Amended and Restated Agreement as amended by the First
Amendment is deleted in its entirety and replaced with the following new
Section 25 that states as follows:
“25. Waiver of Sovereign Immunity.
25.1 The Fort McDowell Yavapai Nation agrees to waive its sovereign immunity
under this Second Amendment as amended solely and exclusively for the strictly limited
purpose of resolving a claim or dispute that may arise with respect to the interpretation or
enforcement of the Amended and Restated Agreement as amended by the First
Amendment, the Second Amendment or in any other amendments in the future or the Fort
McDowell Yavapai Nation’s use of or participation in the TRWC Network. In addition,
this Second Amendment shall not become effective until and unless the Fort McDowell
Yavapai Nation 1) waives its sovereign immunity solely and exclusively for the strictly
limited purpose of resolving a claim or dispute that may arise with respect to the
interpretation or enforcement of the Agreement and 2) consents to the jurisdiction of the
federal or state courts authorized in Section 22 of the Amended and Restated Agreement
solely and exclusively for the strictly limited purpose of resolving a claim or dispute that
may arise with respect to the interpretation or enforcement of the Agreement or the Fort
McDowell Yavapai Nation’s use of or participation in the TRWC Network.”
6. Conflict of Interest. The Parties understand and acknowledge that this Second
Amendment and the Amended and Restated Agreement as amended by the First
Amendment may be subject to cancellation under A.R.S. § 38-511 (Arizona’s public
employee conflict of interest law) in the event there is a conflict of interest of the type
specified in A.R.S. § 38-511 by persons significantly involved in initiating, negotiating,
securing, drafting or creating this Second Amendment.
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 5
7. Entire Agreement. The Agreement, including the Governance Agreement
attached to this Second Amendment, which replaces in its entirety the Exhibit A that is
attached the Amended and Restated Agreement, contains the entire agreement and
understanding among the Parties regarding the formation, governance and operations of
the TRWC, and supersedes and replaces all related prior negotiations, agreements and
proposed agreements, written or oral. Each Party acknowledges that no other Party, nor
any agent or attorney of any Party, has made any promise, representation, or warranty
whatsoever, expressed or implied, not contained in the Agreement and acknowledges that
the Agreement has not been executed in reliance on any promise, representation or
warranty not contained in the Agreement. The Agreement shall not be amended, modified
or supplemented at any time unless in writing.
8. Governing Law. The Agreement shall be governed by and construed in accordance
with the laws of the State of Arizona applicable to contracts executed and intended to be
performed entirely within the State of Arizona by residents of the State of Arizona. Any
action at law, suit in equity or judicial proceeding for the enforcement of the Agreement or
any provision therefore shall be instituted only in the federal or state courts of Maricopa
County, Arizona.
9. Amended and Restated Agreement Still Effective. All provisions of the
Amended and Restated Agreement as amended by the First Amendment shall remain in
full force and effect except as amended by this Second Amendment.
10. Authorized Representatives; Counterparts. Authorized representatives shall
sign this Second Amendment on behalf of their respective Parties. This Second
Amendment may be signed in counterparts and the original signatures of all authorized
representatives and of their attorneys may appear on separate signature pages.
11. Counterparts. This Second Amendment which includes Exhibit A, “TOPAZ
Regional Wireless Cooperative Governance Agreement,” may be signed in counterparts,
each of which shall be deemed an original, but all of which together shall constitute one
and the same instrument.
12. Acknowledgment. Each Party acknowledges that it has been provided copies of
the Amended and Restated Agreement and the First Amendment, and that by executing
this Second Amendment, it agrees to be bound by the Amended and Restated Agreement,
as amended by the First Amendment, as amended by this Second Amendment, and to be
bound by the Governance Agreement attached hereto.
[Signatures on following pages]
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 6
IN WITNESS WHEREOF, the Parties have caused this Second Amendment to be
executed by their duly authorized officers.
TOWN OF FOUNTAIN HILLS
Date:
By
Town Manager
Printed Name
ATTEST:
Town Clerk
Printed Name
APPROVED AS TO FORM and within the
powers and authority granted under the laws
of Arizona to the Town of Fountain Hills
Town Attorney
Printed Name
SECOND AMENDMENT TO THE AMENDED AND RESTATED
INTERGOVERNMENTAL AGREEMENT TO PLAN, DESIGN
CONSTRUCT, OPERATE, MAINTAIN AND FINANCE THE
TOPAZ REGIONAL WIRELESS COOPERATIVE NETWORK
______________________________
{0002503.0001/01475570.DOCX / 2} 7
EXHIBIT A
TOPAZ REGIONAL
WIRELESS
Governance
Agreement
{0002503.0001/01475570.DOCX / 2}
TOPAZ REGIONAL WIRELESS COOPERATIVE
(“TRWC”) GOVERNANCE AGREEMENT
{0002503.0001/01475570.DOCX / 2}
TABLE OF CONTENTS
RECITALS
DEFINITIONS
TRWC STRUCTURE
FINANCIAL MANAGEMENT
TRWC ASSETS AND OWNERSHIP
INSURANCE
OPERATIONAL CONTROL AND DUTIES (PROGRAMMING AND CAPABILITIES)
SERVICES
WARRANTY DISCLAIMER
MAINTENANCE
GENERAL PROVISIONS
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RECITALS
A. The TRWC is formed for the purpose of improving communications and
operations among participating Public Safety and General Government Service Entities.
B. This Governance Agreement establishes (1) an organizational and management
structure for ongoing Network administration, planning, operation, and maintenance; and (2) a
budgeting and accounting process to allocate costs among Members, Participants and Associates
for the Network’s operation and maintenance.
C. The Members further desire to provide a process for admitting other Public
Safety and General Government Service Entities to join and participate in the TRWC pursuant
to the terms and conditions of this Governance Agreement.
D. The TRWC’s primary focus will be meeting the operable and interoperable
communication needs of Public Safety and General Government Service Entities.
E. The Board of Directors shall govern the TRWC’s continued development and
operations by adhering to the following principles:
• Connect participating regional systems to support operational and inter-
operational roaming to a TRWC adopted performance standard.
• Seek funding where appropriate to grow Network capacity and improve
connectivity for shared Network use.
• Conduct multi-regional system strategic planning taking into
consideration federal, state, tribal community, county and local plans.
• Adopt a Network cost recovery model(s) that encourages shared
infrastructure, costs, and resources.
• Proactively work on regional and national initiatives in areas of
mutual concern, benefit, or interest within the scope of this Governance
Agreement.
• Develop a Network system to coordinate technology and operational
plans with other participating regional systems.
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1. DEFINITIONS
The following capitalized words and terms shall have the following meanings when used in this
TRWC Governance Agreement (this “Governance Agreement”). Words and terms used in the
singular shall include the plural, and the plural shall include the singular, as the context may
require. Unless the context otherwise requires, the following terms mean:
TERM DEFINITION
Administrative Manager The entity selected by the Board pursuant to Subsection 2.3 of this
Governance Agreement that is responsible for TRWC administration,
day-to-day operations and financial management whose powers and
duties are more specifically set forth in Subsection 2.3.1 of this
Governance Agreement.
Alternate Representative One or more persons who have been designated by a Member to serve
as their substitute representative and have the authority to act on the
Member’s behalf for TRWC matters. The procedures and rules
governing the appointment and service of a Member’s Representative
and Alternate Representative shall be established by the TRWC
Policies and Procedures.
Applicant Any entity seeking TRWC membership.
Associate A non-Member entity authorized by the Board to use the Network in
situations and circumstances as specifically set forth in Subsection
2.1.1.
Amended and Restated
IGA
The Amended and Restated Intergovernmental Agreement to Plan,
Design, Construct, Operate, Maintain, and Finance the Topaz Regional
Wireless Cooperative Network, recorded with the Maricopa County,
Arizona Recorder on December 26, 2012 at Instrument Number
20121173433, as amended.
Board of Directors
(“Board”)
The governing body of the TRWC whose duties are more specifically
set forth in Subsection 2.2.
Claims Claims and lawsuits, including claims, demands, losses, liability,
damages, payments, judgments, costs, expenses (including but not
limited to reasonable attorney’s fees) incurred through all appeals.
Conditional Participants A non-Member entity authorized by the Board or the Executive
Director to use the Network for special events, tactical situations,
emergency circumstances, or for other purposes subject to the terms
and conditions more specifically set forth in Subsection 2.1.3.
Encryption Services
Manager
As authorized by the Board, an entity responsible for the management
of encryption keys and process whose powers and duties are more
specifically set forth in Subsection 2.3.4.
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Encryption Services
Operator
As authorized by the Encryption Services Manager or the Board, an
entity responsible for executing the activities of the encryption
management services over a specific area.
Executive Committee The committee established by the Executive Director responsible for
producing and/or evaluating TRWC proposals and recommendations
as necessary, prior to submission to the Executive Director and Board.
Executive Director The chief executive officer responsible for oversight of TRWC and
Network activities at the direction of the Board as more specifically set
forth in Subsection 2.3.6.
Final Budget The Final Budget adopted by the Board for each fiscal year as more
specifically set forth in Subsection 3.2.
Fiscal Year The twelve (12) month accounting period for budgeting and
expenditure reporting that commences on the first day of July and ends
on the thirtieth day of June, unless otherwise agreed to by the Board.
General Government
Service Entities
All public sector entities or departments whose primary responsibility
is providing residents with services other than Public Safety services.
General Government
Personnel
All employees, contractors or other individuals that provide work for
General Government Service Entities.
Good Standing A Member who is in full compliance with the terms and conditions of
this Governance Agreement.
Impact Study Evaluation of impacts to the Network and Members resulting from
additional or expanded use of the Network.
Interoperability The ability of emergency responders to communicate among
jurisdictions, disciplines, and levels of government, as needed and as
authorized.
Interoperability
Participant
A non-Member entity authorized by the Board to use the Network for
the purpose of participating in intermittent interoperable situations or
circumstances as more specifically set forth in Subsection 2.1.2.
Member Any entity that executes the Second Amendment and becomes a Party
to the Agreement as defined in the Second Amendment.
Member’s Equity The Member’s proportionate share of TRWC Capital Equity as more
specifically set forth in Subsection 3.4.
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Member’s Personal
Property
A Member’s personal property including, without limitation, all
frequency licenses, equipment, hardware and software that the Member
owns, and may lease or license to the TRWC as more specifically set
forth in Subsection 4.1.2.
Member’s Real Property A Member’s real estate, real property and fixtures thereto, including
without limitation real estate, buildings, structures, towers, and
generators that the Member owns, and may lease or license to the
TRWC as more specifically set forth in Subsection 4.1.1.
Member Retained
Property
The Member’s Real Property and Member’s Personal Property that
will continue to be owned by individual Members and not be included
as part of the Member’s Equity.
Network The Public Safety and general government communications system(s)
that is planned, designed, constructed, operated, maintained, and
financed by the TRWC and its Members, including all real estate, real
property and personal property that is purchased, leased or licensed by
the TRWC or owned or licensed by a Member and allowed to be used
by TRWC in connection with the TRWC Network.
Network Administrator As authorized by the Board, the entity that is responsible for the
technical operations of the Network and whose powers and duties are
more specifically set forth in Subsection 2.3.2.
Network Equity The total amount of all the Member Equity in the Network as of the
most recent quarterly equity statement produced by the Administrative
Manager.
Network Manager As authorized by the Board, an entity responsible for providing
operations and maintenance for a defined portion of the Network
whose powers and duties are more specifically set forth in Subsection
2.3.3.
Network Partner Other governmental or other regional communication systems that
have entered into a written agreement with the TRWC.
Network Resource Plan A plan document that describes available Network resources that users
can access to carry out their communications. This document will be
used to allocate and manage resources on the Network, and in the
development of radio programming templates.
Network Resource
Priorities
The priorities assigned to Network resources pursuant to Subsection
7.4.4.1., (see Network Resource Plan) such as Talkgroups or physical
radio frequency channels to ensure the most urgent communications
receive the highest priority in the Network.
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Network Services All Network Services provided by the TRWC including: services
related to Talkgroups, feature sets, encryption usage, priorities,
roaming and any other services related to the Network System.
Network System The collection of devices, software, hardware, technologies, facilities,
towers or other devices or structures that provide TRWC voice and data
communications capability for the Network.
New Member Special
Assessment
The special assessment a new Member may be required to pay upon
joining the TRWC pursuant to Subsection 3.3.4.1.
Numerical Vote Each Member has one vote for every item brought to the Board for a
vote.
Parties All parties to the Agreement as defined in the Second Amendment.
Party Any individual signatory that executes the Second Amendment and
becomes a Party to the Agreement as defined in the Second
Amendment.
Public Safety The welfare and protection of the general public typically performed
by Public Safety Agencies.
Public Safety Agencies All local, county, state, tribal community and federal law enforcement,
fire and medical services, emergency management and disaster
preparedness agencies whose purpose and function, at least in part, is
to enhance or maintain Public Safety.
Representative The person designated by a Member to act on behalf of the Member on
all matters concerning the TRWC as more specifically set forth in
Subsection 2.2.1.
Special Assessment Fee assessed by the Board to pay the cost of projects, or unforeseen
expenses as more specifically set forth in Subsection 3.3.3. Each
Special Assessment may use a unique cost distribution method.
Subscriber Unit Any device authorized for use on the Network.
Super-Majority A super-majority Vote only passes if both of the following occur: 1)
the affirmative vote of a majority of those Board members present; and
2) the affirmative votes must represent at least eighty percent (80%) of
Network Equity as more specifically set forth in Subsection 2.2.11.
Talkgroup A defined organizational grouping of radio users who need to
communicate with one another.
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TOPAZ Regional
Wireless Cooperative
(“TRWC”)
The consortium that was formed by the Parties to jointly and
cooperatively plan, design, construct, operate, maintain, and finance
the Network.
TRWC Assets The real and personal property that the TRWC owns, leases or licenses
except for Member Retained Property.
TRWC Capital Equity TRWC Capital Equity is based on the following:
(1) The amount paid for TRWC capital additions, upgrades or
replacements including real estate, real property and other property
purchased by the TRWC; and
(2) Capital contributed by Members to the TRWC. It does not
include Member Retained Property or fees paid by Members that are a
Member’s share of operation and maintenance costs.
TRWC Net Position The total TRWC Assets, minus TRWC liabilities as reported in the
TRWC financial statements.
TRWC Policies and
Procedures
The policies and procedures that have been adopted by the Board.
User Working Group As established by the Board pursuant to Subsection 2.2.12., a group
(such as fire fighters, police officers or General Government
Personnel) that meets to: (1) discuss or provide operational or field
input regarding Network use and performance; (2) share knowledge
and experience; (3) receive input from Member agencies, industry
providers or TRWC management (or TRWC management designee);
and (4) conduct other related activities.
Working Day A calendar day other than Saturday, Sunday or a legal holiday in the
State of Arizona.
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2. TRWC STRUCTURE
2.1. Members
The TRWC membership shall be composed of the Members and any other Entity (defined below)
that is admitted in accordance with Subsection 2.1.5. “Entity” as used in this Subsection 2.1.
means any city, town, county, state, tribal community, fire district or other governmental entity
approved by the Board. A municipal county or state agency department or division does not
constitute a separate Entity for Membership purposes. A municipal, county or state agency,
department or division shall be represented by its corresponding city, town, county, state, tribal
community, or separate entity. Each city, town, county, state, tribal community, fire district or
separate Entity shall constitute one voting Member of the TRWC.
2.1.1. Associates
An Entity may become an Associate if the Entity: (1) is under contract to a Member that uses the
Network to provide Public Safety or general government services and is authorized by the Board to
use the Network to support the contracted activities, or supports an existing Member; and (2) is
compliant with the conditions as set forth by the Board, this Governance Agreement, and any other
applicable agreements. Associates have no TRWC voting rights or representation on the Board or
the Executive Committee, but may have a delegate on other TRWC committees as authorized by
the Board. Subject to the Board’s approval, the Administrative Manager may assess fees and
costs, including “in kind” non-monetary compensation, to an Associate in an amount determined
by the Board.
2.1.2. Interoperability Participants
An Interoperability Participant may use the Network for intermittent interoperable situations, if
authorized by the Board, and subject to: (1) the conditions imposed by the Board; (2) this
Governance Agreement; and (3) any other applicable agreements. Interoperability Participants
shall have no TRWC voting rights or representation on the Board or any Board committees. The
Administrative Manager, subject to the Board’s approval, may assess fees and costs including “in
kind” compensation against an Interoperability Participant in an amount determined by the Board.
2.1.3. Conditional Participants
As a Conditional Participant, a non-Member Entity may use the Network for (1) special events; (2)
tactical situations; (3) emergency circumstances; or (4) any other circumstances as authorized by
the Board. Conditional Participants have no TRWC voting rights or representation on the Board,
or any Board committees. The Conditional Participant’s use of the Network is subject to any
conditions imposed by the Executive Director or the Board, and such conditions may include,
without limitation, assessment of fees and costs including “in kind” non-monetary compensation
to a Conditional Participant in an amount determined by the Board. Notwithstanding anything to
the contrary in this Subsection 2.1.3., the Executive Director may authorize the addition of a
Conditional Participant without first obtaining Board approval, but continuation of the Conditional
Participant’s Network use and any conditions imposed by the Executive Director must be approved
or disapproved by the Board at their next meeting.
2.1.4. Network Partner
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Subject to Board approval, the TRWC may enter into individualized agreements with Network
Partners to share infrastructure, expand coverage, manage costs, or for other purposes which
advance the interests of or enhance Public Safety.
2.1.5. Member Admission and Approval
Any governmental entity may apply for TRWC membership. The Board, at its sole and absolute
discretion, may admit an Applicant as a Member upon completion of all the following:
• The Applicant’s written request for TRWC membership that is approved by the
Board.
• The Applicant’s executing an agreement with the TRWC that specifies the fees and
costs the Applicant shall pay the TRWC pursuant to Subsection 2.1.5.1.
• The Applicant meeting all conditions imposed by the Board and this Governance
Agreement.
• The Applicant executing a Counterpart of the Second Amendment to the Amended and
Restated Intergovernmental Agreement to Plan, Design, Construct, Operate, Maintain and
Finance the Topaz Regional Wireless Cooperative Network (“Second Amendment”) as
may be amended and becoming a Party to this Governance Agreement as may be amended.
• The Applicant must qualify under the criteria set forth under Subsections 2.1. or 2.1.5.1.
• If the Applicant is a federally recognized Indian Community, Indian Nation, Indian Tribe
or other Indian entity (collectively, “Indian Community”), such Applicant must (1)
execute a counterpart to the Second Amendment that consents to a limited waiver of its
sovereign immunity as follows: “[name of Indian Community] agrees to waive its
sovereign immunity under this Second Amendment as amended solely and exclusively
for the strict limited purpose of resolving a claim or dispute that may arise with respect to
the interpretation or enforcement of the Amended and Restated Agreement as amended
by the First Amendment, the Second Amendment or in any other amendments in the
future or [name of Indian Community’s] use of or participation in the TRWC Network”
or in another form required by the Board and that consents to the jurisdiction of the federal
or state courts authorized in the Second Amendment and (2) provide the Board a
resolution executed by the tribal council or other governing body of such Applicant in a
form approved by the Board that provides the limited waiver, as stated above, of such
Indian Community’s sovereign immunity as required by the Board and consenting to the
jurisdiction of the federal or state courts authorized in the Second Amendment.
2.1.5.1. Evaluation Factors
The Board has the sole and absolute discretion to either summarily deny or consider Applicants for
Membership status. If the Board elects to consider an application, an Impact Study shall be
completed as directed by the TRWC. The Applicant shall be responsible for any costs associated
with the Impact Study unless the TRWC directs otherwise.
After completion of the Impact Study, the Executive Director shall forward to the Board for
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approval a written recommendation that includes financial and Network operational impact
statements.
The TRWC will evaluate all requests giving the highest priority to Public Safety. The TRWC will
evaluate requests for new Membership using the Impact Study factors as referenced in the TRWC
Policies and Procedures.
2.2. Board of Directors
The Board governs the TRWC. The Board establishes TRWC policy, develops and maintains a
long-range capital budget, develops and adopts an annual budget, establishes funding, assesses fees,
approves Membership, and exercises any other authorized powers and duties. The Board may
exercise such other powers and duties as authorized under this Governance Agreement. The Board
must act only in accordance with this Governance Agreement and all applicable laws.
2.2.1. Representatives
The Board must consist of only Members. The Board Representatives must be police chiefs, fire
chiefs, chief information officers (CIO), chief financial officers (CFO), city managers, county
managers, State of Arizona department directors, regional agency directors or other positions with
executive level authority. A Member must be in Good Standing before that Member’s
Representative is authorized to vote on any matter at a Board Meeting.
The procedures and rules governing the appointment and service of a Member’s Representative and
Alternate Representatives shall be established by the TRWC Policies and Procedures.
2.2.1.1. Removal or Replacement
A Member may replace or remove its Representative or Alternate Representative at any time by
giving written notice to the Executive Director. The removal or replacement of a Representative
or Alternative Representative is effective when the Executive Director receives the written notice
of such removal or replacement.
2.2.2. Chair and Vice Chair
The Board shall elect one of its voting Member’s Representatives as Chair. The Chair shall be the
presiding officer of the Board, shall serve a two-year term, and remain a full voting Member
Representative.
The Board shall elect one of its voting Member’s Representatives as Vice-Chair. The Vice-Chair
shall execute the duties of the Chair during the absence or disability of the Chair.
During the absence or disability of the Chair and Vice-Chair, the Board shall elect a temporary
presiding officer from the attending Board Members’ Representatives.
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2.2.3. Meetings
The Board shall meet quarterly except to the extent that the Board determines to meet more or less
frequently.
2.2.4. Special Meetings
A Board Member, with approval of the Chair, may call a special meeting of the Board upon a
minimum of five (5) Working Days’ notice to the other Board Members. In the event of an
emergency, a meeting may be scheduled and noticed with less than five (5) Working Days’ notice,
provided notice is given to the Board Members in compliance with Arizona Open Meetings Law
and a quorum is present.
2.2.5. Notice and Agenda
The Executive Director shall prepare the notice, agenda and minutes of Board meetings.
Notwithstanding anything to the contrary in this Governance Agreement, a Member may add an
item to be considered by the Board to the agenda by providing written notice to the Chair and the
Executive Director one-hundred twenty (120) hours before the meeting. In emergency situations,
items may be added no later than twenty-four (24) hours before the meeting to ensure compliance
with the Arizona Open Meetings law. The Executive Director must provide a Board meeting
notice and agenda to each Member with at least as much notice as is required to the public under
Arizona law. For any agenda item requiring Super-Majority approval, the Executive Director
shall specifically reference that such agenda item requires Super-Majority approval.
2.2.6. Quorum
A quorum is required to conduct business. To constitute a quorum, a majority of the total number
of the Board of Directors from Members in Good Standing must be present.
2.2.7. Attendance
Unless the Board Chair otherwise directs upon prior notice, a Member may attend and participate
in a meeting in person, by teleconference or video-conference.
2.2.8. Rules
The Board shall establish rules for its proceedings. An item not specifically covered by the rules
established by the Board or by law shall be decided by the presiding officer using the latest standard
edition of Robert’s Rules of Order.
2.2.9. Voting Methodology
Except as otherwise provided in this Subsection, each Member’s Representative or Alternative
Representative attending a meeting of the Board is required to vote on all matters to be decided by
the Board at that meeting. A vote excused by applicable federal or state conflict of interest laws or
any other laws shall not be counted as a vote, neither affirmative nor negative. If a Member’s
Representative or Alternative Representative that is attending the meeting refuses to vote on an
issue without excuse as set forth in the previous sentence of this Subsection 2.2.9., such Member’s
Representative or Alternative Representative will be deemed to have voted no on the matter. A
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Member’s voting right is suspended anytime the Member is not in Good Standing.
2.2.10. Numerical Voting
All matters shall be decided by a Numerical Vote. The Board Chair and Vice Chair are voting
members on all items. A Numerical Vote shall pass by the affirmative vote of a majority of the
Board present and voting, except those matters requiring Super-Majority approval. In case of a
tie in votes on any motion, the motion then fails.
2.2.11. Super-Majority Voting
The following items will require Super-Majority voting:
• Adding a new Member;
• Removing a Member;
• Amending this Governance Agreement;
• Annual Budget Adoption;
• Cost distribution methodology;
• Approving capital projects;
• Awarding a contract in excess of 10% of the TRWC’s overall budget;
• Selecting or removing the Administrative Manager;
• Selecting or removing the Network Administrator;
• Selecting or removing the Executive Director; and
• Dissolving the TRWC.
Any Super-Majority items added, changed or removed from the foregoing list must be approved
with a Super-Majority vote of the Board. A Super-Majority vote shall pass only when both of the
following occur: (1) an affirmative vote by a majority of the Board of Directors present; and (2)
an affirmative vote by the Board of Directors present who represent at least 80% of the Network
Equity.
2.2.12. Advisory Committees
The Executive Director will establish the following: the Executive Committee, the User Working
Group, and any additional advisory or ad hoc groups or sub-committees as needed. Unless
otherwise determined by the Executive Director, each advisory committee shall choose its officers
comprised of co-chairpersons, one of which must be a fire representative and the other a law
enforcement representative, and shall establish key performance indicators and rules for conducting
meetings and representation. The Executive Director or designee shall be a participant on each
committee. The committees will coordinate all activities through the Executive Director and will
report to the Board as determined by the Executive Director.
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2.3. Administrative Management
2.3.1. Administrative Manager
The Board must select an Administrative Manager, which shall have powers and duties as listed
under this Subsection 2.3.1. provided that the Administrative Manager existing immediately prior
to the Effective Date of this Governance Agreement shall continue as Administrative Manager for
a four-year term commencing on the Effective Date of this Governance Agreement. Except as
otherwise determined by the Board, the Administrative Manager shall serve a four-year term unless
the Administrative Manager resigns or is removed by the Board pursuant to a Super-Majority vote
prior to expiration of such term. If the Board fails to take a vote to elect an Administrative Manager
during the six-month period immediately prior to the expiration of the Administrative Manager’s
four-year term, the Administrative Manager shall then automatically be deemed elected by the
Board for an additional four-year term. Upon resignation, termination or no later than six months
prior to expiration of the Administrative Manager’s term, an ad hoc group of three to five Board
Members appointed by the Board Chair shall review and recommend one or more Administrative
Manager candidates for consideration by the Board. Unless otherwise determined by the Board,
the Administrative Manager shall give at least twelve months’ prior written notice to the Board
before resigning as Administrative Manager. The Administrative Manager may serve any number
of successive terms and must be elected by a Super-Majority vote. Except as limited by this
Governance Agreement, the Board may delegate additional powers and duties to the Administrative
Manager as necessary to assure cost effective and efficient delivery of services.
The Administrative Manager is responsible for day-to-day TRWC administrative responsibilities
that include, but are not limited to: (1) procuring resources, materials, and services; (2) establishing
functions such as accounting, budgeting, contracting, purchasing, and inventory; (3) providing
reports; and (4) performing other duties as assigned and identified in the TRWC Policies and
Procedures.
2.3.2. Network Administrator
The initial Network Administrator shall be as identified in a Board resolution in conjunction with
this Governance Agreement. The Board must select a Network Administrator, which shall have
powers and duties as listed under this Subsection 2.3.2. The same entity may serve as
Administrative Manager and Network Administrator. Except as otherwise determined by the
Board, the Network Administrator shall serve a four-year term unless the Network Administrator
resigns or is removed by the Board pursuant to a Super-Majority vote prior to expiration of such
term. If the Board fails to take a vote to elect a Network Administrator during the six-month period
immediately prior to the expiration of the Network Administrator’s four-year term, the Network
Administrator shall then automatically be deemed elected by the Board for an additional four-year
term. Upon resignation, termination, or no later than six months prior to expiration of the Network
Administrator’s term, an ad-hoc group of three to five Board Members appointed by the Board
Chair shall review and recommend one or more Network Administrator candidates for
consideration by the Board. Unless otherwise determined by the Board, the Network
Administrator shall give at least twelve months’ prior written notice to the Board before resigning
as Network Administrator. The Network Administrator may serve any number of successive terms
and must be elected by a Super-Majority vote.
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The Network Administrator is responsible for network operations, planning, monitoring,
optimization, management, coordination, technical implementation and other duties as assigned
and identified in the TRWC Policies and Procedures.
2.3.3. Network Manager(s)
A Network Manager is responsible for: (1) the day-to-day operations and maintenance of an
assigned portion of the Network to comply with policies, procedures, and performance standards;
and (2) performing other duties as assigned and identified in the TRWC Policies and Procedures.
2.3.4. Encryption Services Manager
The Encryption Services Manager is responsible for managing encryption keys and processes, and
performing other duties as assigned by the Board or as identified in the TRWC Policies and
Procedures.
2.3.5. Encryption Services Operator(s)
The Encryption Services Operator is responsible for performing encryption management services
as delegated by the Encryption Services Manager and performing other duties as assigned by the
Board, or as identified in the TRWC Policies and Procedures.
2.3.6. Executive Director
2.3.6.1. Responsibilities
The Executive Director will report to the Board. The Executive Director has day-to-day TRWC
administrative responsibilities that include, but are not limited to: (1) coordinating efforts of the
Board, Executive Committee and advisory group members; (2) preparing and maintaining meeting
notices, agendas and minutes; (3) managing the overall TRWC administrative organizational
structure and staffing; (4) maintaining the TRWC Policies and Procedures in coordination with the
Board; (5) providing reports; and (6) performing other duties as assigned and identified in the
TRWC Policies and Procedures.
2.3.6.2. Executive Director Selection
The Board Chair shall appoint a committee of at least three Members with the assistance of the
Administrative Manager, to recommend an Executive Director to perform TRWC administrative
duties. The Board shall vote to either approve or not approve such Executive Director
recommendation. The Executive Director shall serve until he or she resigns or is removed by the
Board in the Board’s sole and absolute discretion. Notwithstanding the foregoing, the Executive
Director existing immediately prior to the Effective Date of this Governance Agreement shall
continue as Executive Director commencing on the Effective Date of this Governance Agreement
until he or she resigns or is removed by the Board in the Board’s sole and absolute discretion.
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3. FINANCIAL MANAGEMENT
3.1. General
The Administrative Manager, under the direction of the Executive Director, is responsible for all
TRWC financial management responsibilities including, but not limited to, budget development,
rates and fees, Member billing, vendor invoicing, procurement, financial reporting, grant
management, and financial audits.
The Administrative Manager is responsible for the preparation and fair presentation of the financial
statements in accordance with generally accepted accounting principles (“GAAP”) in the United
States of America as applied to governmental units; this includes the design, implementation, and
maintenance of budgets, accounting records, and internal controls.
Each year, the Board must approve an annual budget. The budget shall consist of the following
accounts; (1) operations and maintenance; (2) capital; and (3) any other accounts determined by the
Board.
3.2. Budget and Financial Planning and Reporting
No later than October 31st of each year, unless the Board directs a different date, the Executive
Director, in cooperation with the Administrative Manager, shall prepare and present to the
Executive Committee, a (1) preliminary budget for the subsequent Fiscal Year and (2) a five-year
financial forecast (“FYFF”). Unless the Board otherwise directs a different approval date by
Super-Majority Vote, no later than March 1st of each year, the Board must approve (A) the Final
Budget for the subsequent Fiscal Year; and (B) a FYFF. The Final Budget must include all
operational and maintenance costs, planned capital costs, and cost distribution methodologies for
the upcoming year. The FYFF must include operational and maintenance costs and capital costs
for the five (5) years following the Final Budget period. The FYFF is provided for informational
purposes only, will assist in preparing the annual budgets for future years, and is subject to change.
After presentation to the Executive Committee, the proposed Final Budget, FYFF, and presentation
of significant issues and financial assumptions shall be forwarded to the Board for approval. A
copy of the adopted budget must be in writing and available to the Members.
After the end of each Fiscal Year, the Administrative Manager, under the direction of the Executive
Director, must submit to the Executive Committee and Board a summary of financial activity,
including a comparison of budgeted expenditures to actual expenditures.
3.3. Funding
3.3.1. General
The Members shall fund the TRWC through fees, Special Assessments, grants, or any other
mechanism as determined by the Board. It will be each Member’s responsibility to take the
appropriate steps in conformity with state and local laws to ensure that it appropriates sufficient
funds to cover its obligations under this Governance Agreement. Members will remit funds to the
Administrative Manager on a monthly basis upon receipt of an invoice. Payment of all invoices
is due thirty (30) days from the invoice date. Any Member with invoices that are unpaid for 60
days from the invoice date will be considered not in Good Standing if the delinquent Member fails
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to become current on its payment of the unpaid invoice within 10 days after notice from the
Administrative Manager. The Administrative Manager must also notify the Executive Director in
writing of any Member’s payment delinquency.
In the event a Member disputes an amount billed, it shall do so in writing to the Executive Director
and shall specify the reason upon which the dispute is based within thirty (30) days after service
of an invoice. The Member shall pay the disputed amount, but may do so under protest. After
the dispute has been filed pursuant to the conflict resolution provisions of Subsections 10.3.1.
through 10.3.3. of this Governance Agreement and Sections 17.1. through 17.6. of the Amended
and Restated IGA, and the disputed amount has been paid, the dispute shall be handled in
accordance with the conflict resolution terms and conditions outlined in Subsection 10.3. of this
Governance Agreement and Sections 17.1. through 17.6. of the Amended and Restated IGA.
If a Member withdraws from the Network, that Member shall be responsible for all unpaid fees and
entitled to any fee refunds applicable for time of the Member’s membership.
It shall be the responsibility of each Member to bill and collect from its individual users such user
charges and cost recovery charges as are required in the payment of the amounts due under this
Governance Agreement.
Each Party recognizes that the performance by the Parties under this Governance Agreement may
be dependent upon the appropriation of funds to or by that Party. Should any Party fail to
appropriate the necessary funds, or default on payments or any other obligations to the TRWC
beyond the 30-day cure period set forth in Section 17.1. of the Amended and Restated IGA, the
Board may remove and terminate that Party as a Member of the TRWC or require that Member to
satisfy any other Board required conditions to continue as a Member. In the event that such Party
is terminated or removed as a Member such Member shall forfeit all or a portion of the Member’s
Real Property and the Member’s Personal Property that is used in the Network as determined by
the Board in the Board’s sole and absolute discretion. Each Party agrees to give notice to the
other Parties as soon as reasonably possible after the unavailability of funds comes to the Party’s
attention. Except as otherwise provided in this Subsection 3.3.1., the ownership of personal
property and real property that is used in the Network shall be governed by Section 4 of this
Governance Agreement.
3.3.2. Member Fees, Payments, Allocations
Each Member agrees to pay fees assessed upon receipt of an invoice as described in Subsection
3.3.1. unless otherwise directed by the Board.
The Portion of the Member Fee for capital projects shall increase TRWC Capital Equity, as
established under Subsection 3.4.
3.3.3. Special Assessments
The Board may assess other fees on an as needed basis to: (1) pay the costs of unplanned projects
such as disaster recovery or certain extraordinary Claims; (2) pay the costs for uninsured casualty
losses, regulatory fines or insurance deductibles; (3) pay for the use of the Network by an
Interoperability Participant, Conditional Participant, Network Partner or Associate; or (4) pay the
costs of special projects or system changes, replacements, expansions, or other items not
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previously included in the Final Budget. Such changes may not benefit all Members in a
proportionate manner. The Board may assess fees proportionately or individually and such fees
need not be equal among Members.
3.3.4. Applicant Impact Study Fee
The TRWC may require an Applicant to pay an Impact Study fee to cover the cost of developing
an Impact Study that addresses the Applicant’s request for TRWC membership and the Applicant’s
potential effect on the existing infrastructure and Members.
3.3.4.1. New Member Special Assessment
The TRWC may require a new Member to pay their portion of a Special Assessment up to the full
cost associated with providing services to the new Member. The new Member Special Assessment
may include the cost to provide service to the new Member’s Subscriber Units, Network
infrastructure investment necessary to increase Network capacity, and other costs deemed
necessary to ensure existing Members receive the same services and benefits they received before
the new Member joined the Network. The New Member Special Assessment shall be paid in
accordance with the terms and conditions established by the Board as part of the membership
agreement to join the TRWC.
3.3.4.2 Existing Member Capacity and Coverage Upgrade
If any existing Member(s) make a request for a capacity, coverage and/or performance change or
upgrade that is expected to impact the Network coverage or capacity and/or performance of other
Members, the Administrative Manager may require such existing Member(s) to pay a Special
Assessment to cover the cost of an Impact Study. The Administrative Manager shall provide an
analysis and recommendation regarding the existing Member’s request for a capacity, coverage
and/or performance upgrade and forward the information to the Executive Committee for review
and recommendation to the Board for final approval.
3.3.5. Grants
Member(s) may apply individually to obtain grant funding for assessed Network projects. The
Board, at its sole and absolute discretion, may accept or deny the use of these grant funds if the
Member’s grant request is associated with a Network project. The application for or the award of
a grant shall not relieve a Member of its obligation to pay, within thirty (30) days of the invoice
date, costs billed in accordance with this Governance Agreement. Grant funds will be credited to
each Member in proportion to the amount of funding each Member contributed towards the grant
project, as grant funds are received. Grant funds credited to a Member will increase the Member’s
Equity and the TRWC Capital Equity. The Member that is awarded the grant remains responsible
for meeting all of the terms, conditions and obligations of the grant.
The Administrative Manager may proceed to obtain grant funding on behalf of the TRWC with
approval of the Board. Any matching funds required by a grant towards a Network wide project
will be assessed to the Members based on an appropriate allocation method determined by the
Board.
3.4. TRWC Capital Equity
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TRWC Capital Equity and each Member’s Equity will be recalculated when: (1) a new Member
joins the TRWC; or (2) an enhancement, expansion or replacement is completed by the TRWC.
If a Member brings assets to the TRWC and the Board accepts the assets on behalf of the TRWC,
the Member’s Equity will increase based on the value of the assets at the time of transfer to the
TRWC.
Assets which are individually owned, as permitted in Section 4, shall not be counted as part of the
TRWC Net Position, and the Member(s) owning those assets shall not receive credit towards equity
in the Network until those assets become part of the TRWC as described in Subsection 4.3.
3.5. Annual Audit
TRWC financial records may be independently audited as directed by the Board. The Board shall
determine the scope of work, budget, and cost allocation for any independent financial audit.
4. TRWC ASSETS AND OWNERSHIP
4.1. Member’s Retention of Assets
4.1.1. Real Property
Each Member shall retain any and all right, title, and interest in the Member’s Real Property that
the Member authorizes or allows the TRWC to use as part of the Network.
Notwithstanding the foregoing, Members shall be permitted to maintain individual ownership over
a Member’s Real Property, where desired by such Member. Such Member’s Real Property may
be retained or disposed of by the Member so long as any retention or disposal does not adversely
affect the Network. Should the TRWC replace real property that was solely owned by a Member,
such Member must be given a reasonable opportunity to pay for such replacement or make other
Board approved arrangement so it does not lose ownership over the Member’s Real Property.
4.1.2. Personal Property
Each Member shall retain any and all right, title, and interest in the Member’s Personal Property
that is used by the TRWC in connection with the Network.
Notwithstanding the foregoing, Members shall be permitted to maintain individual ownership over
a Member’s Personal Property, where desired by such Member. Such Member’s Personal
Property may be retained or disposed of by the Member so long as any retention or disposal does
not adversely affect the Network. If the TRWC replaces a Member’s personal property that was
solely owned by a Member, the Member must be given a reasonable opportunity to pay for such
replacement or make other Board approved arrangement so it does not lose ownership over the
Member’s Personal Property.
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4.2. TRWC’s Maintenance of Member Real Property and Member Personal
Property
On behalf of the TRWC, the Member and the Administrative Manager must enter into an
agreement regarding the conditions concerning the Network’s use and maintenance of the
Member’s Real Property and Member’s Personal Property. Otherwise, each Member is
responsible for the cost of maintaining its Real Property, including fixtures thereto, and Personal
Property that are made part of the Network, to the extent necessary to maintain the operational
integrity and capacity necessary to operate the Network. Each Member agrees that it will make
all arrangements necessary to allow the Administrative Manager, Network Administrator or
Network Manager reasonable access to that Member’s Real Property and Member’s Personal
Property that are part of the Network for the purposes of inspecting, operating, and maintaining
the Network. Unless otherwise provided by agreement, prior to exercising the right of inspection
provided by this paragraph, the Administrative Manager, Network Administrator or Network
Manager shall give the Member, whose property is to be inspected, reasonable notice under the
circumstances then existing.
4.3. TRWC Acquired Real and Personal Property
Any and all real and personal property that is purchased by and on behalf of the TRWC shall be
included in the TRWC Capital Equity. The Board must approve any transfer of real or personal
property by a Member to the TRWC. Any real or personal property that is purchased by or on
behalf of the TRWC shall be held jointly and owned in common by the Members. Each Member’s
ownership interest in the TRWC personal property will be proportionate to the amount of its
Member’s Equity. The Members agree that any real or personal property jointly purchased for the
TRWC’s benefit shall be titled and held in the name of the Administrative Manager, even though
all financially contributing Members to the purchase shall actually own a percentage share in such
real or personal property.
4.4. Sale or Removal of Real and Personal Property Owned by or Used
by the TRWC in Connection with the Network
The sale or removal of real and personal property owned by or used by the TRWC in connection
with the Network will be addressed and governed by the TRWC Policies and Procedures.
4.5. Liens on Real or Personal Property Used in connection with the Network
If any obligations of a Member issued to finance any real or personal property made a part of the
Network are secured by any right, title, interest or lien in or upon such property (a “Finance Lien”),
the rights of the TRWC and the Members in and to such property, including the rights to use such
property as part of the Network, shall at all times be subordinate and subject to such Finance Lien
and the rights of the holder or holders of such Finance Lien. If such financing was obtained after
the TRWC was given the right to use the Member’s Real Property or Member’s Personal Property,
then such financing shall provide TRWC the reasonable opportunity to cure any default or non-
appropriation to allow the TRWC and its Members continued Network use of such Member’s Real
Property or Member’s Personal Property.
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4.6. Actions Must Preserve Tax Exempt Status of Obligations
Neither the TRWC nor any Member will take or fail to take any action with respect to the use and
operation of the Network that would adversely affect the tax-exempt status of any obligations issued
by any Member to finance any real or personal property that is part of the Network. Without
limiting the foregoing, neither the TRWC nor any Member will permit any private business use of
the Network where such private business use would cause any Member’s obligations to be treated
as Private Activity Bonds under the Internal Revenue Code, as amended.
5. INSURANCE
5.1. Real Property
Each Member is responsible to insure, at appropriate and sufficient coverage levels, its Member’s
Real Property, including fixtures thereto, titled in its own name. Each Member who has leased
real property, including fixtures thereto, to be used in connection with the Network is responsible
to insure the leased property according to the terms of the lease and at appropriate and sufficient
coverage levels.
The Administrative Manager is responsible to insure real property cooperatively purchased or
leased for the benefit of the TRWC as directed and at coverage levels approved by the Board. The
Administrative Manager also is responsible for insuring, as directed and at coverage levels
approved by the Board, all real property used in connection with the Network and that a Member
has transferred ownership to the TRWC under this Governance Agreement. Neither the Board
nor the Administrative Manager shall be responsible for a loss involving a Member’s Real Property.
5.2. Personal Property
Each Member is responsible to insure, at appropriate and sufficient coverage levels, its Member’s
Personal Property titled in its own name. Each Member who has leased or licensed personal
property to be used in connection with the Network is responsible to insure the leased or licensed
personal property according to the terms of the lease or license and at appropriate and sufficient
coverage levels.
The Administrative Manager is responsible to insure personal property cooperatively purchased or
leased for the benefit of the TRWC as directed and at coverage levels approved by the Board. The
Administrative Manager is responsible for insuring, as directed and at coverage levels approved by
the Board, all personal property used in connection with the Network and that a Member has
transferred ownership to the TRWC under this Governance Agreement. Notwithstanding the
foregoing, however, any and all personal property that is purchased or owned exclusively by a
Member and brought into the Network by that Member shall be insured by such Member at
appropriate and sufficient coverage levels. Neither the Board nor the Administrative Manager shall
be responsible for a loss involving a Member’s Personal Property.
5.3. Claims
Each Party understands and acknowledges that any Claim may be filed for damages resulting from
acts or omissions in connection with planning, designing, constructing, operating, maintaining and
financing the Network or that other unforeseen costs and expenses may be incurred in connection
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with the planning, designing, constructing, operating, maintaining and financing the Network. The
Parties agree that any Claim not specifically provided for in this Governance Agreement shall be
shared by the Parties in accordance with the cost allocation process set forth in Subsection 3.3.2.
at the time the Claim is first served on the TRWC or any Party or the unforeseen Claim was
incurred. Each Party shall promptly notify the TRWC and the Administrative Manager upon
receipt of any Claim relating to the Network. The Administrative Manager shall take the lead role
on behalf of the TRWC in coordinating the investigation and defense of any Claim made in
connection with planning, designing, constructing, operating, maintaining or financing the
Network. Nothing in this section shall preclude any Party, at its expense, from providing its own
legal counsel in connection with any Claim made in connection with planning, designing,
constructing, operating, maintaining or financing the Network. Each Member is responsible to
insure its liability relating to its TRWC membership or liability which is not assumed by the TRWC
under this Governance Agreement. With regard to any Claim arising out of or relating to the
ownership or maintenance of a Member’s Retained Property, such Member (as “Indemnitor”)
agrees to indemnify, defend, and hold harmless the other Members (as “Indemnitees”) from and
against any Claim, but only to the extent that such Claim results in vicarious/derivative liability to
the Indemnitees and are caused by the act, omission, negligence, misconduct, or other fault of the
Indemnitor, its officers, officials, agents, employees, or volunteers. The TRWC, Board, Executive
Director, Administrative Manager, Network Administrator, Network Manager, and Encryption
Services Manager shall not be liable for any Claim arising out of, based upon or attributable to any
other Member’s failure or omission in effecting or maintaining adequate insurance on such
Member’s Retained Property.
5.4. Insurance Programs
The Board shall authorize appropriate TRWC insurance coverage to protect the TRWC from risks
and potential liability under this Governance Agreement and in connection with planning,
designing, constructing, operating, maintaining or financing the Network. The Board shall direct
the Administrative Manager to obtain such insurance on behalf of the TRWC. In deciding what
insurance coverage and indemnities are appropriate, the Board may elect to self-insure for all or a
portion of the risks.
The TRWC, Board, individual Members and the Administrative Manager may use any combination
of insurance, excess insurance or self-insurance to satisfy the terms of this Section 5.
6. OPERATIONAL CONTROL AND DUTIES (PROGRAMMING AND
CAPABILITIES)
6.1. Network Systems
The Network Administrator shall program, maintain, and manage all Network Systems in a manner
consistent with maximizing the operational performance and minimizing the loss or corruption of
data. The Network Administrator is responsible for the Network Systems’ programming,
maintenance, backup and archiving.
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6.2. Policies and Procedures
Unless otherwise specified by the Board, the Executive Director shall develop and maintain the
TRWC Policies and Procedures in coordination with the Executive Committee. At a minimum,
the Executive Director shall review all TRWC Policies and Procedures every two years. Revisions
to the TRWC Policies and Procedures must be approved by the Board. The Executive Director
may consider specific revisions at any time upon request by any Member Representative or
Alternate Representative. Notwithstanding anything to the contrary in this Subsection 6.2., the
TRWC Policies and Procedures existing immediately prior to the Effective Date of this
Governance Agreement shall continue as the TRWC Policies and Procedures until the Board
approves new or amended TRWC Policies and Procedures.
7. SERVICES
7.1. Network Use, Programming and Reprogramming, Encryption
When using the Network each Member, Associate, Interoperability Participant, and Conditional
Participant shall abide by all policies, procedures and guidelines established by the TRWC and the
terms and conditions of all applicable agreements including, without limitation, this Governance
Agreement.
7.2. Interoperability
The TRWC shall support Interoperability among all Members, Associates, Conditional Participants
and Interoperability Participants. The TRWC shall follow the National Incident Management
System (NIMS) protocols for interoperable communications or such other protocols as may be
determined by the Board subsequent to the Effective Date of this Governance Agreement.
7.3. Training
Each Member, Associate, Conditional Participant and Interoperability Participant must ensure that
its users are properly trained on the Network capabilities, policies and procedures.
7.4. Requests for Service
7.4.1. Routine Service
The Network Manager or appropriate working group, in coordination with the Executive Director,
will establish policies and procedures relating to Network Services that will be provided to the
Board for consideration and possible inclusion in the TRWC Policies and Procedures.
7.4.2. Expanded Service
Members requiring or desiring expanded Network Services that may impact the Network must
submit these requests in writing to the Network Manager, in coordination with the Executive
Director. Examples of such expanded services include, without limitation, requests to: (1) add
sites to the Network; (2) increase system performance or coverage; or (3) implement a Network
upgrade in order to receive a new feature. Criteria for expanded services will be evaluated by the
Impact Study factors as referenced in the TRWC Policies and Procedures.
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7.4.3. Emergency Service
The TRWC Policies and Procedures for Network Services must address emergency situations,
tactical response to such emergencies, and the decision-making authority for such emergencies.
The TRWC Policies and Procedures must include, as part of such policies and procedures,
notification requirements. Notwithstanding anything to the contrary in this Subsection 7.4.3., the
Executive Director at all times has the authority to provide access to the Network in emergency
situations.
7.4.4. Network Resources
Unless otherwise directed by the Board, the Network Administrator, in coordination with the
appropriate working group, establishes and approves all Network Resource Plans. These plans are
used to develop the radio programming files.
7.4.4.1. Network Resource Priorities
Unless otherwise directed by the Board, the User Working Groups shall establish priority levels for
the individual Network Resource Priorities. In general, Network Resource Priorities are assigned
highest to lowest as follows: (1) emergency calls; (2) Public Safety; and (3) General Government
Service Entities.
8. WARRANTY DISCLAIMER
8.1. Warranty Disclaimer
ALL MEMBERS DISCLAIM ALL WARRANTIES WHETHER WRITTEN, ORAL,
IMPLIED OR STATUTORY, APPLICABLE OR RELATING TO THE SERVICES,
EQUIPMENT, SUPPLIES, MAINTENANCE OF THE EQUIPMENT, OR OTHER ITEMS
PROVIDED UNDER THIS GOVERNANCE AGREEMENT BY ANY MEMBER(S),
INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE
MEMBERS ALSO HEREBY WAIVE ANY RIGHTS AND REMEDIES TO MAKE A
CLAIM INCLUDING, WITHOUT LIMITATION, ANY GENERAL, SPECIAL,
INCIDENTAL OR CONSEQUENTIAL DAMAGES, FOR ANY REASON
WHATSOEVER, BASED ON THE OPERATION AND MAINTENANCE OF THE
NETWORK BY THE ADMINSTRATIVE MANAGER, NETWORK ADMINISTRATOR,
NETWORK MANAGER(S), ENCRYPTION SERVICES MANAGER, MEMBER OR ANY
INDIVIDUAL OR ENTITY.
9. MAINTENANCE
9.1. Subscriber Unit Maintenance and Repair Responsibility
Each Member, Associate, Interoperability Participant, and Conditional Participant is solely
responsible for the maintenance and repair of their Subscriber Units.
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10. GENERAL PROVISIONS
10.1. Limitations
Subject to applicable law, no Board member shall be liable to the TRWC for monetary damages
for any action taken or any failure to take action as a Board Member. To the extent permitted by
law, the TRWC shall indemnify any director, officer, Executive Director, Administrative Manager,
Network Administrator, Network Manager, Encryption Manager, Encryption Service Operator,
Member, Representative, or Alternate Representative (each “Indemnified Party”, collectively
“Indemnified Parties”) from any liability or expense sought or imposed because such person is
made party to a proceeding because he/she is a director, officer, Executive Director, Administrative
Manager, Member, Representative, or Alternate Representative of the TRWC. No Indemnified
Party shall be personally liable to the TRWC or its Members for monetary damages for breach of
fiduciary duty as a director, officer, Executive Director, Administrative Manager, Representative,
or Alternate Representative; provided, however, that this Subsection 10.1. shall not eliminate or
limit the liability of an Indemnified Party to the extent provided by applicable law for (i) the amount
of financial benefit received by an Indemnified Party to which the Indemnified Party is not entitled;
(ii) an intentional infliction of harm on the TRWC or its membership; (iii) a violation of Section
10-833 of the Arizona Revised Statutes; or (iv) an intentional violation of Arizona law. The
limitation of liability provided herein shall continue after the Indemnified Party has ceased to
occupy such position as to acts or omissions occurring during such director's term or terms of
office, and no amendment or repeal of this Subsection 10.1. shall apply to or have any effect on the
liability or alleged liability of any Indemnified Party for or with respect to any acts or omissions of
such Indemnified Party occurring prior to such amendment or repeal.
10.2. Dissolution
If the Board determines that it is not feasible or desirable to continue the TRWC activities, then,
after complying with applicable federal or state dissolution procedures, assets of the TRWC shall
be returned to the Members in proportion to their TRWC Capital Equity.
10.3. Conflict Resolution
10.3.1. Mediation
If a complaint, dispute or controversy (hereinafter complaint) arises between any of the Parties to
this Governance Agreement, it is hereby agreed that the complaint shall be brought to the Board
for non-binding conflict resolution. The Board shall have the authority to establish appropriate
and reasonably prompt procedures to govern the processing of all complaints and an internal
conflict resolution process.
The Parties agree that, at any point in the conflict resolution process, the Board may adopt and
impose an interim emergency remedy to ensure the continuation of essential communication
services until the matter is resolved.
10.3.2. Injunctive Relief
Nothing in this Governance Agreement shall prohibit any Party from seeking injunctive relief for
the preservation of property. In the event any of the conflict resolution procedures are ruled
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unlawful or made unlawful by statute, the other terms of this Governance Agreement are declared
separate and severable and shall remain in full force and effect.
10.3.3. Arbitration
In the event a dispute is not resolved pursuant to Subsection 10.3.1., the Parties agree to use
arbitration to the extent required under A.R.S. § 12-133 and A.R.S. § 12-1518.
10.3.4. Cooperation
10.3.4.1. Generally
The Parties agree to make, sign and deliver all documents and to perform all acts that are necessary
to fully carry out the terms of this Governance Agreement. Each of the Parties shall fully cooperate
with and assist one another in obtaining all licenses, permits, authorizations, approvals and consents
required in the performance of this Governance Agreement. Nothing in this Governance
Agreement shall be construed or interpreted to require the TRWC to be responsible for dispatching
or otherwise causing its Members to respond to an event within another Member’s jurisdiction.
10.3.4.2. Obligation to Defend Governance Agreement
In the event any legal proceeding is instituted challenging the authority and power of any of the
Parties to execute this Governance Agreement or to perform its terms and conditions, the Parties
shall jointly and cooperatively defend the validity of this Governance Agreement.
10.3.4.3. Specific Performance
The TRWC may elect and shall have the right to seek specific performance by any Party of any or
all of the obligations set forth in this Governance Agreement. The Parties agree that specific
performance may be sought by way of special action filed in superior court seeking an injunction
ordering the Party to perform its obligations under this Governance Agreement. The Parties agree
not to raise as a defense the position that there is an “adequate remedy at law.” The Parties hereby
stipulate and consent to the jurisdiction of the Arizona superior court located in Maricopa County,
Arizona in any such special action.
10.4. Termination or Withdrawal
Any Member may voluntarily terminate its participation in the TRWC by providing twenty-four
(24) months’ written notice to the Board of Directors; provided that the terminating Member: (a)
relinquishes all Network equipment purchased or partially purchased by the TRWC; (b) transfers
or relinquishes any unexpended TRWC accounts which have been collected for the replacement or
expansion of equipment or infrastructure; (c) pays all fees and charges owed to the TRWC up to
and through the effective date of termination; (d) agrees to pay for all costs to effect the withdrawal
of the Member including costs to reconfigure the Network for the remaining Members and (e)
agrees to such additional or alternative terms and conditions as may be unanimously established
by all Parties, including the terminating Party.
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10.5. Amendments to This Governance Agreement
Any Member may propose an amendment or an addendum to this Governance Agreement to the
Executive Director. The Executive Director will make a recommendation to the Board. The Board
shall vote on any amendments or addendums brought to it by the Executive Director. This
Governance Agreement may be amended only by a written document executed after a Super-
Majority vote of the Members. Upon a Super-Majority vote of the Members, each Member shall
take appropriate steps in conformity with state and local law to authorize and approve the proposed
amendment or addendum. Each Member shall file a copy of the appropriate resolution, ordinance
or other recorded action by which its legislative or governing body approved the amendment or
addendum with the Executive Director of the TRWC.
10.6. Entire Agreement
This Governance Agreement contains the entire agreement and understanding among the Parties
concerning the subject hereof and supersedes and replaces all prior negotiations, agreements and
proposed agreements, written or oral, relating thereto. Each of the Parties hereto acknowledges
that no other Party, nor any agent or attorney of any Party, has made any promise, representation,
or warranty whatsoever, expressed or implied, not contained herein concerning the subject matter
hereof, to induce it to execute the Second Amendment and acknowledges that the Second
Amendment has not been executed in reliance on any promise, representation or warranty not
contained herein.
10.7. Existing and Future Agreements
10.7.1. Incorporation in Future Agreements
The Parties agree that the provisions of this Governance Agreement shall be incorporated in any
future subcontracts between the TRWC, the Parties and any other person, political subdivision or
public agency that contracts with the TRWC or any Party to make use of the Network.
10.7.2. No Subcontracts for Network Use without Board Approval
The Parties agree that they will not enter into subcontracts for the use of the Network without the
prior approval of the Board, which shall have the authority to review the subcontracts for
conformity with the rights and obligations set forth in this Governance Agreement.
10.7.3. Modification of Existing Network Contracts between any of the
Parties
The Parties agree that this Governance Agreement is a modification of all existing agreements
between the Parties in regard to the Network. In the event of any conflict, inconsistency, or
incongruity between the provisions of this Governance Agreement and any of the provisions of
any previous agreement between the Parties, the provisions of this Governance Agreement shall in
all respects govern and control.
10.7.4. Interpretation
Nothing in this Governance Agreement shall be construed or interpreted:
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10.7.4.1. to supersede prior existing mutual aid agreements or radio
support agreements between or among the Parties.
10.7.4.2. to prohibit a Party from entering into separate agreements
after the Effective Date of this Governance Agreement concerning a Member’s Real Property and
a Member’s Personal Property that such Member authorizes and allows the TRWC to use as part
of the Network, provided the separate agreements are consistent with this Governance Agreement
and compatible with the TRWC's use of the property for the Network.
10.7.4.3. to supersede prior existing agreements concerning a
Member’s Real Property or Member’s Personal Property that the Party authorizes and allows the
TRWC to use as part of the Network.
10.7.5. No Third Party Beneficiary
This Governance Agreement is entered into for the sole and exclusive benefit of the Parties, and no
other person shall claim any implied right, benefit or interest in this Governance Agreement. The
Parties do not intend to create rights in or remedies to any third party as a beneficiary of this
Governance Agreement or of any duty, obligation, or undertaking established under this
Governance Agreement.
10.8. Records; Confidentiality
10.8.1. TRWC Records
The TRWC shall make its financial records regarding the planning, designing, constructing,
operating, maintaining and financing the Network available to any Party to this Governance
Agreement. The Party requesting such records may be, at the sole and absolute discretion of the
Administrative Manager, responsible for all costs incurred by the Administrative Manager
associated with responding to such request. Such request for inspection shall not be made more
frequently than once a month.
10.8.2. Party’s Network Records
Each Party to this Governance Agreement agrees to make available to the TRWC its financial
records related to planning, designing, constructing, operating, maintaining and financing the
Network. Such request for inspection shall not be made more frequently than once a month.
10.8.3. Confidentiality of Network Information
To the extent permitted by law, the Parties shall treat Network information as proprietary and
confidential. Network information includes, but is not limited to, technical data, engineering details,
construction documents, equipment lists, programming configurations, and operational procedures.
Any Party who receives a request for information or a public records request concerning the
Network shall promptly forward the request to the Executive Director for consideration and
response.
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10.9. Notices
10.9.1. Notice Form and Service
Any notice, consent or other communications (“Notice”) required or permitted under this
Governance Agreement shall be in writing and either delivered in person, deposited in the United
States mail, postage prepaid, registered or certified mail, return receipt requested, or deposited with
any commercial air courier or express service addressed with confirmed receipt to the addresses of
each Member that are on file with the Executive Director.
10.9.2. Effective Service Date
If mailed as provided in Subsection 10.9.1. of this Governance Agreement, Notice shall be deemed
received five (5) days after the Notice is deposited in the U.S. mail as provided above. If delivered
as provided in Section 10.9.1. of this Governance Agreement, Notices shall be deemed received at
the time it is personally served, or on the day received as confirmed by any commercial air courier
or express services. Any time period stated in a Notice shall be computed from the time the Notice
is deemed received.
10.9.3. Change in Address
A Party may change its mailing address or the person to receive Notice by notifying the Executive
Director and the other Parties as provided in Subsection 10.9.1.
10.10. Performance and Uncontrollable Events
10.10.1. Performance of Party Obligation
All terms and conditions that are to be performed by a Party or any of the Parties shall be performed
at the sole expense of the Party or Parties so obligated, and if the TRWC (or any other Party) pays
any sum of money or does any act that requires the payment of money by reason of the failure,
neglect or refusal of the obligated Party or Parties to perform such term or condition, the sum of
money paid by the TRWC (or the other Party) shall immediately be payable to the TRWC (or other
Party or Parties) by the Party or Parties obligated to perform.
10.10.2. Uncontrollable Event
No Party shall be considered to be in default in the performance of any obligations under this
Governance Agreement (other than obligations of a Party to pay costs and expenses) if failure of
performance is due to an uncontrollable event. The term “uncontrollable event” means any cause
beyond the control of the Party affected, including but not limited to flood, earthquake, storm, fire,
epidemic, war, riot, civil disturbance or disobedience, labor dispute, and action or non-action by or
failure to obtain the necessary authorizations or approvals from any governmental agency or
authority or the electorate, labor or material shortage, sabotage and restraint by court order or public
authority, that by exercise of due diligence and foresight the Party reasonably could not have been
expected to avoid and that by exercise of due diligence it will be unable to overcome. A Party that
is rendered unable to fulfill any obligation by reason of an uncontrollable event shall exercise due
diligence to remove such inability with all reasonable dispatch.
10.10.3. Burden of Proof regarding Uncontrollable Event
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If any Party claims that its failure to perform was due to an uncontrollable event, the Party shall
bear the burden of proof that such activity was within the meaning and intent of Subsection 10.10.2.
if such claim is disputed by any Party to this Governance Agreement.
10.11. Governing Law
This Governance Agreement shall be governed by and construed in accordance with the laws of the
State of Arizona applicable to contracts executed and intended to be performed entirely within the
State of Arizona by residents of the State of Arizona. Any action at law, suit in equity or judicial
proceeding for the enforcement of this Governance Agreement or any provision therefore shall be
instituted only in the federal or state courts of Maricopa County, Arizona.
10.12. Effective Date
The Effective Date of this Governance Agreement shall be deemed December 1, 2018.
10.13. Headings
Article and section headings are inserted herein solely for convenience and the same shall not by
themselves alter, modify, limit, expand or otherwise affect the meaning of any provision of this
Governance Agreement.
10.14. Assignment and Binding Effect
This Governance Agreement shall be binding upon and shall inure to the benefit of the Parties hereto
and their respective successors and assigns; provided, however, that nothing herein shall relieve
any Party of any obligation under this Governance Agreement, except upon the express written
consent of the TRWC.
10.15. Incumbents
Any person or entity holding any TRWC position immediately prior to the Effective Date of this
Governance Agreement shall continue in that position commencing on the Effective Date of this
Governance Agreement until such person or entity resigns, is removed or replaced in accordance
with this Governance Agreement or the TRWC Policies and Procedures.
ITEM 9. H.
TOWN OF FOUNTAIN HILLS
STAFF REPORT
Meeting Date: 11/21/2023 Meeting Type: Town Council Regular Meeting
Agenda Type: Regular Agenda Submitting Department: Administration
Prepared by: Linda Mendenhall, Town Clerk
Request to Town Council Regular Meeting (Agenda Language): CONSIDERATION AND POSSIBLE
ACTION: Approval of the proposed 2024 Town Council Meeting Dates and Summer Break.
Staff Summary (Background)
This item has been placed on the agenda to provide an opportunity for the Town Council to discuss
the proposed 2024 Town Council Meeting Schedule and timeframe for the Town Council Summer
Break.
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 approve the 2024 Town Council Meeting dates and recommended summer break, as
presented.
or
MOVE to approve the 2024 Town Council Meeting dates and recommended summer break, as
amended.
Attachments
2024 Proposed Meeting Schedule
Form Review
Inbox Reviewed By Date
Town Attorney Linda Mendenhall 10/25/2023 01:43 PM
Finance Director David Pock 10/25/2023 02:05 PM
Town Attorney Aaron D. Arnson 10/25/2023 02:17 PM
Town Manager Rachael Goodwin 11/08/2023 07:58 AM
Form Started By: Linda Mendenhall Started On: 09/26/2023 03:48 PM
Final Approval Date: 11/08/2023
2024
TOWN COUNCIL MEETING SCHEDULE
AND SUMMER BREAK
Approved by Town Council on 11/21/2023
MEETING DATE TYPE OF MEETING
01/03/2024 Regular Meeting – No Meeting Recommended
01/09/2024 Work Session (Tentative – If needed)
01/17/2024 Regular Meeting (Wednesday)
02/06/2024 Regular Meeting
02/13/2024 Work Session (Tentative – If needed)
02/21/2024 Regular Meeting (Wednesday)
02/27/2024 Council Retreat
03/05/2024 Regular Meeting
03/19/2024 Regular Meeting
03/26/2023 Council Special Work Session – CIP Projects
04/02/2024 Regular Meeting
04/09/2024 Council Budget Workshop (4/10 if needed)
04/16/2024 Regular Meeting
05/07/2024 Regular Meeting, CMD & EMCFD
05/14/2024 Work Session (Tentative – If needed)
05/21/2024 Regular Meeting
06/04/2024 Regular Meeting, CMD & EMCFD
06/11/2024 Work Session (Tentative – If needed)
06/18/2024 Regular Meeting, CMD & EMCFD
06/19-08/19/2024 Summer Break
07/02/2024 Regular Meeting – No Meeting Recommended
07/09/2024 Work Session – No Meeting Recommended
07/16/2024 Regular Meeting – No Meeting Recommended
8/6/2024 Regular Meeting – No Meeting Recommended
8/13/2024 Work Session – No Meeting Recommended
8/20/2024 Regular Meeting (Special Meeting to canvass or Reg)
08/27-08/30/2024 League of Arizona Cities Towns Annual Conference – AZ
Biltmore in Phoenix, Arizona
09/04/2024 Regular Meeting (Wednesday)
09/10/2024 Work Session (Tentative – If needed)
09/17/2024 Regular Meeting
10/01/2024 Regular Meeting
10/08/2024 Work Session (Tentative – If needed)
10/15/2024 Regular Meeting
11/05/2024 Regular Meeting No Meeting Recommended – Election Day
11/13/2024 Work Session (Tentative – If needed) (Wednesday)
11/19/2024 Regular Meeting
12/03/2024 Regular Meeting
12/10/2024 Work Session (Tentative – If needed)
12/17/2024 Regular Meeting
SUMMER
BREAK