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HomeMy WebLinkAboutAGENDApacket__12-19-23_0534_543       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Sharron Grzybowski Councilmember Peggy McMahon Councilmember Hannah Toth Councilmember Gerry Friedel Councilmember Brenda J. Kalivianakis Councilmember Allen Skillicorn    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, DECEMBER 19, 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 December 19, 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 Bobby Brewer, Reigning Grace Ranch Church     3.ROLL CALL – Mayor Dickey     4.STATEMENT OF PARTICIPATION     5.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.PRESENTATION: Stellar Students for the Month of December     6.PRESENTATIONS     A.Presentation: Mid-Year Economic Development Update     7.CALL TO THE PUBLIC Pursuant to A.R.S. §38-431.01(H), public comment is permitted (not required) on matters NOT listed on the agenda. Any such comment (i) must be within the jurisdiction of the Council, and (ii) is subject to reasonable time, place, and manner restrictions. The Council will not discuss or take legal action on matters raised during Call to the Public unless the matters are properly noticed for discussion and legal action. At the conclusion of the Call to the Public, individual councilmembers may (i) respond to criticism, (ii) ask staff to review a matter, or (iii) ask that the matter be placed on a future Council agenda.     8.CONSENT AGENDA ITEMS All items listed on the Consent Agenda are considered to be routine, noncontroversial matters and will be enacted by one motion of the Council. All motions and subsequent approvals of consent items will include all recommended staff stipulations unless otherwise stated. There will be no separate discussion of these items unless a councilmember or member of the public so requests. If a councilmember or member of the public wishes to discuss an item on the Consent Agenda, he/she may request so prior to the motion to accept the Consent Agenda or with notification to the Town Manager or Mayor prior to the date of the meeting for which the item was scheduled. The items will be removed from the Consent Agenda and considered in its normal sequence on the agenda.   Town Council Regular Meeting of December 19, 2023 3   normal sequence on the agenda.   A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Work Session of November 16, 2023, and the Regular Meeting of November 21, 2023.     B.CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application for VFW Post 7507 for a MINI beer garden at the Fountain Hills Spring Festival, Feb. 23 - 25, 2024.     C.CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application for VFW Post 7507 for a MAIN beer garden at the Fountain Hills Spring Festival, Feb. 23 - 25, 2024.     D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-43 approving the Intergovernmental Agreement with the Arizona Department of Revenue relating to the administration of transaction privilege tax.     E.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-40, abandoning a 10' Public Utility and Drainage Easement along the south side of 15513 E Cavern Drive (Application A23-000013).     F.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-41, abandoning the 10' Public Utility and Drainage Easements along the south and west sides of 11206 N Partridge Place (Application A23-000014).     G.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-42 amending and updating the employee Personnel Manual to integrate fire department policies and make additional updates.     9.REGULAR AGENDA     A.HOLD PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Ordinance 23-15 amending Zoning Ordinance Section 1.12, Definitions and Section 2.01, Amendments or Zone Changes.     B.CONSIDERATION AND POSSIBLE ACTION: Public Art Committee Pumphouse Project Pilot Program Update and Change Request     C.CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-37 approving Community Services Department Strategic Plan 2024-2027.     D.CONSIDERATION OF CONSIDERATION AND POSSIBLE ACTION: Approving the Capital   Town Council Regular Meeting of December 19, 2023 4   D.CONSIDERATION OF CONSIDERATION AND POSSIBLE ACTION: Approving the Capital Improvement Project D6057- Golden Eagle Park Impoundment Drainage improvements.     E.CONSIDERATION AND POSSIBLE ACTION: Approving Capital Improvement Project D6060 - Town Wide Storm Water Infrastructure Rehabilitation.     F.CONSIDERATION AND POSSIBLE ACTION: Approving Amendment No. 4 to Professional Services Agreement 2019-079 with JE Fuller Hydrology & Geomorphology, Inc.     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 December 19, 2023 5   Town Council Regular Meeting of December 19, 2023 6   ITEM 6. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Presentations                  Submitting Department: Administration Prepared by: Amanda Jacobs, Economic Development Director Staff Contact Information: Amanda Jacobs, Economic Development Director Request to Town Council Regular Meeting (Agenda Language):  Presentation: Mid-Year Economic Development Update  Staff Summary (Background) Economic Development Director Amanda Jacobs will be presenting a mid-year (July 1, 2023 - December 31, 2023) Economic Development Update to the Town Council at its meeting on December 19, 2023.  The presentation will include town efforts on business attraction, business retention and expansion, marketing, advertising, tourism and strategic partnerships.   Attachments EcDev Mid Year Report  Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 12/06/2023 03:02 PM Finance Director David Pock 12/06/2023 04:06 PM Town Attorney Aaron D. Arnson 12/07/2023 02:15 PM Town Manager Rachael Goodwin 12/12/2023 04:01 PM Form Started By: Amanda Jacobs Started On: 12/06/2023 02:30 PM Final Approval Date: 12/12/2023  Economic Development Mid-Year Update •New Openings •Dutch Bros •Fountain View Coffee •Joy Bird Yoga •Unbridled Beauty •Phoenix Cannabis •Coming Soon •Coffee Roasters •Above Board Charcuterie/Graze Craze •Hills Smoke Shop Business Attraction Business Attraction Lead Generations Developers Retail/Restaurant 8 4 •Business Retention and Expansion Program •Fall Event Guide •Spring Event Guide (In Progress) •Temporary Sign Regulations Guide •Relocations/Remodels •Burger King •Jazzercise •Safeway •Starbucks •Shop Local Holiday Social Media Campaign •Vendor Forum •Welcome Packets Business Retention & Expansion •Downtown Infographic •$6.6 million invested in Avenue District •International Downtown Association (IDA) Membership •Downtown Placemaking •Murals •Downtown Strategy – Kicks Off January 2024 Downtown Fountain Hills Apartment Occupancy Rate Apartment Occupancy Rate Gunsight 92% Casa Del Lago 96% Four Peaks Vista Condos 80% Pillar at Fountain Hills 93% Luna at Fountain Hills 94% Park Place at Fountain Hills 93% Vacancy Rate – Existing Buildings S o u r c e : C o S ta r S o u r c e : C o S ta r / S ta f f Category Vacancy Rate (1st Quarter) Vacancy Rate (1st Quarter) Change Vacancy Rate (2nd Quarter) Office 14.4%37.1%(-10%)26.7% Industrial 1.3%9.3%(2.5%)11.8% Retail 7.1%19.9%(-0.6%)19.3% •AOT Prop 302 •AOT VAI Round 2 – Complete •Waiting for Round 3 Application •Fort McDowell Yavapai Nation •No grant funding for FY24 •Salt River Pima Maricopa Indian Community •$50k for FY24 for Music Fest Grant Funding •Blog Feature on Experience FH Website •Photos •Print Media •Experience AZ •Phoenix Magazine •Videos Marketing Partnerships •Arizona Office of Tourism •Canadian Arizona Business Council •Fountain Hills Chamber of Commerce •Fountain Hills Cultural and Civic Association •Fountain Hills Dark Sky Discovery Center •Fountain Hills Times Independent •Greater Phoenix Economic Development Council •Southern Arizona Arts and Cultural Alliance •Hotel Occupancy: 63.8% •Social Media: 190% increase •Fountain Live Feed: 455,000 views •2024 Fountain Hills Visitors Guide •Experience Fountain Hills Website •48k unique views (17.9% increase) Tourism Tourism Top 5 AZ Top 5 National Phoenix Los Angeles Scottsdale Chicago Tempe San Diego Fountain Hills Las Vegas Mesa Dallas Questions? ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 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 Work Session of November 16, 2023, and the Regular Meeting of November 21, 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 Work Session of November 16, 2023, and the Regular Meeting of November 21, 2023. SUGGESTED MOTION MOVE to approve the minutes of the Work Session of November 16, 2023, and the Regular Meeting of November 21, 2023, as presented.   Attachments Verbatim Transcript  Verbatim Transcript  Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 12/06/2023 02:12 PM Finance Director David Pock 12/06/2023 05:03 PM Town Attorney Aaron D. Arnson 12/07/2023 02:15 PM Town Manager Rachael Goodwin 12/12/2023 03:59 PM Form Started By: Linda Mendenhall Started On: 12/06/2023 02:09 PM Final Approval Date: 12/12/2023  TOWN OF FOUNTAIN HILLS MINUTES OF THE WORK SESSION OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 16, 2023 A Work Session of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 3:02 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Sharron Grzybowski; Councilmember Gerry Friedel; Councilmember Peggy McMahon; Absent: Councilmember Allen Skillicorn Attended telephonically: Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth Staff Present: Town Manager Rachael Goodwin; Town Clerk Linda Mendenhall Staff Absent: Town Attorney Aaron D. Arnson Audience: Approximately twenty-seven members of the public were present. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 1 of 44 Post-Production File Town of Fountain Hills Town Council Work Session November 16, 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 NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 2 of 44 MAYOR DICKEY: Good afternoon, everyone. Thank you so much for coming to our work study session. We're talking about streets, all streets. Could we get a roll call, please? MENDENHALL: Yes, Mayor. 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: Present. MENDENHALL: Councilmember Toth? TOTH: Present. MENDENHALL: And Councilmember Skillicorn is supposed to be absent, but are you on the phone; just in case? MENDENHALL: No. Okay. MAYOR DICKEY: Thank you. We are going to kick it off with Justin Weldy, our director. He's going to give us kind of, like, a brief overview and introduce our guests and then we'll discuss. Thank you. WELDY: Thank you, Madam Mayor. We appreciate the time that you're taking out to have this important discussion, not only with the town manager, but staff, and allow us an opportunity to seek a little bit more direction on how we'll be moving forward in the future regarding funding for pavement management and maintenance. I've put together just a short PowerPoint. We have a second one that will be shared from a representative of Roadway Asset Services, Mark Kramer. He's sitting beside me here -- or behind me on the left, and I'll TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 3 of 44 introduce him a little bit more officially as we move forward. Since this is a work session, we can certainly pause and ask and answer as many questions as possible. So as I move through this, please feel free to ask any questions. I would also like to note that we have several members of the Citizen Streets Advisory Committee [sic] here, and if you'll recall, they presented a plan to the mayor and council prior to the summer break, and I'm certain that one or more of them would be willing to ask questions should you have questions of them as well. This is the basic in regards to pavement management. I include this in the majority of the PowerPoints when we are discussing pavement maintenance and management, because these are the fundamentals that guide us and the principles that we use. This, right here, is a payment lifecycle based on the last 10 or 12-plus years in the town. Based on the performance and the level of service that we received, subject to change should things become different with the weather patterns. So for instance, since we do not have thaw-freeze cycles, what we do have are storm events, and the very intense rapid storm events have a tendency to run off quicker, sneak into a few of those little cracks. The long and slow drizzles have a much more detrimental impact on the roads that we have with some of the block cracking and gator cracking. So this is kind of an adjustable, but this is based on the last decade and a half of performance. This, right here, is all the way back to 2010. As you will see, the top one shows the highway user revenue funding that we received. The next one is going to remain blank until the second sheet. That is the vehicle license tax. The next one is the 0.2 percent TPT tax. You'll see that that first appears -- excuse me. Let me back up. The vehicle license tax actually starts being collected and expended in 2014. There is a resolution attached to the adoption of allocating that funding. The next one is the 0.2 percent TPT. That one will come in on the next one -- slide, and then you'll see the transfers, any grants we may have received, and bonds which is important. You'll see in FY15, that is when we did Saguaro. So that funding was included in the budget. And then, on the bottom, you will see the revenues. The next column down for that shows what went for maintenance and repair. The TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 4 of 44 capital projects and the total expenditure for each of those fiscal years for maintenance and repair and the capital projects associated with paving. Any questions on this first sheet? It's a lot of information. MAYOR DICKEY: Just to point out, when the VLT and the TPT -- no, not the TPT, but the other one. There was a time when the state was, for lack of a better word, taking that money. And then they reinstated giving it back to us. And was that the year, then, that that started in again, 2014? WELDY: Just before that and also during this time frame and not much reflective on us as it is larger municipalities that get HURF funding. The state was rating the highway user transportation funding for public safety use. MAYOR DICKEY: Right. Public safety. And then they stopped, and so we had a little bit of it back. WELDY: Yes. MAYOR DICKEY: Thanks. MCMAHON: I have a question. MAYOR DICKEY: Yes, Councilwoman. MCMAHON: You have grants listed there. WELDY: Yes, ma'am. MCMAHON: I only see it, like, rarely. In the future, do you anticipate getting annual grants, or do you know? WELDY: Madam Mayor, Councilmember, we take every opportunity we have to apply for grants that we are eligible for. So absolutely, if a grant comes available and we and we meet the criteria for that, we will first discuss it with the town manager and then, depending on the timing, come to the mayor and council, share the details and ask for permission to apply for it. More often than not, grants require a commitment from the elected body. MCMAHON: Thank you. WELDY: This next sheet, you'll see that in 2017 through resolution is when the TPT began or was added to the budget for streets. You'll also -- TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 5 of 44 Thank you, sir. You'll also note that some of the numbers in here are a little bit larger. The reason for that is we slow down on some of the maintenance we were doing based on direction from the mayor and council, saved up a couple of years, and then picked a section and did what we previously had not done, which was complete that section. In this case, primarily, it was a northeast side of town, and we spent two years doing that. We also, every other year, are able to ask for the unspent funding from the year previous to add to our budget after the audit is done. So those numbers are reflected on this sheet as well. MAYOR DICKEY: I'd like to say something about this sheet. So there's a lot of stuff on social media and being said out loud, like at our last retreat, that I have -- I and everybody that voted with me, have been purposely underfunding streets for the last five years, which is basically to line it up when I was mayor. So the accusation was that I was purposely underfunding streets. And I think -- and I thank you for putting this together and going back far enough so that we can see that we have not been underfunding streets. And in fact, in 2021, the town received -- since 2021, over $11 million, federal funds, different care relief packages. And we had two distributions. They had different names, ARPA and everything, but $2 million CARES Act funding, 8.4 million of ARPA funding, which adds up to $10.4 million, was allocated to streets by this council by -- sorry, the previous council and members who are up here who were on that previous council, who had the foresight to put that money towards streets. So we have not been underfunding streets in the last three, four, five years. Thank you. WELDY: Any questions related to this sheet? This right here the town engineer put together to basically describe the level of funding necessary to maintain a certain level of service. I'll refer to the pavement condition index as a level of service. The pavement condition index is just one of numerous factors that we use when selecting streets for the different types of treatment and maintenance. As you can see, to maintain the status quo, we're just going to have to add $1.1 million just to stay where we're at, which allows our backlog -- those are the TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 6 of 44 roads that fall off of the radar and require complete reconstruction to increase substantially. To maintain a target backlog and continue with our maintenance is going to require about 3.2. Keep in mind, we do have an inflationary factor included in these numbers. It's very, very difficult in today's market to determine exact cost. And oftentimes the numbers that are shown on contracts versus invoicing are also different. I would like to note, for the past at least decade, the contract numbers and the invoice is different -- invoice numbers differed greatly in our favor. We paid below contract unit price, which is a benefit to this community. It allows us to do more work with the limited funding we have. Any questions about this technical sheet here? Because we're going to be getting into some real technical stuff before you know it. MAYOR DICKEY: I think I'll probably have to ask this later because I think when we talk about the what we said was 5 million, but now is 5,750, which I understand, and we also have to talk about that 15 percent administrative costs for other items, which I don't like the word administrative because it's not really that, but that -- WELDY: Other expenses. MAYOR DICKEY: Yeah. Other expenses. But I have just a big general question about this, the 50 -- so say, let's just -- we were talking about 5 million before, so 5.7 million. Do that per year, and then later, when we just discuss it, we can say, what does that do to the immediate needs? Because I think that's -- I'm trying to hone down on the difference between what we heard from the citizens committee about what we can do now, the effects of that, and then how we can get to the point where maintenance will actually work, and what do we have to do before that. I guess, I'm still a little confused about if we get to the five million, we still have a big chunk of repairs to do or replacement to do before we would ever get to that point. Is that right? WELDY: Madam Mayor, it's a blend of the questions that you summarized in there. So the $5 million includes taking care of some of those issues and controlling the backlog. So the backlog doesn't get any better. We don't lose any more streets, but somewhere TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 7 of 44 in that progression, we're going to need a little bit more money to take care of some of the other stuff that's a little bit older. So we're maintaining the status quo to some extent, but we're also, each year, doing a little bit better and providing a higher level of service in regards to the condition of the roads. MAYOR DICKEY: Thank you. And the other differences, whether we're talking about thresholds versus percentages, because then that's sort of what people that live here are going to be focusing on their streets or the streets that they use and the percentage. And we talked about how that can be a little skewed based on the fact that Saguaro's brand new, or we do something to Shea or something, where they kind of skew the PCI percentages. So we will talk about that, I'm sure. WELDY: And Madam Mayor, if you'll allow me a minute. So our overall PCI rating, which is pretty good, and I've said this numerous times in the past, includes Shea, which is relatively new from limit to limit -- the Scottsdale limit to the County limit and paid for with other funding, not out of our general fund, but a reimbursement process. Also Saguaro, Grande, El Pueblo, and Glenbrook. And the reason I mention those, they're long and wide, they are relatively new and in really good shape. When you take the overall square yardage and you add those areas, it drives that number up. But it doesn't take away from the fact that some of our collectors and a lot of our local roads are in very poor condition, and that is what affects the individual homeowner. But keep this in mind. Everything that is either delivered to our home or that we take from our home, including ourselves, our children, or our family requires us to travel either on arterials, collectors, or local roads. So it impacts us in one way or another, whether it's getting children to and from school, commodities to and from the grocery store or our home, or simply loading the family up to go to dinner. We utilize all of the classifications which are arterial, collector, and local. MAYOR DICKEY: Thank you. FRIEDEL: This might not be a question for you. It might be a question for David Pock. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 8 of 44 But I'm wondering, I made a suggestion some time ago about the VLT tax and the sweep that we do at the end of the year. If we could take a look at those percentages and see what kind of an impact that would have on this chart as far as getting additional funds on a yearly basis into streets. By my estimate, it'd be 1 to $2 million more a year if we played with those percentages a little bit. And maybe there's a scenario we can look at to help us beef up the streets fund on top of what we're doing now. So I don't know if that's something we can take a look at to see if that's a major impact on this or not. But certainly, if we got another a million or two million a year into streets, I think it would help us catch up on some of that backlog a little bit. WELDY: Mayor and councilmembers, we can definitely take a look at that. And there is a split of the VLT taxes, vehicle license tax, between general fund and streets. I don't have those numbers with me right now. But next Tuesday, we will also be talking about the year-end transfers that you mentioned, as far as where that that goes. FRIEDEL: I saw that and that's why I brought that up. So that maybe we can take a look at that and see if it makes some sense to take a look at it. Thank you. MAYOR DICKEY: David, that would be taken out of the general fund, though, correct? WELDY: Correct. MAYOR DICKEY: And unless we had a carryover somehow, like this year because the CARES and all that, but it's still kind of trying to find the extra three million a year out of the general fund. WELDY: Right. MAYOR DICKEY: Thank you. WELDY: Any additional questions related to this slide? MCMAHON: The backlog, I mean, to me, in reading this particular report, is the biggest problem in keeping up? And in planning this, I guess, in using -- you have an idea of the backlog and how it's going to accumulate so that given the road repair choices, you're going to keep up with that so it doesn't get worse. Am I making sense, or you know? WELDY: Madam Mayor, Councilmember, so we certainly address the backlog to the TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 9 of 44 best of our ability with the funding available. Right now, we have to make some pretty difficult choices. And so we allow a, for lack of a better description, a software to pick those roads for us based on the data input and the data collected. Otherwise, if you just pick one section based on visual, and there are some municipalities that do that, there's a lot of questions in regards to, well, why should we take your word for it? Well, the reason is, is because I have a little background in it, but more importantly, we're trying to do what's right. So the backlog right now is going to continue to grow because we simply don't have the funding. But this year and next year, we are taking a relatively decent-sized bite out of some of that backlog. So that number will decrease slightly. But if we don't act quickly, those that are right at the tipping point will fall below that threshold, and they'll be in the unsalvageable. MCMAHON: Then I have a question. In listening to your answer, et cetera, is there a way, or are you already doing this, that every year-end budget, and the money received for streets, do you set aside a certain portion or you just use, like, what you just said to balance that? WELDY: There is a allocated funding. So it's all dependent on what we get from the state and what's contributed from the vehicle license tax and the TPT and any transfers that we ask for. All of that is dedicated to paving the staff and other stuff is in a different category. So paving has its own category. Is that an answer to your question? Maybe? WELDY: I know that. But I guess what I'm asking is, when you receive the funds is a certain amount or percentage dedicated to the backlog, or is that just automatically included based on the reports and the roads you're selecting? WELDY: Automatically included. Let me better answer that question. It's automatically included. MCMAHON: Thank you. WELDY: Fortunately, we were right there at the end, and we have a second PowerPoint coming up. So let me see if we can get Mark's loaded up here. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 10 of 44 I would like to introduce Mark Kramer. He's going to be representing Roadway Asset Services. He was one of the key members included in the data collection and deciphering all of that and putting all that -- crunching it and putting it into the reports, PowerPoints, and presentations. And so he's going to share some of that. And now we're going to be getting into the real technical stuff that describes where we've been, where we're going, and what we really need to maintain certain levels of service. Thank you, Mark. KRAMER: Mayor and council. Mark Kramer, chief data officer with Roadway Asset Services. Glad to be here today. As Justin said, I'm going to kind of walk you guys through the analysis that we did, the data collection, and some of the -- actually, the dialogue that's been happening here about how selections are made and how that logic works. So here we go. All right. So let's just hit terminology. We've done some of this already, so I'll try to pass over those. But centerline miles of roads; you guys have 166 linear miles of paved road. Sometimes it's a little bit hard to visualize three-and-a-half million square yards or 166 centerline miles. It's a two lane road from here to Las Vegas. So that's the quantity of pavement that you have within the boundary of Fountain Hills. Yeah, it's a little different when you think of it that way, right? It's a lot of roads. It's a big asset. GRZYBOWSKI: Yeah. We all need a minute to digest. KRAMER: Yeah, just like, whoa. GRZYBOWSKI: It's really far. KRAMER: Yeah. So here's another eye popper. $214 million is the estimated cost if you were to just replace all the black stuff in Fountain Hills. So it's a very valuable asset. It takes a lot to maintain and take care of. Justin's talked a little bit about pavement condition index, but it's 0 to 100 index. 100 is great; 0 is bad. And then preservation. We're going to talk a little bit about preservation versus backlog or reconstruction. So preservation is your PM work, low cost per square yard, extending the life of the pavement, much like oil change or service TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 11 of 44 on your vehicle. Same idea. And then ASTM 6433, we'll mention that a couple of times. It's just a national standard. It's the one that we use to rate roads. It ensures that when we're talking about these indices for Fountain Hills versus another community across the country, that it's consistent and it's similar numbers. All right. So purpose of pavement management, of course, to extend the life of the asset and the investment that you've made. The goal is to spend small dollars per square yard early in the life cycle and the age of the pavement, so that you can extend the life of that pavement, get as much length and time out of it as you can. Of course, it is a life cycle, so at some point it begins to age to the point where you really don't have any preservation options left, and you're going to begin to go down the road of reconstruction and planning. And that and that's really managing the backlog that we've been discussing. All right. So how did we get here? Very sophisticated piece of equipment, RAS. We own four of these. We had one of these out here in Fountain Hills. So on the backend of that guy there, the big lasers hanging out back takes 4,000 points of data left to right. And it does that five millimeters on center down the road. So a little over a billion points of data per mile. We literally map out the cracking in the roads and then we move that into the ASTM standard in order to identify the types of cracking, severity of cracking, in order to arrive at that score. It's important because, as Justin was saying, some types of cracking indicate different problems than others. And so that gets accounted for in that collection. We take images of the roadway. We've delivered all of those to the town. Our primary purpose for having those is to quality check the data so that we can be sure it's accurate. We then take all that information -- here at Roadway Asset Services, we've developed a piece of software that we call Road TRIP. It integrates all of those images, all that laser data, all the computations. It's our QC tool and our review tool. It puts out the information that is basically the foundation of the analysis that we're going to talk about. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 12 of 44 An important part of this whole process is to ensure that what we're doing with all the equipment and the processing really matches up with real-world reality. So we had a team come out here to Fountain Hills. We walked roads with Justin and his team, verified that what we were seeing in the road with our eyeballs is the same thing that was coming out of the machine. Got ahead in my points a little bit. All right. So snapshot, pavement condition results. And so we we put all this into a map because it's the most intuitive way to get information out on this kind of scale. On the left there, you can see the town and the condition results at macro scale, and then it is delivered electronically, so you can zoom in to any road or neighborhood that you'd like to look at. As you look at this map, you can pretty clearly see that there are definitely some geographic and spatial trends to where conditions exist. And that has a little bit to do with how the town was developed and built. All right. So we talked a lot about your distribution graph. I'll be working on this some more in future slides here. But some key indices: network average PCI. So Fountain Hills has a network average PCI of 69. As we do these analysis across the country, 60 to 70 is a very common band to be in. We rarely see anything over 75. We rarely see anything under 50. So just kind of give you some ballpark scales there. But when we look at distribution, we really like to look at what percentage of roads are over here in the excellent category, because that indicates that you have some active maintenance going on. It can also indicate that you've acquired some new roads, either new construction or sharing with other communities or so on. So you've got to weigh that into that number. And then backlog; we've been talking a whole bunch about that. Backlog is essentially anything under 40. And these are the roads that you're either needing to put a new surface reconstruction on or both surface and base, so full reconstruction. And right now, you're sitting at about about five-and-a-half percent, which is a pretty healthy place to be. We're going to talk about that some more, though, because it's really what's coming. That's really the problem. When your backlog is -- we'd like to say TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 13 of 44 healthy is under ten. When you get between 10 and 15, you have some significant financial planning and challenges coming. When you get to 20, my experience has been there's really about no way out but bonding or some sort of really significant cash influx that goes into it. So pre-incorporation roads and post-incorporation roads, or asphalt roads, as we've called them in the report. Fountain Hills is very unique for me as an engineer because it's a really different challenge. You have a bunch of roads that have been built to a different construction standard than your current. And they're aging differently and they're older and they're needing a whole lot more attention. So that's what this chart shows. The the blue ones there are your pre-incorporations, so about a third or so of your network. And then you can see spatially how they lay out in the map. This is a slide deck that we don't normally prepare because it's unique to Fountain Hills. And this is really where your focus is at. The right side of that graph distribution is, like, textbook where you want to be for pavement management. You've got a good bit of excellent roads, you've got a good bit of good roads, you're in a good place to be proactive and maintain those roads. The left graph is just the opposite. And these are your pre-incorporation roads. They've aged, they've deteriorated, and right now, about 14 percent of those are in the backlog stage. 14 percent of the pre-incorporations, just to be clear there. And then in my mind, even more concerning really is this 51 percent that's in the marginal and fair because these are the things that are coming at you in the next five-plus years, some of them sooner than later, and that's the backlog that you're really challenged to keep up with. MAYOR DICKEY: Can you remind me what the percentage of pre-incorporation is of the whole? KRAMER: I think back here. I don't know the exact number there, but 34 percent. MAYOR DICKEY: Thank you. KRAMER: Yeah. You bet. So we have a great baseline in condition data that allows us TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 14 of 44 to then do some financial forecasting into the future: what can we do with this money, and how do we most optimally spend it? So we spent some time with the streets team, coming up and looking at your past contracts, coming up with unit rates, and then building basically a treatment strategy for both your pre-incorporation roads which have different treatment needs and reconstruction needs than your paved roads that were built to the current standard. So we came up with unit rates, we came up with a strategy for how to best pick those, and then we went into a five-year modeling and forecasting process. And so this is a -- how do you pick these roads? We just had this dialogue about this, and it gets a little overwhelming. But at the end of the day, you got two things you're really trying to do. Prioritization; what rank order do I select my roads? There are many different ways to do that. And then financial optimization, which is really more about how do I get the best bang for the buck of what I'm spending. So at RAS, we like to use a process that we call cost of deferral. I'm getting ahead of myself one slide, but -- so prioritization; we take these factors into play. What's critical and we look at that year-by-year, what's critical this year. And the simplest definition of critical is, if I don't do it this year, it's going to cost more next year. So there are certain roads out there, you can let them ride for a year, let them ride for two years; they're going to cost the same next year. There's other roads that are right on the bubble. You don't do them this year; you're going to pay more next year. So those are critical ones. We bring those forward. Traffic and classifications. Of course, arterial roads get more traffic and more use by the community. So if there's a tie breaker to be had in critical roads, we'll go with the highest classification road. Pavement type. Again, your pre-incorporation is a different pavement type. And then, PCI and condition. All right. So let's put a picture to this. These are your different categories of roads. A typical road will live in each one of these categories for about five to seven years before they age into the next one. As you can see, the maintenance increases in cost. So you've got relatively low-cost preservation when it's new and then it starts to increase. Some TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 15 of 44 increases are bigger or smaller than others. And then, this little band right here is what I was just talking about is critical. So these are the roads. Let's just pick -- well, let's pick this poor group right here. So you have a whole bunch of roads that are in here, but there's a certain selection of them that if you don't take care of them this year, it's going to cost you an additional $22 to do the next year. By the way, the rates in here are just a sample rates. So we did actual rates in the analysis and put those together, but I'm using these for demonstration. So when we're prioritizing roads, the highest cost of deferral, right here, $22. And that group of critical roads are the first ones to go. The next highest rate of deferring costs was this $16 and it goes up here. That's the second. And then we'll hop back and do some some preservation work because that's the next cost here. And so we're actually looking at the best bang for the buck on critical roads, putting those in ranked order to make sure -- and there's a really important thing here for Fountain Hills is, yes, we want to take care of backlog, but we don't want to do it at the cost of doing preventative maintenance on your good roads, making sure that you still take care of those at their low costs before we dump all the money into the backlog. And so we've balanced those two decisions as we've put this together. Yes, sir. FRIEDEL: Question for you. So 34 percent of our roads are pre-incorporated roads. Do we know what percentage of those roads, that 34 percent, is critical? KRAMER: I don't know it standing here, but we have the information to answer the question. Yeah. And it will vary each year depending on your funding levels and how many of them you can take care of, and then how many age into the next year. So the answer to that question will vary based on level of funding, but we can answer it at any level asked. Yeah. So that's kind of the very detailed look at prioritizing roads. This is going to zoom out and talk about if we had a big, fat check and we could just do it all today. Where are your needs at, and how much of the need is is driven by what? And this is where it really, really hits home. Your pre-incorporation roads are 34 percent of your network. It is 77 percent of your fix-all costs. So a lot of dollars going towards that small set of TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 16 of 44 roads. And if you keep going with that, it's 75 percent is -- I'm sorry. 70, hang on a minute. 77 percent fix-all for your pre-incorporations and are all recons. Sorry I got mixed up on that. So your segment cost, though. This is the number that caught my eye when I first looked at this. $48 million of your $64 million, big, huge check, is all in the full-depth recon for pre-incorporation roads. It is a big draw on the overall need. MAYOR DICKEY: The top one is the only strictly maintenance, surface preservation; so for the 1.5 million. Is the only thing that doesn't really -- isn't really repairing something. It's just preserving something. KRAMER: Just preserving, right. That's your surface preservation. You're putting on some of your newest roads in order to, essentially, protect them from the sun and keep them from becoming brittle. And then, also sealing them to keep the water from penetrating the surface and into the base. MAYOR DICKEY: Okay. KRAMER: Okay. So we take this logic that we were just talking about and we run about 10 to 12 different scenarios at varying budgets so that we can get a relationship between network improvement or degradation and backlog growing or shrinking at different budgets. So this bottom left corner right here represents your current status. So this is the $8 million CARES Fund, the $2.5 million of your current budget. So you see a spike in there in the first couple of years. That's that shot of CARES funding coming in and boosting up some work and then it starts to deteriorate down as it ages out. And this graph over here kind of lays out the trend. We always do some basics, you know. Do nothing -- what happens if you don't spend any money? What if you spend a whole bunch of money? The green here is your current and then some target -- like, a target backlog. If we want to keep you in a healthy state of eight percent, this is what your trend of condition looks like over that time at that budget. MAYOR DICKEY: So again, because this is kind of from the same question I asked in the beginning, these different scenarios are the yearly -- what we would put in a budget yearly? TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 17 of 44 KRAMER: Correct. MAYOR DICKEY: But it doesn't take care of the $48 million thing that you just showed us? KRAMER: Correct. MAYOR DICKEY: Okay. KRAMER: Yeah. MAYOR DICKEY: Thanks. KRAMER: So I like to call this the what-if graph. What if we increase funding? What if we decrease funding? And answers a lot of questions? It's basically a profile that correlates, in this case, the PCI after five years at different funding levels. All of these assume the CARES funding in the first two years, just so that we're on the same page there. So at your current budget, you're here, you're on target for a PCI of 67, dropping 2 points and 15 percent backlog. Keep in mind that 15 percent, you really to be healthy, you want to be under 10, preferably 8, if you can. Steady state, so if you ask the question is on a network average, if we wanted to keep the same level of service, you know, you're looking at about $3.2 million annually. We saw that in Justin's slide. But be mindful that PCI doesn't tell the whole story because it's also letting some of those bad roads continue to be bad, and it's growing up to 15 percent. So you have 15 percent of your network that requires a surface recon or full recon. So you really need to watch both factors in order to have a good, healthy network. So the target backlog budget. $5 million budget would produce 72 PCI. So you get a slightly better improvement in performance overall in the network. But the real win is getting your backlog maintained at eight percent at the end of five years, and you're still in a financially winnable position to keep moving into the future and continue to improve. So this graph has a sister graph, which is the backlog trend. So how does backlog trend over time with budget? And of course, it goes down, and I read off a good bit of the numbers, but your current budget, of course, 15 percent. Here's that backlog target of TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 18 of 44 eight percent. If you wanted to know, hey, I really want to knock this all out, get down to five percent, get rid of backlog in the community or majority of it, you're looking at about a $6.5 million annual budget. To help you out comparatively, usually when we're working with communities and we see under five percent, you got backlog right where you want it, when you when you get to that place. When you're between five and eight, you got some work to do. When you get five and below, you've really kind of got your funding level steady state and your crews' understanding. That's a big challenge here, and it's a big challenge for lots of communities that we work with. MAYOR DICKEY: So we have the five million a year or something, and we try to fix what really needs to be fixed right now, so whether it's 48 million or whatever it is. When you have an eight percent backlog and that's manageable, that means, though, every year, do you have to put in another amount of money to fix the streets that are in the backlog? So if we had five million a year, we're like this all the time, right? But there's still an eight million that you don't want to get to the very poor or any of those categories. So does that mean every year or every two years, you'd be up here with a budget saying, okay, but -- you know, here's our five million, but we have to do X, Y, Z Street? KRAMER: Yeah. So at this level -- let's take the target funding of eight percent backlog. You can tell by the graph right, that you have sufficient flat budget that you're continuing to improve and make headway on reducing your backlog. So over time, you'll continue to lower your backlog. But do you still have backlog present in the community and will you still, say, receive complaints from folks who live on those roads or have to drive on those roads? It's absolutely still there. It has not -- there's still a chunk of your community that's in backlog. MAYOR DICKEY: (Indiscernible). KRAMER: Yeah. Yeah. You know, it's, I think, like anything that runs on the budget, right? You oftentimes can't afford to do it all. So you've got to find a -- oftentimes, a council is looking at adopting a policy that says, we're going to have PCI here and we're going to maintain a backlog here so that we're financially healthy. But there's a lot of TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 19 of 44 competing dollars for other services that a community provides that you're having to weigh out. And they're -- right? Whether it's shades in the park or public safety or whatever, there's a whole bunch of things that that money can go to. You bet. Right. And that brings me to my question slide. You bet. MAYOR DICKEY: Thank you. WELDY: Thank you, Mark. KRAMER: You bet. WELDY: Well, it's really big numbers and a lot of data there. Clearly, a lot more questions. And we'll certainly do our best to answer them. MAYOR DICKEY: Thank you. WELDY: We have our chief financial officer here, Mr. Pock, and he had some special guests that are also going to share some information in regards to possible funding options. MAYOR DICKEY: Thank you. POCK: All right. Good evening, Mayor, council. We actually do have two people here that we thought might be helpful for this discussion as far as possibilities of funding streets repair. The first is Jim Stricklin. He works with Columbia Capital. He's one of their managing directors. He acts as a municipal advisor for many different municipalities, including the one that I used to work for in Gilbert. Municipal advisors do have a fiduciary responsibility to their clients. They're not making a commission on anything. They're not rewarded in some fashion by getting communities to bond for certain issues. So he's here to answer all your questions as far as what options are available the different types of financing available for these types of issues and, they'll be here for that. We also have Zach Sakas. He works with Greenberg Traurig. He's a shareholder and is basically a bond counsel to answer all of the legal-type questions, different restrictions, limits that we would have depending on what the council decides to do. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 20 of 44 So right on cue, they've taken their spots. Yeah. So basically, I guess just have a panel type discussion at this point. Any questions that you might have for them? MAYOR DICKEY: Thank you. POCK: We've got the experts. MAYOR DICKEY: All right. Just some basic questions, which maybe Linda would help with, too, is if we were to go for a bond to do some of the repairs and to get us in the position of having that maintenance of five million, when would we have to have language ready to go? When would the election be? And I don't know if that -- that probably is Linda's wheelhouse. MENDENHALL: So first off, the County would give me the 210-day notice, and then I have until, let's see, May 9th to let him know. But before that, we have to do a call of an election. So we would need to do that at least by our May 7th meeting. We could possibly need to do it sooner than that based upon the type of resolution that the county wants. We would have to have our ballot language to me by June 13th. I have a nice listing table here. I also have a timeline slide, but it doesn't go into when I need ballot language and so forth from staff. And then we have we have to do two publicity pamphlets. There's a lot of things that we need to do. So for me, the sooner we know, the better so we can prepare because once we call the election, there's things that we're limited that we can do. MAYOR DICKEY: Thank you very much. And part of -- and I don't know whether whether you are in the position to answer these questions, but some of the stuff that we talked about had to do with breaking it up. So we just went through a bond election here. There was a lot of misunderstanding about when you get authority, does that mean that you do it right away or other municipalities that might break their questions up. So like arterials versus collectors or and -- I don't know, you probably don't want to give that kind of advice, but like the the success rates of doing things like that. So yeah, whatever you have, we're happy to hear. STRICKLIN: I'll try to talk loud. Jim Stricklin, of Columbia Capital. Every community is different as to how they approach that. Some communities have a policy that they TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 21 of 44 don't want to have any general election on it; others, that's the only way they want to go about financing a lot of their public infrastructure. Thank you. I worked with the town in 2011, when you went for 26 million, and that didn't pass, and you came back and had 8.2, and that did pass. I think it's a very interesting question about breaking it up. A number of communities do break things into individual questions. Greenberg Traurig and Columbia just worked together in Surprise on $100 million, some for for roads, and some for public safety. So that's how they broke it up. But it would probably make a lot of sense in this community to have, I believe, four questions. You've broken up, what I've seen, is that there are four different line items of what you would ask the voters to approve, depending upon what it is, how much. The challenge becomes projecting debt repayment because if you had all four paths, do you have one on top of the other? If you have two paths, are they repaid in 5 to 10 years instead of over 20 years? Those kinds of things all have to be taken into account. In the publicity pamphlet, when you do projections, you're going to want to explain each of the questions in detail and what it is that you're trying to accomplish. And I'll let your lawyer talk to you about the questions and how broad they might be versus the publicity pamphlet where you have a lot more specific information. And those are the kinds of commitments that you make to the public, what's in that publicity pamphlet. And most every community works very hard to maintain those commitments within the publicity pamphlet. MAYOR DICKEY: Before you move on, is there an advantage percentage-wise or -- so we know, if we go out longer, obviously future folks help pay the bond, but the interest is higher. But is there a difference in the interest or the benefit to the community if they're all done at once, 40 million, whatever it is, or if there's four $10 million ones; do we get a better deal or whatever? STRICKLIN: Madam Mayor, members of the council, that is going to depend on your targeted tax rate. So for example, in Surprise, they have an existing $0.38 tax rate. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 22 of 44 They're going to add debt as their values go up, they're going to add debt, but not increase that $0.38. So back in 2013, I think your target was $0.50. And so it's going to depend on what your target tax rate is and what happens to your assessed values. So your assessed values today, versus 2013 are double what they were then. So you know, that was a five-and- a-half-year repayment. So it's going to be -- so what we do is we do projections out, maintaining a particular tax rate. And then once those bonds are paid down or your AV grows, then you have more debt that you would borrow into the future. In terms of individual bond sale, you're limited by federal law to whatever you can expend within a three-year time period. So that's how we size a deal. The biggest that you would have would be what you can reasonably expect to expend within three years. So you may have a 10-year bonding program or a 15-year bonding program, and you're doing it in three-year increments. Depending upon where interest rates are, you may not borrow all three years' worth. You may borrow one year's worth. At the beginning of the construction process, you may be spending more money on plans and other things that are not hard dollar costs of construction that come later. So at the beginning of the process, you may be borrowing a much smaller amount. And depending upon how quickly you pay that, how quickly your bills start coming in, then you're going to determine what you want in terms of the size of the issue. And all of those things are under council purview. So if you have an authorization for $50 million, we're not going to go out and borrow $50 million. You're going to decide when you sell that. So in 2013, you had an election. You didn't sell until December of 2014. Most communities sell right away and you waited. You spent a lot of time reducing the project costs down. You eliminated excess items within that. You made commitments to voters that you wouldn't spend any more money except exactly what you said you were going to spend it on, and you did that. You didn't put in sidewalks or other things because you had excess capacity. You were able to build what you said with less overall bonding than you asked for. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 23 of 44 MAYOR DICKEY: So we are debt free right now. We've had bonds in the past for, of course, Saguaro Community Center, town hall, things like that, the preserve. But at this point, we don't have any. Does that affect our ability to get a good rate? Does that make us in a pretty good position? STRICKLIN: Madam Mayor, members of the council, currently, because you don't have any debt, you don't have an existing bond rating. So one of the things that you would have to do, no matter what type of bond you sell, if you sell it to the public, you're going to talk to the ratings agencies about what they would rate your debt at. So they're going to look at various factors. They're going to look at your budgets, three years of financials; they're going to look at the management; they're going to look at the community; they're going to look at how much debt you're asking to borrow, what that is in relation to the population. They're going to look at other factors, the wealth of the community, a number of different things. And that that can be a little bit of a longer process on an initial bond sale if you sell publicly. So if you had an authorization for general obligation bonds, you can sell them competitively bid, which is what you typically had done in the past, or you can pick underwriters and and have them underwrite the bond issue. Those would both be sold to the public and/or you could do, depending upon the duration -- many communities that are not active in the bond market, that are not currently required to report to one of the central repositories information annually for the benefit of the secondary market. You could do a direct placement with a bank. So depending upon the type of transaction -- and banks would do their own evaluation of your credit. You wouldn't have to develop an offering statement, which is a lot of work and takes a lot of staff time and effort. And the same with the rating. You wouldn't have to have a rating or an official statement that's distributed for the sale. And back to -- you were talking about other debt that you had in the past. You had general obligation bond debt, and you also had debt that was backed by excise taxes. So there are some communities that use excise taxes for their roads or their buildings. And so that is a possibility. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 24 of 44 And some have a dedicated sales tax. So they may raise a sales tax just like -- instead of asking the voters for geo bond authorization, or you could have a combination of the two. MAYOR DICKEY: The so the geo bonds, those are the ones where you get the interest is good, but it's limited to what you can use them for. So if you're using a government -- well, I forget what they call it now. But anyway there's -- you can't bond for maintenance. You can't bond, really, just to do maintenance -- STRICKLIN: Tax-exempt basis. MAYOR DICKEY: You mean not on tax exempt. That's what it -- STRICKLIN: So if you do working capital -- MAYOR DICKEY: Yeah. STRICKLIN: That would have to be done on a taxable basis. MAYOR DICKEY: Okay. So maybe someone else can help me with this. Maybe some of the guys are -- if we went for a bond that was strictly to do repair, get us to a point, but then we still need $5 million a year, which we don't have -- so how does that all kind of fit in with this? Maybe -- I don't know. Maybe you can help me, David. So I'm just trying to figure out what we might be able to do within our budget, what we can't do within our budget. How does that work together as we go on? Because even if you look at -- we have two-and-a-half million that we put in now. I mean, I think we could technically look at putting more in from what we have, but we certainly can't put $3 million more in per year. And how does that mesh with what we need to get the roads to a point where we get to a maintenance or that we can afford? POCK: If I'm understanding correctly, the money that we're currently allocating to streets with the conversation that we just had or the discussion we just had, the preventive maintenance and that sort of thing would be funded by the allocations that we're currently making to streets. Anything that would be mill overlay reconstruction could be used -- could use bond money for that. Is that -- MAYOR DICKEY: Oh, okay. POCK: Because it would be -- yeah. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 25 of 44 MAYOR DICKEY: So we could probably do that, then. We could probably figure a way out then to do that. Okay. STRICKLIN: I think the differentiation that you want to make is to determine, when you invest the money into the road, is it going to be temporary, or is it more permanent where you're extending the life of the road? If you're going to be extending the life of the road, that's not just, like, annual maintenance, that is preservation. And so you have to sort of differentiate. And so you may spend more money to preserve the road, but then you'll save money in the long run. MAYOR DICKEY: Sorry, I'll let you go. But that's sort of along the line what we heard. If we could get this roads, streets all -- do it now, then we could actually get to a point where maintenance is affordable. Peggy? MCMAHON: How do you determine, since we don't have debt, the assessed value? You said that it depends on the targeted tax rate and assessed value. Assessed value of real property homes, the whole town value? I mean, could you please explain that a little bit more? Thank you. STRICKLIN: Thank you. Mayor, members of the council, you have a limited property value, which is what the property tax would be assessed to. And so you have a value for the entire community and the tax rate is set against that. And then, within an individual homeowner or business, the property is going to be assessed at different rates. Ten percent for residential, for example. So the the amount -- you have a constitutional debt limit that is 6 percent and 20 percent depending upon what roads are in the 20 percent. So you have your net assessed value and you have a 20 percent limit. And if I get my glasses out, I wrote that down. I believe I calculated that. Your 20 percent borrowing capacity constitutionally is 166 million for 20 percent and 49 million for 6 percent. So you have the capacity under state law to borrow. But then there's the practical reality of what is it going to cost you? And depending upon how long it takes to pay it back. And another consideration is you can't borrow for longer than the useful life of TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 26 of 44 the asset. So if you're making repairs to the road, and those those repairs are worth 5 years' worth of repairs, then that's over a 5-year period, just like if you bought a piece of equipment that's going to last 3 years, you're not going to finance that over 20. MCMAHON: So is that another reason to break up the the categories if we select to go with a bond, so that each of those categories would apply to that and be spent within the five-year, if that's the limit period. Do you understand what I'm asking? STRICKLIN: Yeah. I think so. So typically, you're going to have a mix of things. So if you were building a building, and you have equipment, the equipment portion couldn't go beyond 3 years, but the building could go 20 or 25. So you would look to see that you have enough being repaid in the early part that you would associate with the equipment. And so if you have no payments in the first five years, but you have equipment, then you've exceeded the useful life on the borrowing for the equipment. FRIEDEL: In your experience, has anybody ever done a bond for reconstruction and maintenance at the same time? STRICKLIN: Mayor, members of the council, it's rare that any community does taxable working capital financing. So the only thing that I've seen is the long-term maintenance. So preservation is sort of the theme that some of the communities I work with have taken on because they look and they say, okay, we spent this small amount and we're maintaining it. We can't really borrow for that. If we spend more than that, and we improve the road and extend its life, then that's what we want to bond for. And so it's the pay me now, pay me later, but you have to invest in the roads now in order to avoid that ongoing cost later that you can't afford. But you have to be able to afford the tax that you're going to ask the voters for. MAYOR DICKEY: So obviously, there's a lot of things to think about. So when when the citizens committee gave us their report, we talked about the -- again, the percentage versus the threshold. And, obviously, to do anything, we would have to have people agree that they want that to be done, which is difficult if their streets, their particular streets are the ones, like I said, that they use are just -- don't seem to be improved because -- and I know it was really frustrating when we put $1 million into Saguaro, but TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 27 of 44 from what everything that you were saying, it was exactly the right thing to do. But they say, oh you're, you're fixing Saguaro, which was already just great and you know, Tumbleweed and all these other streets are really bad shape. So that's one of the things we really have to think about is, if we veer from always just trying to preserve some of the streets before they go bad, well, we're not going to get anywhere unless people agree that we should fix these streets. I don't know if anybody here thinks there's a way to get where we need to get without a bond or extra funding. Please speak now because I want to know how we could do this. I think we could squeeze out an extra million, maybe 500,000 or something a year. I don't know if we have to do it right now since we have the CARE, five million, five million. We have Prop 479 next November -- 479 or whatever number to think about. So there's a lot of moving parts here. But if somebody doesn't think that we need extra funding to move forward, I'd like to hear that idea because the only other way to do anything like this even -- well, we can't fix what we need to fix on what we have. So that's one part of it, the the backlog and such. But even for the maintenance, we have, obviously, a lot of programs in town. We've got parks and rec, what is their budget and all that? What are we willing to do or are we willing to do to get to that point or do we seriously start talking about, that we need more funding; what's the best way to do it; what's the best way that we can get people to agree with us that this is the way to do it? One of the things I want it to remind people and will have to remind along the way if we do this kind of thing, is that Fountain Hills became a community in 1970. We had a road district; we had a fire district. So people like my family or anybody that lived here before 2001 paid property tax. That's what we did. So in 1989, when we became incorporated, there were some money left in the bond -- bond money left, but the taxing authority went away. So that that's huge. The real killer was in 2001, when the fire district went away. That was about over $2 million a year, $300,000 from the county a year or such. And for all of these years, 22 years, TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 28 of 44 we've really been -- this has just been there the whole time. And it's manifesting itself, though, with the streets because, like you said, it's like 200-something million dollars of an asset that we need to protect. It's a public asset. And we tried -- you mentioned the $29 million bond that failed. We've tried property taxes 2000, 2003, 2008, 2017. We raised sales tax. We've tried fees, environmental fees. We tried to do a public safety fee that didn't go anywhere. We have tried, to me, anyway, with 40 years of living here, whatever we could do to mitigate this. I don't see how we move forward. I'm not saying we have to do it right now I really want more information about the $5 million, how we think that might play in; if it's worth waiting, or if we better do it now, and if we better do it now because of the streets that are falling apart. And and we don't have the money to do that. So there's a lot of questions out there. And just another thing I want to say, I'm disappointed that Councilmember Skillicorn decided not to come because we had this meeting out October 24th, put in a calendar event. Everybody accepted -- well, he accepted. And then yesterday or Tuesday or something, I get told he wasn't coming. And with this mantra of roads first, I feel like it's sort of unfortunate now because this is the meeting where we were getting the information to know how we can move forward. And when I see on Facebook that this was the mayor's crazy tax, massive tax hike, secret meeting, I'm not buying that. So this meeting was well-known. We talked about it at our retreat also on 11/2, said we'll talk about streets in full. So I'm open. We're all open to know what other options they think we have. Anybody thinks we have, short of defunding one or two departments around here or strictly close the community center or something. I don't know what else to do here. But I'm not saying, unless I hear from others, that we definitely have to do this now. As far as the maintenance part, what do we have to do to get to a point where we can use that CARES money? Because I'm all ears. Justin? WELDY: Madam Mayor, there are -- one of the things that I want to give you an option TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 29 of 44 to give direction on stuff right now is, we need to discuss the level of service. Depending on the level of service the council would like to provide will help us establish the funding we need in the horizon. As a reminder, with the exception of the additional CARES Act funding, which we've tentatively asked the mayor and council for next year, we're already spending half of that, plus our maintenance money this year. So we're looking beyond that in the horizon. What we can do is put together a couple of level of service options. And as a reminder, previous councils agreed to a letter grade based on the PCI. We will share that with you and based on that, show you the different types of level of service and the funding that will be required to meet that level of service. It'll take us a few days to work with our consultant and have discussions with the citizens advisory committee so we can come back with you and then we will send that to the mayor and council. What that will do is allow you, as a group, to determine the level of service, because the level of service is going to have an impact on the level of making things challenging, but less challenging because we know what we're asking you to ask them for. MAYOR DICKEY: Okay. I want to see -- is someone on the phone. Does someone on the phone want to speak? I'm sorry. No? Okay. Councilwoman? MCMAHON: Thank you, Justin. I would like to see something like that because it would be very helpful in making a decision and also provide a new direction from your vantage point and experience with the streets. But in addition, part of that, my understanding is the five million, the ten million, et cetera, you can only contract so much out of every single year and get that work done, even though there's money, like the $10 million sitting there. But that was my understanding, too. So that plays a part in this as well; doesn't it? WELDY: Indeed, Councilmember, it does. All of the moving parts are going to be a big factor here. Again, we're discussing the level of service here and that level of service is going to give us a defined number. That defined number will then help the elected body have discussions amongst themselves and with others on how to best proceed to arrive at that. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 30 of 44 MAYOR DICKEY: Councilman? FRIEDEL: I thought that was going to be my point. I don't know if we know what the appetite is with everybody for dollar amount. Is it 48 million? Is it 20 million and then another 20 million? So I think what would be helpful is a list of these roads that are really terrible and some kind of an estimate. And I know that's playing games with estimates, but what it would cost? Like, if it's going to be Grande, $5 million or something to that, so we can have something to sink our teeth in. It's visual, and it gives us an idea as to what the appetite for a bond package would be. I think for the residents to know that too would be important. How hard would that be to do? I think we know the roads that are in bad shape, right? The pre-incorporated? WELDY: The good news is that we've already paid somebody to collect the data, and they host the software. It just takes a little while to run those types of scenarios. It's not an instant click. FRIEDEL: Right. WELDY: So we can certainly work with Roadway Asset Services and look at that, and it's not going to be defined on a single sheet, but rather, in several pages of a report in regards to options. And again, we're talking about level of service is where it really starts, which again is the PCI. KALIVIANAKIS: Ms. Mayor, can you hear me? MAYOR DICKEY: Yes. Yes. Go ahead, Councilwoman. KALIVIANAKIS: Okay. Thank you, Ms. Mayor. I've been obviously listening in. On the report that we have been looking at, the RAS report, there's two graphs I'd like to just point out. There's one graph of pre-incorporation versus post-incorporation roads in two different colors. And then if you go to page 5 or 6 on the report, there are roads in excellent, very good, good, fair, marginal, poor, very poor conditions. Now, if you compare those two maps, some of the pre-incorporation roads aren't just poor and very poor, so some of them are marginal, fair and good. And so I guess what I would like to see, kind of riffing off of what Councilman Friedel said was, if we can identify the poor and the very poor roads, then, and if we can further TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 31 of 44 identify the usage of those roads, there might be some of those roads that have very minimal usage. And so I don't think we have to fix those. But if we took the poor, the very poor and we looked at traffic studies or even just by count of cars, then maybe we can hone in on the real problematic areas because, as a citizen that lives in Fountain Hills, I don't mind driving on a marginal road, but when I heard people talk about driving on roads that does damage their cars and stuff, I think that would be the poor and the very poor. So would there be any way to determine that number that we could spring off of? And maybe we can fix the poor, very poor, and then continue to do the maintenance? MAYOR DICKEY: I think so. I think that's what Gerry was talking about. FRIEDEL: Yes. MAYOR DICKEY: And we have some of that, we had that information to with with the work that's already been done. And again, it goes back to deferring roads that seem marginal, that we might be okay driving on. But then, in two years, they're the ones that that make us go into that 15 percent. So I think we leave -- but that is information that we definitely could use. Vice Mayor? GRZYBOWSKI: I don't think we necessarily need or should get -- when you come back to us with a dollar value, I don't think we need street names because I don't want to get into arguments with homeowners as to, my street seems way worse than that street. I feel like you gave us a really great slide right before your question slide, where it talked about -- I don't know, it's a really good slide. Somewhere in there, I took good notes. Then we've got the great slide that came from the RAS folks that talks about the pavement condition categories and especially the pre-incorporation. So I feel like if we use the data that you have, I don't think we need to overwhelm ourselves. I don't think we need traffic counts. You're already telling us, this is what the road conditions are. Just because one road may have more traffic than another road -- yes, the slide right before that, that is fantastic, as well as the graph that shows the PCI categories of the pre-incorporation asphalt. I feel like those were the main two slides TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 32 of 44 that we should be using and that's where the dollar value should come from. And he also had a great slide where he talked about the little yellow line on top of the -- MAYOR DICKEY: Yeah. GRZYBOWSKI: Right, right. Okay. MAYOR DICKEY: Go over -- GRZYBOWSKI: Right. The one that goes over the other stuff. So this is a high dollar value. Then the little gold line is another $11. So that was a great slide too. So I feel like those are the things we need to be concentrating on. I don't feel like you need to bring back to us the individual street names. I don't think we need traffic counts. The data is already there. I want to see dollar values off of the three worst conditions or whatever it was. I think it was the three worst conditions. That's where I think we need to be. I feel like it's more objective to just look at that and not see street names and not see traffic counts. That's where I would like to go with this. Thank you. WELDY: Madam Mayor, Madam Vice Mayor, so we have two different asks, which are considerably different. One of them, the one that you just spoke of, is classification; so arterial, collector, local. The other one that Councilmember Friedel actually identifies the segments and super segments. So that's the actual road itself. GRZYBOWSKI: I just feel like if we start talking individual roads, then we lose the objectivity that these reports have bring to us -- have brought to us. So I feel like, to stay as objective as possible and not go, ooh, that's the one that I take to get to my house. I just feel like that's the best way to handle it. We've got the raw data here, and I like looking at that and not worrying about what street I drive on. And it's human nature to want to have the street you drive on or the street you live on be done first. So I feel like we just need to go with the data that we've got and not try to nickel and dime and each individual street. MAYOR DICKEY: Can I suggest that -- so we're we're talking May or whatever, if we even went forward with something for this year. Why don't we see what Justin had in mind to bring back to us and see what that does to -- maybe, if you want more after that, or if TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 33 of 44 Brenda sees something else that she'd like to see in addition to what you have in mind to give us choices. And if we don't feel like that's enough or we need more, then we can go and ask after that because I tend to to agree as far as the streets go, because that is what happens. And again, that kind of gets us back to where we always are with anecdotes and things like that, which we're really trying to get away from as much as we can with this because it's money; it's an emotional issue; it's where you live. So if you have an idea of how you would like to proceed, and since I think we do have some time here, I'd like to see what you had in mind to give back to us and then allow us to see if we think we need a little bit more. Does that help at all? Gerry? FRIEDEL: I just want to remind you that $29 million bond that was not passed by the residents, the $8 million did pass because they knew it was specifically for Saguaro Boulevard. That's my point. If we're going to sell this to everybody in this town, they are going to want to know what's going to be done with that money. The 29 failed; Saguaro passed because it had that name attached to it and everybody saw what was going to be done and everybody was really happy with that job, by the way. Justin? WELDY: Madam Mayor, if I may? MAYOR DICKEY: I think it would be specific by the time we got to that point. And you know, just to say that the Palisades one, was -- I mean, that one was specific, too. It just -- they didn't want to do it. WELDY: For each fiscal year and the outlying years, in this particular case, if we knew there was going to be supplemental funding, we would generate those maps that council sees when staff comes back and asks for contract permissions and those types of things; we will provide that level of detail. And again, we already do that for the level of funding that we have. And if there was supplemental funding, regardless of whatever amount that was, we would prepare and share those maps on the horizon. And Madam Mayor pointed out a good point. What I'm talking about is a level of service, A, B, C, or D, with obviously, D being the stuff that the Councilmember TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 34 of 44 Kalivianakis says you might need car repairs. Based on the adopted criteria from the mayor and council, we will provide some funding scenarios for those levels of service that will include all the classifications: arterials, collectors, and locals. Once we have that, if we would like to drill in a little bit deeper and identify some of the areas in regards to their classification, we certainly can. But it's important to note that if we're going to be making a big ask, we will provide as much detail, including either quarterly or sectional maps, that show exactly which roads will be done and approximately when. There's already some of that in the Roadway Asset Services' report that we shared with the mayor and council and the executive summary, and there's some in the published one as well. MAYOR DICKEY: Gerry, just in the the level of service, I thought that the kind of the A-B- C thing wasn't really a thing anymore. I don't want the level of service to be an average. I'd rather have it be a threshold. Just kind of like -- and I don't know if Gerry or Greg or anybody would want to come up and talk a little bit about that, or if you guys have anything that you would like to add. Because I think we would -- that probably would go to what you're talking about, because if you just have a PCI, then you are still going to have people that say, well, my street is this way. If you go through a threshold where it has to be a 70 or whatever -- yeah, 70. That's what you had, right? 70? Then we know that everybody wants to be at that threshold instead of, oh, the average of Fountain Hills is 72. See what I'm saying? So I don't know, when you say level of service, what do you mean? WELDY: So the PCI rating converted into a grade level. So we have a marginal. So from 50 to 60 is a certain level of service. From 60 to 70 is an increased level of service. Anything above 70 is an incredible level of service. MAYOR DICKEY: But it's not a threshold; it's an average. WELDY: So -- MAYOR DICKEY: And that's kind of where I'm thinking we're not going to get the buy-in or the support if it's an average. WELDY: Yes. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 35 of 44 MAYOR DICKEY: That kind of worries me. Yes. WELDY: We can certainly set minimums. So what is your minimum for a collector? MAYOR DICKEY: 100. WELDY: What is your minimum for an arterial or local street? We can certainly set minimums in that, which is the reference to the threshold. We will not allow it to get below this percentage point. FRIEDEL: Okay. Can you tell me the percentage of pre-incorporated roads that are local? WELDY: All of them. FRIEDEL: All of them? WELDY: So those two are really combined. Fountain Hills Boulevard. Saguaro's already been reconstructed, but Fountain Hills Boulevard, basically, just north of Station 2 to -- FRIEDEL: So Fountain Hills Boulevard is considered a local road? WELDY: No. It's a pre-incorporation road. FRIEDEL: Okay. WELDY: Pre-incorporation. So most of the local roads, or residential, are pre- incorporation. FRIEDEL: Okay. So all right. So maybe my question was was wrong. What percentage of the pre-incorporated roads are residential? Do you have any idea? WELDY: I do not have that number off the top of my head, but we can certainly get that for you. FRIEDEL: Because maybe that's -- maybe that's the trick. We're going to do all those pre-incorporated residential roads so the residents know that we're addressing that. WELDY: And it's important to point out that not all of the pre-incorporation roads are in poor condition because they have been included in the annual maintenance. MAYOR DICKEY: Right. And when they -- actually, the ones that are in good shape are sort of proving that they're in good shape, and maybe they don't need that level of service. WELDY: Service. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 36 of 44 MAYOR DICKEY: Yeah. Yeah. WELDY: Correct. MAYOR DICKEY: Anything else? Do you guys want to say anything or anybody from -- any -- yes. I don't think he wants to. MITCHELL: Mayor and council. My name is George Mitchell. I'm a member of the streets advisory committee. I appreciate the opportunity to make a couple of comments. I think the key point is that if you're arguing about how much is needed rather than whether more is needed, that's a good argument to be having. And the point, Mayor, I think that you made is correct. That the current revenue isn't enough; it's clearly not enough. My own background includes being the assistant and acting budget director for the State of Wisconsin and director of public works in Milwaukee County. And I have to say that my job was to do the kind of sales pitch to the governor and the county executive that Justin and his team have done. And I don't know if he would have liked working for me, but you've got a first-rate presentation today. The information you've received, it really gives you the opportunity to get a grasp on the problem. And I hope -- I'm encouraged that that those members who are here appear to be focused on figuring out how that additional gap is going to be filled. So thank you for that opportunity. MAYOR DICKEY: Thank you. WELDY: As a reminder, that person right there worked for us for free for a little bit more than two years, along with the rest of them and several others that aren't here. And we still appreciate their time and their dedication and opinions. MAYOR DICKEY: Yeah. I have their list and have us with all the years. I don't know if they want to hear about it, but 45 years, 40 years, 36 years, all that. And so again, we totally appreciate that and appreciate all of your expertise and you coming here today, too, because as you can tell we're a little -- we don't know what we're doing quite yet but we needed all this information in order to move forward. Are there any other questions or comments? TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 37 of 44 Yes, Rachael. GOODWIN: Mayor, my comment in follow-up is really regarding timeline. You know, there's an ask for some more information. We discussed, again, if -- and I want to underscore that, if there is a move towards a bond election, we're working up against a deadline which you said in May at the latest. Was that right, Linda? MENDENHALL: Correct. GOODWIN: Okay. And I'm not fully versed, but I do know that our guest with us today both can articulate what has to happen in that window, if and when there is a decision that says, yes, we want to move forward with this. There's a lot of to-dos in between now and then. And then the difference between once that bond is called for that is officially, what can we do or not do based on that timeline? And I guess, I just I want to be sensitive to what that is. And I also don't want to force something. I don't want to shoehorn something into a window that's not long enough. So I want us to try to be a little bit sensitive to that. So maybe, Zach, if you can give us a little detail there? SAKAS: Thought I was going to get away without having to speak, but thanks for -- [LAUGHTER] SAKAS: Mayor and council, Zach Sakas with Greenberg Traurig. I have the pleasure of serving as bond council to a variety of Arizona municipalities over the past 20 years. So happy to answer additional questions. And in response to the clerk's earlier comment, I will get you your ballot language as early as possible, of course. In general, the process for leading up to the election is often a time of education for citizens. So for example, today, council and staff revisited Saguaro and the success of bringing that in under budget and paying it off in a timely manner and the impact on sales taxes. So that time of education, once the bond election is called, then city officials, city staff are prohibited from using city resources, town resource, excuse me, to advocate one way or another for the bond election. So at that point, the the silly but true example I give is, we can't put banners on police vehicles and drive around town. We can't put banners, "Vote yes on bonds", on dump TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 38 of 44 trucks coming around to pick up trash, things of that nature. Which I wouldn't have to tell people not to do that if sometimes people want to do that. So no using city resources. In addition, there are statutory requirements that any written materials regarding the election include certain provisions regarding an estimated average annual tax rate that would be imposed related to repayment of debt service on a general obligation bond. Again, everything we've we've seemed to lean towards speaking about today is with respect to a general obligation bond election. As the clerk mentioned, again, those can be called for any November election in any year. And then otherwise -- trying to think what else. The timeline for preparing the informational pamphlet is often handled. The city council gives direction to call the election, and then the informational pamphlet is prepared by staff and consultants, in the time after that, in accordance with the county elections department's timeline. But there's no additional council action to approve that informational pamphlet or any sort of second or third meeting to review that before it's sent to voters. MAYOR DICKEY: Thank you. Thanks, Rachael, for bringing that up. So again, that's part of all of the discussion. So it could be any November, but it has to be in November, right? It can't be May or something like that. GOODWIN: Correct. MAYOR DICKEY: We have articles that we're reading about labor shortages and such, how much things might change in price to take into consideration. We have the fact that we do have the ARPA funding. We have Prop 400 -- it will be 479. It will be next November as well. There's a lot of things to think about before we know how we want to proceed. Gerry? FRIEDEL: Let me add one other thing to that. We've talked about doing an underground ordinance for fiber optics and that. So I want to make sure that any roads that we are going to be doing, we've checked with Cox and our other utilities to make sure that TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 39 of 44 we're not ripping those roads back up and that that stuff is done simultaneously. So we might have a way to do our new roads and upgrade our infrastructure as far as fiber optics at the same time. So I just want to be sure that we do that. I'm sure, but I just want to make sure that that's considered as well. MAYOR DICKEY: Sure. WELDY: Madam Mayor, a Mr. Butler with a citizens advisory committee noted that several of the questions that you've asked are included in their report, and I attached that report to the staff report, so you may be able to read through that and answer some of the questions you've asked today. MAYOR DICKEY: I really appreciate it. Rachael, anything else? GOODWIN: No. I think that I just wanted to again point out sort of the timeline, it's not good or bad. It's just something to be aware of. And then, potentially, when you'd like to bring back the follow-up from staff, and we can talk more offline when we want to schedule that. But again, I know that this is a pressing issue, it's a timeliness issue, and there's some some staff time involved in that too. So I want to make sure that we're we're keeping up on that. MAYOR DICKEY: Gotcha. WELDY: Madam Mayor, before we close, one of the street committee members, Mark Graham, has asked for a couple of minutes to speak. MAYOR DICKEY: Of course. Hi, there. GRAHAM: Hi. Hello, everybody, again. Thank you. Justin. Mayor and Council, Town Manager. You know, it's important, as Justin mentioned, we had submitted a report that we felt over a year and a half, almost, of work was pretty detailed. And much of what has been said today we agree with. However, we took a little different approach. Mayor had mentioned earlier about a standard like 70 percent. Yeah, we want to fix everything under 70 percent. It's a big task. But you know, if you live on one of those streets -- and to Mr. Friedel's -- your point about naming streets, that has a double-edged sword as well, because if you don't TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 40 of 44 see your name on that street, I'm a no vote, right? So you might be three years down the road in getting your street fixed. So that's one of the many challenges of identifying the streets. Anything under 70 percent, which I think the town should be publishing a map that shows where all these streets are, what their ratings are, what our priorities are, without having to go into the detail because you can get some paralysis through analysis, if you will, if you give too much detail. RAS, I think, if I remember correctly -- correct me if I'm wrong -- I think was about a $60 million. We thought as a committee that that was high. There's another way of approaching it. We came in with a 40 to 50 million depending on if we're going to do intersections, we think is much more reasonable because we don't think we have to repair or rebuild, I should say, completely rebuild all the streets. We've had tremendous successes in the past. The staff has done a great job identifying roads, and El Lago, I think, is probably a good example of that. That looks like a rebuilt street, and it's serviceable for many, many years. So you know, the challenge with identifying things, it's a Whac-A-Mole game, right? The street's great. Now, suddenly, this one's popped up with problems. And so you're constantly doing that, if you're identifying certain streets. We think a better way is through that PCI. The worst streets get the most attention and priority as well, as well as maintaining all of our other streets that services the entire community, not just your particular neighborhood. Let me see if I have anything else here. And again, I think as what was brought out, the only street that really is important to somebody is a street that they live on. And so you want to make sure that that's good. But I saw, I think on the town's website, how the street cleaner came in one neighborhood and just basically tore up the street because it was in such bad condition. So we've got to identify these streets to your point and set those as a priority. And I just don't think we drive on averages. We drive on the reality of what the PCI ratings are, and that's what's really important. Those should take the priority and those are the ones that need our best attention. Okay. I think that's about it for right now. Again, I would encourage you to read TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 41 of 44 through that committee's report. I think there's a lot of really good information in there. We're just a -- we're just a bunch of citizens who want good roads. We have no political fight in here. We really think that unity is going to be important. We've got, as a council, if we can all get together as a group and say this is really what's needed. The reality is we don't have enough money to fix our streets and we can't do it on credit cards. We can't do it by cutting here and there because if you save two million from this pot and put it in this pot, then other streets are going to go down. So our strategy from a committee, fix all of them now within a -- you know, a normal period of time. Have the monies there in that bond to do that and then we can get to a manageable yearly budget for street maintenance. So with that, I'll thank you for your time and attention to this. WELDY: Thank you. MAYOR DICKEY: Thank you for your time as well. WELDY: Madam Mayor, if I will. And I'm going to dovetail on to Mr. Graham's comments. A couple of years ago, staff approached the mayor and council on two different occasions for pilot programs. These were to see what we could do with the worst of the worst. We'll refer to that as Chama. We asked the mayor and council for permission and funding to utilize a, not typically type of maintenance here, which is chip seal with a cape. We did that on Chama. We now know from lessons learned that certain sections of Chama that were in relatively good condition have fared well. The others fared very poorly. Lessons learned. We now know that that type of treatment is applicable and much less expensive and moves that street out of the backlog for X amount of years, seven to ten years, beneficial, allowing us to plan. The second one was for El Lago. Different approach. Relatively decent with some really bad spots. Went in and either milled out and cut out all of those spots and replaced them with pavement, did crack filling, and then we did a type 2 polymer. That one is still in the test phase. I will say, at this point in time, we're doing pretty good on that one. With that said, another member of the street committee, Jerry Butler, would like to TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 42 of 44 speak for just a few moments, please. BUTLER: Mayor, Council. This citizen street committee, and I think the mayor started to address us, we represented 250 years of experience before we started into this project that we were challenged to do back in '21. That's before three members of this council were up here. We started into the program because the community had said, we have a problem with streets; what are we going to do about them? Now, I think Vice Mayor today asked the question, what streets are in what -- how much will it take to fix certain streets? The citizens advisory committee has that in their report. Arterials, we're saying, will cost -- I believe it's five million. Hold on. We were shown arterials -- and these are streets -- arterials with 70 or below PCI rating -- will maybe take $5 million. Our collectors, nine million. Locals, 26 million, and the other was 10 million for intersections that was not included in the RAS report. Those intersections are also an integral part of our street system and moving traffic through the community safely. So without going into your comment about can we name the streets or identify segments of streets? We identified it by categories of arterials, collectors, and locals, plus the intersections. And we also recommended in our report that maybe because people are going to look at these streets differently, as they have in the past -- it was brought up that the $29 million bond issue in 2011 failed. But when we came back two or three years later with Saguaro, oh, now, we will approve or accept a bond for Saguaro. So maybe the public, if they're given an option as to what streets do you want to fix, whether it's the arterials or the collectors or the locals? Now, a lot of people, 15 -- maybe 15 percent of this community lives in gated communities where their local streets, they fund them themselves. So there's a problem coming that has to be addressed. And we also tried to, as a committee, say how might we be able to do things that would help those in the gated communities so that -- as Mark pointed out, so that we operate as a community in unity, that we all can help each other. But it's a very complicated topic as Justin has pointed, RAS has pointed it out, this is not easy. TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 43 of 44 When we were given this challenge as a citizens committee, it reminded me of Gilligan's Island. I think they went on a three-hour tour. Well, we were told when we started out on this that it might be six months or less. We spent 20 months at this. We dug into the details, and I will say we took everything that RAS gave us. We went back to the 2008 report. We took the 2018 report. This committee went into the weeds, into the streets, into each segment of the streets, trying to come up with something that might be palatable to the community as a whole. I have an individual sitting next to me right here that's shown me the street in front of his house. I won't call them potholes, but they look like them. There's at least seven in a very short section. What's he interested in? He's interested in his street. But we've got to have the community in unison to say, we're interested in all of these streets. So if we go back to the comment earlier, let's do it on the basis of traffic counts, we've done it. Arterials carry the most traffic. Collectors carry the next amount of traffic. And locals, well, if you happen to drive on that street, then that's important to you. But unity, as Mark said, is the key to success in this community. And we were convinced because we looked at every possible revenue source and cost figures. We don't believe that this can be done without some additional funds. And if grants could be found, hey, that's super. But I don't think they're out there, or our staff would have found it by now. So it's going to be up to us, as a community, up to us, as residents, whether we want to do something about our streets. Now, I look at you as a council and say, you have to give us the green light. You have to give residents the green light to vote on whether we want to pay to improve our street system. It's not money that you are obligated to come up with; it's we, the residents. We have to make that decision. But you have to give us the opportunity to make that decision. I think, if you will go back into the CASC report, you will find out that we took things differently than what RAS has done, and they did it all perfect. ASTN, they followed it to a letter. We're just saying that maybe it has to be just a little different. And we took the approach. Our approach is this fix all streets now. Get them above a 70 threshold PCI TOWN OF FOUNTAIN HILLS NOVEMBER 16, 2023 TOWN COUNCIL WORK SESSION Page 44 of 44 number because we believe the streets above 70 can be then maintained for many, many years using the revenues that we now have available to us. And instead of having people call you and say, why aren't you fixing my street, we'll fix it. But it's up to them to make this critical decision. They failed in the past, saying, no, our streets are fine. Our streets are continuing to deteriorate, and they will continue forever if we don't do something about it. Thank you. MAYOR DICKEY: Thanks, Jerry. Appreciate it. Again, appreciate all your work, everyone that's here. Anything else for the good of the order? No? Well, ten to 5. Thank you so much, everyone. We're adjourned. Having no further business, Mayor Ginny Dickey adjourned the Work Session of the Fountain Hills Town Council held on November 16, 2023, at 4:48 p.m. TOWN OF FOUNTAIN HILLS _______________________ Ginny Dickey, Mayor ATTEST AND PREPARED BY: __________________________ Linda G. Mendenhall, Town Clerk CERTIFICATION I hereby certify that the foregoing minutes are a true and correct copy of the minutes of the Work Session held by the Town Council of Fountain Hills in the Town Hall Council Chambers on the 16th day of November 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th Day of December 2023. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL NOVEMBER 21, 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 5:30 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Sharron Grzybowski; Councilmember Peggy McMahon; Councilmember Brenda J. Kalivianakis; Councilmember Hannah Toth; Councilmember Allen Skillicorn Attended Telephonically: Councilmember Gerry Friedel Staff Present: Town Manager Rachael Goodwin; Town Clerk Linda Mendenhall Attended Telephonically: Town Attorney Aaron D. Arnson Audience: Approximately ninety-five members of the public were present. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 1 of 80 Post-Production File Town of Fountain Hills Meeting Minutes November 21, 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 NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 2 of 80 MAYOR DICKEY: Good evening, everyone. Welcome. Happy Thanksgiving, almost. Please stand for the pledge. And if you choose, remain standing for our 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: It's nice hearing those young voices. Pastor Rod Warembourg from Desert Creek Fellowship. Hi. WAREMBOURG: Thank you for having me. Join me if you'd like. Father, thank you for your goodness to us. Father, I come before you tonight, now in the name of your son, Jesus. Father, I pray over this council. Father, I pray for the leadership. Lord, your word says as it goes for the town, so it shall go for the people. And so I pray, Father, you'd be made wisdom to this leadership group tonight. I pray, Father, that you would help them to govern us well. I pray, Father, you would give them wisdom and insight and understanding. In Jesus' name, Amen. ALL: Amen. 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? FRIEDEL: Present. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Toth? TOTH: Present. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 3 of 80 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 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 at a council meeting at a future date or to schedule items raised for a future council agenda. And Mayor, I also have just one thing to point out. We did remove an item from the regular agenda, the reconsideration of the sign ordinance. But I wanted to let you know that since we're no longer hearing that, we did receive some public comment, and there was 12 comments, and that they were against it, and they're in your packet. MAYOR DICKEY: Thank you very much. We are starting off with our report, and I'll start with our town manager, Rachael. GOODWIN: All right. Thank you, Mayor, council, all of our folks here. It's just a couple of reminders that Thursday, day after tomorrow, is turkey day, and we are hosting our annual Turkey Trot. As of right now, we have over 2,500 runners signed up. But it is not too late; you can still trot. Registration is ongoing at the community center, but it does close tomorrow night at 6 p.m. So from 3 to 6 at the community center, if you want to be a last-minute turkey, please join us. We have a great -- it's a great annual tradition. And then, be reminded too to stick around; the parade is right after, also another fun tradition in our community. The note that the parade route will be going up and down the Avenue. However, they will only be going up halfway. So they go to -- the parade route will go up the Avenue to Verde River and then U-turn and head back down. So it doesn't go all the way to La Montana this year. So it is a change. And while I am a little bit of a traditionalist, I like one holiday at a time. I would be remiss not to mention that the following weekend, on December 2nd, is the annual TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 4 of 80 Stroll in the Glow, and that's when we will be lighting up the downtown avenue with all of the holiday lights. And we have a number of other holiday activities going on, including Breakfast with Santa at the community center, our season celebration. So please check out all of the activities going on. It's a great time here in Fountain Hills. MAYOR DICKEY: Thank you. So I'll mix it up here and start with -- Councilman? SKILLICORN: Thank you, Mayor. First, I just want to say congratulations to all the Fountain Hills voters. It turned out we actually had the highest turnout in the entire state of Arizona. So a big thumbs up for Fountain Hills voters for doing their civic duty this last Saturday. Actually, thinking of elections and stuff, I was actually able to attend a forum on local government, that we had candidates for council and mayor that were there. It was really refreshing to hear how well prepared they were and to hear their vision for the best town in the state of Arizona and probably the West. You know, normally our meetings are the first and third Tuesdays of the month, and I'm not sure why we had our street update last Thursday at 3 p.m., though. I just want to people know that I did send an email and publicly posted that I was working and I had some comments about that. It's also, kind of, to me a kind of a told-you-so moment because this last spring I did propose a roads first budget, and I laid out specific cuts, both in the editorials in newspaper and even on my website. Feel free to check out allenskillicorn.com and see that. But it's just -- I do find it interesting that the council was against the modest three percent cuts. And this upcoming year I think I'll try even harder and try to be bolder and try to go for a five percent cut so we can fully fund roads. And unfortunately, that budget that was passed continues to defund roads. But there's a way to do this without hiking taxes. So we really want to aim for something like that. And I just -- and really the election results kind of prove that being fiscally responsible, living within our means, and not raising taxes is mainstream. It's a mainstream idea. So TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 5 of 80 thank you so much. KALIVIANAKIS: Thank you, Ms. Mayor. Thanks, everybody, for coming out tonight. It's another full room, for all you people viewing it on YouTube, for streaming it, and Cox Channel 11. An informed and active citizenry is the recipe for good government. So thank you for showing up tonight. We haven't met in a regular town council session for a month, and I don't want to go on too long tonight, so I'll kind of cut it short. I am on the League of Arizona Cities and Towns, the public safety, military, and courts committee. There was those two Zoom meetings since our last council session, one on October 26th elections and the AI era. Kind of scary stuff. Should we automate away all of our jobs, including fulfilling jobs? Should we develop nonhuman minds that might eventually outnumber, outsmart, and replace us? Should we risk the loss and control of our civilization? This is an issue that our world is facing right now, and we need leadership and people to regulate this kind of technology. It can be really scary. On November 9th, we did the Israel and Palestine Revisited: Past, Present and Future. And that was, again, a very eye-opening experience, and we pray for the people over there. Yeah. As Allen mentioned, last Thursday there was a workshop on the roads and the discussion related to the future pavement management of our town. There was presentations by the Roadway Assets Services, their final report, citizen advisory committee, final report. Thank you guys for doing so much hard work for our town, on your report. A lot of very intelligent people there are looking out for you and your roads -- the roadway geotechnical engineering report and then the pavement modification detail memo. So those are all covered. And it was really, really good stuff because that does continue to be one of the hot button issues in our town -- is getting the roads fixed. Lastly, I just want to wish everybody happy Thanksgiving. Reminder that there is a parade this week. Myself, I'll be in spot number 8 with my father's Oldsmobile. It's the 1974 Delta 88 Indianapolis 500 pace car, and it's very collectible car. And I hope all of TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 6 of 80 you can come out and see my father's car. So have a great evening. I hope you enjoy it. And the Stellar Students, good job. MCMAHON: Thank you. I do not have a political statement to make. Thank you. GRZYBOWSKI: We've got a really big agenda today, and it's been five weeks since our last meeting, so I'll forego all of the meetings and grand openings and openings that I went to. Instead, I'm going to do my usual celebration of yay, I love Stellar Student Day. It is so much fun to come in here and have you guys sitting out there. And the Pledge of Allegiance is always fabulous because there's the little voices echoing in the background, and it's just super fun. We get a kick over here. We try to be quiet about it, but we get a -- Hannah and I get a kick about it every time it happens. So I'm also going to do my usual. The mayor is going to tell you guys after this is done that it's okay to leave, but I'm going to tell you it's actually okay to stay. It's kind of fun in a nerdy sort of way to see how your government runs. And right then is when everybody laughs at me. Anyway, sometimes it is kind of fun. Thanks a lot for coming, guys. TOTH: Well, I never want to steal the vice mayor's thunder on that, because that is her traditional speech. But I will kind of echo. Please do stay. It is kind of fun. And also the Thanksgiving Day parade, just a reminder, it starts practically right after Turkey Trot. So be sure to stick around and check. You can either check Facebook or online or the Visit Fountain Hills mobile app to look at the new route of the parade as well, just for those of us that set up our chairs and our tents and tailgate and get ready for the parade. I want to make sure that everybody is well aware that it does have that slight change to the route. And that is all I have. So thank you. MAYOR DICKEY: Thank you. Councilmember Friedel? FRIEDEL: Thank you, Mayor. I just want to wish everybody happy Thanksgiving in my absence. We have a lot of great activities going on in the town. And you know, I did attend the -- I thought it was TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 7 of 80 important enough for me to attend the workshop last Thursday. And I just have one point I want to make, that this council is very serious about taking care of our roads and our entire town. So we appreciate the citizens committee, the geo reporting, and everything else that was brought to our attention last -- at the workshop last week. And again, we have a whole town that we need to take care of. It's not just roads. The town is responsible for a lot of other infrastructure, which we will attend to, and we will take care of our roads. And it's important to every council member sitting up there. So I just want to make sure that everybody understands that we do take that seriously. And it can't be roads only; we've got a whole town to maintain. So again, thank you, Mayor. I appreciate it. MAYOR DICKEY: Thank you, Councilman. I appreciate that. So yeah, there were a lot of things that went on in the last four weeks or so. So we had a State of The County with Supervisor Galvin. Board member McMahon invited me to the clean air Valley Metro lunch. And so that was great. They gave out awards to cities that do a good job. Make a Difference Day, it seems so long ago, but all that -- like, I look at on my calendar, like, this is -- actually, was between meetings. Fountain Hills Cares. We had German exchange students here. They all sat up here. It was really fun, and they enjoyed that. We met with Maricopa County Attorney's office. We had that -- we had a pre-budget retreat, and we had the work study session on the streets. We had leadership graduation. Don't want to forget that. A bunch of meetings, ribbon cuttings, all kinds of good things. And last, I got to go to an informative dinosaur presentation over at the community center that was given out by Encore for More. Her name was Darla Robertson. It was really neat. She handed out -- and there was one child there, so it was awesome. And they got to touch the fossils and such. So that was really cool. So now we are going to do our Stellar Students. And the way we do this, guys, is I read what your teachers said about the kids, and then Carol Merrill over here, Vanna White or should I say, our wonderful Angela, has your certificates. So when I read your name, TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 8 of 80 you can come on up. I'll read the good stuff about you. She'll give you the certificate, and then stay here because we're going to go all the way through to the high school, and everybody stay here, and Bob will take a picture of you. Okay? So we are going to start with Little Falcon's Preschool. I think that might be in that area over there somewhere. And we are -- and I want to say this right. Is it Ellia (ph.), Ellia -- UNIDENTIFIED SPEAKER: Ellia. MAYOR DICKEY: -- Norris? Ellia Norris, come on up. "Ellia is an amazing student. She excels academically and is so caring to her peers, especially those who need extra help. She makes it a point to be a good friend. Ellia is creative, artistic, and inquisitive. She loves learning, and it shows. When Ellia learns at home, what she learns at home and at school is evident in her art and her conversations." Teacher says, "I'm so lucky to have Ellia in my class." Yay. Our next Little Falcon is Max Paulsen. Max, are you here? All right. Come on up. Max. "Max's language skills are exploding. One way he demonstrated this was during the fall program. Max's sweet singing voice was heard by all. Max is excited about participating in circle time as well as work group. Max demonstrates empathy for others during class time and on the playground. I am lucky to have Max in my class." There you go, Max. We're moving up to the bigger kids at McDowell Mountain, and we have Macy Bush. Is Macy here? All right. "Macy is a perfect example of a Stellar Student. Not only does she always do her best on her work, she's extremely polite, respectful, and considerate of others. Macy goes out of her way to be helpful and support others in need. In art Macy shows great skills and offers wonderful ideas in class discussions. She shares her enthusiasm for art work she has completed at home and new skills she's learning. Macy goes above and beyond and is most deserving of the title Stellar Student." Macy. Our next from McDowell is Giovanni Stroka. Is Giovanni here? Come on up. "Gio", they call you Gio, "is a Stellar Student because he demonstrates the Falcon way in everything he does. Giovanni has an amazing gift for art and design, and it's a pleasure to hear and see his enthusiasm and growth in and out of art class. Giovanni offers wonderful insight TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 9 of 80 to class discussions and is a pleasure to work with. He's an inspiration to his peers. It's an honor to nominate Gio for being a respectful, kind, and responsible Stellar Student". All right, Gio. We're getting there, honey. But we'll bring you back up to take the picture. How's that? From Fountain Hills Middle School, Whitney Carbonelli. Is Whitney here? Well, we'll read about Whitney. "Whitney's an awesome 8th grade student and citizen. She's respectful to staff and her peers. Whitney took the honor's schedule this year and has worked extra hard to be successful. She maintains her excellent grades. Out of school, she's actively involved in two local theater companies and has been involved in recent productions." That is our Whitney Carbonelli. Next, from the middle school, we have Quinton O'Conner. Is Quinton here? Hey. All right. "Quinton is an amazing student and citizen. He comes to us new this year and has stepped right into a rigorous 8th grade schedule as the newest member of the I-21 Honors program. He plays club basketball and golf and is hoping to make the team at Fountain Hills Middle School this year. Quinton has maintained excellent grades and is respectful and kind to staff and students." Quinton O'Conner. And now we've got the high school. Is Ali Lara here? Ali? Yay. Come on up. "Ali is an excellent student. She is one of the first to ask questions and is willing to help and is willing and able to help her peers. Ali does her best. She participates in class and actively engages with the material." Ali Lara. And from the high school, Brent Tenor (ph.). Is Brent here? Is it Tener? All right. "Brent is an all-around star student. His teachers talk highly about his determination in class, always being found on task and focused. Brent is creative, helpful, and well mannered. He always brings a positive element to the classroom". Brent. Okay. Are you ready? Are you ready? You'll be in the picture too. UNIDENTIFIED SPEAKER: Okay. MAYOR DICKEY: Okay. Smile. Happy Thanksgiving. HAGEN: Say cheese. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 10 of 80 MAYOR DICKEY: Smile. Smile. HAGEN: Say cheese. MAYOR DICKEY: All right. Thank you, guys. All right. There you go. Right. I was going to shake his hand and he did a high five. Okay. There goes all the fun. But not really, because our first presentation is an update on the fire department transition. And I know you're back there, Dave, and -- I think he's coming. Thank you, Chief. OTT: Good evening, Mayor and Council. Thanks for having us. It was tough not to walk out with all the Stellar Students. And that's always a tough group to follow. So I'm just beyond excited to where we're at right now. And we're within 40 days of the transition being in full swing. And I joked at the beginning that New Year's Eve we'd be changing shirts in the fire station and going from Rural Metro to Fountain Hills Fire. And it kind of started as a joke, but it actually worked out into that day for the transition works well. It's the last day of the contract for Rural and the start of our new Fountain Hills Fire Department. MAYOR DICKEY: Can we all come and watch that? OTT: I don't know. I'll be here, but I'll probably be asleep. I haven't made New Year's in don't know how many years, but that's another story. The transition itself is going well. It was kind of fun looking back at the calendar, and we really started this go-round in October, but of 2022. The reality of it is that Chief LaGreca kind of started the whole process when he came back from Scottsdale with helping them with their transition put together the alternative fire service plan in 2005. And that was a living, breathing document that has made its way from 2005 and up until this point. And there was a lot of good work done by Chief LaGreca, Chief Roberts. I just kind of fell into it and am very humbled to be the first fire chief of Fountain Hills. But as we're moving forward, once we decided that the contract was going to be canceled, that really started the timeline ticking for where we were at. That was the beginning of November of 2022, and we really needed all of that extra time to put things in place and keep things moving. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 11 of 80 We bought structural turnout, personal protective equipment. We bought wildland personal protective equipment. That's all been purchased. The majority of that's come in. We're hoping to get the firefighter turnouts next week, and we'll -- everybody had been sized; that's kind of a lengthy process. We were able to get in on more of a 90- day turnaround than what was typical through the COVID period, where it was almost 14 months to be able to get firefighter's protective gear manufactured and delivered. So things have improved on that side. We're excited to get the new gear and move forward with that. We've gone through the process with the Mesa Regional Dispatch Center. You also have the IGA for the TOPAZ Regional Wireless co-op before you tonight. It's the last piece of the communications part. That was a long process. We started that, also, in the beginning of November of last year and went through the approvals that it took to get Mesa to approve dispatching for us. And that's a key piece. And as we move forward, if we make our our application for automatic aid in the Valley, that regional dispatch is a huge piece of that part, as well as some training, so. With that transition, we bought some computer equipment. Our IT chief has been instrumental, as well as Robbie, to help us get to where we're at with buying the necessary equipment for that cut over. There's also software that was involved with that. We have -- now paper patient care charts are no longer the thing. I mean, that was really all we ever did before. Now it's all electronic. So there's a software program for that. There's a software program for fire department tracking. We'll actually have better fire department call and in first reporting. And that's the national fire incident -- something, something. But anyways, it's an important part. That information that's collected across the country, and it goes into things that the National Fire Administration looks at. That'll be a big plus for us. We're also excited to go through the rest of the upgrades that we've been doing. We've hired all of the 30 field personnel. I was lucky enough to get our training Captain John Krajnak on board in early October. He's been instrumental in trying to finalize some of the finer points in customizing our electronic patient care reporting form so that it TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 12 of 80 meets our needs. John's also helping line up some of the training. We've been doing a lot of work with Fort McDowell and Salt River in what we've called an enhanced mutual aid relationship. We currently have IGAs and mutual aid agreements with Rio Verde, Fort McDowell, and Salt River. So we're working on joint training. Part of that IGA is it does require us to train jointly. We've just started with some of that, getting familiar with each other's fire engines, the hose that they carry, the equipment that they carry, how that interacts. We've also -- with Gilbert Road being under construction, we've worked out some agreements with Salt River that we can handle part of that north end of the Beeline Highway from about mile marker 185 north. We've built some of those response guidelines, and that's great for our area. Those are things that were not really open to us previously, but now that we're moving down the municipal path, there's a lot of other avenues that are open to us, and we're looking forward to be able to take advantage of all of those. There's just so many things -- it had gotten to the point where I was no longer waking up at night, staying up for two hours, writing things down so that I could make sure that, yes, I either did do that or, no, we didn't do that. I'm actually getting a little bit more sleep these days as we move forward to it. And again, we're 40 days from changing shirts in the fire station. We're also 20 days from being dispatched by Mesa. The equipment for the station alerting package has all been installed. Mesa Radio shop has been out testing it. That's another thing that you'll see before you tonight, is an agreement with the City of Mesa to allow their techs -- it's kind of a formality, to allow their technicians to come over, work in town-owned property, and do the last final dialing in of that station alerting package. But those are all things that we are extremely excited about. We're looking forward to, for us. And what's typical in the fire service is as new departments come on -- and there are not very many of them, so we're kind of in a select few. We've been lucky in the Valley that over the last -- since 2005, there's really been three fire departments start up from going from a contracted service to a municipal department. So we're in a small TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 13 of 80 group of those. But one of the things that we look at, we've got traditions. We'll do a pinning ceremony sometime in January or the early part of February, where we'll welcome all of the firefighters in, kind of swear them in to the Fountain Hills Fire Department. So that's -- in a nutshell, that's what my last 14 months have looked like. And I'm just extremely excited and looking forward to the next 14 months to two years, as we kind of perfect this and make this the best municipal department in the Valley. With that, I'll entertain any questions or comments. MAYOR DICKEY: Councilwoman? MCMAHON: You know, this is so nice to see you so excited. And you know, having been part of this journey and bringing our fire department in-house is amazing. And it's so rewarding to see you be so excited. And thank you for your leadership. And also, I attended the Youth Drug Coalition volunteer event a couple of weeks ago, and I had the opportunity to speak with about six, seven, or eight of your fire personnel. And they are so giddy and excited to be part of this and employed, and work with you and our town, it makes my hair stand on end in a really good way. So I just wanted to let you know that and say thank you very much. MAYOR DICKEY: Thank you. OTT: Mayo, Councilman -- ma'am, I appreciate that. And it truly is funny to see a 50- year-old guy be giddy. And I'm not speaking about myself. I've got a few more years than that. But I do get a little giddy now and then, too. And things like waiting on the delivery of the new T-shirts has got all of them excited. So for some of the guys here, some of the members that we've hired, they've been here for 30 years and they've been waiting for 30 years for this opportunity. So they're all very dedicated to the town and looking forward to the opportunity to serve the residents for here, so. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Thank you, Chief, for your presentation tonight and keeping us informed of what's going on. Like Peggy said, I think everybody up here is really excited right now. It's palpable, TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 14 of 80 the love that you seem to have for this project. Fountain Hills is all about providing great government and great services to its citizens. And I do believe, after discussing this with you and your graciously letting me tour the fire stations, that we will have the premier municipal fire department in the state. And that means a lot. And so thank you for all the work that you've done and for your leadership in this. And I'm looking forward to the ceremonies and the celebrations that will certainly follow, to reward you for your good work. OTT: Mayor, Councilmember, thank you for that. And it truly is an honor to be here and serve this community. FRIEDEL: Mayor? MAYOR DICKEY: Thank you. Yes. Yes, Councilman? FRIEDEL: Chief Ott, I just want to thank you for your leadership and seeing this project through for our town. It's a great asset to have you guys truly represented as employees of the town. The residents know you, you know our residents, and we know what to expect, and so do our residents. So again, thank you for your leadership and seeing this through for our town. MAYOR DICKEY: Thank you, Councilman. We appreciate your comments and all of your comments. Again, of course, thanks to everyone. You mentioned the late Scott LaGreca. I remember sitting, two houses ago, in the study on the phone with him, talking about this. He made the big notebook so that we could take control if we needed to. And it has been a long journey. When you say 30 years, I hear that; I feel that. We want to thank Rural Metro too, for helping us with this transition and all their guidance and keeping our community so safe for so many years. And our neighboring departments, the new relationships that we are going to have, that we do have. Randy Roberts, our former chief, who obviously -- we share grandchildren; we're in-laws. So that's very special to me. And you are being humble, but it did not fall into your lap at all; you made it happen. I sat at your desk; you showed me the numbers over and over. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 15 of 80 You're the one that made it work in a way that we could afford it, we could do it. The timing was right. I appreciate you and Randy and Scott at the time, talking to my son. He's a captain now. You've changed people's lives. You continue to do that. And I want to thank you very much. OTT: You're welcome. It really has been a journey. And the support from the surrounding departments, as well as from Rural Metro, has been overwhelming. MAYOR DICKEY: Thank you, sir. And keep us apprised of what's going on, and we're here to help as well. OTT: I appreciate that. MAYOR DICKEY: Thank you. Did you have something, my dear? Okay. All right. Thank you. OTT: Thank you. MAYOR DICKEY: So this -- you're on the spot now, mister. Our annual financial audit report is our next presentation, and we will be equally excited. POCK: I was going to say, I'm hoping this isn't, like, a buzzkill or something after that. It's like, everybody's going to be crying for different reasons. All right. Let me get this open real quick. All right. So good evening, Mayor, Council. As you know, each year we're required to have an audit done by an independent auditor so that we're in compliance with A.R.S. We finished another year, finished another audit. Christmas came early, if you looked in your mailboxes and you got your reports. So tonight, our audit partner from Heinfeld Meech is going to be here, Josh Jumper, to go over the procedures, the findings -- or lack of findings, I should say. And then, as far as specifics, as far as numbers, that sort of thing, we'll be doing that just a little bit later with the financial update. So here you go. JUMPER: Good evening, Mayor and Council. Excited to be here. There's been some exciting topics so far, so I'll try to keep the energy going with the annual audit. I will keep my comments brief. I know you have a TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 16 of 80 lot on your agenda tonight. There is a PowerPoint; I promise it's only a few slides. My name is Josh Jumper. I'm a partner with Heinfeld Meech, and I'm here to present on the audit results for the fiscal year ended June 30th, 2023. So like Mr. Pock mentioned, why am I here? Well, it's in A.R.S. that the external auditors must come to present the audit results for all municipalities in the state of Arizona. This was inserted into A.R.S. in 2021. But I will point out that the Town of Fountain Hills has been doing this, and put this into practice, many years before that. So your external auditors have been here for many years presenting the audit results. So just want to touch on the importance of the audit. So when I'm here presenting on the quote/unquote "audit results", I really want to just touch on what that means, what reports are issued, and our role as the external auditors. So we're here to verify management's representations regarding the town's finances, to demonstrate stewardship and accountability to a variety of outside parties, compliance with certain laws and regulations, and you're here to ensure that management has fulfilled its responsibility. So just touching on the timeline of the annual audit for fiscal '23. So our audit procedures were started in the summer. We came out in September and performed final audit procedures. The drafts of all the reports were sent to management for their review in October, and the audit reports were issued earlier this month. So I just want to touch on what reports are actually issued when we talk about the annual audit. So I'm going to skip the communication to governance for just a minute. Start with the annual comprehensive financial report. So that is the big report that you probably have in your mailboxes or with you now. But that's the town's audited financial statements. So included in there is the audit opinion over those financial statements and includes a host of other information. Additionally, this year there was the single audit reporting package, and that's issued and submitted to the federal government in relation to the city's compliance with spending federal dollars. Additionally, there's the annual expenditure limitation report. So all cities and towns TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 17 of 80 have an expenditure limit, and that report just indicates the city's compliance with staying under that statutory limit. And finally, there's a one-page transportation compliance report letter, which just really gets into us ensuring that the state has spent its HURF monies in compliance with Arizona Revised Statutes. So just a couple of high-level key items for this past audit. The audit opinion of the financial statements was unmodified. And what that means -- that's a clean audit opinion in layman's terms, and our opinion was dated November 8th. Additionally, we report on the town's internal controls over financial reporting, as well as spending of federal dollars. And please report there were no internal control deficiencies noted for the year '22/'23. In relation to part of that, the COVID-19 funding from the federal government that came in the past few years, that triggered this single audit report to be issued. And that trigger is over $750,000 of federal expenditures. Additionally, not going to get into too much accounting lingo tonight, but there was a new requirement under GASB, which is the Governmental Accounting Standards Board, just related to subscription-based technology agreements and the accounting around those. This did not have an impact for the Town of Fountain Hills, but just noting that that was something that all governmental entities had to look at and account for. Additionally, other important communications to you, Council, includes a letter to governance that you may have in paper already, but if not -- Mr. Pock, they do have it? POCK: No. They will. JUMPER: They will have it. But I'm going to kind of just go over it in my presentation. So we're required to communicate with you a host of things. So we have to communicate if there are uncorrected misstatements, pleased to report there were none. If we had disagreements with management for the audit, there were none. Additionally, in that document that you will receive is a copy of the engagement letter, which is signed at the beginning of the audit, goes over our responsibilities as the auditors, as well as management. And then the representation letter, which is signed at TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 18 of 80 the end of the audit, which allows us to issue our audit opinion. In addition, there's included in there -- we do inquire about fraud and noncompliance with a variety of employees and management just in terms of our -- or during our audit procedures. But just noting that responsibility for fraud ultimately rests with management and council. And in terms of our responsibilities, we provide reasonable but not absolute assurance. And the financial statements included in the report you have, the ultimate responsibility is management; we're just providing an audit opinion on those numbers. I said I'd keep it brief, but I'm here to answer any questions you may have for me. MAYOR DICKEY: Anybody have any questions, anything that you want to add? I think we like what it says. So do you have anything to add, David, or -- no? Well, we appreciate this. Obviously, I think we got -- we had a lot of this in our packet, so we were able to look at it. And Gerry, did you have any questions? FRIEDEL: No, I don't, Mayor. Thank you. MAYOR DICKEY: Thank you. I wanted to make sure I call on you. All right. Well, thank you so much. We appreciate it. Have a great Thanksgiving. JUMPER: You, too. Thank you. GRZYBOWSKI: I feel like we should be giddy or something. MAYOR DICKEY: Thank you. So our next is our call to the public. Do we have speaker cards? MENDENHALL: Yes, Mayor, we do. Okay. First up is Wendy Kelleher, and on deck is Crystal Cavanaugh. KELLEHER: Thank you once again, Mayor and Council, for listening to us. I am Wendy Kelleher. I am on the board of directors of the Village at Town Center. We share two significant borders. We share a border along our western side and along our northern side. The western side we addressed a little earlier with the Community Garden. We continue to have somewhat troubled relationships with the Community Garden. And we are asking that the Community Garden fulfill the promises that they made to us earlier, about putting in landscaping and removing certain eyesores from the back. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 19 of 80 But now, since Park Place Phase 3 has been approved, we have our northern border, and we just ask really one main thing. I didn't prepare a statement tonight because my message is simple. Your back yard is our front yard. And we will enthusiastically and, if necessary, aggressively protect our front yard. So that's why I'm here tonight, is to remind the council that we are a partnership. We share property to some extent, and we'd like to be involved in the conversation with anything and everything that would affect our front yard and your back yard. I have asked to have some meetings with the council and with the staff to talk about some of the things that are happening, particularly along our northern border, mostly as regards water mitigation. We've had a lot of damage on our property because of the water that runs off from the city property. And I am going to be working with, hopefully, your staff to talk a little bit about that and see what happens as Park Place Phase 3 is developed. Thank you very much for your time. And please remember, your back yard is our front yard. Thank you. CAVANAUGH: Good evening. Tonight's private executive session topic included, and I quote, "The small cell wireless moratorium and a draft wireless facilities ordinance". Why is this always behind closed doors? The public has very limited understanding of what this has been all about. As I understand it, all you need to do is follow the original master plan for our community, which said that all utilities should be underground, just like Anthem did, as well as McCormick Ranch. Of course, there was no cell service at that time, so an exception for the large cellular towers was made in accordance with federal telecommunication regulations. Those federal regulations refer to the large 5G cellular towers and antennas such as is behind the Alamo. What the council should essentially be addressing would be more appropriately called a broadband ordinance, not writing an ordinance for aboveground small towers, but an ordinance requiring all utilities to be underground in beautiful scenic Fountain Hills. Again, not related to cellular. So not falling under the federal telecommunication rules. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 20 of 80 Using underground fiber optic lines provides more protection from the various weather elements and will provide the fast streaming services that people want. I can see where the public and myself were initially confused with this broad 5G topic and term. When you look at your cell phone or your cellular internet, such as Verizon, you see the 5G symbol, but that relates to 5G cellular, which uses those large cell towers with antennas. These small wireless towers are entirely different. Previously, the council put a moratorium until the end of the year on approving any small wireless aboveground towers until more information was obtained. Research information has been provided to you from citizens. The companies who want their small tower business in Fountain Hills will choose to put them wherever they want, and they will become eyesores. So what has been the holdup to writing a basic ordinance stating all utilities should be underground to address this issue straight on? It is not a regulated telecommunication issue, but comments made in this very room have complicated the understanding of the manner by lumping large towers together with the small towers. If we have a master plan, the strategic plan, and then an ordinance in place requiring underground utilities, it should not be this complicated or need to be discussed behind closed doors without public input. Ideally, any fiber optic installation would be coordinated in advance and in conjunction with any scheduled street repairs, possibly providing a cost benefit and more importantly, avoiding digging up repaired roads later. In addition, the sign ordinance, which has been discussed ad nauseam throughout 2023, but apparently still needs more reconsideration and even more voting, thankfully, was pulled from tonight's agenda. But I strongly urge you to put the inspections of transitional community residences on the next agenda, as well as the ordinance for underground utilities. Thank you. MENDENHALL: Next, we have Liz Gildersleeve, followed by Lori Troller. GILDERSLEEVE: Good evening. I, too, am very concerned about the excessive use of executive sessions where you've discussed small cell wireless. Instead of having an TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 21 of 80 open, public conversation with residents about an issue that will impact everyone, you've chosen to meet behind closed doors throughout this entire year. For example, in an executive session on January 3rd of this year, where the public cannot be present to hear discussions, you discussed, quote, "possible modifications to town code guidelines and 5G policies", end quote. On May 16, during another executive session, you had a, quote, "5G ordinance review", end quote. On October 3rd, during yet another executive session, you discussed, quote, "the small cell wireless ordinance", end quote. Keep in mind that no one outside the council, as Crystal mentioned, has been able to review this ordinance. And then finally today, again, in executive session, just an hour or so ago, you discussed the moratorium and a wireless facilities ordinance draft. Hiding behind the privilege of an executive session to draft and discuss the wireless ordinance is a serious abuse of A.R.S. 38-431.03, and it is an abuse of our ordinance process itself. Why hasn't this ordinance been given to our citizen planning and zoning commission for review and input? There is a large group of Fountain Hills residents, roughly close to 200 active participants, some of whom have been asking for transparency about small cell wireless this entire year. And yet you thumb your noses at your constituents when we've asked for transparency. You have abused the letter and spirit of the executive session statute by burying small cell wireless in executive sessions. People in Fountain Hills want wireless technology; that is not the issue. We just want assurances that the fiber is installed underground, along with our other utilities, and not in ten-foot towers in our front yards. Is that asking too much? Resident angst, continued distrust, and rumors, right or wrong, should come as no surprise to you on this issue as you are -- as they are a direct result of your lack of transparency and failure to follow ordinance processes. Mayor, you're to blame for abusing executive sessions as you set the agenda and call for these executive sessions. But the rest of you share some of the blame for not pushing back and allowing the secrecy to continue. Thank you for listening. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 22 of 80 TROLLER: Lori Troller, resident. For 18 months I've come up here, and all I've ever asked for is to assure the Fountain Hills residents that we have services brought to our homes the best possible manner, and that's underground, adhering to the same policy all our utilities meet. This town has the extraordinary opportunity to do exactly what Anthem did, providing broadband services to homeowners underground without a single broadband tower. We should be working to deal with Cox. They are currently doing a major upgrade and expanding their services by laying fiber optics underground. The town would look genius if we coordinated with them, paving our roads behind their work and cutting the road cost with them as they would be paying for the repair or the cost -- or the roads. The ordinance should be put in the hands of planning and zoning and allow proper procedure, including public input, and include an emergency clause for immediate effectivity upon vote. Three of you, literally, voted to rewrite our underground standard by voting against the very legal moratorium, voting to allow contractors to build towers anywhere in Fountain Hills as we are -- as if we are a dart board. Service can and should be brought underground, which provides even better, more reliable service. But your vote was to deny that. The sheer amount of redistribution of wealth these towers will cause property owners is the single largest financial issue this town has seen to date. Voting against a moratorium and for a tower ordinance is in defiance of the very foundation of this town. Refusal to put these services underground is acting in complete antagonism towards property owners. You all received a notice for the basis of the moratorium. For the three of you that voted against the moratorium, you will receive an affidavit. Ask Donald Trump and his lawyers -- how that works out, not Aaron. You will receive another notice to convert the moratorium to a resolution to an ordinance and for excessive use of executive session. Our town does not have a town charter. What's a town charter? It's a document that defines standard operating procedures for the city hall. It lays out procedure for how things are to be done, for example, what steps are to be taken when you update an TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 23 of 80 ordinance. Not having procedures leads itself to malicious actions, whether they are intentional or not, and gives question to the credibility of anyone involved. The perception of this council is acting in complete antagonism of We The People by conducting the development of an ordinance in secret in an executive sessions. As of next week, this council is under investigation by the Arizona State Attorney's Office for excessive use of executive session. MENDENHALL: Now we have Barry Wolborsky. And following Barry will be Mathew Corrigan. WOLBORSKY: I am Barry Wolborsky, and I'm not going to talk about the cell towers. As you know -- thank you. As you know, I'm the treasurer for the Sun Ridge Canyon Homeowners Association, which consists of 788 homes. At our last board meeting, we had complaints about the lot on the corner of Golden Eagle and Bainbridge, which is currently being used to store broken cement but has stored other awful things in the last year. Before the town decided to store this ugly building refuse here, the lot was completely natural. The location is on a heavily traveled street across from a church and preschool, and next to our premier park, where thousands of persons come every year to play in their baseball tournaments and look at our ugly little lot full of concrete. Is this really the way we want to present our town? I have spoken about this before, as have other homeowners, with junk rock, asphalt, and other unpleasant things adjacent to their properties. We need now some direction from the council to allocate funds or direct funds to mitigate these horrendous eyesores. You could do landscaping; you could do very attractive landscaping around this, which would hide the broken asphalt and the broken concrete and all the other nasty stuff they put in there, and actually add something to the community. Or you could build a nice wall around it. But clearly the council needs to give staff some direction on the issue because otherwise nothing is going to happen. All Fountain Hills residents are proud of our beautiful town, and these junk material storage areas are a blot in our community. Thank you. CORRIGAN: A sincere "happy Thanksgiving" to all of you, and I hope you do enjoy it. Madam Mayor, Councilmembers, Matthew Corrigan, homeowner, full-time resident, TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 24 of 80 Fountain Hills. I was going to comment on an item which has been taken off the agenda, 9-B, which now has another title. So I've chosen to do so in public comments. But I'll have to modify it a bit. I do support amending zoning ordinance chapter 6, sign regulations. I believe in strong support of Fountain Hill's small business in general. And I believe in businesses that include reasonable sign codes. So I'm hoping that this town is providing that avenue for more reasonable sign codes. It is fair to say that small business is the backbone of America, and it's also the backbone of Fountain Hills. Business is vital to keeping Fountain Hills economically stable. It's a key principle, and I believe in that. Our Fountain Hills small businesses are struggling to succeed, and many are even struggling to stay afloat. So the town really, I hope, will be offering additional amendments to the sign codes, not just with words and programs, but action. I urge the town council to take action by removing burdensome sign code restrictions to small businesses, including downtown retailers. Right now in a days ahead, we are already in an election cycle, and sign regulations are very restricting, confusing, and burdensome barriers for all candidates. This ordinance will hopefully remove those barriers, if in effect, and allow candidates to campaign without these restrictions. It's only right and it's only fair. Small businesses here in Fountain Hills would be stronger, better off economically, and support the town with more revenue. So I urge you again to review this and make those amendments as necessary. Thank you. MENDENHALL: That's it for public comment. You do have a written statement in your packet, though. MAYOR DICKEY: Thank you, Linda. Aaron, are you on the phone? Is he? ARNSON: Mayor, I am on the phone. MAYOR DICKEY: Could you please address some of the comments? We are allowed to respond at least to being accused of doing illegal things. ARNSON: Mayor, I'm happy to respond. And my plan, for the council's information, is TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 25 of 80 to -- TROLLER: You cannot respond to -- ARNSON: -- respond in full -- MAYOR DICKEY: We can -- ARNSON: -- with an email to the council -- MAYOR DICKEY: I'm sorry. Go ahead, Aaron. I can't hear you. We can respond to criticism directly. We absolutely can. Excuse me? TROLLER: The attorney cannot. MAYOR DICKEY: He is -- TROLLER: Others can. The attorney cannot. MAYOR DICKEY: We are proceeding the way we're proceeding right now. Aaron, would you please explain -- UNIDENTIFIED SPEAKER: (Indiscernible). MAYOR DICKEY: -- would you please explain why I did not do anything illegal as I've been accused? UNIDENTIFIED SPEAKER: I didn’t say -- ARNSON: Mayor, I'm happy to do that. And I will be providing an emailed response to several of the points that were brought up by members of the public tonight. To be clear, there has been no changing, modifying, doing anything with an ordinance behind closed doors. The point of having council executive sessions is to get legal advice and in some instances for contract negotiations, for example, when we were retaining Mr. Campanelli's firm and deciding which firm to retain. That has been for the council to be able to evaluate whether the direction that this town is going is appropriate and is desirable from the council's perspective. And we intend to continue to draft and to provide direction to our -- internally and to whatever consultants we need to provide it to, for this to eventually go to planning and zoning. There has been no open meeting law violation. There hasn't been any abuse of executive session. And that's, I think, where I'll leave it, Mayor, if that responds to your question. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 26 of 80 MAYOR DICKEY: Thank you. And as far as being accused of voting against the moratorium, we were told many times that the moratorium is not a legal action. It is -- it's a legal action; we can do it. But it has absolutely no power or there's been so many articles about this and so much time has been spent on this item so that we can try to get somewhere. So I won't go any further than that. But anyway, we will move on right now to our next item, which is our consent agenda. Can I get a motion, please? MCMAHON: So moved. SKILLICORN: Second. MAYOR DICKEY: Thank you. 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 so much. Our next item is our appointments to several commissions. I want to thank everybody that applied. I want to thank the folks that are getting appointed and congratulate them for agreeing to help the town move forward on several subjects. And I want to thank the subcommittees. Since it was almost every commission, I think it's all of you. So I want to thank you very much for doing all the interviews. Make sure I get this right. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 27 of 80 So Strategic Planning Advisory Commission -- these are new appointments here. Joseph Reyes for a partial term for SPAC. The History and Cultural Advisory Commission, the appointments are for Bob Burns, John Gibson, Dave Peterson, and Tim Yoder. For Sister Cities, and this is a partial term, is for Randy Crader. And then the following reappointments are made: for the Board of Adjustment, Carol Perica and Paul Ryan; for McDowell Mountain Preservation Commission, Janice Holden and DJ Willard; and then, for the History and Cultural Advisory Commission is Susan Obst-Dworkis for a full term. I think I got them all. So I'd appreciate a motion, please, as written. SKILLICORN: So moved as written. GRZYBOWSKI: Second. MAYOR DICKEY: We have a motion and a second. Can we get a 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. Thank you all again. We look forward to what's coming with you all in the coming year. Our next item is a yearend summary. I think we're going to be hearing from David. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 28 of 80 Thank you. POCK: All right. Good evening, Mayor, Council. Okay. So as you heard, we finished the audit year. So once the opinion's issued, we're able to take a little more concrete look at how we ended fiscal year '23. We're going to do that first. And then we also have some updates on the first quarter of fiscal year '24, our current fiscal year as far as revenues. As part of the yearend, with the final amounts, we can also take a look at yearend transfers that happened. And if you remember, during the budget process, there were a chunk of capital projects that we delayed until we had those final numbers so that we can make a decision on moving forward on those. So all of that to look forward to. First, the fiscal year '23 yearend results -- and these are just summary points. So we did collect $3.3 million more than what we had budgeted overall on the general fund. Our general fund expenditures were $9.5 million less than what we had budgeted for. That includes $4.2 million that we saved with the ARPA funds. Using those to pay for our public safety contracts allowed us to save that money in the general fund that would have otherwise gone to pay for that. Overall, at the end of the year, there was $7.4 million left over in the general fund after we did our reserve funds, so a rainy day fund or stabilization fund, and our unassigned fund balance reserves, and our transfers to other funds, there was 7.4 in fund balance left. So as far as individual funds, I'm not going to go through each of these. They're grouped by the classification that you'd find them in the financial reports. So the first is externally restricted funds. That includes the streets funds, so you can see the yearend balance there is almost $7 million. And then all the other various funds, totaling about 9.4 for all the restricted funds. Next is committed funds. These are funds that council has acted and put into these specific categories. So there's our stabilization fund. You can see we've got just under $4 million put aside in that fund, and in total, 11.5 in all of those. Next is assigned. These are basically -- let's say they're assigned per town policy. So our TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 29 of 80 environmental fund, facilities reserve, vehicle replacement, those are all town policy related, and there was 9.2 million in those funds. That leaves -- the only other category that there is, is unassigned, and that balance was $11.6 million at the end of the fiscal year. So there's a summary of all the funds. You can see, one is at $9.6 million in fund balance, more than what we had in fiscal year -- at the end of fiscal year '22. Our stability metrics are also improving. You can see at the end of fiscal year '22, we had 6.4 months of revenue in our reserves -- or in unassigned, and we ended last year with seven months. So we've got basically, seven months' yearend fund balance. If something were to happen tomorrow, we would have seven months of revenue, basically, set aside that we could use. Any questions so far on fund balances? Okay. I must be really good at explaining this. Okay. All right. So then we'll go into fiscal year '24. We will be revisiting the '23 balances. If you had seen or gone through the presentation, those transfers in the CIP is -- we're going to go back to that, so. But first, a look at the first three quarters of the year. Actually, it was pretty well. Our total taxable activity was 154 million. So that's basically all of the activity within town -- sales, rents, hotels, motels, short-term rentals, everything -- $1.4 million in taxable activity. That's $15.8 million more than there was for the same period last year. MAYOR DICKEY: So I do have a question. POCK: Sure. MAYOR DICKEY: So the TPT and the construction sales tax were kind of out there in March, and that kind of makes that look like that? When we get there, could you explain that? POCK: Sure. So the construction is coming up in a couple of slides, I think. But that peak that you see in April is -- yeah. This chart is based on when the reporting is done. So in April there was reported activity. It was actually a speculative builder sale of an unnamed project that we collected a nice sum. They made some decent money on TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 30 of 80 what -- so they paid TPT on what they -- on the base value of when they constructed it. If they sell it within a certain amount of time for more than that, they have to pay the TPT on the difference. So that's what happened. That was reported in April. It's actually collected as revenue in March, so it throws it back a month on the other slides. But it's the same thing. MAYOR DICKEY: Thank you. POCK: Again, you can see that peak there is now showing in March. So that's because the revenue was earned in March. So -- MCMAHON: I have a question. POCK: Sure. MCMAHON: So if you take out that one-time -- is what you're -- sounds like you're saying -- income, how do -- not to put you on the spot. How does that level this out? POCK: So if you looked at the profit, it would have been around $5 million for the month of March without that one-time speculative, just based on the average there. It was definitely a nice surprise. We thought there was a mistake when we actually got the notification. MCMAHON: Yeah. POCK: So we dug into it a little bit and actually found out that it was a spec builder sale. So -- MCMAHON: So in other words, don't get used to it, right? POCK: No, definitely not. MCMAHON: Okay. POCK: There's a few things. MAYOR DICKEY: I agree. POCK: There's a few of these charts that have anomalies in them that make -- that stand out. And it is basically, usually, just one-time type things. So -- MAYOR DICKEY: Thank you. POCK: So we had budgeted to receive 3.24 million. We actually collected 4.19. That's almost $1 million more than what we expected. However, it was a decrease from the TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 31 of 80 prior year, from '23, of $292,000. The retail sales. By far the largest category of TPT that we collect is traveling right in line with prior years. There was an increase of about $100,000 compared to last year. We expected 2 million; we got 2.3. We'll take it; every little bit helps. Then here's that construction. It definitely looks -- it's more pronounced here because it made up a large portion, right, of that one month. So the other tall spike that you see in July of 2022, it would have been fiscal year '23, but July 2022, was actually some audit collections that we had. So again, not recurring very often, so they stand out. Utilities and communications. Nice and boring, just the way everybody likes it. There is an increase in mid-September. So that would have been August activity but collected in September. That I can't tell you. Maybe more people are using the internet or subscribing to something that's being included in there. But it's definitely on track as far as everything else goes. Real estate. This is basically made up of our long-term rental, for the most part very consistent. You can see, there's -- it's definitely a pattern here, right? MAYOR DICKEY: Um-hum. POCK: So we had budgeted 216,000; we collected 263. It's an increase of 5,000 over the same period last year. MAYOR DICKEY: The 200 -- so what is it over a whole year? I mean, you expect it to basically be almost a million? POCK: So this particular -- we don't budget it specifically like this. Let me see if I can -- MAYOR DICKEY: I guess, you know what my point is. On January, there -- POCK: Right. MAYOR DICKEY: -- it goes away? POCK: So January 2025. So that would be part of our budget discussions for next fiscal year. MAYOR DICKEY: Yeah. January -- POCK: Yeah. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 32 of 80 MAYOR DICKEY: -- 2025, right? POCK: I'm pretty sure it was about 655,000 for the long-term, last time I looked at it for '23. MAYOR DICKEY: Yeah. And so we'll have it for half a year, and then next January it's zero? POCK: Correct. MAYOR DICKEY: Thanks. And I'll mention that the reason that is, is because the legislature took it away. So now we will have -- and with the way rent has been going, it could be more than 600,000. It could be quite a hit for that half a year and then from then on. POCK: Correct. So that actual -- that whole category we have for this current fiscal year, just over $1 million for that whole category. The long-term rental portion of that is about 650, I believe. MAYOR DICKEY: Thank you. POCK: Um-hum. So then restaurants and bars. Again, restaurants and bars and services are probably our two most vulnerable categories to any kind of recessions, cutbacks, that kind of thing, shutdowns, all kinds of stuff that we've experienced lately. But I'm not seeing any kind of -- any alarm bells going off in these two categories, this one and the next one. There's a slight decrease, but it's still holding on pretty well. Again, services. This one was a little -- it surprised me a little that it was below where we were last year by about 100,000. After I looked at it, my immediate thought was that it was short-term-rental related, that we had started with the ordinance 22-09, starting that in February. However, when I dug into it, there was no decrease in the short-term vacation rentals. It was actually golf and personal property rental, like equipment rentals and that sort of thing. So it was a little surprising. Hopefully that that comes back up, but it's definitely one to watch. MAYOR DICKEY: Yeah. The whole -- it's a little bit weird for -- what's the grade there? 2022, it like started so high in July. So these are just sort of anomalies. POCK: Right. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 33 of 80 MAYOR DICKEY: Thanks. POCK: All right. So then that leads to the state shared revenues. These are pretty consistent. These are based off -- our budget numbers are based off of what the Department of Transportation provides us and the Department of Revenue provides us. So we're usually pretty close to what they anticipate receiving or sending to us. So you can see the first one there is the sales tax. It's right in line where we thought we would be. The income tax, the most boring chart that I have. In fact, if you notice -- and maybe -- I had to fix this slide, because the one that I had sent you in the packet, the scale wasn't even correct. And so the line for this first three months was off the chart, so to speak. So I fixed it in this presentation, so you can see where it's at. There was some adjustments made this year. So we used to receive 15 percent of the state income tax that was received. That was increased to 18 percent because of the adjustments that were made to tax tables and tax rates. So -- yeah. MAYOR DICKEY: So is this before or after the flat tax came into play? POCK: So technically, the monies that we're collecting now are on years where there wasn't the cuts yet. So this year we're going to receive more than what we can expect to receive next year. So when we look at this next year, that line is going to be below where the blue is. MAYOR DICKEY: And the 18 percent won't make up for it then, right? POCK: It's going to help. It's going to be better than than 15 percent. MAYOR DICKEY: Than 15, yeah. Compromise. POCK: But it all remains to be seen, if we collect -- if the state receives more income tax with the lower rate. Those numbers are yet to be seen. So. MAYOR DICKEY: Better tell Goodyear to stop growing, then. POCK: All right. So this one, again, is another anomaly. I bet you can pick it. It's there in the August of 2020 numbers. I actually went back to look at that just to make sure that I was going to say the right thing this evening about it. And it was actually a one- time allotment from the state to help with the pain that cities and towns had been feeling with the public safety, quote-unquote, raid of HURF monies. So they allocated TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 34 of 80 $18 million to be divided among all 91 cities and towns equally. So that was about 200,000 for us. But everything else is pretty much right in line. Any questions on revenues for the first quarter? MCMAHON: Okay. So hopefully I'll say this coherently. POCK: Okay. MCMAHON: Given the difference in what we anticipated and collected, given the flat tax and no -- the over $607,000 less income we're going to have from long-term, are you considering that as in the budget transfers, et cetera? I mean, is there any way projecting that, knowing that it's going to affect us, that you can adjust the budget accordingly in places where that money is usually spent? POCK: So where we ended fiscal year '23 won't affect what we've budgeted for fiscal year '24. So we budgeted fiscal year '24 based on what we're anticipating on collecting, right. The revenue loss for long-term rental is going to be in fiscal year '25, so the conversations that we're going to be having over the next four months or so. Considering, in the general fund, that we've had large contingency amounts to keep the general fund balanced. So we're anticipating in general, since I've been here, we've anticipated on receiving more revenue than what we are going to spend. So we had to plug the difference with contingency to keep general fund balanced. Losing the 650,000 in long-term rental will reduce that contingency number, but we still -- just initially, and off the top of my head, without going into -- I would assume that we're going to just have a smaller contingency number. We're not going to have to reduce expenditures to keep general fund balance, just because of that. If that makes sense? Okay. We'll see. All right. Any other questions? All right. So then we'll go in and talk about the yearend transfers. As you know, our town policy is we look at the yearend unassigned fund balance; we take out what's required for reserves, again, for our stabilization fund, to make sure that that equals 20 percent of our average five-year general fund revenues. We also have a 20 percent reserve that we keep in unassigned. And then, during final budget adoption, council approved TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 35 of 80 certain transfers, even without knowing what this final balance was going to be. That's because those transfers are required to fund those funds -- environmental fund, the facilities reserve fund. And then council also approved 4.2 million of the ARPA funds that were sitting in facilities reserve to be sent to streets. All of those transfers have already happened. So if you take the fiscal year '23 fund balances, that's as of June 30th, you'd have to add the 4.2 million to the streets fund to get what, most likely, the balance is going to be about. Obviously, we have ins and outs those first four months as well. But just wanted to let you know that those transfers are already done. The second half of this slide is recommendations from staff. And something about these screens -- these screens are, like, stretched or something. There's one more line that should be under there. MAYOR DICKEY: (Indiscernible). POCK: Yeah. Apparently. Now I'm going to have to look at my printout, see what the actual number was. So yeah, it was 4.9. So that bottom half of the slide, our staff recommendations, $2 million from the general fund to facilities reserved for the lake liner. We currently have $2 million in that fund. We've put $1 million over the last two fiscal years. This was a good year. We've, obviously, collected more revenue than we thought we were going to collect, and we spent less than what we budgeted. That difference is a larger unassigned fund balance. I am thinking that it would be a good year to put $2 million towards that lake liner. We know inflation over the last two, three years has hit us pretty hard. What we were expecting that project to cost has gone up. Obviously, we don't know exactly how much, but I'm guessing it's going to be at least $1 million more than what we were thinking. So it would be a good year for that. And then another $500,000 to facilities reserve. This one is kind of the -- I don't want to say that it's kind of the stepchild of the funds. When the study was originally done in 2015, they recommended that 900,000 get put into that fund every year. We haven't quite done that since I've been here. It's usually 500,000 and it's done. It would be a TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 36 of 80 good year to actually increase that fund balance as well. The one that's not showing on the screens here is what's left over after that, is $4.9 million. As far as town policy, that would go to capital projects -- to capital projects fund. MAYOR DICKEY: So the facilities reserve fund -- so, I mean, we keep talking about the community center and such and other things. If something's in a capital projects fund, can we put it into a facility? If something -- like, so we got the facility reserve fund, which is more of like a preparing a car is going to break down or a roof's going to crash or whatever. But if we have all this extra -- I hate to say it, but in the capital projects fund and we see something that might be more of a facilities reserve, we can use those funds for that? POCK: So Mayor -- so there's a really great line between what belongs in facilities reserve and what would qualify as a capital project. There's a whole bunch of accounting books, seminars, classes, conference topics -- all kinds of stuff talking about the difference between major maintenance and capital improvements. Right now to qualify for a capital project, it's got to be a project over $50,000. We have an example right now that's actually getting paid out of facilities reserve, and that's one of the lake pumps is being repaired; it's going to be about 30. So that's coming out of the facility's reserve just because it's under the 50,000, but it's not 30,000 that we had in community services budget planned on spending. So it's kind of that catchall major maintenance- type fund. MAYOR DICKEY: That makes sense because it's a facility. If you look think about the fountain as being a facility -- POCK: Absolutely. MAYOR DICKEY: -- then that makes sense. POCK: And that's why we're setting aside money for the lake liner in that fund, because it is a place where funds can accumulate. Once that lake liner project does kick off, that funding I would recommend be transferred to the capital projects fund, though, so that it's able to be used from there as a capital project. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 37 of 80 MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. I do find this a little perplexing, so forgive me. POCK: It's accounting. Simple governmental accounting. KALIVIANAKIS: On the $2 million for the facilities reserve fund, Director Weldy told us we've got a pretty big bill coming up with the community center for repairs. If we put that fund -- I'm assuming, when you say lake liner, like an example of what would be in that fund or are we designated $2 million for that fund? POCK: Okay. It's to that fund for that specific purpose. So that $2 million that's there, we can't just -- well, council could. But as staff, we couldn't go and spend it on the pump, replacing the pump, or something like that. KALIVIANAKIS: If we put it in that fund? POCK: It's segregated within that fund specifically for that project, in the future. KALIVIANAKIS: Okay. Thank you. It just seems to this Councilmember that if we're putting $1 million a year towards the lake liner, that's adequate. And we've got a lot of other expenses. And again, the community center's the one that really bothers me. Because that's a clear and present danger for right now, where the lake liner is a potential for the future. So I would just recommend, myself, that one million would be designated towards the facilities reserve fund for the lake liner. That would be my suggestion to council. MAYOR DICKEY: I've said that before, as well, because if the lake liner fails, it's a community issue and it's a community project and it's going to be $14 Million. So we're going to have to -- I mean, it might be slow and it might be manageable for a while, but it would have to happen. And we're Fountain Hills, and the people of Fountain Hills would have to recognize that that's something -- we would not be able to write a $14 million check. And plus, what are we going to do with all the water and all that? I mean, the whole thing is, like, mindboggling to think if it happens, because what we did before was bring it all over across the street. But I agree that I don't I don't want to put more than a million into that lake liner as well, unless there's something you're saying that would restrict us from putting it into something like fixing the community center -- TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 38 of 80 putting it towards the community center, because that was a real painful one, obviously. So. POCK: Right. So what I'm hearing is we'd like to just do one -- another $1 million, like we did the prior two years, for the lake liner. So that would be for that specific purpose. And the other million to still go to facilities reserve, but maybe for the community center? I don't -- technically, I don't want to get into a lot of trying to pigeonhole specific money for specific projects in facilities reserve. It's supposed to be kind of more of a generalized thing, but we can do that. MAYOR DICKEY: Rachael, do you have -- GOODWIN: Yeah. I think there's a clarification. The projects that we've been doing on the community center currently, have been funded through CIP? POCK: For the most part. GOODWIN: Okay. POCK: We did have some facilities reserve the first year that didn't fit into that -- GOODWIN: Right, that niche. But for the most part, the bulk of those projects are being funded out of the CIP -- POCK: Correct. GOODWIN: -- thus, the one million that would be going to the liner would stay there. And then what I'm hearing is the other million you'd like to put into capital projects in order to help offset what we're expecting with the community center; is that right? MAYOR DICKEY: It is to me. KALIVIANAKIS: Yeah, that was -- me, too. Yeah. MAYOR DICKEY: Councilwoman? TOTH: Hi. I, actually, I'm not sure if I'm the minority opinion here, but I actually have kind of the opposite opinion. I was going to ask if we were allowed to put more at the lake liner. My concern is when we do have to write that $14 million check. And I understand that the reality would be in that kind of scenario where it has to be taken care of, there might be a bond or something. That's a way to get the rest of the funds. But I think, in a year that we have this unique opportunity to put away extra money and TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 39 of 80 be especially fiscally responsible, I believe that we should take advantage of that. So I actually was thinking to -- and I wanted to ask you, is it possible that 4.9 million that is going to capital projects, which, therefore, a lot of that could be used for the community center, are we allowed to shave a little bit off of that and add to the lake liner? POCK: Sure. Mayor and Councilmember, these are simply my suggestions. Council can make any decision whatsoever, how to divvy up that $7.4 million. TOTH: Thank you. That was my main question. Because I know that our financial policy from your summary -- and thank you -- says that it would be used to satisfy fund balance requirements first, and then any remaining would be transferred to the capital projects fund. But just to be super -- okay. Just to be super clear, we still have flexibility with those numbers? POCK: Right. Yeah. TOTH: Okay. POCK: So this is the transfer's proportion. So first reserves, then transfers for the fiscal year, and then whatever is remaining goes to capital projects. So. GOODWIN: (Indiscernible). TOTH: Okay. Thank you. POCK: Okay. MAYOR DICKEY: Councilwoman? MCMAHON: I remember last year we talked a lot about the lake liner because we had it looked at, et cetera. And I forget -- I know we're over the time limit. I forget how much time we are. But it is -- like Councilmember Toth said, it's really, really important that we do our best to fund that. But at the same time, we know we're not probably going to be able to fund it all, might have to have a bond. So without getting in the weeds, just really quickly, if you don't mind. GOODWIN: So we did the study to say -- the assessment, I should say, of what condition is the liner in. We did that -- we started that process in 2020 because at that point, our warranty was up on the liner. So at that point it was 20 years old. So we did the TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 40 of 80 assessment to say, well, what's it look like down there? What should we be planning for? The life of that liner is anywhere from 20 to 30, so anywhere between 2020 and 2030. As we get closer to that 2030 mark, obviously, we get a little -- it's a balancing act. It could go well past 2030. Our job, at this point, is to kind of monitor. Are we seeing any indicators that there's a problem? Are we seeing any red flags that say, hey, we may have a leak or, hey, we may have deterioration? And so we're doing evap tests on an every-other-year schedule. We do site checks. We do some other things to make sure that the integrity is there. At this point, everything looks good. But as we all know, the closer we get to that 2030 mark, the more we want to be aware of that. MCMAHON: Thank you. Also, my second part of the question is, if these allocations or transfers are made, the two million to the lake liner -- if later, we look at it and we say, can we transfer some of that money out for something else, is that a possible -- POCK: Absolutely. MCMAHON: -- scenario? POCK: Absolutely. So all of these are in the committed funds section, which is council- committed funds. So they can be moved anywhere you'd like. MCMAHON: Thank you so much. POCK: It gives staff in and us, as far as budgeting, if we know where things are going, so that we can plan for next fiscal year. That's why we're doing this now, so that we can -- MAYOR DICKEY: Councilmember Toth? TOTH: Thank you, Madam Mayor and Councilmember McMahon, for those questions. With that in mind that we have that flexibility even afterwards, I would really like to suggest increasing the amount that goes to the lake liner, especially considering we have that flexibility. But also as a reminder to my fellow council members, there's another conversation happening when we talk about streets. And I would really love to be able to tell the community in 2030, we saved enough money to replace the lake liner and don't have to ask you for money; that would be lovely. I know that's in my unicorns and rainbows world, but we can at least do what we can now. MAYOR DICKEY: Any other opinions? Councilwoman? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 41 of 80 KALIVIANAKIS: Yeah. Thank you, Ms. Mayor. Even though there's some potential flexibility down the road, I think we should just deal with it tonight because sometimes these things get lost and people forget, people didn't remember your guidance. I think we just make decisions and move on. There are so many priority funding items in this town that are screaming for money. We even told the community choir and the community band, I'm sorry, go out and make a playbill and go business to business to raise your own funds. So we've been squeezing, squeezing, squeezing. We got a large bill with the community center. Would it be nice to allocate more money to liner? Absolutely, it would. But this isn't the year and this isn't the time to do it. If the liner lasts, hopefully, to 2030, we'll just about be there. I hate the thought of a bond, but if it came to, like we need a $5 million bond, otherwise our town namesake is going to be gone, I think the people would be very generous and vote for that bond. So -- and again, I'd just like to repeat my point that I'd like to just keep it at $1 million. If things change in the future, we can do more money. But I just see so many projects and so much skimping on what we're doing, and just parking all that money for something that might happen in seven years or eight years from now, I'm just not there. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Mayor. Director Pock, I had a couple questions. The 4.9 million that is going to -- that would, theoretically, go to capital projects if we approve this. How does that compare to last year's transfer to the capital projects fund? POCK: That is a question I didn't anticipate. TOTH: I'm sorry. POCK: Top of my head, I believe it was right around five. TOTH: Okay. POCK: Five million. So it's -- TOTH: Pretty much right on track? POCK: Yeah. TOTH: Okay. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 42 of 80 POCK: If I'm wrong on that, I'll let you know in an email, but I'm pretty sure. TOTH: Thank you. I'm sorry. If I knew in advance I'd ask the question, I would have asked it in advance, but it kind of came up. Okay. So the 4.9 million, if that's right on track, in that case, maybe we could just keep it at the two? My concern with this liner is that, when we're already talking about fixing our streets, and then we're also talking about the fact that this liner would be coming down the line, if we have an opportunity to be saving up for one of those really big projects, I think we really need to do so and do it right. If we're already moving 4.9 to capital projects, that can then go to the community center or the funds in the facility reserve, depending on what amount it is. I can understand maybe not putting more than 2.2 million, but I would really, really caution the council on passing the buck on this one. That liner is going to be a big project, and I don't know how willing the community would be to accept two bonds in a short amount of time. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. It sounds like everyone's got their point across on this here. I am very concerned about these expenses. I mean, I love the pay as we go. I love paying things off and having money ready to go in the savings. But we have to look at our biggest deficit there is. So lake liner matters; I think it's a big deal. But we've got a road deficit. So I actually want to make a motion to approve the transfers. But with one amendment, and that is to take that 4.9 million and send it to roads. MAYOR DICKEY: Well, first I'll say, is there a second? And then I think capital projects is for roads, right? I mean, we can use capital -- we can use that 4.9 towards some projects, can we not? POCK: So the policy, again, since HURF is our most restricted money that we receive. So all of that money goes into streets. So we have a policy on the order in which this is really going -- if you thought you didn't like governmental accounting, this is going to do it. But just, basically, an order in which revenues are spent. So anything that's spent on streets, sidewalks, traffic signals, signs, that sort of thing, should be spent out of the TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 43 of 80 streets fund. I will say, if you look, we've got $7 million in the streets fund right now. We just transferred another 4.2. Doing another 4.9 just to do another 4.9 doesn't give us the permission to spend 4.9, 4.2, or even all of the 7 that we ended last year with. So I'll leave that there. MAYOR DICKEY: So the motion? POCK: But it's up to council. MAYOR DICKEY: We didn't have a second on that particular, and then the motion that is kind of going with this item also includes the delayed start capital project. So if we continue to talk about that, that might clarify the other issues that we would be spending some of that money on. POCK: Correct. MAYOR DICKEY: So if that's okay with you, we'll kind of move on. And then if you want to make another motion, we can do that. POCK: Thanks for the segue, Mayor. Yes. So as I mentioned earlier, during the final budget adoption, we had a chunk of projects that were delayed, that we were going to delay until we saw what revenues were looking like for the first quarter. We've done that. They're in line with what our projections are, over our projections in some cases. So here's that same chunk of capital projects again for you to consider approving moving forward with. MAYOR DICKEY: This would come out of the capital projects, this set? Okay. POCK: That fund balance is there. So there is enough fund balance. The budget transfers that would have to go with this would come from our contingency first, so $2.4 million. MAYOR DICKEY: Thank you. Is anybody prepared to make the motion as stated? GRZYBOWSKI: I will move to approve as stated. MCMAHON: Second. MAYOR DICKEY: Thank you. And just for the record, that's moved to approve transfers of FY23 yearend unassigned fund balances as presented and authorize delayed start capital projects and associated budget transfers as presented. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 44 of 80 We have a motion and a second; is there any further discussion? And I just realized I forgot to ask if there were cards. MENDENHALL: Mayor, for this item, no. We don't have any speaker cards. MAYOR DICKEY: Thank you. KALIVIANAKIS: Madam Mayor? MAYOR DICKEY: Yes, ma'am? KALIVIANAKIS: On the delayed projects, we're still going to get another vote on that later? On the delayed projects? MAYOR DICKEY: So sort of like a budget meeting where we're voting on it, and then as they come forward, we will reconsider them? KALIVIANAKIS: Right. MAYOR DICKEY: Yeah. KALIVIANAKIS: Just want to make sure. MAYOR DICKEY: Yeah. All right. Can we get a roll call, please? MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Explain my vote, Mayor? MAYOR DICKEY: You bet. FRIEDEL: As long as we have a reconsideration of those projects, I would be in favor. MAYOR DICKEY: Thank you. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Vice Mayor Grzybowski? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 45 of 80 GRZYBOWSKI: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you very much. Thanks, David. POCK: Oh, Mayor. MAYOR DICKEY: Ooh, uh-oh. POCK: I'm sorry. If I may? I didn't mention that a week from tomorrow, we're actually having our public outreach for fiscal year '23, kind of a wrap-up. It will be here in the council chambers at 5 o'clock. So there's my unsolicited -- MAYOR DICKEY: Thank you. POCK: -- solicitation. MAYOR DICKEY: Be there or be square. POCK: Exactly. MAYOR DICKEY: All right. Our next item is about mobile food vendors. Everybody doing okay? Need a break? Do you want to break? Okay. We're going to take a couple of minutes. Sorry, John. Thanks. Thank you. [Comfort break] MAYOR DICKEY: Thank you very much. We are back and ready to hear about food vendors. And thank you, John. WESLEY: No problem. So I do have before you this evening, council, a proposal to make a few amendments to the town code as they would relate to providing regulations for mobile food vendors. We do have a few that operate in town. We have been using portions of our code to regulate them without any real specific requirements. We've been using our temporary use permit process administratively issuing permits for up to a year for vendors to operate in specific locations. We feel it's time to actually get some specific regulations in place to address this use as it becomes more popular. So we are proposing two things. One is to add a new article 8-7 dealing directly with the mobile food vendors, but then also to make a change in 8-3-5, dealing with special events and as they might work with food vendors. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 46 of 80 So we'll look at that one first in the code. And so section 8-3-5-D is where we're at. And this section is talking about special events and providing for vendors within special events. And so section D provides for the minimum information needed by an organizer of a special event, in terms of those vendors that are going to be there. Number 8 in the list states a requirement for the organizer to get the business' TPT. Moving ahead just a moment, in the mobile food vendor ordinance, we set certain requirements -- excuse me -- for those businesses in terms of do they have their state license, have had their fire inspection, do they have their local TPT and proof of insurance? Those things are required over there. We don't have anything because we aren't requiring somebody just coming here for the special event to go through that procedure and get a license, because -- I'll call it a one-time thing, even though they actually covers multiple events. They're coming as part of that event, and otherwise not coming to town. So we didn't want them to have to go through that licensing procedure, because that really is directed toward somebody coming in, just wanting to set up someplace through town. There were still a few things we thought would be important to know about those vendors that were coming to be part of a special event. And we want the organizer of the special event then to get that information. So it's, again, making sure they have their state license, their fire inspection, and proof of insurance. And so that's what this particular change does in Section 8-3-5. Any questions on that amendment? MAYOR DICKEY: Vice Mayor? GRZYBOWSKI: So I'm looking at -- excuse me. My popcorn. I'm looking at one of the comment cards that we received regarding, I think, this 8-B. Actually, we just moved past that, didn't we? WESLEY: No, that's -- GRZYBOWSKI: Okay. That's on the next one. Never mind. Thank you very much for letting me test my microphone. WESLEY: Vice Mayor -- GRZYBOWSKI: So that's not this one. Which one are we -- we're on 23-10 now, right? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 47 of 80 WESLEY: We are. GRZYBOWSKI: Okay. So item 8-B is in question because it's already in place by the county. So why are we also pursuing all that? WESLEY: The idea here again, Vice Mayor, is that when we have a special event going on in town and that special event is including food trucks, we want to make sure those food trucks have their proper licenses through the state, through the county. And so this is just asking -- requiring the organizer of a special event to get -- have those vendors provide that information to them, that they have these registrations. GRZYBOWSKI: Oh. I just always -- guess I always thought that that was common knowledge and that they already did that. Okay. Thank you. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. And this one, when I was reading through these agenda items, I thought, this is a great balance because this is a tough issue. Because as someone who likes the variety of food trucks -- I mean, it's always like, oh, you know, what does that food truck have? What kind of, you know, fun taco or whatever do they have? I find an incredible interest in that. But we also don't want to give food trucks, who do not have brick and mortar presence in our town, an unfair advantage over our brick and mortar businesses. So I think we have to regulate them, but we have to delicately regulate them. Because if they're just coming in town for one event, we want to make sure we collect sales tax, but we don't need to have the business license procedure and things. But we have to make sure that our brick and mortar businesses are protected from people stealing their business, basically, with no overhead. So I think this does a great job. But Councilwoman Grzybowski mentioned the comments on this. And I don't know if, Mr. Wesley, if you have that there. But the Chamber of Commerce said that B was an issue, and so did Swette Ice Cream said B was an issue. When I read B, that's the change, right? And B does not seem objectionable to me. I wish either one of them was here to give us more information so that we can make the right call. I mean, what I see here, this seems like common sense. It protects our brick and mortar businesses -- and TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 48 of 80 we are blessed to have people come to our events. But we also have some brick and mortar businesses that have food trucks. And I know they're very profitable. It looks like Swette Ice Cream is one of them. There's also another prominent brick and mortar that has a food truck, and I think they do very well with it. And they park next to the Golden Eagle Park during events. So that's also something to think about. But I wish -- I see a light on from someone that might know something about the chamber business. So I'll be quiet. Hopefully we'll know tomorrow. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Mayor. Thank you, Councilmember Skillicorn. I didn't mean to seem impatient watching you talk, but I just wanted to make sure I had my little piece here. So I believe that the comments that we are reading, where it addresses part B, I believe they're actually speaking about the next agenda item and the B in that, which is addressing their ability to park next to parks. SKILLICORN: Okay. TOTH: When it comes to the change -- I lost it. I'm so sorry. The change that we were earlier talking about, it's on your slide, at least, the state license, pass fire inspection, and proof of insurance. That all is slightly different than what they -- just to give, also, the note about special events. That is different than what is required by the county. The county requires that a special event planner is sending the business name, contact information, and the health permit number. Now, as far as I'm aware, those items are required in order to get a health permit; does that sound correct -- WESLEY: Mayor, Councilmember -- TOTH: -- Director Wesley? WESLEY: -- I'm afraid that's not in my area to know what those requirements are, so. TOTH: That's okay. I do know that they have the fire inspection. They have to have a fire -- GRZYBOWSKI: Fire extinguisher. TOTH: Thank you. Extinguisher. My goodness. Okay. I know they have the fire extinguisher. I know they have to have the inspection. I believe they -- I know they TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 49 of 80 have to have the state license in order to get the health permit. And I believe insurance is also required in order to get the health permit. So I think the concern that Vice Mayor Grzybowski brought up is, are we being redundant with this section if that is already required at the county level? MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. Well, I thank you for answering my concern about 23-10. To address a little bit of that, that paragraph isn't all about county health inspections and county licenses. It specifically lays out TPT and such. So that is pertinent to Fountain Hills. I'm okay with it. And I'd actually like to make a motion to approve it as drafted. MAYOR DICKEY: Councilwoman? MCMAHON: I have a question, if you don't mind. MAYOR DICKEY: Yeah. MCMAHON: Betsy, the Chamber of Commerce person, she's concerned and says what the Swette Ice Cream truck won't be able to serve their youth while playing at the parks if we pass this. MAYOR DICKEY: That's the next one. MCMAHON: Oh, okay. I'm sorry. WESLEY: Actually, yes. Well, Mayor and -- MAYOR DICKEY: (Indiscernible). WESLEY: They're actually interrelated here, and I will talk about that piece in a minute. MAYOR DICKEY: Okay. Thank you. Do we have any speaker cards? Because we have a motion, and -- WESLEY: Yeah. So -- and I appreciate that. I haven't been into the section 8 or 7 yet, at all. So it depends upon where council wants to go. I do have a couple of possible tweaks to the rest of the ordinance that I would like to discuss. MAYOR DICKEY: Okay. Go ahead. WESLEY: So the rest of this ordinance does then create the new Article 8-7 for the mobile food vendors. The first section establishes the purpose. Section 2 sets some TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 50 of 80 definitions. The main ones to keep in mind here, a mobile food unit is your typical food truck that will go park somewhere and people come up to it while it's parked there and it's preparing different types of food. Here, one potential change is included in here. I got some feedback on this from Councilmember McMahon suggesting we add "or unenclosed" to the definition. So it's not just enclosed trailers. We could have on unenclosed trailers. And so if that's acceptable to the council, we would make that definition change. And then the other one is the mobile conveyance unit. Again, a fancy term again for the ice cream truck. So the difference here between the mobile food unit is the broad title for any type of food vendor, mobile food vendor. But the more specific, if you're going from place -- driving down the street and somebody flags you down to stop and give them something -- again, like the ice cream truck -- that's a mobile conveyance unit or that's the person with the bicycle or the person with the handcart, pushcart. That's a mobile conveyance unit. That's the difference, kind of. So some of the regulations later on deal with mobile conveyance units a little bit differently. Then, going on. In the definitions, another one we have in there, right-of-way. It was suggested that we add sidewalk in there. Just make that clear because there are other places where we talk about the sidewalk, but it's not mentioned here. And so it seemed reasonable to make that adjustment in the definition from what was in the packet. Moving on. Then require that the vendors provide a state license to meet those licensing requirements. Then we set up some town licensing requirements. Again, we exempt from these requirements anybody that's just coming for a special event versus somebody that's planning to operate outside those events. And so this section then lists those requirements. The license would be valid for one year. It then goes on to provide some of the process for that. And based on our current fee schedule for similar type activities, it would be a $250 fee for that one-year license. Section 5 deals with violations and revocations and how we would handle those. Section 6 then gets into the real meat of the ordinance for what people will see, and that's operational requirements. And so the food vendors need to comply with this and TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 51 of 80 comply with the fire code. There's provision there about handling trash and debris; about noise, both in terms of having loudspeakers that project any noise and also the generators associated often with these trucks; that they are maintaining good order and screened as necessary. Providing for a safe environment around the unit. If they're on town property, providing proof of insurance. And then we get into locations. So state statute, a few years ago, preempted cities and towns to some degree with regard to this type of use. That's one of the reasons that we're talking about it this evening. Legal parking spaces within the town are -- mobile food vendors can use those by right, basically, through the state. We're able to put on some regulations, such as what we're doing tonight, but we can't prohibit them from using a parking space in the right-of-way. But we can prohibit them in residential areas. So we are doing that for the mobile food unit, but still allowing the mobile conveyance units. Again, the ice cream truck driving down the residential street, that would still be allowed. And then otherwise in commercial industrial areas, in any legal parking spaces, that's where the food trucks can set up. In other locations, if you're on town property, you'd need town approval or be part of a special event. And then if you are on private property, not in the right-of- way, would require administrative permit to be issued. So we can review the setup and make sure it's not taking too many parking spaces, blocking any safety lanes or drive aisles, that type of thing. And there are also provisions about where they can park. So today a person comes in to get the administrative permit. They give us a site plan. Say, I'm going to set up at this location. Here's how I'm going to do it. If they want to set up someplace else, they'd have to come back, get another administrative permit. Once we adopt this ordinance with the criteria in the code, they can go wherever they want to on any given day as long as they meet the criteria that are listed. And so have to come back on an individual basis, so it makes it easier for them. So these criteria are in the code, up to nine hours in one location. If you're in a parallel parking space, one space; if you've got angled spaces, you can use two. Cannot use TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 52 of 80 parking spaces -- parking lot with too few spaces. Cannot conduct business in a park or adjacent street. This has an exception, though, for the mobile conveyance units. So if you are the ice cream truck, you can go to a town park for up to 30 minutes. To ballgames, just getting over, you drive up, get all the kids as they're leaving the game or you want to go down to the splash pad. But just go through there, 30 minutes, you're out, and you're not taking up a lot of the town parking lot or those types of activities. So it does have that exception already in there for up to thirty minutes. And that, again, I think, is what the comment cards were referring to. And I'm not sure if they read that section or understood there was an exception in there for them to be able to be in the park. And there's also a provision that you have to be at least 300 feet away from a special event if you're not part of the special event. Because that's been a concern. Sometimes these units set up right outside an event and they're not really part of it, and it disrupts some of the traffic flows and other things that we're trying to do. And so we want to provide some distance. Cannot really claim a specific location 50 feet from an intersection and serving window away from the traffic lanes. No additional signage. There, again, some special provisions for street or sidewalk vending. And this gets back to the mobile conveyance units driving down the street. They can stop at any spot for up to 15 minutes. If you're the pushcart operating on a sidewalk, we can expect you to mostly keep moving, but you can stop for up to 15 minutes in one spot. And so that is this ordinance. MAYOR DICKEY: Thank you. Councilwoman? TOTH: Thank you, Mayor, and thank you, Director Wesley. Could you do me a favor and go back to the slide that went over some of the suggested amendments because -- or changes. WESLEY: Ther were two, and they were in the definitions. That that's one, to add sidewalk. TOTH: Okay. Thank you. WESLEY: And right-of-way. And the mobile food unit to have unenclosed trailers TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 53 of 80 included. TOTH: Okay. Thank you. So that's very helpful to see that language again, and thank you. I know we have at least one that does utilize an unenclosed trailer. So I do very much feel as though we should make that change. I also had a concern when it came to our noise requirement. How does that affect the ice cream truck when they are allowed to drive down residential roads, being able to play the music? WESLEY: Which is -- where am I? Check and see exactly how that's written to make sure we are good with that. TOTH: Thank you so much. WESLEY: Oops, I went too far. It's hard to remember exactly where that was in the code. I was right here. Let's see here. Thank you. I think there's another one, though. There's another one that gets into that detail about the generator, and I'm reading over it, trying to find it here right now. TOTH: Oh, that's actually okay. My concern wasn't with the generator. It was just with the -- WESLEY: No, yeah. Yes. Yes, councilmember. I want to read the language -- TOTH: Sorry. WESLEY: -- to know if there was an exemption for what you're talking about here. TOTH: Thank you. WESLEY: Let's see here. Oh, here it is, right here. Okay. Okay. So yes, as written. That would prohibit the ice cream truck that does often play that little bit of music from doing so, because it says, "shall not play", and lists all those things, "whether stationary or mobile upon a right-of-way". TOTH: Thank you so much for bringing that up. So just for those keeping track at home, we have the change to include unenclosed trailers, the change to the sidewalk, one -- I'm so sorry. We'll just use your language, John. And I would also like to add as a suggestion, changing 8-7-6-E, where it would allow for, perhaps, we could say, music at a certain volume -- a certain decibel level or some way where we're still protecting TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 54 of 80 people, but we're allowing for the ice cream truck. The ice cream music is kind of fun. It's a little scary when you're watching a spooky movie and it drives by and you hear, like, light children's music outside the house. But that only happened once, so it's okay. WESLEY: Mayor, Councilmember, sort of the easy thing to do would be to add, except mobile conveyance units in here. So that would limit it to that type of activity. I'd be more challenged right now to come up with a decibel level or anything like that, particularly since other places in the code we've gotten rid of decibel limits as a measure. And having -- being able to do that we've determined is a challenge. But if the council is comfortable with it, we could just make that blanket -- MAYOR DICKEY: Could it be -- WESLEY: -- exception. MAYOR DICKEY: -- self-limiting? Because the mobile -- the conveyance ones can only be there for a certain amount of time. Is there -- they are in a residential area because they can be, right, the ice cream trucks? But could they, like, move and then move like 20 feet and then do it again for 30? Because then, I think, hearing the music might be a little -- might be something. I mean, I agree with you. I think, how are you going to know that they're there? MCMAHON: But this is a special event right? FRIEDEL: Mayor? MAYOR DICKEY: Oh, yes. Gerry. FRIEDEL: Mayor? MAYOR DICKEY: Yes, go ahead. FRIEDEL: I have a question, too, about the time limit down by the splash pad. So if these folks are in business, they've got to conduct their business within a half hour? It doesn't seem like that's enough time. And I want to get -- I want to hear what other councilmembers might have to say about that. And if that's the case, would they be able to move and then have another half hour or can we extend that half hour? It just doesn't seem like, on a hot summer day when there's kids running down by the splash pad, that that's just not quite enough time for them to do their business down at the TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 55 of 80 splash pad. So I'd like to see that extended somewhat, if we can. MAYOR DICKEY: Vice Mayor? GRZYBOWSKI: The 30-minute thing was one of the things that I had circled on my notes here. I kind of have a problem with that too. I kind of understand where the concept is coming from, and 30 minutes might be enough time. But if there's a line of kids, which could happen in the middle of August, you can't just go, hey, sorry, we're done, we hit 30 minutes, and leave. So I feel like we need to extend it somehow. Then the other thing I wanted to mention, one of the council people brought up that we need to protect our brick and mortar businesses over the food trucks. And I appreciate that concept. But food trucks are a part of business, and we actually have a number of food truck owners in town that would take exception to that particular comment. And I know that the chamber has food truck members. So I don't want to -- I don't want to make the blanket statement that we need to protect one over the other. We need to be here and make sure that they can all do business together. That being said, that would be another reason to allow them in the park areas over asking them to be on the streets, is because that would get them away from some of the other main street brick and mortar restaurants. They would have an opportunity to go hang out at the park. I don't know how anybody else feels about the 30 minutes, but I do kind of have a problem with that time constraint. MAYOR DICKEY: Councilwoman? TOTH: Ditto. A lot of my thoughts on the 30 minutes were just said, so I'll keep that part very short. I do agree that we should extend that. I also want to echo that it does keep them from therefore parking in front of a business, which has been a complaint we've received, where a restaurant says, there's a food truck in front of me all day. My other point would also be about the brick and mortar, where we do have several that are strictly -- or at least two that are strictly food trucks and don't have a brick and mortar restaurant, but they live here in Fountain Hills. So they are still our business TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 56 of 80 owners, and I do believe we should still look out for them. And I am always for less government oversight over more. So I would really like to just keep that in mind as we're amending this. WESLEY: Mayor, if I may? The state statutes specifically were written so that they can't limit where the food truck can go in front of another restaurant or anything like that. If it's a public parking space, they can go there. That's already protected through the state statute. And one other thing, if you don't mind, real quick. On this one, we're talking about for the 30 minutes in the park, that exception is just for the mobile conveyance units. It's not for the other more permanent food trucks to set up business. MCMAHON: Quickly, where's the time constraint? I can't find it right now. Which section of the -- oh. WESLEY: For that 30 minutes? MCMAHON: Yep. WESLEY: It's in 8-7-6-I -- whoops, I-5. MCMAHON: Thank you. WESLEY: So this 30 minutes was a little bit of a negotiation with our parks folks. So I don't know if Kevin really wants to come up and talk about it or not, as you're talking about extending the time, but I'll give him that opportunity if he wants to. MCMAHON: Councilwoman? Hannah, did you have one? TOTH: I'll let Kevin take it for now. MAYOR DICKEY: I think that (indiscernible). SNIPES: Mayor and Council, so a couple of things that make this a particularly tough question to try and find the right way to go. One is the size of our parking lots and our parks, and trying to get people into them, and then having a truck parked in there serving food takes up at least two spots, if not three or four. And then you have lines of kids that are now in the parking lot, standing out, potentially out into the area where cars are now driving. And so we're adding some risk into this as well. The other thing, as we talk about having them there instead of in front of a brick and TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 57 of 80 mortar, at Fountain Park, for example, we do have a yogurt place that I'm sure would rather not have the ice cream trucks come in. That doesn't mean that one is better or worse than the other; it just now competition is driving into their backyard, so to speak. And then, as far as when we start looking at the times of how long that we're allowing them to be there, so if they're there for an hour and now you have a line, then does it make it okay to be there an hour, two hours, three hours? However, that is at any given time, there could be a group of kids that decide to come over to the food truck. And so how do you -- how do you make that decision? I mean, I'm open to any other thoughts or suggestions for that. But that's what makes it very difficult to make this decision, I think. TOTH: Thank you for coming up without notice. My question would be, do we have a significant number of examples, like, if that was a Little League tournament or whatever it might have been, of the food truck causing an issue when it came to parking in our parks? SNIPES: I would say that that would be a significant issue any weekend when the splash pad's open, the playgrounds are being used. We have pretty full parking lots. Any time we have tournaments, all three of the parking lots at Golden Eagle are full to relatively full. Just with the tournament users, you're talking having eight teams plus eight more teams that are waiting to come into play in that transition time. So you're talking a whole lot of cars. And why we allow parking on the street on Golden Eagle is because there's not nearly enough parking to handle the tournaments. TOTH: I do completely see your point on Golden Eagle. I remember the Little League days, Dad all mad trying to find a parking spot, you know? I think my main concern and -- I have two main concerns. One is when we say that we are just accepting mobile conveyance, that basically means ice cream truck or, like, a snack, not -- okay. Can you help me with what conveyance means? SNIPES: That's the type of vehicle. So that could be anything that's in a self-contained unit, correct? That's not a trailer. TOTH: Okay. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 58 of 80 WESLEY: Mayor, Councilmember. So yes, the mobile conveyance units are by definition supposed to be moving from place to place and not stay more than 15 minutes, typically, at any one place, although 30 minutes in the park is already an expansion of the typical 30-minute time frame. They could stop if they were just driving down the street. But they aren't really setting up shop like the other food trucks do. TOTH: Thank you. Okay. So that quells my one concern. And thank you. I do still want to advocate for increasing that time only because if we're already going to be letting them there for 30 minutes, we might as well give them the opportunity to hit that crowd. And I do think 30 minutes is cutting it a little bit close. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. Just really quickly, a couple of thoughts. But yeah, parking a food truck in front of a brick and mortar restaurant or an ice cream truck in front of an ice cream store really, really bothers me. And I know there are state statutes covering this. But the people that are sponsoring the event, running the event, I have absolute confidence in their good judgment that they would avoid putting -- and especially, in our temporary -- like, there are weekend festivals and stuff, that they wouldn't put a food truck in front of a restaurant. And so I think sometimes you just have to have a leap of faith. That said, you know, there are intelligent people making these decisions, and they wouldn't do that. So that's what -- I think, it fixes itself just with a little bit of common sense. And then the other thing I'd like to do is just move to approve with the amendment of the 45 minutes instead of the 30 minutes. SNIPES: Mayor, councilmember, just to clarify. So this is not about an event going on. This is day-to-day. So this could be anybody coming in at any time, not an event organizer or the town making a choice. KALIVIANAKIS: Yeah, we're kind of doing two agenda items at once, and we're all kind of taking a bite at the apple. So I just wanted to get at it, like everybody else did. MAYOR DICKEY: Can I just see if we have any cards? Because once we make a motion, I'm not supposed to take cards. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 59 of 80 MENDENHALL: Mayor, we just have the cards that are in your packet -- MAYOR DICKEY: Okay. MENDENHALL: -- and that's it. Nobody has requested to speak on this item. MAYOR DICKEY: Okay. So we have a motion to approve as presented, except for making the 30 minutes 45 minutes, correct? KALIVIANAKIS: That's correct. MAYOR DICKEY: Okay. Do we have a second? TOTH: I -- sorry. Am I allowed to ask a question before I second? Does this also include the other amendments, the unenclosed trailer and the sidewalk amendment? MAYOR DICKEY: Yeah. TOTH: Okay. Then second. MCMAHON: That's what I was -- MAYOR DICKEY: It doesn't include the water -- I mean the music, though. TOTH: Oh, right. MAYOR DICKEY: So wait. So let's -- we have a motion on the floor. Do we have a second? MCMAHON: Yes. MAYOR DICKEY: Okay. So we have a second. Now, if you want to amend that, you can, if you want to add the music thing. But I don't know, like, the parameters of it -- but, you know. TOTH: So we would then vote on my motion to amend? I understand. Thank you, Mayor. Motion to amend to also include -- GRZYBOWSKI: An exception -- TOTH: -- an exception for -- GRZYBOWSKI: -- for conveyance units under the loudspeaker. TOTH: What Vice Mayor said and for mobile conveyance units under the 8-7-6-E for noise. MAYOR DICKEY: Very good. So we have an amendment. And do you want it -- do you want to discuss it? Oh, you have an amendment. Wait -- TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 60 of 80 SKILLICORN: Second the amendment. MAYOR DICKEY: Oh, okay. All right. So we could vote on the music, and then we can vote on the whole shebang. So let's take a roll call on the amendment, please. MCMAHON: Let's have some music. MENDENHALL: Okay. [Singing]. No, I'm kidding. Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Pro-music. Yes. 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. Any further discussion on the main motion before we take a roll call on that? All right. It's just changed the 30, and everything else is the same. All right. Roll call, please. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Yes. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 61 of 80 MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Vice Mayor Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. So now we've already talked about this next one, right? WESLEY: For the most part -- MAYOR DICKEY: But go on. WESLEY: -- a few tweaks and the additional part in 12-3-8. So I'll just jump into it, if that's okay, Mayor. So we're proposing two changes to section 12-3 of the town code dealing with parking, one dealing with the mobile food vendors and other inoperable vehicles. So what's being proposed in 12-3-3 is to add two sections, a B and a C, to cover the mobile food vendors. So B, deals with parks and mirrors some of the language that we just talked about in the mobile food vendor ordinance. But, as was pointed out, it does not include the same exception for mobile conveyance units in parks that was brought to my attention earlier. So my proposal here is that we insert the language that I have added at the bottom and close to the end of that phrase there. So that it would refer them to, now, the 45-minute exception in the food vendor ordinance that would allow them to be in the parks or adjacent street. So that keeps us consistent and hopefully does what what the concern -- or addresses the concern. And then for special events, again, this just mirrors what was in the code saying that you can't be within 300 feet of a special event. And the other change that's being included, based on some situations we've experienced recently, our code currently talks about abandoned vehicles in right-of- ways and not being allowed to stay. But sometimes it can be difficult to determine if a vehicle's abandoned. A little bit easier to determine it's inoperable. It doesn't have TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 62 of 80 valid tags, it's got flat tires, whatever, so it can't move. And so this gives us a little bit more flexibility and ability to address those types of vehicles by also making them illegal in the right-of-way. And so this provides a definition. In addition to the civil citation, lets us use other means in the code, which could give us to the opportunity to tow a vehicle. And then what's in here as B is the piece that's in the code today that we're amending. Any questions on this one? MAYOR DICKEY: (Indiscernible)? MENDENHALL: No, Mayor, we don't have any cards. The ones that are in the packet, I believe, address both 9 and C. MAYOR DICKEY: Thank you. WESLEY: Yes. MAYOR DICKEY: Councilwoman? MCMAHON: I will make a motion to adopt ordinance 23-14. KALIVIANAKIS: Second. MAYOR DICKEY: Thank you. Any further discussion? I just want to mention that we did notify the businesses, so -- and we got those comments back. But basically, it didn't seem like there's too much opposition, so. All right. Roll call, please? MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? TOTH: I'm so sorry. Can I ask a question? MAYOR DICKEY: Sure. TOTH: Thank you. That includes John's suggestion to say except -- okay. Aye. MENDENHALL: Councilmember Friedel? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 63 of 80 FRIEDEL: Aye. MENDENHALL: Vice Mayor Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you all. I appreciate it. The next item is ordnance re having to do with vice mayor. Rachael, do you want to introduce, please? GOODWIN: Sure. This is an item that was requested by Councilmember Skillicorn to amend our rules of procedure and how we designate the vice mayor, as well as some changes to the administrative process and the scope of the vice mayor role. MAYOR DICKEY: Thank you. SKILLICORN: Thank you, Madam Mayor. Yeah. This is just a simple update to rolls. I think one of the comment cards that was actually against it mentioned that the current process is equitable. That's actually what I'm trying to avoid, is that it should be about merit, not equity. We want someone to do the job, not just to be a figurehead in the role of vice mayor. I remember going to many events, and someone else had to go back to the town hall and pick up a fountain pen or something because the vice mayor wasn't there. So I want someone to do the job. But also if for some reason -- if the President gives our mayor a call and wants to move our mayor up to something in Washington, DC, we have someone ready to go that can do the job to adequately represent the town. I think that's important. And also, I think that there's definitely been some agenda items that we've been waiting a long, long, long time for. I think that that's an important part of the procedure of the vice mayor and mayor to have a compromise of what's on the agenda. And I think that's how a diplomatic and democratic system should work. MCMAHON: Which section are we addressing? Are we addressing both at once, or are we going to separate them? MAYOR DICKEY: Well, we have a -- we have, basically it could be two motions, a motion to approve or deny ordinance 23-17 and a motion to approve or deny resolution. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 64 of 80 MCMAHON: Okay. MAYOR DICKEY: So you can take whichever one you like first. MCMAHON: We can just keep it as one. I've served as vice mayor, and it's an honor to do so. And it's an honor when Mayor Dickey asked me to stand in her place when she was unable to stand. I realized, as Sharron does, you're titled with vice mayor, but you also know, per the the Arizona statute, that you absolutely have no powers until a condition precedent happens. And it's a legal condition precedent. And you only have powers as a vice mayor, if you want to even call it powers, is if and when the mayor is unable to act, period. It's Arizona statute. It's what every city and town follows. So in essence, the mayor is not in being until that condition precedent happens. So how can you, arbitrarily, give the vice mayor, who has no power, power to coauthor or approve the mayor's agenda selections? It doesn't make any sense from my point of view. I think it's a power grab. I think that your comment about it's taken forever to get items on the agenda is misplaced, because as you -- we all -- look at this agenda. There are a lot of items on it. There's a lot of items coming up. And it's not because the mayor personally doesn't want them on the agenda at a certain time or space. It's because there are so much that the staff is doing and that we're looking at, we can't just dogpile and not have adequate discussions about them. So I disagree with you. I think this is a power play, and I don't think it's appropriate. And I would really also hate to see a change in our unique way that the vice mayor is selected and rotated. I look at you, I look at Brenda, and I look at Councilmember Toth, and I think it's really important, after serving for three years as a councilmember, that each of you have the opportunity to work with the mayor and stand in her stead in case she is unable to do so and when she asks you to do so. And to think that it is unequitable, I just don't understand that way of thinking at all. So I am not at all for any of these changes that you're proposing. Thank you. MAYOR DICKEY: Councilwoman Kalivianakis? KALIVIANAKIS: Thank you, Ms. Mayor. I'm a person that appreciates out-of-the-box TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 65 of 80 thinking, and this is certainly out-of-the-box thinking. Our country was founded on checks and balances, and that's very important to our system. Generally, it's the three branches of government checking each other, and in this case, it's a variant of that. In constitutional governments, there should be checks and balances. That's good public policy. If you go back in history, the Greek historian Polybius wrote about the Roman Empire, and they had three divisions there. The first was the monarchy or the council. The second was the aristocracy, the Senate, and they held the money. And then third was the democracy, the people. The people held the power because if they didn't like -- if they were starving, they could riot. They could hold the government responsible and have civil disrespect. So if you fast-forward to the framers of the Constitution, they also respected those principles, too. They took guidance from Montesquieu, William Blackstone, and they implemented the checks and balances policies into our government that we enjoy today. And so in the 30,000-foot overview, I think it probably makes for good policy. In this case, however, I think the system has been running pretty well. Whenever -- anything we addressed this several -- I think, several times earlier. Now we're putting things on the agenda at the end of our meetings. I'm very happy with that procedure and everything that I think we've been wanting. I don't know what we're waiting for to be agendized, but I think everything's been on the agenda. And then my second concern over this ordinance is, is it legal? Is it something that we can do? I did my own research. I talked to Aaron, our town attorney, and I think it could be questionable whether this is legal to grant and delegate authority to somebody that's covered by a state statute. And as Councilwoman McMahon said, it is covered by a statute that there are no duties, but for when this person is filling in for the honorable mayor. And so that's why I see, there's some problems with it. I appreciate the out-of- the-box thinking, but I'm not sure if this is the right time to go down this road. MAYOR DICKEY: Vice Mayor? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 66 of 80 GRZYBOWSKI: While neither one of these -- well, one's an ordinance and one's a resolution. While neither one of these things are recommended by the staff -- the second one because of state statute -- the first one, where the vice mayor can be voted on and removed by council, honestly, it could easily be turned into a pissing match between council people, and it can be changed a number of times through the year, wasting valuable council time. The U.S. House was at a standstill for three weeks waiting on their new majority leader. This leads to backroom deals and will be unfair to our voters and potential business owners or landowners that are looking for zoning changes or other issues that may require our attention. Just like I do not believe that we, as a governing body, should be governing ourselves, I do not believe that we should either be giving ourselves a raise or changing our job description. Doing so gives the perception of deceit and a selfish grab of power. If this is something that the council truly wants to do, my suggestion would be that none of the seated members on the council should be able to benefit from this. So it would be a future effective December 2026 kind of thing. That would be my suggestion, if we're considering this at all. It should not impact anybody that's currently seated and voting on it. Thank you. MAYOR DICKEY: Councilwoman? TOTH: I do want to bring up, just for those who haven't read the staff summary or those that are listening here, the second item, which is the resolution, it does say that because of A.R.S. 9-23-6, that state law says that the vice mayor acts only in the absence of the mayor. So that's what we're talking about when the other council members have mentioned that. That second portion is -- it's not viable with state statute. And because of that, it does kind of make the first one, the ordinance, moot. Thank you. And that's pretty much what I had to say. Thank you. MAYOR DICKEY: Gerry, did you have any comments? FRIEDEL: Yes. Having seen that summary that says it's not really followed by law -- and I TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 67 of 80 don't think it helps move the town forward. I like the traditional effort that we've had with the vice mayor role going back many, many years in this town. So I would not -- I would not be in favor of it. MAYOR DICKEY: Thank you, Gerry. Oh, council -- I was going to say, if we have any speaker cards. Do we have any speaker cards? MENDENHALL: Yes, Mayor, we do. First in your packet, we have written comments, 20 people. And then we had a person, in person, want a comment written, and all of them are opposed to the idea. And then we do have people in person who'd like to speak on this issue. And our first will be Pam Cap (ph.), followed by Matthew Corrigan. CAP: Good evening, Madam Mayor, Councilmembers. My name is Pam Cap. I've resided here seven years now. When we have a council with a majority block -- uh-oh -- a majority block that refuses to listen to its people, they write legislation that benefits them themselves, not their constituents, like the way the ethics violation complaint procedure was changed. Nothing was wrong with the ordinance. The only problem was more citizens were filing complaints. So the answer was to change the ordinance to make it more difficult to file a complaint against an elected official. It benefits the politician, not the people. Just like we have here regarding the vice mayor. First, let's ask what's wrong with the process? Right now, each councilmember gets a chance at vice mayor based on the final vote tally of their election. Councilmember McMahon handed her vice mayor off to Councilmember Grzybowski, and she will hand hers off to Councilmember Friedel, then Councilmembers Kalivianakis, Toth, and lastly, Skillicorn. Having a voting block, just like we have now, can control that seat just by voting repeatedly for the same councilmember or party. This would block others from voting -- from taking this position. Now, why control the seat that essentially is a procedural courtesy and provides for the vice mayor to step in only in the mayor's absence? Skillicorn's amendment includes just that. Skillicorn wants the vice mayor to have the final say on the agenda. According to TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 68 of 80 the way Skillicorn wrote the procedure, now the mayor must set the agenda with the consent of the vice mayor. Talk about power grab. I ask that this council reject this amendment and consider that the division and chaos this will create. Right now, we are divided because of the bond defeat and national politics. Please bring us together. This amendment is overreach at its finest by Councilmember Skillicorn. It's a way to play games with what will go on the agenda, and it's a title he should have to wait for, like everyone else has before. So I ask you, please vote no. Thank you. CORRIGAN: Madam Mayor, Councilmembers. Matthew Corrigan, homeowner, full-time resident of Fountain Hills. In making decisions, I try to always use an analytical approach. So I attempt to make an honest research of the issue or topic -- that's the first thing -- and make a physical or mental note of those issues. Councilmember, did you have a question? Okay. I consider priorities. Is there an urgency? What is the cost of action or inaction? In the case of our Fountain Hills town government, is there a consensus from the people? What do property owners, residents, and business owners want? Maybe most important in all of these other considerations, is there a compelling need for action, and is it needed now? I have looked at all of this. And in regard to Councilmember Skillicorn's ordinance 23-17, and in my opinion, it seems to lack that compelling need for immediate action. While I commend and appreciate Councilmember Skillicorn's desire to improve town government and the council, it might be more productive to add this issue after the August 6th, 2024 election so that the council, at that time, is able to be involved in the decision-making process in regard to the office of vice mayor. Thank you. MAYOR DICKEY: Okay. Are there any -- any other -- MENDENHALL: One more. MAYOR DICKEY: Oh, I'm sorry. MENDENHALL: Gene Slechta. MAYOR DICKEY: Sorry about that. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 69 of 80 SLECHTA: Thank you, Mayor, Town Council. I also do not support this agenda item 9-E, modifying the process to select a vice mayor. It's a proposal that's a waste of time. It's a waste of resources, staff, and other resources. It does not make any sense. The current process has been in place for a very long time, as long as I can remember. I've been here 28 years. There has never been voiced objections to the process, because it works and it's fair. So don't screw it up by adding a political step that can only increase the divisiveness that a few try so hard to accomplish. I have yet to meet a citizen here in town that's ever said to me, you know, I think the council should elect the vice mayor. Let's vote no on this. Let's go work on real issues, roads, finances. We shouldn't be wasting our time on this. Every time a council member creates a frivolous agenda item, and this is a perfect example, it unleashes a significant need for town resources and a waste of valuable time for elected officials and volunteers. So vote no. Stop wasting resources to make a splash in the media. Thank you. MENDENHALL: Now we're finished with public comment on this item. MAYOR DICKEY: Thank you so much. Councilman? SKILLICORN: Thank you, Madam Mayor. I kind of like facts, so I want to point out, on August 22nd, Councilmember Friedel made a request for agenda item for inspections in group homes; we've yet to see that agenda item. On August 22nd, I also made a request for insurance on group homes. After I made that request, I actually drafted the ordinance myself. I used Phoenix's example, has passed their muster, and submitted it. So that that has actually been done. We're still waiting. In September, a group of citizens approached me and asked me to do the same thing about Councilmember Friedel's request. So I requested in September for the inspections to be added to the agenda and to follow up. I drafted that ordinance myself. Again, I used Phoenix's and Glendale's ordinance as an example, and we're still waiting. And I think it's a pretty good reason why the powers should be that it should be the consent of the vice mayor, because it really should be a compromise. If the mayor TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 70 of 80 wants something and the majority that elected the vice mayor want something, they should work it out. And there should be a compromise, a give-and-take there. And I think that's how democracy and diplomacy works. Currently, we don't have that. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Madam Mayor. And thank you, Councilmember Skillicorn. I do think we need to address those agenda items. However, with this resolution being not statutorily permissible, meaning that the vice mayor acts only in the absence of the mayor, I'm concerned if this would not have the effect that appears to be the goal. SKILLICORN: Madam Mayor, I want to comment on that, is that counsel gives us advice. Counsel does not craft policy for the council, and it's still our determination if we accept that advice or not. Counsel is on retainer from us, and we can make our own decisions based on what we read. And having a phone call conversation about a compromise on agenda item is not in violation of state law. MAYOR DICKEY: So obviously, I'm not enamored with this. I think that the idea that I haven't put stuff on the agenda is pretty much 100 percent false. I think this is a pretty good example that I put everything on the agenda that I can in a timely manner. Those items you talked about, first of all, yes, he did request -- Councilman requested group home thing, and it's on the next agenda. And when you redid it, that didn't change a thing. It was already planned. But as you pointed out, and as everybody sees, these agendas are full, and they will be ready when they're ready. That's just the fact of life. So I've not said no to anything. When you get support for things, most of the times I'll put it on. But you know, will somebody pick up a phone and ask me about something? Not very many of you. A couple of you will, thank you. So this is -- the fact that this is on an agenda proves I put anything on an agenda. And the fact that we have counsel, who are attorney, telling us what is legal and what isn't is exactly why we need that. We're not legal attorneys. We don't have engineering degrees. We've been through this a million times. So anyway, I am not in favor of this. And I love the rotations, obviously. I think it's TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 71 of 80 great. It hasn't just been for ribbon cuttings. It's been for lunches and for meetings. I copy the vice mayor on the emails that I get, because I get a ton of emails. And so like Sharron's been graced with getting a lot of the insight. You had it, and whoever's next will do that also. And it's great. It's another perspective. And I think it's a really good system, and everybody does get the chance to do it for, like, eight months or whatever it is. So I am not in favor of changing it either. Yes. Vice Mayor? GRZYBOWSKI: I'm ready to make a motion to deny. Do we want to do these separate? MCMAHON: Do them both at the same. Well, he can do it separate -- MAYOR DICKEY: I think we can do it at the same time. GRZYBOWSKI: Okay. I would like to make a motion to deny both ordinance 23-17 and deny resolution 2023-39. MCMAHON: Second. MAYOR DICKEY: Thank you. Can we get a roll call, please? And "aye" means denying. GRZYBOWSKI: Thank you. MENDENHALL: Councilmember Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Friedel? MCMAHON: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: No. MENDENHALL: Vice Mayor Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 72 of 80 Moving on to the two-way radio equipment maintenance with the City of Mesa. And and then we have another item related quite right after that. So we'll have the chief come up here and do those for us. OTT: Good evening. Welcome back. MAYOR DICKEY: Still here? OTT: Oh, yeah. MAYOR DICKEY: You snuck out out of here. OTT: Hopefully, I'll be giddy until I retire in a couple of years. But it truly is a passion, and I do appreciate that. So I think the item is the maintenance agreement with the City of Mesa. And it's really more of a formality. Ordinarily, probably would not have brought something of this level to the council for approval. But just so that we've got kind of transparency that Mesa is a big supporter of ours moving forward with this. They've got the technology and the personnel to be able to back us up and provide another level of service to us as far as the two-way radio communication goes. That includes working on portable two-way radios, the two-way radios that are part of the -- in the fire trucks, as well as the station package and the radios that are part of that. So their cost per hour is a little bit less, and probably the availability of their technicians is a little bit better than what Motorola provides for us. It doesn't mean that from time to time we won't be going to Motorola to do some services on the portable radios. But if there's any questions, I would be happy to answer that. It really just establishes the fact that we allow them to come into the town buildings and work on the town property, as well as establishing a hourly rate -- competitive hourly rate, I might say. MAYOR DICKEY: Do you have any comment cards? MENDENHALL: Yes, Mayor, we do. But they're all written comments. We had 16 prior to the meeting submitted and then one here at the meeting. All of them are for this contract, but none of them wish to speak on it. MAYOR DICKEY: Thank you. Councilwoman? KALIVIANAKIS: I'd like to move to approve the two-way radio equipment maintenance TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 73 of 80 agreement with the City of Mesa. MCMAHON: Second. FRIEDEL: Second. MAYOR DICKEY: Two seconds. Could we get a roll call, please? MENDENHALL: Yes. Councilmember McMahon? MCMAHON: Aye. 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: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. You're still on. OTT: Thank you. If I could roll right into the next item? At one of the retreats, I think I kind of had the whole -- it was a couple of bubbles that kind of showed the interaction between the MRDC, the TRWC; it's a little bit of the chicken before the egg. The TRWC is the TOPAZ Regional Wireless Co-op. And I think the easiest way that we've talked about it in the past would be that MRDC is the well where the water is at, the TRWC is the piping, and that gets that water going to where it needs to be. So the MRDC portion of it is the dispatch, with the 911 operators, the call takers, the dispatchers in there. And the TRWC actually owns the infrastructure that the calls go out over. So there's a little bit of dispersion between the cost, where we'll pay Mesa Regional Dispatch for the time that it takes to dispatch the call, and that's on a per-call basis. The TRWC will end up paying them for the air time that it takes. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 74 of 80 So if we have a short call, we pay less airtime. But if we've got a long, involved incident, that airtime will be a little bit longer. We're estimating the cost for the maintenance -- again, the TRWC kind of pulls a few more things into that, but we're pretty much talking about not to exceed 20 to to $22,000 annually as part of our dispatch. We'd figured that into the original budget on what it was going to take to go to the regional dispatch system. It's really just the other part of it, and you can't really have one without the other one. There was some discussion early on in the process, do we become a member of TRWC first and then wait for Mesa Regional Dispatch. The general consensus between the members of TOPAZ, which are the seven other departments in this area that are dispatched through Mesa, was that they would accept our application for inclusion in it. And then, at the point we were approved by MRDC, then they would vote us in. And we also end up with a membership in that board as well, so we'll be able to represent our interest. We are a little bit smaller than the Phoenix -- their RWC, Regional Wireless Consortium. There's 20-some members on the Phoenix side; we're one of the 7 on this side of the Valley. So the TRWC is a better fit for us, and it's really the maintenance, the projected use, and projected growth of the system all ends up being taken care of by the TRWC. MAYOR DICKEY: Any questions? TOTH: I'd just like to move to approve the IG with TOPAZ Regional Wireless Co- operative. FRIEDEL: Second. MAYOR DICKEY: You can comment after a motion, but I didn't -- yeah. But we -- and I think we have some written comments, right? MENDENHALL: We do have written comment cards that are in your packet, and one person wanted to comment in writing as well. And they're all in favor of this contract. So it's a total of 17. MAYOR DICKEY: Thank you. We have a motion and -- oh, and a mosquito. A motion and a second, and could we have a roll call, please? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 75 of 80 MENDENHALL: Yes. 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: Aney. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thanks so much. Appreciate it. OTT: Thank you. MAYOR DICKEY: Thank you, Dave. I guess I could have moved that up. I didn't think of it. Our next item is our calendar. And when we approve, then we'll get the calendar items. And is this Rachael or Linda? GOODWIN: Linda. MENDENHALL: Okay. Before you, you see our proposed calendar for the 2024 council meeting year. The first meeting normally and traditionally is January 3rd, which would be January 2nd. But we're moving those meetings after a holiday to that Wednesday. So we're not recommending that meeting. That's just too difficult for staff to turn around and get a meeting going. So we're proposing that that not happen. And then we have all of the meetings after -- as I said before, that fall after a holiday would be on that Wednesday. So that first meeting in 2024 would be on January 17th. So that's a Wednesday. And so we also take into account certain types of -- your summer break. We TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 76 of 80 traditionally take that from June the 19th through August 13th, which our first meeting would be on August 20th. We need to have it by that date to canvass the election. We would just hold a regular meeting. That doesn't need to be a special meeting. And that's really it. MAYOR DICKEY: Thank you. MENDENHALL: And then -- oh, on this one also, one of our meetings -- well, it would fall on Election Day for the general election, and that's -- we've recommended no meeting on that day. MAYOR DICKEY: Thank you. MENDENHALL: Does anyone have any questions about the calendar? KALIVIANAKIS: Which date did you just refer to also? MENDENHALL: November 5th. That is a Tuesday, and that's the general election. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. I was actually going to make a motion to just cancel the Wednesday meetings. I kind of think we could do the work without those three. But once we take it off the calendar, it makes it harder to put it on. But I kind of would like maybe an understanding that if it's not needed, we would cancel. You know, the unusual day, I think, is a detriment to the town. And people think, oh, first and third Tuesday. So I would suggest let's keep them in writing on there. But maybe I can understand -- I would think that we could get the work done without those three days. I'm curious what anyone else thinks. MAYOR DICKEY: So you would say you don't want to have a January 17th meeting and then we would have no meetings in January? And then you don't want to have February 21 and you don't want to have -- there's another one somewhere. MENDENHALL: It should be the Labor Day. MAYOR DICKEY: Yeah, Labor Day. MENDENHALL: The 9/4 meeting. MAYOR DICKEY: Right. SKILLICORN: Well, I would suggest leaving them on because it's difficult to schedule a TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 77 of 80 meeting. But maybe the understanding that, if we could work hard, we could do without that meeting. MAYOR DICKEY: Well, just so let's just vote on this as is. Do we have any other comments or questions and -- MENDENHALL: No speaker cards. MAYOR DICKEY: -- keep that in mind? Brenda, sorry. KALIVIANAKIS: Thank you, Ms. Mayor. This has really taken me by surprise because I think I've talked to you, Rachael, and I think you, Ms. Mayor, about the meeting being on January 3rd. And it's just I'm surprised that we're removing that. I think that we could maybe limit the the number of agenda items and make it a lighter meeting. But I just hate to only meet -- we have the whole Christmas break off. The next meeting is January 17th. And to conduct no town business for that long a period of time, I find that unsettling. MAYOR DICKEY: Well, we don't have a Christmas break. We're meeting on the 19th, correct? GOODWIN: Correct. I think that's -- and actually, that was a change to this year's calendar, as generally there's only one meeting in December, the first meeting in December, with the second meeting being postponed, and then resuming after the holiday and we're coming back in January. After some discussion at the staff level as well as with the mayor, it's more difficult to get contracts and items approved and reviewed during the Christmas window in order to have them prepped and ready for that agenda on the 3rd. It's actually more beneficial and it's more effective for us to do that second meeting in December and try to complete as much business leading up to the break, versus trying to come back quickly afterwards. It also affects -- it's often -- there's often a lot of leave during that time, vacations and whatnot, not just for the staff but for our vendors and other people that we rely on to get those details back, whether they're -- again, they're contracts or other things. So there was a logistics discussion there, and it's reflected actually in next year's calendar as well by adding that second TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 78 of 80 meeting in December back to the schedule. MAYOR DICKEY: I think those will be decided on what those days fall on. I mean, if the Christmas is the Wednesday and the 24th and we wouldn't have a meeting then, and if the first meeting in January is the 7th, then we probably would have that meeting. So this would literally mean agenda prep between Christmas and New Year's. So that's why we took that one off. KALIVIANAKIS: Okay. Thank you for the explanation. MAYOR DICKEY: And the only other thing I would say is, after on the 20th of August, we would not just have a meeting to canvass; it would just be a regular meeting, our first meeting for the -- for after the summer break. So I would suggest making that change. MENDENHALL: Correct. MAYOR DICKEY: All right. Any other comments? Did we have any speaker cards on -- MENDENHALL: No speaker cards. MAYOR DICKEY: All right. GRZYBOWSKI: I was just going to move to approve as written. MCMAHON: Yes, please. MCMAHON: Second. MAYOR DICKEY: All right. 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? TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 79 of 80 GRZYBOWSKI: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our next item, we did have some people speak about the Garden and Park Place, water mitigation. So I think that's going to be something that we'll see. There were other items that were brought up that I didn't jot down in time. So -- but that's -- was there anything that you all heard from people -- speakers that that need to be brought back? Okay. Our next item is future agenda items. Councilman? SKILLICORN: Madam Mayor, there's two items that I'd like -- I would like to add the wireless contract that a -- agenda item, to send it to planning and zoning, so it's transparent. And also, I would like to have an agenda item on the storage lots, how we're going to use utilize those. MAYOR DICKEY: I'm sorry. I don't understand. The first one, you want us to agendize that we're sending something to P&Z? SKILLICORN: I want an up or down vote about sending the the work products to planning and zoning, so planning and zoning can work on it transparently, in front of the people, instead of being behind closed doors in secret. MAYOR DICKEY: It was not a secret. And we don't look at something before we send it to planning and zoning. They look at it and they send it to us. Does he have support for this item? MCMAHON: No. It's backwards. MAYOR DICKEY: We are doing it, and you know that we're doing it. We just have to do it properly. The other item you want to see -- you want to talk about our historic sites? SKILLICORN: Storage lots. MAYOR DICKEY: Lots? SKILLICORN: The storage lots where we have -- MCMAHON: Storage. TOWN OF FOUNTAIN HILLS NOVEMBER 21, 2023 REGULAR MEETING MINUTES Page 80 of 80 MAYOR DICKEY: Oh, storage. SKILLICORN: -- construction debris. MAYOR DICKEY: All right. Well, I'm assuming we're going to do -- you mean the storage lots that people talked about on -- SKILLICORN: Yeah. The (indiscernible) comment and -- MAYOR DICKEY: Okay. And you know, we already did discuss this at length, but does anybody want to support that? MCMAHON: No. TOTH: Sorry, Mayor. I just had a question. I believe when we last discussed it, we did ask Mr. Weldy to explore alternatives. Were we already planning on an update on that in the future? MAYOR DICKEY: Yeah. We were -- yes. And we talked about hiding it and landscaping and things like that too. So yes. But we'll bring it back when you're ready. Right? Okay. WELDY: We don't have a date for that yet, Mayor. We're working on some solutions. MAYOR DICKEY: All right. Thank you. Anything else? Thank you. We're adjourned. Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on November 21, 2023, at 8:48 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 21st day of November 2023. I further certify that the meeting was duly called and that a quorum was present. DATED this 19th Day of December 2023. _____________________________ Linda G. Mendenhall, Town Clerk ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 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 VFW Post 7507 for a MINI beer garden at the Fountain Hills Spring Festival, Feb. 23 - 25, 2024. Staff Summary (Background) The purpose of this item is to obtain the Council's approval regarding the Special Event Liquor License application submitted by Rich Harrington, representing the VFW Post 7507, submission to the Arizona Department of Liquor. The applicant and VFW Post 7507 are keenly aware that the final issuance of a liquor license, as well as approval to hold the MINI beer garden at the Fountain Hills Spring Festival, Feb. 23 through 25, 2024, 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 N/A Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to approve the special event liquor license. Attachments G:\SPECIAL EVENTS\Special Events\Liquor Apps\2024  Form Review Inbox Reviewed By Date Finance Director David Pock 12/04/2023 04:11 PM Town Attorney Aaron D. Arnson 12/04/2023 04:29 PM Town Manager Rachael Goodwin 12/07/2023 01:45 PM Form Started By: Ryan Preston Started On: 11/29/2023 05:24 PM Final Approval Date: 12/07/2023  ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Community Services Prepared by: Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of a Special Event Liquor License application for VFW Post 7507 for a MAIN beer garden at the Fountain Hills Spring Festival, Feb. 23 - 25, 2024. Staff Summary (Background) The purpose of this item is to obtain the Council's approval regarding the Special Event Liquor License application submitted by Rich Harrington, representing the VFW Post 7507, submission to the Arizona Department of Liquor. The applicant and VFW Post 7507 are keenly aware that the final issuance of a liquor license, as well as approval to hold the MAIN beer garden at the Fountain Hills Spring Festival, Feb. 23 through 25, 2024, 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 N/A Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Staff recommends approval. SUGGESTED MOTION MOVE to approve the special event liquor license. Attachments G:\SPECIAL EVENTS\Special Events\Liquor Apps\2024  Form Review Inbox Reviewed By Date Finance Director David Pock 12/04/2023 04:11 PM Town Attorney Aaron D. Arnson 12/04/2023 04:29 PM Town Manager Rachael Goodwin 12/07/2023 01:45 PM Form Started By: Ryan Preston Started On: 11/29/2023 05:35 PM Final Approval Date: 12/07/2023  ITEM 8. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: David Pock, Finance Director Staff Contact Information: David Pock, Finance Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-43 approving the Intergovernmental Agreement with the Arizona Department of Revenue relating to the administration of transaction privilege tax. Staff Summary (background) This intergovernmental agreement (the 2023 IGA) was negotiated with the Department of Revenue (DOR) and Attorney General’s office by the City Tax Administrators Council (CTAC) Rulings Group, which includes the League of Arizona Cities and Towns, and with the assistance of several city attorneys and a multitude of tax and IT experts from many municipalities.   Local Transaction Privilege Tax (TPT) administration is governed by A.R.S. § 42-6001. This statute requires the Arizona Department of Revenue (DOR) to administer the transaction privilege and use taxes imposed by all cities and towns and to enter into an intergovernmental agreement (IGA) with each city and town to clearly define the working relationship between the DOR and Arizona cities and towns.   This IGA establishes the framework for collaboration between the Department and the cities and towns for every aspect of TPT administration. It provides the principles, requirements, and responsibilities of both the City/Town and the Department, and it defines the many specific operational processes related to tax collection, the protection of taxpayer confidentiality, and information security.   The 2023 IGA replaces the one from 2019 and represents a complete rewrite of the prior Agreement. Great emphasis was placed on improving the thoroughness and consistency of the Agreement as well as minimizing the need to look through multiple sections to answer a single question or resolve a specific issue. Related Ordinance, Policy or Guiding Principle Arizona Revised Statute Council-adopted Financial Policies Risk Analysis All cities and towns are required to approve this IGA pursuant to A.R.S. 42-6001. Failure to approve the IGA may result in the DOR withholding access to its TPT data and the reports that are required to operate financially, and/or restricting the Town's ability to perform or participate in TPT licensing, audits, reviews, and collection activities. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of Resolution 2023-43. SUGGESTED MOTION MOVE to adopt Resolution 2023-43 approving the Intergovernmental Agreement with the Arizona Department of Revenue for TPT Administration. Attachments RES2023-43  2023 Final IGA Municipal TPT Administration  IGA Guidance & POC  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 12/04/2023 04:30 PM Finance Director David Pock 12/04/2023 04:34 PM Finance Director David Pock 12/04/2023 04:34 PM Town Attorney Aaron D. Arnson 12/04/2023 04:41 PM Town Manager Rachael Goodwin 12/07/2023 01:46 PM Form Started By: David Pock Started On: 12/04/2023 03:21 PM Final Approval Date: 12/07/2023  RESOLUTION 2023-43 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT (IGA) BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE STATE OF ARIZONA DEPARTMENT OF REVENUE FOR THE ADMINISTRATION, COLLECTION, AUDIT, AND LICENSING OF TRANSACTION PRIVILEGE TAXES, USE TAXES, SEVERANCE TAXES, JET FUEL EXCISE AND USE TAXES AND RENTAL OCCUPANCY TAXES IMPOSED BY THE STATE, CITIES OR TOWNS. RECITALS: WHEREAS, Title 11, Chapter 7, Article 3 (A.R.S. § 11-952) authorizes two or more public agencies to enter into intergovernmental agreements to contract for services if authorized by their legislative or governing bodies; and WHEREAS, A.R.S. § 42-6001 et seq. was amended effective January 1, 2015 to provide that the Arizona Department of Revenue, hereinafter referred to as ADOR, shall enter into an intergovernmental contract or agreement pursuant to A.R.S. § 11-952 to provide a uniform method of administration, collection, audit and licensing of transaction privilege and affiliated excise taxes imposed by the State, cities or towns; and WHEREAS, representatives of ADOR and representatives of Arizona cities and towns, with support from the League of Arizona Cities and Towns, have negotiated the terms of a new IGA to take effect as described within that document, which can be adopted individually by each Arizona city and town, and is the subject of this Resolution. ENACTMENTS: BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. the Town Council of the Town of Fountain Hills, Arizona hereby approves the Intergovernmental Agreement between the Town of Fountain Hills and the Arizona Department of Revenue for the administration, collection, audit and licensing of transaction privilege taxes, use taxes, severance taxes, jet fuel excise and use taxes and rental occupancy taxes imposed by the State, cities or towns. SECTION 2. The Mayor, or their duly authorized agent, shall notify ADOR of the City’s desire to enter into an IGA as required by ARS §42-6001, with an effective date as described within that document, together with the encapsulated provisions for annual renewals. SECTION 3. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. RESOLUTION 2023-43 PAGE 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, December 19, 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, Pierce Coleman PLLC Town Attorney RESOLUTION 2023-43 PAGE 3 EXHIBIT A TO RESOLUTION 2023-43 [Intergovernmental Agreement] See following pages. September 2023 Page 1 of 39 INTERGOVERNMENTAL AGREEMENT BETWEEN THE ARIZONA DEPARTMENT OF REVENUE AND THE CITY/TOWN OF ________________ THIS INTERGOVERNMENTAL AGREEMENT (“Agreement”) is entered into this ______ day of _______________, 2023, by and between the Arizona Department of Revenue (“Department”) and the City/Town of ________________, an Arizona municipal corporation (“City/Town”). This Agreement shall supersede and replace all previous intergovernmental agreements, including amendments thereto, entered into by the Department and City/Town regarding the administration, collection, audit, and/or licensing of transaction privilege tax, use tax, severance tax, jet fuel excise and use taxes, and rental occupancy taxes (collectively referred to as “Taxes”) imposed by the State, City/Town, and other Arizona municipalities. RECITALS WHEREAS, A.R.S. Title 11, Chapter 7, Article 3 (A.R.S. § 11-952 et seq.) authorizes two (2) or more public agencies to enter into intergovernmental agreements to contract for services, if authorized by their legislative or governing bodies. WHEREAS, A.R.S. § 42-6001 et seq. was amended effective January 1, 2015 to provide that the Department shall collect and administer any transaction privilege and affiliated excise taxes imposed by any Arizona municipality and that the Department and each municipality shall enter into an intergovernmental contract or agreement pursuant to A.R.S. § 11-952 to provide a uniform method of administration, collection, audit, and licensing of transaction privilege and affiliated excise taxes imposed by the State and Arizona municipalities. WHEREAS, City/Town has taken appropriate action by ordinance, resolution, or otherwise, pursuant to the laws applicable to the governing body of City/Town, to approve and authorize City/Town to enter into this Agreement. AGREEMENT NOW, THEREFORE, in consideration of the foregoing, the Department and City/Town enter into this Agreement as follows: 1. Definitions 1.1 A.R.S. means the Arizona Revised Statutes. 1.2 Adoption of an Ordinance means final approval by majority vote of the City/Town council. ADOR-Municipal IGA for TPT Administration September 2023 Page 2 of 39 1.3 Ambassador Program means the Department’s provided structure and support of curriculum related to tax administration and compliance education. 1.4 Arizona Management System means the State’s professional, results-driven management system that focuses on customer value and vital mission outcomes for citizens. The system is based on principles of Lean, a proven people-centered approach that has delivered effective results in both public and private sectors. Lean focuses on customer value, continuous improvement and engaged employees to improve productivity, quality, and service. 1.5 Audit means an examination and verification of accounts and records to determine taxpayer compliance with A.R.S. Title 42 and the Model City Tax Code, or any other assessment issued pursuant to A.R.S. § 42-1108. 1.6 City Services means the Department’s team or successor unit thereof that assists Arizona municipalities with administrative functions and all other activities related to transaction privilege tax licensing, collection, and compliance of any kind. In this Agreement, all references to electronic communications with City Services shall be directed to the team’s address at citiesunit@azdor.gov. 1.7 Closing Agreement means an agreement to settle a tax liability pursuant to A.R.S. § 42-1113. 1.8 Collection means activities to collect established liabilities for transaction privilege taxes, fees, and related penalties and interest that are due and owing. 1.9 Confidentiality Standards means the standards set forth in A.R.S. § 42-2001 et seq., Model City Tax Code § 510, Appendix A of this Agreement, and such other written standards mutually agreed to by the Department and City/Town, and which will be incorporated into Appendix A of this Agreement. 1.10 Development Fees has the same meaning prescribed in A.R.S. § 42-5075(B). 1.11 Desk Review means any assessment issued pursuant to A.R.S. § 42-1109(B). 1.12 Federal Tax Information (“FTI”) means Federal income tax returns or return information the Department receives from the Internal Revenue Service, including any information created by the Department derived from that information. Documents obtained from a taxpayer or State income tax returns are not considered Federal Tax Information. The scope of this Agreement does not permit the Department to share FTI with any Arizona municipality. 1.13 Independent Contractor means any individual or entity with which City/Town may enter into an agreement to perform transaction privilege tax administration, collection, audit, licensing, and any other related duties described in this Agreement or A.R.S. § 42-6001 et seq. 1.14 Model City Tax Code means the document defined in A.R.S. § 42-6051. ADOR-Municipal IGA for TPT Administration September 2023 Page 3 of 39 1.15 Municipal Tax or Municipal Taxes means collectively the transaction privilege and affiliated excise taxes, including use tax, severance tax, jet fuel excise and use tax, and rental occupancy tax imposed by City/Town in accordance with the Model City Tax Code and similar taxes imposed by City/Town pursuant to a City/Town code section outside the Model City Tax Code that are collected via the standard transaction privilege tax return. Unless the context provides otherwise, this definition includes municipal privilege tax, municipal privilege tax license fees, and all related penalties, interest and other similar charges collected by the Department on behalf of an Arizona municipality. 1.16 Options Chart means any chart contained in a section of the Model City Tax Code which identifies the various approved standard Options adopted by an Arizona municipality. 1.17 Primary Point of Contact (“PPOC”) means a designated City/Town representative with the primary responsibility for communicating with the Department and their respective staff on any matters described within this Agreement. The PPOC must be an individual qualified to receive Tax Information under Section 2.1 of this Agreement and be included on the Master Authorization List referenced in Section 2.3 of this Agreement. 1.18 Profile means a dedicated section of the Model City Tax Code that provides specific information for each Arizona municipality, including contact information, applicable tax rates, and amendments and provisions unique to City/Town. 1.19 Standard Audit Life Cycle Process Map means a document containing the decisions and procedures adopted by the Department and Arizona municipalities from the assignment of audits through final resolution consistent with this Agreement and the Arizona Management System principle of continuous improvement. This document shall be reviewed by the Department and Arizona municipalities as needed, not less than annually, with any changes memorialized in a revised map. In the event of a disagreement regarding proposed changes, the Standard Audit Life Cycle Process Map shall be referred to SMART for resolution. 1.20 Standard Authorization List Update Process Map means a document containing the decisions and procedures adopted by the Department and Arizona municipalities to keep an updated list of current employees and contractors who are authorized to receive Tax Information consistent with this Agreement and with the Arizona Management System principle of continuous improvement. This document shall be reviewed by the Department and Arizona municipalities as needed, not less than annually, with any changes memorialized in a revised map. In the event of a disagreement regarding proposed changes, the Standard Authorization List Update Process Map shall be referred to SMART for resolution. 1.21 Standard Inter-Jurisdictional Transfer Process Map means a document containing the decisions and procedures adopted by the Department and Arizona municipalities to document and authorize the transfer of erroneously reported or ADOR-Municipal IGA for TPT Administration September 2023 Page 4 of 39 allocated tax from one (1) municipality to another based upon a municipality’s request or during the audit process consistent with this Agreement and with the Arizona Management System principle of continuous improvement. This document shall be reviewed by the Department and Arizona municipalities as needed, not less than annually, with any changes memorialized in a revised map. In the event of a disagreement regarding proposed changes, the Standard Inter-Jurisdictional Transfer Process Map shall be referred to SMART for resolution. 1.22 State means the State of Arizona. 1.23 State & Municipal Audit Resolution Team (“SMART”) means an advisory committee responsible for resolving issues as set forth in Section 15 of this Agreement. 1.24 State Tax or State Taxes means transaction privilege tax and affiliated excise taxes, including use tax, severance tax, and jet fuel excise and use taxes imposed by the State of Arizona or its counties. 1.25 Tax Information means information deemed confidential taxpayer information protected from disclosure pursuant to A.R.S. § 42-2001 et seq. or Model City Tax Code § 510 concerning the business financial affairs or operations of a taxpayer as it relates to Municipal Taxes or State Taxes. Tax Information includes all financial information related to transaction privilege taxes obtained from any source related to an individual taxpayer and all such aggregate financial information related to any group of identified or identifiable taxpayers. (a) Examples of Tax Information include without limitation: (1) Any information provided by the Department to City/Town derived from any source including tax returns, reports, tax license applications, and the New License Report or License Update Report; and (2) Any information received by, recorded by, prepared by, furnished to, or collected by the Department or City/Town with respect to a transaction privilege tax return or the termination or possible existence of liability of any person for any transaction privilege tax and related penalty or interest, such as the taxpayer’s identity; the nature, source, or amount of the taxpayer’s income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability, taxes withheld, deficiencies, over-assessments, or tax payments; or whether the taxpayer’s account was, is being, or will be examined or subject to audit, desk review, investigation, collection, or processing. (b) Taxpayer identifying information obtained by City/Town from any source not identified in Section 1.25(a) of this Agreement is not Tax Information for purposes of this Agreement. ADOR-Municipal IGA for TPT Administration September 2023 Page 5 of 39 1.26 Voluntary Disclosure Agreement means a document used in a voluntary disclosure program designed for eligible taxpayers with exposure for tax liability and/or civil penalties arising from a failure to report and/or pay all Taxes due which allows the taxpayer to come into voluntary compliance. 2. Authorized Access Lists 2.1 Statutory Authority: The disclosure of information relating to State Taxes and Municipal Taxes is governed by A.R.S. § 42-2001 et seq., and, for reporting periods prior to January 1, 2015, by Model City Tax Code § 510. 2.2 Qualified Recipients of Information: The Department and City/Town shall only disclose Tax Information related to State Tax and Municipal Tax pursuant to this Agreement to individuals authorized by law as described in Section 2.1 of this Agreement, including those authorized persons listed on the Authorized Access Lists provided by the Department and Arizona municipalities. Questions related to a listed Department recipient may be directed to City Services at citiesunit@azdor.gov. Questions related to a listed Arizona municipal recipient may be directed to the PPOC of the pertinent Arizona municipality. 2.3 Department’s Authorized Access List: Pursuant to Section 2.4(c) of this Agreement, the Department shall maintain, update, and provide a current statewide Master Authorization List of names, job titles, and contact information of the Department staff and Arizona municipal representatives who are authorized by law as described in Section 2.1 of this Agreement to receive State Tax and Municipal Tax information from the Department or Arizona municipalities, as defined in the Standard Authorization List Update Process Map. Updates shall be provided on not less than a monthly basis. The Department shall promptly notify Arizona municipalities of any individual whose authorization to receive State Tax and Municipal Tax information has been revoked for any reason. 2.4 City/Town’s Authorized Access List: City/Town shall maintain, update, and provide a current Authorized Access List of names, job titles, and contact information for all persons acting on behalf of City/Town authorized by law as described in Section 2.1 of this Agreement to receive State Tax and Municipal Tax information as defined in the Standard Authorization List Update Process Map. (a) City/Town shall indicate one PPOC on the Authorized Access List to resolve any administrative issues with the Authorized Access List. At its discretion, City/Town may also indicate an additional individual as a back-up or alternate PPOC. (b) City/Town shall ensure all personnel on the Authorized Access List meet the requirements indicated in the Confidentiality Standards (Appendix A) including completing all required confidentiality training certification and recertification as required from time to time, within the time required by the Department. ADOR-Municipal IGA for TPT Administration September 2023 Page 6 of 39 (c) Upon execution of this Agreement and on the first day of each calendar quarter thereafter, City/Town shall email to City Services at citiesunit@azdor.gov a current Authorized Access List of its staff and representatives authorized to receive State Tax and Municipal Tax information from the Department and Arizona municipalities, including additions and deletions, changes in job titles, and contact information. City/Town’s PPOC shall promptly notify the Department of any person whose authorization to receive State Tax and Municipal Tax information is revoked for any reason. (d) The Department shall review City/Town’s Authorized Access List. If the Department finds that any person on the list has not completed the required confidentiality training in a timely manner or does not meet the Confidentiality Standards in Appendix A of this Agreement, the Department shall notify the City/Town PPOC to resolve the issue. The Department shall not include that person on the Master Authorization List until the issues have been resolved to the satisfaction of the Department. 2.5 Independent Contractors: (a) City/Town may at times choose to enter into a contract with an Independent Contractor to perform the transaction privilege tax administration, collection, audit, desk review, licensing, and other duties described in this Agreement or A.R.S. § 42-6001 et seq. (b) In accordance with A.R.S. §§ 42-1004 and 42-6002, no contract with an Independent Contractor may be entered into on a contingency fee basis for the performance of any transaction privilege tax related functions, including but not limited to license inspections, audits, desk reviews, or collections. (c) Within ten (10) business days of ratification of this Agreement, or subsequent execution of such a contract between City/Town and an Independent Contractor, City/Town shall provide a copy of each such contract to the City Services electronically at citiesunit@azdor.gov. (d) City/Town shall notify the Department of the expiration, termination, or amendment of any agreement with such Independent Contractors within ten (10) business days of such event. (e) In this Agreement it is presumed that any reference to a municipal employee such as a license inspector, auditor, desk reviewer, collector, supervisor, etc., also refers to an Independent Contractor performing that function on behalf of the Department or City/Town. (f) An Independent Contractor is subject to all training requirements, authorization limitations, and other privileges and restrictions incorporated into this Agreement or provided in statute in the same form and manner as ADOR-Municipal IGA for TPT Administration September 2023 Page 7 of 39 such conditions apply to an employee performing the same function on behalf of the Department or City/Town. (g) When an Independent Contractor issues any correspondence to a taxpayer on behalf of the Department or City/Town, the Independent Contractor shall expressly identify all of the following on such correspondence: the Independent Contractor’s name; the name of the Independent Contractor’s firm, if applicable; the Independent Contractor’s status as a license inspector, auditor, desk reviewer, or collector acting on behalf of the Department or City/Town; the Independent Contractor’s mailing address, telephone number, and e-mail address; and the telephone number and e-mail address of a specific person who is an employee of the Department or City/Town capable of responding to the issues raised in the correspondence for the Department or City/Town. (h) The Department and/or City/Town may pursue any remedy authorized by this Agreement or by statute for a violation of this Section by an Independent Contractor. 2.6 Sharing of Authorized Access Lists: The Department shall share the Department’s Authorized Access List and the Authorized Access Lists for all Arizona municipalities provided to the Department on the Core SFTP site. The Department shall update the lists on a monthly basis with information provided by each Arizona municipality, or as needed to immediately remove any person whose authorized access has been revoked by the Department or an Arizona municipality. 3. Disclosure of Information by City/Town to the Department or Another Arizona Municipality 3.1 Disclosure and Use of Municipal Tax Information: Any Tax Information released by City/Town to the Department or another Arizona municipality may only be used by persons authorized to receive such Tax Information for tax administration and collection purposes and may not be disclosed to the public in any manner that does not comply with A.R.S. § 42-2003, and/or Model City Tax Code § 510 for reporting periods prior to January 1, 2015. All Tax Information shall be stored and destroyed in accordance with the Confidentiality Standards (Appendix A). 3.2 Municipal Ordinances: City/Town shall provide the Department with a copy of its Municipal Tax Code or any City/Town ordinances imposing the taxes to be collected hereunder within ten (10) calendar days of a request for such information from the Department. This information shall be sent to City Services electronically at citiesunit@azdor.gov. (a) Tax Code Changes: City/Town shall provide notice to the Department of any tax code change with a copy of any ordinance adopted by City/Town that imposes or modifies the Municipal Taxes or municipal privilege tax ADOR-Municipal IGA for TPT Administration September 2023 Page 8 of 39 license fees to be collected hereunder within ten (10) calendar days of adoption of the ordinance. This information shall be sent to City Services electronically at citiesunit@azdor.gov. (1) City/Town agrees that any ordinance that changes a tax rate, Option selection, or includes the addition or removal of a unique Model City Tax Code exception shall take effect on the first day of the month that is at least sixty (60) calendar days after the City/Town council adopts the change. City/Town and the Department recognize there may be occasions when the City/Town council establishes an effective date less than sixty (60) calendar days after adoption. If City/Town chooses to propose an ordinance with an effective date that is less than sixty (60) calendar days after adoption, City/Town shall notify the Department as soon as possible after that choice is made. (2) The Department shall incorporate all ordinance changes into the official copy of the Model City Tax Code within ten (10) calendar days of receipt of notice from City/Town. The copy provided to the Department may be an electronic copy but shall reflect the identical language contained in the version adopted by the City/Town and shall contain the required signatures indicating council approval. (3) The Department shall notify City/Town when the tax code change has been incorporated and City/Town is responsible for confirming the change has been correctly entered in the official copy of the Model City Tax Code. (4) Pursuant to A.R.S. § 42-6052, if City/Town fails to notify the Department of a tax code change within ten (10) calendar days after City/Town council approval, the ordinance shall be considered null and void. All tax code changes described in this Section shall have no effect until reflected in the official copy of the Model City Tax Code. (b) Annexation Ordinances: Within fifteen (15) calendar days following the adoption of an annexation ordinance, one (1) copy of the ordinance and notification of the effective date of such ordinance shall be sent to the Department via email at GIS@azdor.gov and City Services at citiesunit@azdor.gov. City/Town may provide the Department with a list of businesses subject to Municipal Taxes known to be located in the annexed area. (c) Review of the Model City Tax Code: City/Town shall be responsible for reviewing the information contained on its Profile, the Options Charts, tax rates for City/Town, and other information specific to City/Town contained in the official copy of the Model City Tax Code and ensuring it is correct. ADOR-Municipal IGA for TPT Administration September 2023 Page 9 of 39 City/Town affirms that it has an ongoing obligation to notify City Services of any changes needed to such information at citiesunit@azdor.gov. 3.3 Development Fees: Upon request by the Department to City/Town’s PPOC, City/Town shall provide to the Department any information regarding Development Fees imposed by City/Town under A.R.S. § 9-463.05 to assist the Department with the auditing of taxpayers and the ordinary billing and collection of taxes. 3.4 Prior Audits: Upon request by the Department, City/Town shall allow inspections and copies of any City/Town tax audits conducted prior to January 1, 2015. 3.5 Other Information: City/Town shall provide other relevant information necessary for tax administration and collection purposes as requested by the Department. 4. Disclosure of Information by Department to City/Town 4.1 Statutory Authority: The Department may disclose information relating to State Taxes and Municipal Taxes to City/Town pursuant to A.R.S. § 42-2003 if the information relates to a taxpayer who is or may be taxable by a county, city, or town or who may be subject to audit by the Department pursuant to A.R.S. § 42-6002. 4.2 Restrictions on Use and Disclosure to Unauthorized Parties: Any Tax Information disclosed by the Department to City/Town is subject to all restrictions provided for in A.R.S. § 42-2003. Tax Information shall only be used by persons authorized to receive such Tax Information for internal tax administration purposes, including audit, desk review, collection, and licensing activity, and may not be disclosed to the public or any unauthorized party in any manner that does not comply with the Confidentiality Standards (Appendix A). 4.3 Liability for Improper Disclosure: The disclosure of confidential information concerning Arizona taxes is governed by A.R.S. § 42-2001 et seq., which strictly controls the accessibility and use of this information. Individuals who receive confidential information relating to State Taxes and Municipal Taxes from the Department are subject to the penalties provided in A.R.S. § 42-2004 and other applicable statutes if they misuse or improperly disclose this information to unauthorized individuals. 4.4 Reporting Potential Disclosure Violations/Incidents: The Department shall not withhold Tax Information from City/Town provided that City/Town complies with A.R.S. § 42-2001 et seq., and the Confidentiality Standards (Appendix A). (a) If City/Town or the Department has information to suggest City/Town or any of its duly authorized representatives has violated A.R.S. § 42-2001 et seq. or the Confidentiality Standards (Appendix A), City/Town or the Department shall immediately notify City Services at citiesunit@azdor.gov, the Department’s Disclosure Officer at DisclosureOfficer@azdor.gov, and the Department’s Information Security Team at InfoSec@azdor.gov. ADOR-Municipal IGA for TPT Administration September 2023 Page 10 of 39 (b) City/Town and the Department shall fully cooperate with the Department’s Disclosure Officer and Information Security Team in investigating the alleged violation and shall promptly address any identified issues. (c) The Department’s Disclosure Officer and Information Security Team: (1) Shall send written notice to City/Town’s PPOC detailing the alleged breach as understood by the Department and request a response to the allegation within twenty (20) calendar days of the date of the letter, and (2) May inspect City/Town’s records, facilities, and equipment to determine whether there has been a violation, and (3) Shall review the written response from City/Town and consider the information contained therein and all relevant circumstances surrounding the alleged violation prior to issuing any determination, and (4) Shall issue a written determination delivered by certified mail to City/Town regarding the alleged violation within sixty (60) calendar days of the date of City/Town’s response letter. If the Department determines that a violation has occurred, the Department shall indicate whether a suspension of information is warranted and the length of the suspension. During the period of suspension, City/Town shall not access information maintained or created by the Department related to City/Town. (d) If the Department makes a written determination to suspend sharing of information, City/Town may, within ten (10) calendar days of receiving the written determination, submit a written request to SMART requesting the group review the determination as provided in Section 15 of this Agreement. (e) If there is a suspension of Tax Information sharing with City/Town, the Department shall maintain all information collected or created during the suspension period related to City/Town that would otherwise have been shared with City/Town and shall assist City/Town with accessing the accumulated information for City/Town immediately upon termination of the suspension. (f) Under no circumstances shall the suspension of any right to receive Tax Information adversely impact the Department’s delivery or transfer of any City/Town revenues in any manner. 4.5 Information to be Provided: The Department shall provide information pursuant to A.R.S. § 42-6001(B). The Department shall provide such information as outlined ADOR-Municipal IGA for TPT Administration September 2023 Page 11 of 39 in Appendix B and elsewhere in this Agreement, which shall only be modified in accordance with Section 4.7 of this Agreement. (a) The Department shall not provide Federal Tax Information to City/Town. (b) In addition to the information detailed in Appendix B of this Agreement, the Department shall disclose, upon request, the following information to City/Town: (1) Department tax audits, including all information related to all Arizona municipalities included in the tax audit; and (2) Other relevant information necessary for City/Town’s tax administration and collection purposes, including all information necessary to verify that City/Town received all revenues collected by the Department on behalf of City/Town. 4.6 Storage and Destruction of Tax Information: All Tax Information provided by the Department to City/Town shall be managed, stored, protected, and destroyed in accordance with the Confidentiality Requirements (Appendix A). 4.7 Specificity of Data: Pursuant to A.R.S. § 42-6001, the Department and City/Town agree that the data fields identified in Appendix B of this Agreement and the JT-1, TPT-2, and TPT-EZ forms in Appendix C of this Agreement (also provided online at www.azdor.gov) meet the specificity requirements of City/Town. The data fields identified in Appendix B and the forms in Appendix C may be revised or replaced only by mutual agreement of the Department and Arizona municipalities, with any unresolved issues being referred to SMART for final determination. 4.8. Notwithstanding any provision to the contrary, nothing in this Section shall prevent the Department from complying with state information security requirements in the situation of a data breach or similar event. 5. Audit The Department shall administer audit functions with City/Town in accordance with the Standard Audit Life Cycle Process Map and with the following provisions. 5.1 Training: All auditors, desk reviewers, and supervisors shall be trained in accordance with the policies of the Department. Auditors and desk reviewers who have not completed the training may only work in conjunction with a trained auditor or supervisor and cannot be the only auditor or desk reviewer assigned to the audit or desk review. The Department shall do all the following: (a) Provide semi-annual audit and desk review training in accordance with A.R.S. § 42-6002(C) and be responsible for the costs of the training, limited to any cost for procuring the site and training materials; ADOR-Municipal IGA for TPT Administration September 2023 Page 12 of 39 (b) Notify City/Town of any training sessions at least thirty (30) calendar days before the date of the training session; (c) Permit City/Town auditors, desk reviewers, and supervisors to attend any scheduled training as space permits at any designated training location; (d) Provide additional training, as needed, to inform auditors, desk reviewers, and supervisors regarding changes in State law, the Model City Tax Code, audit and desk review procedures, or Department policy. 5.2 Conflicts of Interest: (a) An auditor, desk reviewer, supervisor, or Independent Contractor trained and authorized to conduct an audit or desk review, in addition to the restrictions provided under A.R.S. Title 38, Chapter 3, Article 8, § 38-501 et seq., shall not conduct any of the following prohibited acts: (1) Represent a taxpayer in any tax matter against the Department or City/Town while employed by or in an Independent Contractor relationship with the Department or City/Town. (2) Attempt to use his/her official position to secure any valuable thing or valuable benefit for himself/herself or his/her family members. (3) Represent a taxpayer before the Department or City/Town concerning any matter in which he/she personally participated for a period of one year after he/she ends employment or the Independent Contractor relationship with the Department or City/Town. (4) Use information he/she acquires in the course of the official duties as an auditor, desk reviewer, supervisor, or Independent Contractor in a manner inconsistent with his/her official duties without prior written approval from the Department. (5) For a period of one (1) calendar year after he/she ends employment by or an Independent Contractor relationship with the Department or City/Town, work in the same firm as a person who represents a taxpayer against the Department or City/Town unless the firm institutes a formal screen or ethical wall to prevent any sharing of information between the person and the remainder of the firm. Documentation of such formal screen or ethical wall shall be provided by the firm to the Department or City/Town upon request. (6) Receive compensation from a source other than City/Town or pursuant to an agreement with City/Town for the performance of any work or transaction performed expressly on behalf of City/Town. ADOR-Municipal IGA for TPT Administration September 2023 Page 13 of 39 (7) Make any representation of being an employee or contractor of City/Town or the Department in marketing and promotional materials soliciting work or transactions to be performed on behalf of a taxpayer or potential taxpayer. (b) In addition to any other remedies available to the Department and City/Town by statute and under the terms of this Agreement, the Department may revoke an individual’s authority to audit or perform desk reviews on behalf of the Department or City/Town and prohibit the use of any auditor, desk reviewer, supervisor, or Independent Contractor who violates this provision. 5.3 Audits and Desk Reviews: (a) City/Town may request the Department conduct an audit or desk review of any taxpayer engaged in business in City/Town, including a taxpayer whose business activity is subject to tax by City/Town but is not subject to tax by the State. The Department and Arizona municipalities shall collaboratively establish and maintain minimum justification standards and procedures City/Town shall adhere to when submitting an audit or desk review request. (b) City/Town may conduct an audit or desk review of a taxpayer engaged in business only in City/Town. Before commencing such audit, City/Town shall submit a Field Audit Request Form. Before commencing such desk review, City/Town shall submit the request using the Desk Review Approval Excel Sheet. The Department shall provide City/Town with a determination of approval or denial of the request within ten (10) calendar days of the notice from City/Town. (c) Except as permitted below, the Department shall conduct all audits and desk reviews of taxpayers having locations in two (2) or more Arizona municipalities. A City/Town auditor may participate in any audit or desk review City/Town requested the Department to perform. (d) City/Town shall notify the Department if it wants to conduct an audit or desk review of a taxpayer having locations in two (2) or more Arizona municipalities and whose business activity is subject to tax by City/Town but is not subject to tax by the State. The Department shall authorize such audits or desk reviews, to be overseen by the Department, unless there is already an audit or desk review of the taxpayer in process, scheduled, or planned, or the Department determines the audit or desk review selection is discriminatory, an abuse of process, or poses other similar defects. The Department shall notify City/Town of its determination within ten (10) calendar days. No initial audit or desk review contact may occur between City/Town and a taxpayer until the Department approves the audit or desk review notice. ADOR-Municipal IGA for TPT Administration September 2023 Page 14 of 39 (e) In the case of taxpayers doing business in more than one (1) Arizona municipality: (1) City/Town may request the Department conduct an audit or desk review of a taxpayer having locations in two (2) or more Arizona municipalities and whose primary business is subject to both Municipal Taxes and State Taxes. (2) City/Town may request authorization from the Department for City/Town to conduct an audit or desk review of a taxpayer having locations in two (2) or more Arizona municipalities and whose primary business is subject to both Municipal Taxes and State Taxes. (3) Requests pursuant to (e)(1) or (e)(2) shall be made using the Department’s Field Audit Request Form or the Desk Review Approval Excel Sheet, as appropriate. The Department shall notify City/Town of its decision regarding the request within ten (10) calendar days of receipt of the request. (f) The Department may deny, in writing, City/Town’s request for the Department to conduct an audit or desk review within ten (10) calendar days of receiving the request for any of the following reasons: (1) An audit or desk review is already in process or is scheduled or planned for the taxpayer within six (6) months of the request; (2) The requested audit or desk review would interfere with strategic tax administration planning; (3) The audit or desk review selection is discriminatory, an abuse of process, or poses other similar defects; (4) The request lacks sufficient information for the Department to determine whether it is appropriate; (5) The Taxpayer was audited within the previous two (2) years; (6) The Department lacks sufficient resources to conduct the audit or desk review; (7) The scope or subject of the audit or desk review does not justify the use of Department resources. (g) If the Department denies a request to conduct an audit or desk review for the reasons provided in (f)(6) or (f)(7), and the audit or desk review is not for a taxpayer that only has a business location in City/Town, then City/Town may request to conduct the audit or desk review itself under the ADOR-Municipal IGA for TPT Administration September 2023 Page 15 of 39 supervision of the Department. No initial audit or desk review contact may occur between City/Town and a taxpayer until City/Town receives written Department approval. (h) Any decision by the Department denying City/Town’s request to conduct any audit or desk review may be referred to SMART in accordance with Section 15 of this Agreement. (i) All audits or desk reviews conducted by City/Town shall be in accordance with standard audit procedures defined in the Department audit manual and the Standard Audit Life Cycle Process Map. All auditors and desk reviewers shall be trained in accordance with Section 5.1 of this Agreement. (j) The Department may appoint a Department manager to supervise any audit or desk review conducted by City/Town. (k) All audits shall include all taxing jurisdictions in the State regardless of which jurisdiction’s auditors participate in the audit. All desk reviews must include all taxing jurisdictions for which there is information provided by the taxpayer. (l) The Department shall issue all audit or desk review assessments on behalf of all affected taxing jurisdictions in a single notice to the taxpayer. (m) The Department shall issue amendments to audit or desk review assessments on behalf of all affected taxing jurisdictions in a single notice to the taxpayer. 5.4 Claims for Refund: (a) When a taxpayer files a request for refund, including refunds requested by filing amended returns, the Department shall process the request and review it for mathematical errors or for the failure of the taxpayer to properly compute the tax based on the taxable income reported on the return or refund request. (b) The Department shall notify City/Town of all refund requests that are reviewed and approved involving City/Town’s Municipal Taxes within thirty (30) calendar days of processing the refund. City/Town may request an audit of the taxpayer as set forth in Section 5.3 of this Agreement. (c) The Department may assign a Department auditor to review requests for refunds. The Department shall notify City/Town of all refunds under review by an auditor pertaining to a taxpayer who engages in business within City/Town within thirty (30) calendar days of initiating the review and may request that City/Town assist with such reviews, with acceptance of such request at the discretion of City/Town. The Department may assign a refund request to a City/Town for review, with acceptance of such assignment at ADOR-Municipal IGA for TPT Administration September 2023 Page 16 of 39 the discretion of City/Town. The Department may only assign refund requests to City/Town if taxes paid to City/Town are included in the refund request. (d) City/Town is responsible for payment of all amounts to be refunded to taxpayers for Municipal Tax incorrectly paid to City/Town. The Department may offset a remittance to City/Town under this Agreement to cover the amounts of allowed Municipal Tax refunds paid by the Department. (e) The Department shall issue refund approvals/denials on behalf of all taxing jurisdictions in a single notice to the taxpayer. City/Town may request copies of such determinations. 5.5 Protests: Taxpayer protests of audit assessments, desk review assessments, and refund denials shall be directed to the Department. Protests of audit assessments, desk review assessments, and refund denials shall be administered pursuant to A.R.S. Title 42, Chapter 1, Article 6. The Department shall notify City/Town of any protests within thirty (30) calendar days of receipt of the protest. 5.6 Status Reports: The Department shall keep all Arizona municipalities apprised of the status of each protested matter involving the imposition of Municipal Taxes. City/Town may request to be on a distribution list for monthly status reports by contacting City Services at citiesunit@azdor.gov. 6. Voluntary Disclosure Agreements The Department may enter into a Voluntary Disclosure Agreement with a taxpayer. A Voluntary Disclosure Agreement may limit the years subject to audit and waive penalties. If the taxpayer discloses to the Department that it owes Municipal Taxes to City/Town, the Department shall notify City/Town of the Department’s intent to enter into a Voluntary Disclosure Agreement and the Department shall provide the taxpayer’s identity within thirty (30) calendar days of the identity being disclosed to Department. City/Town may subsequently request an audit of a taxpayer subject to a Voluntary Disclosure Agreement pursuant to Section 5.3 of this Agreement. 7. License Compliance 7.1 License Issuance and Renewal: The Department shall issue new municipal privilege tax licenses and shall annually renew such licenses for City/Town Municipal Tax. The Department shall provide City/Town with information about all persons obtaining and renewing municipal privilege tax licenses as set forth in Appendix B of this Agreement. 7.2 License Checks: The Department and City/Town shall coordinate efforts to conduct mutual tax license compliance checks through canvassing and other compliance methods. ADOR-Municipal IGA for TPT Administration September 2023 Page 17 of 39 7.3 Confidentiality: Any tax license information City/Town obtains from the Department is confidential and may only be disclosed as authorized by A.R.S. § 42-2003. Any tax license information City/Town obtains through its own efforts may be disclosed as allowed by City/Town ordinance or policy. 7.4 Changes to License Fees: Within ten (10) business days following the adoption of an ordinance (or official acknowledgment of an ordinance approved by voters in an election) creating or modifying a municipal privilege tax license fee, one (1) copy of the ordinance and notification of the effective date of such ordinance shall be sent to City Services at citiesunit@azdor.gov. The Department shall not be obligated to begin collection of the new or modified tax license fee any sooner than sixty (60) calendar days after the date the Department received the ordinance from City/Town. 8. Closing Agreements The Department shall notify City/Town before entering into a Closing Agreement and shall seek a range of settlement authority from City/Town related to the tax levied and imposed by City/Town in accordance with the Standard Audit Life Cycle Process. 9. Responsibility for Representation in Litigation 9.1 Administrative Proceedings: Pursuant to A.R.S. § 42-6002, the Department shall coordinate the litigation and defense of assessments and refund denials in any administrative appeals before the Office of Administrative Hearings or the Director of the Department regardless of the jurisdiction that conducted the audit, desk review, or refund review in accordance with the Standard Audit Life Cycle Process Map. The Department shall diligently defend the interests of City/Town and City/Town shall assist the Department in such representation as requested by either party. 9.2 Further Appeals: The Arizona Attorney General is responsible for defending the assessment or refund denial at the Board of Tax Appeals, the Arizona Tax Court, and all higher courts. City/Town shall assist the Attorney General in such representation and litigation as requested by the Attorney General’s Office in accordance with the Standard Audit Life Cycle Process Map. 9.3 Mutual Cooperation: The Department and City/Town agree they shall cooperate in the appeal and litigation processes and shall ensure their auditors, desk reviewers, supervisors, and other necessary employees are available to assist the Department and the Attorney General through informal interviews, providing documents and records, preparing for depositions, attending depositions and trial as witnesses, and assisting in trial/hearing preparation, as needed. 9.4 Administrative Decisions: The Department shall provide a copy of all administrative hearing level decisions regarding State Taxes and Municipal Taxes, including Director’s decisions issued by the Department, to City/Town within ten (10) business days after issuance of the decision if City/Town requests to be ADOR-Municipal IGA for TPT Administration September 2023 Page 18 of 39 included on a distribution list created by the Department for the purposes of disseminating such decisions. City/Town may request to be on the distribution list by contacting City Services at citiesunit@azdor.gov. Administrative decisions contain Tax Information and must be stored and destroyed in accordance with the Confidentiality Standards (Appendix A). 10. Collection of Municipal Taxes 10.1 Tax Returns: Taxpayers who are subject to City/Town Municipal Taxes are required to pay such taxes to the Department utilizing a form prescribed by the Department. 10.2 Delinquent Tax Collections: Pursuant to A.R.S. § 42-6001, the Department shall collect any delinquent Municipal Tax imposed by City/Town recorded on the Department’s tax accounting system. In the event this Agreement is terminated, the Department shall continue to collect delinquent Municipal Taxes recorded on the Department’s accounting system on behalf of City/Town and distribute any such amounts collected to City/Town. 10.3 City/Town Assistance in Delinquent Tax Collections: To expand the Department’s State Tax and Municipal Tax collection efforts by leveraging City/Town resources, City/Town may choose to provide collection efforts by deploying City/Town collectors to work in conjunction with the Department on the following terms: (a) Training: All City/Town collectors authorized to collect obligations in cooperation with the Department shall be trained in accordance with the policies of the Department. Training shall be provided in the same manner as set forth in Section 5.1 of this Agreement. (b) Conflict of Interest: A collector trained and authorized under this provision to perform collections activity shall not conduct any of the following prohibited acts: (1) Represent a taxpayer in any tax matter against the Department or City/Town while employed by City/Town. (2) Attempt to use his/her official position to secure any valuable thing or valuable benefit for himself/herself or his/her family members. (3) Represent a taxpayer before the Department or City/Town concerning any matter in which he/she personally participated for a period of one (1) calendar year after he/she ends employment with City/Town. (4) Use information he/she acquires in the course of the official duties as a collector in a manner inconsistent with his/her official duties without prior written approval from the Department. ADOR-Municipal IGA for TPT Administration September 2023 Page 19 of 39 (5) For a period of one (1) calendar year after he/she ends employment with City/Town, work in the same firm as a person who represents a taxpayer against the Department or City/Town unless the firm institutes formal barriers to prevent any sharing of information between the trained collector and the remainder of the firm. (c) Revocation: The Department may revoke the authorization of City/Town or of any individual City/Town employee to collect obligations under this Section. A revocation determination may be subject to review by SMART upon request by the individual or City/Town. 10.4 State of Arizona Liquor License Affidavit: City/Town may request that the Department issue a liquor license affidavit. The Department shall respond to the request via secured e-mail to indicate the status of completion of the request with a note stating complete, in-process, or unable to complete. 10.5 Uncollectible/Discretionary Write-offs: The Department shall share the annual list of uncollectible/discretionary write-offs of City/Town’s Municipal Taxes prior to the write-off event at the end of the fiscal year. City/Town shall have forty-five (45) calendar days to submit feedback. 10.6 Remittance: All amounts collected by the Department for City/Town’s Municipal Taxes under this Agreement shall be remitted to City/Town weekly on the basis of actual collections. To the extent possible, the Department shall initiate the electronic payment by Noon on the Monday after the end of the week in which the collections were received by the Department. If the Monday falls on a holiday, payment will be initiated by Noon on the Tuesday after the end of the week in which the collections were received by the Department. Remittance shall be made in the form of immediately available funds transferred electronically to the bank account designated by City/Town. 10.7 Abatement: Pursuant to A.R.S. § 42-1004, the Department, with the approval of the Attorney General, may abate tax under certain circumstances including Municipal Taxes. During the ordinary course of business, the Department may determine that certain taxpayer accounts shall be closed or cancelled. The Department shall seek input from City/Town or SMART before abating Municipal Taxes or closing accounts with Municipal Taxes due. The Department may request a telephonic meeting of SMART if time or circumstances require immediate action. 10.8 Funds Owed to City/Town: At all times and under all circumstances, payments remitted by a taxpayer to the Department for City/Town Municipal Taxes shall be considered property of City/Town. The Department may not retain or fail to remit such funds to City/Town for any reason not specifically set forth in this Agreement including, but not limited to, during the course of a dispute between City/Town and the Department. ADOR-Municipal IGA for TPT Administration September 2023 Page 20 of 39 10.9 Adjustments to Reported Taxes: If the Department determines that a payment remitted by a taxpayer incorrectly identifies the city or town to which the payment should be made, the Department may temporarily hold the payment until the distribution of the payment is corrected to ensure the appropriate city or town receives the payment. If a payment by the Department has been made to an incorrect City/Town, the Department and affected Arizona municipalities shall follow the Standard Inter-Jurisdictional Transfer Process Map. 10.10 Collection Reports: The Department shall keep all Arizona municipalities apprised of the status of every open case in a collection status involving the imposition of Municipal Taxes. City/Town may request to be on a distribution list for monthly status reports by contacting Cities Collections at citiescollection@azdor.gov. 11. Taxpayer Rulings and Uniformity The Department shall be responsible for issuing the official responses to taxpayer ruling requests and requests for interpretation of the Model City Tax Code. City/Town acknowledges that pursuant to A.R.S. § 42-6005(B), when the state statutes and Model City Tax Code are the same and where the Department has issued written guidance, the Department's interpretation is binding on Arizona municipalities and interpretation of Model City Tax Code. The Department acknowledges that in all other situations, interpretation of the Model City Tax Code is the sole purview of Municipal Tax Code Commission or its designee. This Section is not intended to affect procedures for appeals and litigation as outlined in Section 5.5 and Section 9 of this Agreement. 12. Financing Collection of Taxes The costs incurred by the Department in administering this Agreement shall be financed through the State general fund appropriation to the Department. This provision does not relieve City/Town of any financial obligation imposed by statute. 13. Inter-Jurisdictional Transfers (“IJTs”) The Department shall administer Inter-Jurisdictional Transfers of Municipal Tax monies in accordance with the Standard Inter-Jurisdictional Transfer Process Map. The affected Arizona municipalities shall agree on any amounts to be transferred before notifying the Department of such amounts to be transferred under this Section. 14. Education and Outreach Efforts To further its focus on serving taxpayers and its commitment to funding Arizona’s future through enhanced customer service, continuous improvement, and innovation, the Department is expanding its outreach and education program to connect with all citizens of Arizona by strategically working with taxpayer and industry groups, tax practitioners, and Arizona’s municipalities to ensure consistent tax education is widely available. ADOR-Municipal IGA for TPT Administration September 2023 Page 21 of 39 Any City/Town may further this mission, at its own expense, in providing education and outreach to taxpayers. Education and outreach programs and content shall be consistent with applicable law and the Department’s written guidance. Increased education and outreach efforts undertaken by the Department and Arizona municipalities will ensure collaborative partnerships beneficial to both parties, emphasize an ongoing two-way exchange of information, enhance communication on issues of common interest, and promote cooperation in areas of overlapping special projects. Therefore, upon request, City/Town shall provide information to the Department concerning such education and outreach efforts. The Department shall implement an Ambassador Program, whereby the Department provides curriculum, structure, and support for education related to tax administration and compliance. City/Town shall be provided a standard work process when participating in Department-led educational events. 15. State & Municipal Audit Resolution Team (“SMART”) 15.1 Members: The SMART committee shall consist of four (4) primary (voting) members representing municipal taxing jurisdictions and four (4) primary (voting) members representing the Department. There shall also be two (2) alternate members representing each party, who are non-voting representatives unless required to vote due to the absence, recusal, or disqualification of a primary (voting) member. All primary and alternate members are required to attend all meetings unless excused. 15.2 Selection: The Director of the Department shall appoint Department employees to serve as primary and alternate members representing the Department. Arizona municipalities shall collectively appoint municipal employees to serve as primary and alternate members representing the Arizona municipalities. The members representing either party may be changed at any time following the standard work process agreed upon by both parties. 15.3 Meetings: SMART shall meet monthly unless there is no business to be conducted. Additional meetings can be scheduled as necessary to timely discuss issues presented. 15.4 Issues: The Department or City/Town may refer issues to SMART for resolution including but not limited to: (a) Decisions by the Department to not audit a taxpayer; (b) Amendments to Department audit procedures or manuals; (c) Closing Agreements or a range of settlement authority; (d) Abatement or account closure in collections; ADOR-Municipal IGA for TPT Administration September 2023 Page 22 of 39 (e) Suspension of disclosure of Tax Information to City/Town; (f) Disagreements regarding proposed changes to the process maps defined in Sections 1.19, 1.20, and 1.21 of this Agreement; (g) Revocation of collection authority; and (h) Other issues as authorized by the Director of the Department or agreed upon by the parties, subject to the limitations described in Section 29 of this Agreement. 15.5 Recommendations: SMART shall make recommendations to the Director of the Department or Director’s designee. If the recommendation is approved by at least five (5) members of SMART, the Director shall accept the recommendation of SMART. If SMART cannot reach a recommendation agreeable to at least five (5) members of the group, the Director or Director’s designee may act as they deem to be in the best interests of all parties. Notwithstanding the above, upon request by City/Town, the Director shall submit their decision to the Attorney General’s Office for review. 15.6 Voting: Any voting member of the committee may request the vote be held by secret ballot. 15.7 Procedures: SMART shall develop procedures concerning the operation of the committee consistent with this Agreement. 16. Funding of Additional Auditors by City/Town 16.1 Funding: At the sole discretion of City/Town, City/Town may contribute funding to the Department to pay for additional auditors to assist the Department in the performance of audits of Municipal Tax owed to City/Town. Such additional auditors funded by City/Town shall at all times be deemed to be employees of the Department and under no circumstances shall be deemed to be employees or agents of City/Town. It is the Parties’ intention that any City/Town funding provided pursuant to this Section shall be used to increase the resources and capabilities of the Department to perform Municipal Tax audits and not to subsidize or replace State funding required for audit and collection of taxes. 16.2 Use of Funds: City/Town funding for additional auditors under this Section shall be used to fund the auditors’ salaries and related expenses and shall not be used to pay for Department office space, utilities, equipment, supplies, or similar kinds of overhead. 16.3 Pool of Funds: The Department may pool any City/Town funding with any other similar funding provided by other Arizona municipalities to pay for additional auditors dedicated to serving those jurisdictions. The Department shall separately account for such funds in its annual budget. ADOR-Municipal IGA for TPT Administration September 2023 Page 23 of 39 16.4 Accounting: The Department shall provide an annual accounting to City/Town, by August 31 each year describing how City/Town funding was used during the prior fiscal year. 17. Satellite Offices for Department Auditors 17.1 Funding: City/Town, at its own expense and at its sole discretion, may provide one (1) or more satellite offices and associated amenities for use by Department employees to provide audit and/or customer service to taxpayers. Use of such facilities by Department employees shall be at the sole discretion of the Department. Nothing in this Section shall require the Department to make use of such facilities provided by City/Town. 17.2 Requirements: Any Department employee using a City/Town satellite office must meet reasonable requirements of City/Town related to the use of the facility. City/Town shall be responsible for notifying the Department of any concerns and the Department shall be responsible for taking appropriate actions to resolve those concerns. 17.3 Termination: Once a satellite office is established, City/Town shall provide at least one hundred eighty (180) calendar days’ written notice to the Department prior to the termination or relocation of a satellite office. The Department may discontinue the use of a satellite office at any time upon notice to City/Town and shall promptly remove all Department property. 17.4 License: All requirements of City/Town and the Department related to the satellite office shall be outlined in a mutually acceptable form of license and subject to separate approval. 17.5 Workers’ Compensation for Satellite Offices and Certain Site Visits: If employees of City/Town or Department are working at the facility of the other public agency pursuant to this Agreement, it is agreed that: (a) Each employee will be deemed an employee of both public agencies for the purposes of A.R.S. § 23-1022(D) and Arizona workers’ compensation laws. (b) Each employee’s primary employer (i.e., the State of Arizona for a Department employee, and City/Town for a City/Town employee or Independent Contractor) shall be solely liable for the payment of workers' compensation benefits. (c) Each public agency for which employees of City/Town or Department are working at the facility of the other public agency under this Agreement shall post a notice complying with A.R.S. § 23-1022(E). (d) In all circumstances other than as provided in the foregoing, nothing in this Agreement shall be construed to result in any person being the officer, ADOR-Municipal IGA for TPT Administration September 2023 Page 24 of 39 agent, employee, or servant of either party when such person, absent this Agreement and the performance thereof, would not in law have such status. 18. Non-availability of Funds Every payment obligation of the Department and City/Town pursuant to this Agreement is conditioned upon the availability of funds appropriated or allocated for the payment of such obligation, except for the rendering of funds to City/Town paid by a taxpayer for Municipal Taxes or municipal privilege tax license fees of City/Town. If funds are not appropriated, allocated, and available, or if the appropriation is changed resulting in funds no longer being available for the continuance of this Agreement, this Agreement may be terminated at the end of the period for which funds are available. No liability shall accrue to the State or City/Town, as applicable, in the event this provision is exercised and the State or City/Town, as applicable, shall not be obligated or liable for any future payments or for any damages as a result of termination under this Section. The termination of this Agreement shall not entitle the Department to retain any Municipal Tax collected on behalf of City/Town pursuant to this Agreement. 19. Waiver Nothing in this Agreement should be interpreted as City/Town relinquishing its legal rights under the Arizona Constitution or other applicable law, nor that City/Town is conceding the administration and collection of its Municipal Tax is not of a local interest or should not be under local control. 20. Cancellation The requirements of A.R.S. § 38-511 apply to this Agreement. The Department or City/Town may cancel this Agreement, without penalty or further obligation, if any person significantly involved in initiating, negotiating, securing, drafting, or creating this Agreement on behalf of the Department or City/Town is, at any time while this Agreement or any extension is in effect, an employee, agent, or consultant of the other party with respect to the subject matter of this Agreement. The obligation of the Department to remit City/Town taxes shall survive cancellation. 21. Notice (a) When any Notice to City/Town is required under the terms of this Agreement, such Notice shall be sent by electronic correspondence to: ______________________________________________ (b) When any Notice to the Department is required under the terms of this Agreement, such Notice shall be sent by electronic correspondence to City Services at citiesunit@azdor.gov. ADOR-Municipal IGA for TPT Administration September 2023 Page 25 of 39 22. Non-discrimination ADOR and City/Town shall comply with Executive Order 2023-01, which prohibits discrimination based on race, color, sex, pregnancy, childbirth or medical conditions related to pregnancy or childbirth, political or religious affiliation or ideas, culture, creed, social origin or condition, genetic information, sexual orientation, gender identity or expression, national origin, ancestry, age, disability, military service or veteran status, or marital status, by persons performing state contracts or subcontracts. ADOR and City/Town also agree to comply with Executive Orders 2003-22 and 2009-09 as amended by Executive Order 2023-01, all other applicable State and Federal employment laws, rules, and regulations, including the Americans with Disabilities Act of 1990. ADOR and the City/Town shall also comply with Executive Order 2023-09 prohibiting race-based hair discrimination. 23. Compliance with Immigration Laws and A.R.S. § 41-4401 23.1 The Department and City/Town shall comply with all Federal immigration laws and regulations relating to employees and warrants compliance with A.R.S. § 23-214 which reads in part: “After December 31, 2007, every employer, after hiring an employee, shall verify the employment eligibility of the employee through the E-Verify program.” 23.2 A breach of compliance with immigration laws and regulations shall be deemed a material breach of this Agreement and may be grounds for the immediate termination of this Agreement. 23.3 The Department and City/Town retain the legal right to confirm the authorized presence and work authorization of any employee who works under this Agreement to ensure the Department and City/Town are complying with the applicable Federal immigration laws and regulations, and State statutes as set forth above. 24. Audit of Records City/Town and the Department shall retain all data, books, and other records (“Records”) relating to this Agreement for at least six (6) years (a) after termination of this Agreement, and (b) following each annual renewal thereof. All Records shall be subject to inspection by the Department at reasonable times. Upon request, the Department and City/Town shall produce any or all such records. This Agreement is subject to A.R.S. § 35-214 and A.R.S. § 35-215. 25. Amendments Any amendments to the enumerated provisions or Appendices A, B, and C of this Agreement must be executed in writing in accordance with the provisions of this ADOR-Municipal IGA for TPT Administration September 2023 Page 26 of 39 Agreement. The Standard Process Maps described within certain enumerated provisions are not themselves part of this Agreement. 26. Mutual Cooperation In the event of a disagreement between the parties regarding the terms, provisions, and requirements of this Agreement, or in the event of the occurrence of any circumstances bearing upon or affecting this Agreement, parties hereby agree to mutually cooperate to resolve the said disagreement or deal with the said circumstance. 27. Arbitration To the extent required by A.R.S. § 12-1518 and as provided for in A.R.S. § 12-133, the parties agree to resolve any dispute arising out of this Agreement by arbitration. The parties agree that any lawsuit filed by City/Town relating to the issues outlined in Section 19 of this Agreement is not considered to be a dispute arising out of this Agreement. 28. Implementation The implementation and execution of the provisions of this Agreement shall be the responsibility of the Director of the Department or his/her designee and the Mayor of City/Town, his/her designee, or another party with designated authority pursuant to applicable law or City/Town charter to act on behalf of City/Town. 29. Limitations Nothing in this Agreement shall be construed as limiting or expanding the statutory responsibilities of the parties in performing functions beyond those granted to them by law, or as requiring the parties to expend any sum in excess of their appropriations. 30. Duration 30.1 The term of this Agreement shall commence from the latest date as indicated in Section 33 of this Agreement and continue in force through December 31st of the following calendar year unless canceled or terminated as provided herein. The term of this Agreement shall automatically be extended for successive one (1) year terms commencing on January 1st and ending on December 31st of each year thereafter unless canceled or terminated as provided herein. 30.2 Amendments to this Agreement that are negotiated and agreed to by a simple majority of the review committee referenced in Section 30.9 of this Agreement shall thereafter be executed by the parties hereto by a separate signed amendment and incorporated herein to be effective during the term of this Agreement and any extensions. 30.3 This Agreement may be canceled or terminated effective on December 31st of any year by either party by providing written notice no later than sixty (60) calendar days prior to the expiration of the term then in effect. ADOR-Municipal IGA for TPT Administration September 2023 Page 27 of 39 30.4 This Agreement shall expire on December 31st of any year the Department is subject to sunset review by the legislature. Upon expiration, cancellation, or termination, any subsequent Agreement must be ratified through signature by both parties. 30.5 If State legislation enacted subsequent to the date of this Agreement substantially affects the performance of this Agreement by either party or substantially diminishes the benefits either party would receive under this Agreement, either party may then terminate this Agreement by giving at least thirty (30) calendar days’ notice to the other party. The termination shall become effective immediately upon the expiration of the notice period unless otherwise agreed to by the parties. 30.6 Notwithstanding any provision to the contrary herein, both parties may by mutual agreement provide for the termination of this Agreement upon such terms and at such time as is mutually agreeable to them. 30.7 Any notice of termination shall be mailed and served on the other party in accordance with Section 21 of this Agreement. 30.8 In the event of a partial or complete termination of this Agreement, if the parties have shared or exchanged property the parties will return the property to its original owner or dispose of it in a manner required by the original owner as described in this Agreement. 30.9 During the term of this Agreement, the terms and conditions of this Agreement shall undergo an annual review to be initiated no later than June 1st of each year. The review shall be performed by a committee made up of equal parts representatives of the Department and representatives of the municipal taxing jurisdictions entering into an IGA with the Department for the administration and collection of Municipal Taxes. 31. Choice of Law The laws and regulations of the State of Arizona shall govern the rights of the parties, the performance of this Agreement, and any disputes arising from this Agreement. 32. Entire Agreement This document, including the specific appendices attached hereto, and any approved subcontracts, amendments, and modifications made thereto, shall constitute the entire Agreement between the parties and shall supersede all other understandings, oral or written. 33. Signature Authority ADOR-Municipal IGA for TPT Administration September 2023 Page 28 of 39 33.1 By signing below, the signer certifies he or she has the authority to enter into this Agreement on behalf of his or her respective party, and he or she has read the foregoing and agrees to accept the provisions herein on said party’s behalf. 33.2 This Agreement may be executed in counterpart. For the Department: For City/Town: Signature Date Robert Woods, Director Signature Date Typed Name and Title Arizona Department of Revenue Typed Name and Title Entity Name 1600 W. Monroe St. Entity Name Address Phoenix Arizona 85007 Address City State Zip City State Zip RESERVED FOR THE ATTORNEY GENERAL: RESERVED FOR CITY/TOWN ATTORNEY: This agreement between public agencies has been reviewed pursuant to A.R.S. § 11-952 by the undersigned Assistant Attorney General who has determined that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to the Arizona Department of Revenue represented by the Attorney General. KRIS MAYES The Attorney General BY: ________________________________Signature Assistant Attorney General Date: __________________________ This agreement between public agencies has been reviewed pursuant to A.R.S. § 11-952 by the undersigned City/Town Attorney who has determined, on behalf of the City/Town only, that it is in proper form and is within the powers and authority granted under the laws of the State of Arizona to the City/Town. APPROVED AS TO FORM AND AUTHORITY: BY: ________________________________ CITY/TOWN ATTORNEY Date: ______________________________ ADOR-Municipal IGA for TPT Administration September 2023 Page 29 of 39 APPENDIX A ARIZONA DEPARTMENT OF REVENUE CONFIDENTIALITY REQUIREMENTS 1. Confidential Information 1.1 “Confidential Information” is defined in A.R.S. § 42-2001. Confidential Information may not be disclosed except as provided by statute. A.R.S. §§ 42-2001 through 42-2004. 1.2 “Tax Information” as defined in this Agreement is Confidential Information. 1.3 Disclosure of aggregated financial information. Under no circumstance shall aggregated financial information related to transaction privilege taxes allow any person who is not authorized to receive Tax Information to identify or discover the financial information of an individual taxpayer. (a) Except as provided in Section 1.3(b) of this Appendix, City/Town will disclose aggregated financial information in accordance with the Department’s standard: (1) City/Town shall only disclose aggregated financial information from not less than ten (10) taxpayers within the political boundaries of City/Town. (2) No individual taxpayer’s financial information should be discernible due to its relative size compared to other members of the aggregated group. For example, if one of the taxpayers in the data set represents 90% or more of the data point, then that data point must not be disclosed, regardless of the number of taxpayers. (b) City/Town may disclose its aggregated financial information from less than ten (10) taxpayers provided City/Town first determines the aggregated data could not potentially reveal the financial information of an individual taxpayer. Such a determination shall take all the following into consideration: (1) Ownership. All taxpayers with common ownership entities shall be considered a single taxpayer for aggregation purposes; and (2) Proportionality. No individual taxpayer’s financial information should be discernible due to its relative size compared to other members of the aggregated group; and ADOR-Municipal IGA for TPT Administration September 2023 Page 30 of 39 (3) Any other factor that might allow any person who is not authorized to receive Tax Information to identify or discover the financial information of an individual taxpayer. 2. Protecting Information 2.1 City/Town must identify all places, both physical and logical, where City/Town receives, processes, and stores Tax Information and create a plan to adequately secure those areas. 2.2 Tax Information must be protected during transmission, storage, use, and destruction. City/Town must have written policies, standards, and procedures to document how it protects its information systems, including Tax Information so that it conforms to the State of Arizona statutes A.R.S. §§ 42-2001 through 42-2004 and policies, standards, and procedures found on the Arizona Strategic Enterprise Technology (“ASET”) website at aset.az.gov/resources/policies-standards-and- procedures or ASET’s successor agency or website and Arizona Department of Homeland Security’s website at https://azdohs.gov/information-security-policies-standards-and-procedures. 2.3 Department staff and authorized City/Town staff are prohibited from inspecting Tax Information unless they have a business reason. Browsing through Tax Information concerning friends, neighbors, family members, or people in the news is strictly prohibited. 2.4 All removable media, including paper and CDs, containing Tax Information must be secured when not in use and after normal business hours by placing all materials in a locked drawer or cabinet. During use, Tax Information must be protected so that it is not visible to members of the public or anyone without a business need for the information. 2.5 All individuals accessing or storing Tax Information from an alternative work site must enter into a signed agreement that specifies how the Tax Information will be protected while at that site. Only trusted employees shall be permitted to access Tax Information from alternative sites. Tax Information may not be accessed while in public places such as restaurants, lounges, or pools. 2.6 Tax Information may not be discussed in elevators, restrooms, the cafeteria, or other public areas. Terminals should be placed in such a manner that prohibits public viewing of Tax Information. 2.7 When transporting confidential materials, the materials should be covered so that others cannot see the Tax Information. When sending Tax Information by fax, a cover sheet should always be used. 2.8 Any person with unsupervised access to Tax Information shall receive training on the confidentiality laws and requirements to protect such information before being given access to such information and annually thereafter. They must sign ADOR-Municipal IGA for TPT Administration September 2023 Page 31 of 39 certificates after the training acknowledging that they understand their responsibilities. City/Town must keep records to document this training and certification and submit a copy of the certification to the Department. 3. Disclosure of Information 3.1 Tax Information may only be disclosed as permitted by A.R.S. § 42-2003. 3.2 Tax Information is protected by statute and, therefore, shall not be disclosed in response to a public records request except as authorized by law. A state agency, including political subdivisions (City/Town), may deny inspection of public records if the records are deemed confidential by statute. Berry v. State, 145 Ariz. 12, 13 699 P.2d 387, 388 (App. 1985). 3.3 A taxpayer may designate a person to whom Tax Information may be disclosed by completing an Arizona Department of Revenue Form 285 or Form 285B, or such other form that contains the authorizing information included in those forms. City/Town may contact the Department’s Disclosure Officer at DisclosureOfficer@azdor.gov if there are any questions concerning this requirement. 4. Retention and Disposal of Information 4.1 All records received from the Department must be kept for the duration of the records retention period as listed in the official records retention schedules approved by the Secretary of State Library Archives and Public Records Division (“LAPR”) published on the LAPR website. (a) The Department’s custom records retention schedule is published on the LAPR website at apps.azlibrary.gov/records/schedules.aspx. (b) In the event of a legal hold (such as a litigation hold or investigative hold), Department and/or City/Town may be required to retain records beyond the retention period. 4.2 The Department and City/Town shall follow the legal requirements for reporting the disposition and destruction of records to the Arizona State Library Archives, & Public Records Division under A.R.S. § 41-151.19. Certificate of Records Destruction Forms are found at: azlibrary.gov/arm/forms. 4.3 All removable media containing Tax Information must be returned to the Department or sanitized before disposal or release from the control of City/Town. 4.4 Tax Information must be destroyed by shredding or burning the materials when the retention period has been met and no legal holds are in place. Tax Information may not be disposed of by placing the materials in the garbage or recycle bins. Destruction of Tax Information may be performed by a third-party vendor. ADOR-Municipal IGA for TPT Administration September 2023 Page 32 of 39 City/Town must take appropriate actions to protect the Tax Information in transit and storage before it is destroyed, such as periodic inspections of the vendor. 4.5 Computer system components and devices, such as copiers and scanners, which have been used to store or process Tax Information may not be repurposed for non-tax administration uses unless the memory or hard drive of the device is sanitized to ensure under no circumstances Tax Information can be restored or recovered. 5. Information Security 5.1 Systems containing Tax Information must be protected in accordance with the State of Arizona Policies, Standards, and Procedures that govern State data found at https://azdohs.gov/information-security-policies-standards-and-procedures, particularly Policies and Standards 8000-8410 and the Arizona NIST Security Baseline Controls. 5.2 City/Town is responsible for creating architectural diagrams of any systems connecting to the Department’s systems and depicting the flow of State Tax Information. Architectural diagrams for systems connecting to the ADOR shall be shared with the ADOR and updated after any architectural changes. 5.3 Incident Reporting. City/Town is required to notify the Department in the event of a suspected or actual unauthorized disclosure of Tax Information, data loss, breach, or other security concern regarding Tax Information by reporting the incident to the Department’s: 1) City Services Manager by email at citiesunit@azdor.gov, 2) Disclosure Officer by email at DisclosureOfficer@azdor.gov, and 3) Chief Information Security Officer’s Information Security Team by email at InfoSec@azdor.gov. 5.4 The Department may send employees or auditors to inspect any of City/Town information systems and/or facilities used to process, store, or transmit any Department data at any time to ensure that Department information is adequately protected. City/Town shall provide audit records and evidence of system and application hardening to the department's information security team upon request. Hardening evidence can include, but is not limited to: RiskSense, CIS benchmarks, SCSEMs, STIGs, or other security best practices. If City/Town hires a third-party for any system or information support, all security provisions apply. 6. Wireless Access (if accessing State Confidential Information from a wireless network) City/Town must: 6.1 Establish restrictions, configuration/connection requirements, and implementation guidance for wireless access. 6.2 Authorize wireless access to the information system prior to allowing such connections. ADOR-Municipal IGA for TPT Administration September 2023 Page 33 of 39 6.3 Employ a wireless intrusion detection system to identify rogue wireless devices and to detect attack attempts and potential compromises/breaches to the information system. 39 ADOR-Municipal IGA for TPT Administration September 2023 Page 34 of 39 APPENDIX B REQUIRED REPORTS AND DATA FIELDS At a minimum, the Department of Revenue shall provide the following reports which display all of fields identified below, per report: NEW LICENSE REPORT and LICENSE UPDATE REPORT o Region Code o Run Date o Report Start Date o Report End Date o Update Date o ID Type o ID o Account ID o Entity Name o Ownership Type o License ID o OTO/Applied For indicator o Bankruptcy Indicator o Filing Frequency o Issue Date o Account Start Date o Business Start Date o Arizona Start Date o Doc Loc Nbr o Accounting Method o Close Date o Close Code o Business Description o NAICS1 o NAICS2 o NAICS3 o NAICS4 o Mailing Street1 o Mailing Street2 o Mailing Street3 o Mailing City o Mailing State o Mailing ZIP o Mailing Country o Mailing Phone Number o Mailing Address Add date o Mailing Address End Date ADOR-Municipal IGA for TPT Administration September 2023 Page 35 of 39 o Audit Street1 o Audit Street 2 o Audit Street 3 o Audit City o Audit State o Audit Zip o Audit Country o Audit Phone Number o Audit Address Add Date o Audit Address End Date o Location Code o Business Codes o Location Name (DBA) o Number of Units o Location Street 1 o Location Street 2 o Location Street 3 o Location City o Location State o Location Zip o Location Country o Location Phone Number o Location Start Date o Location End Date o Primary Location Street 1 o Primary Location Street 2 o Primary Location Street 3 o Primary Location City o Primary Location State o Primary Location Zip Code o Primary Location Country o Primary Location Phone Number o Primary Location Start Date o Primary Location End Date o Owner Name o Owner Title o Owner Name 2 o Owner Title 2 o Owner Name 3 o Owner Title 3 CITY PAYMENT JOURNAL o Run Date o Report Start Date o Report End Date o GL Accounting Period ADOR-Municipal IGA for TPT Administration September 2023 Page 36 of 39 o Period End Date o Payment received date o Return received date o Payment process date o Return process date o Filing Frequency o License ID o Entity Name o Location Code o Location Name (DBA) o Location Street 1 o Location Street 2 o Location Street 3 o Location City o Location State o Location Zip o Location Country o NAICS o Business Code o Doc Loc Nbr o Pmt Loc Nbr o Gross Receipts o Total Deductions o Tax or Fee Collected o P & I Collected o Audit Collections o Tran Type o Tran Subtype o Rev Type CITY PAYMENT JOURNAL SUMMARY o Region Code o Run Date o Report Start Date o Report End Date o GL Accounting Period o Business Code o Number of Accounts o Collections NO MONEY REPORT o Region Code o GL Accounting Period o Period End Date o Payment received date o Return received date ADOR-Municipal IGA for TPT Administration September 2023 Page 37 of 39 o Payment process date o Return process date o Filing Frequency o License ID o Entity Name o Location Code o Location Name (DBA) o Location Street 1 o Location Street 2 o Location Street 3 o Location City o Location State o Location Zip o Location Country o NAICS o Business Code o Doc Loc Nbr o Pmt Loc Nbr o Gross Receipts o Total Deductions o Tax or Fee Collected o P & I Collected o Audit Collections o Tran Type o Tran Subtype DEDUCTION REPORT o Region Code o Run Date o Report Start Date o Report End Date o GL Accounting Period o Period End Date o License ID o Entity Name o Location Code o Location Name (DBA) o Business Code o Doc Loc Nbr o Deduction Code o Deduction Amount o Tran Type o Tran Subtype o Rev Type ADOR-Municipal IGA for TPT Administration September 2023 Page 38 of 39 FUND DISTRIBUTION REPORT o Region Code o Run Date o Report Start Date o Report End Date o GL Accounting Period o Period End Date o Payment Received Date o Return Received Date o Payment Processed Date o Return Processed Date o License ID o Entity Name o Location Code o Location Name (DBA) o Business Code o Doc Loc Nbr o Fund Allocation Code o Amount Distributed FUND DISTRIBUTION SUMMARY REPORT o Region Code o Run Date o Report Start Date o Report End Date o GL Accounting Period o Fund Allocation Code o Amount Distributed ADOR-Municipal IGA for TPT Administration September 2023 Page 39 of 39 APPENDIX C REQUIRED FORMS 1. JT-1 Joint Tax Application for a TPT License ADOR Form 10196 2. TPT-2 Transaction Privilege, Use and Severance Tax Return (filing periods beginning on or AFTER June 1, 2016) ADOR Form 11249 3. TPT-EZ Transaction Privilege, Use and Severance Tax Return ADOR Form 11263 2023 Intergovernmental (IGA) Instructions The final version of the 2023 Intergovernmental Agreement between the Arizona Department of Revenue and your city/town is attached and ready for signature. The standardized agreement is applicable to all Arizona municipalities and the Department. Alterations or edits to the Agreement are not permitted. Please take a few moments to review these instructions. Actions for Cities/Towns 1. Complete page 2, “Primary Point of Contact for Information Security Concerns,” (PPOC) providing, at minimum, one person’s contact information for your city/town. This information allows ADOR to quickly identify an appropriate person(s) for conveying important information, which may include non tax-related matters. 2. Email the completed PPOC page to the City Services team at citiesunit@azdor.gov. 3. Next, fill in the following information on ALL copies of the 2023 IGA document: o Enter your city/town name in the appropriate title field on page 1. o Enter the date of Council action and your city/town name in paragraph 1 on page 1. o Enter the assigned city/town employee name and email address in Section 21 of page 24. The employee you identify should be the individual who is most commonly responsible for tax administration matters. o Enter identifying information for the appointed city/town representatives who are authorized to sign the IGA in Section 33.3 of page 28. 4. Present the completed IGA, including all Appendices, to your city/town council for approval and signature for your next available Council agenda. Digital or handwritten signatures are permissible and must be included on ALL copies of page 28. 5. Once Council has approved the IGA, return, at minimum, two (2) signed, printed copies to ADOR by mail to the following address: Arizona Department of Revenue ATTN: KIMBERLY GALLEN/JOSEPHINE POSTON OUTREACH DISTRICT: CITY SERVICES TEAM 1600 W MONROE STREET PHOENIX, AZ 85007 Actions for ADOR 1. City Services receives the IGAs and reviews the documents for completeness. The team may contact the city/town IGA point person identified in Section 21 on page 24 to request correction(s). 2. City Services delivers the IGAs to the ADOR Director and Attorney General for review and signature. 3. ADOR retains one (1) fully-executed copy of the 2023 IGA. 4. ADOR returns one (1) fully-executed copy of the 2023 IGA to the sending city/town’s IGA point person. Primary Point of Contact for Information Security Concerns -REQUIRED- City/Town Name Title E-mail address Phone number -OPTIONAL- City/Town Name Title E-mail address Phone number ITEM 8. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-40, abandoning a 10' Public Utility and Drainage Easement along the south side of 15513 E Cavern Drive (Application A23-000013). Staff Summary (Background) This is a proposal to abandon the pre-incorporation 10' Public Utility and Drainage Easement along the south property line of Plat 602-A, Block 2, Lot 10 (15513 E Cavern Drive).  Marta and Tomasz Jezionek, the owners of the property, are planning to construct a concrete masonry unit wall and view fence, 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 2023-40. SUGGESTED MOTION MOVE to adopt Resolution 2023-40. Attachments Vicinity Map  Aerial Photo Map  Exhibit A: Survey  Res 2023-40  Form Review Inbox Reviewed By Date Development Services Director John Wesley 11/22/2023 07:56 AM Town Attorney Aaron D. Arnson 11/22/2023 08:36 AM Town Manager Rachael Goodwin 11/27/2023 07:53 AM Form Started By: David Janover Started On: 11/20/2023 03:51 PM Final Approval Date: 11/27/2023  BEELIN E H W Y SHEA BLVD PAL I S A D E S B L V D SAGUARO BLVD SAG U A R O B L V D PALIS A D E S B L V D PALISA D E S B L V D SA G U A R O B L V D FO U N T A I N H I L L S B L V D McDOWELL M O U N T A I N R D FO U N T A I N H I L L S B L V D SUNR I D G E D R EL L A G O B L V D AVEN U E O F T H E FOUN T A I N S PA N O R A M A D R FI R E R O C K C O U N T R Y CL U B D R CR E S T V I E W D R SIERRA M A D R E GRANDE BL V D G O L D E N E A G L E B L V D E A G L E R I D G E D R E A G L E R I D G E D R VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is Ar i z o n a F O U N TAIN HI L L S T OWN OF INC. 1989 TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FO R T M c D O W E L L Y A V A P A I N A T I O N SALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 15513 E CAVERN DR A23-0000013 DEVELOPMENT SERVICES A ll that is A r i z o n a F O U N T AIN HI L L S T OWN OF INC. 1989 ZONING: R1-10 LOT 10 LEGEND: PHOTO MAP 2022 AERIAL LOT 9 A23-000013 LOT 11 E CA V E R N D R ABANDON 10' P.U.E. & D.E. LOT 40 EXHIBIT "A" TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT LOT 10 A23-000013 RESOLUTION 2023-40 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE- INCORPORATION 10' PUBLIC UTILITY AND DRAINAGE EASEMENT ALONG THE SOUTHERN PROPERTY LINE OF PLAT 602-A, BLOCK 2, LOT 10 (15513 E CAVERN DRIVE) FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 161 OF MAPS, PAGE 42 WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), as the governing body of real property located in the Town of Fountain Hills (the “Town”), may require the dedication of public streets, sewer, water, drainage, and other utility easements or rights-of-way within any proposed subdivision; and WHEREAS, the Town Council has the authority to accept or reject offers of dedication of private property by easement, deed, subdivision, plat or other lawful means; and WHEREAS, all present utility companies have received notification of the proposed abandonment. NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. That the certain public utility and drainage easement, located at the SOUTHERN property line of Plat 602-A, Block 2, Lot 10 (15513 E Cavern Drive) Fountain Hills, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 161 of Maps, Page 42, and as more particularly described in Exhibit A, attached hereto and incorporated herein by reference, is hereby declared to be abandoned by the Town. Certain lots within this subdivision are subject to lot-to-lot drainage runoff. The property owner is required to pass the developed flows generated by the upstream lots across their property. SECTION 2. That this Resolution is one of abandonment and disclaimer by the Town solely for the purpose of removing any potential cloud on the title to said property and that the Town in no way attempts to affect the rights of any private party to oppose the abandonment or assert any right resulting there from or existing previous to any action by the Town. PASSED AND ADOPTED BY the Mayor and Council of the Town of Fountain Hills December 19, 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 8. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent                  Submitting Department: Public Works Prepared by: David Janover, Town Engineer Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-41, abandoning the 10' Public Utility and Drainage Easements along the south and west sides of 11206 N Partridge Place (Application A23-000014). Staff Summary (Background) This is a proposal to abandon the pre-incorporation 10' Public Utility and Drainage Easements along the southern and western property lines of Plat 204, Block 12, Lot 14 (11206 N Partridge Place).  Solveig Johnson and Matthew Long, the owners of the property, are planning to construct a pool, 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 2023-41 SUGGESTED MOTION MOVE to adopt Resolution 2023-41 Attachments Vicinity Map  Aerial Photo Map  Exhibit A: Survey  Res 2023-41  Form Review Inbox Reviewed By Date Development Services Director John Wesley 11/27/2023 12:34 PM Town Attorney Aaron D. Arnson 11/27/2023 02:40 PM Town Manager Rachael Goodwin 11/28/2023 08:13 AM Form Started By: David Janover Started On: 11/20/2023 04:27 PM Final Approval Date: 11/28/2023  BEELIN E H W Y SHEA BLVD PAL I S A D E S B L V D SAGUARO BLVD SAG U A R O B L V D PALIS A D E S B L V D PALISA D E S B L V D SA G U A R O B L V D FO U N T A I N H I L L S B L V D McDOWELL M O U N T A I N R D FO U N T A I N H I L L S B L V D SUNR I D G E D R EL L A G O B L V D AVEN U E O F T H E FOUN T A I N S PA N O R A M A D R FI R E R O C K C O U N T R Y CL U B D R CR E S T V I E W D R SIERRA M A D R E GRANDE BL V D G O L D E N E A G L E B L V D E A G L E R I D G E D R E A G L E R I D G E D R VICINITY MAP TOWN OF FOUNTAIN HILLS NORTH SCALE: 1" = 3500' All that is Ar i z o n a F O U N TAIN HI L L S T OWN OF INC. 1989 TOWN HALL DEVELOPMENT SERVICES DEPARTMENT SCOTTSDALE McDOWELL MOUNTAIN PARK FO R T M c D O W E L L Y A V A P A I N A T I O N SALT RIVER PIMA MARICOPA INDIAN COMMUNITY TOWN BOUNDARY SCOTTSDALE 11206 N PARTRIDGE PL A23-0000014 DEVELOPMENT SERVICES A ll that is A r i z o n a F O U N T AIN HI L L S T OWN OF INC. 1989 ZONING: R1-8 LOT 14 LEGEND: PHOTO MAP 2022 AERIAL A23-000014 LOT 15 N P A R T R I D G E P L ABANDON 10' P.U.E. & D.E. LOT 13 EXHIBIT "A" TOWN OF FOUNTAIN HILLS EASEMENT ABANDONMENT LOT 14 A23-000014 RESOLUTION 2023-41 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ABANDONING WHATEVER RIGHT, TITLE, OR INTEREST IT HAS IN THE PRE- INCORPORATION 10' PUBLIC UTILITY AND DRAINAGE EASEMENTS ALONG THE SOUTHERN AND WESTERN PROPERTY LINES OF PLAT 204, BLOCK 12, LOT 14 (11206 N PARTRIDGE LANE) FOUNTAIN HILLS, ARIZONA, AS RECORDED IN THE OFFICE OF THE COUNTY RECORDER OF MARICOPA COUNTY, ARIZONA, RECORDED IN BOOK 142 OF MAPS, PAGE 10 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 SOUTHERN and WESTERN property lines of Plat 204, Block 12, Lot 14 (11206 N Partridge Lane) Fountain Hills, as recorded in the Office of the County Recorder of Maricopa County, Arizona, Book 142 of Maps, Page 10, 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 December 19, 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 8. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: David Trimble, Deputy Town Manager/Admin. Serv. Dir. Staff Contact Information: David Trimble, Deputy Town Manager/Admin. Serv. Dir. Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-42 amending and updating the employee Personnel Manual to integrate fire department policies and make additional updates. Staff Summary (background) The Town Council terminated the agreement with Rural Metro in November 2022 and instructed staff to prepare for creating the Town of Fountain Hills Fire Department. Since then, staff, with the assistance of McGrath Consulting Group, has been pursuing the objective of having all fire department personnel and equipment ready for the January 1, 2024, switch from Rural Metro to Fountain Hills Fire Department. Staff anticipated many policy revisions because fire department matters are unique. Moreover, the personnel policies were last revised in 2018. Therefore, staff decided to conduct a comprehensive review of all town employee policies. The Town does not currently have staff working 24-hour shifts, so most of the significant proposed updates to the employee personnel policies are related to these 24-hour fire department shifts. Staff also used this opportunity to propose clarifying updates to several policies, add policies where needed, and propose housekeeping changes and edits throughout the manual. The overall approach staff used was to try to align town policies with policies that fire department staff were already familiar with whenever feasible and also maintain universal policies whenever feasible rather than creating separate policies for fire department and non-fire department staff. While most policies achieve this approach, there are a few areas where it was necessary to propose a distinction between fire & non-fire policies. The Town Attorney’s Office has also provided input where necessary. Please see the attached documents for the details. Related Ordinance, Policy or Guiding Principle Employee retention and compliance with applicable human resources laws. Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) Staff Recommendation(s) Approve SUGGESTED MOTION MOVE to adopt Resolution 2023-42 amending the employee Personnel Manual. Attachments Resolution  Current Personnel Policies - 2018  Personnel Policies Redline  Personnel Policies Manual Final Draft  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 12/04/2023 04:29 PM Finance Director David Pock 12/04/2023 05:05 PM Finance Director David Pock 12/04/2023 05:05 PM Town Attorney Aaron D. Arnson 12/04/2023 08:06 PM Town Manager Rachael Goodwin 12/12/2023 05:23 PM Form Started By: David Trimble Started On: 11/30/2023 09:45 AM Final Approval Date: 12/12/2023  RESOLUTION 2023-42 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING AND RESTATING THE TOWN OF FOUNTAIN HILLS EMPLOYEE PERSONNEL MANUAL. WHEREAS, the Town’s employee personnel manual was last comprehensively rewritten in 2018, and WHEREAS, the Town desires to amend and restate personnel policies to reflect changes in staffing related to fire department personnel being employed, provide clearer compliance language, and increase employee satisfaction, and NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Town, through its Mayor and Council, hereby amends and restates the Town of Fountain Hills Employee Personnel Manual, attached hereto as Exhibit A. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, December 19, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: __________________________________ ________________________________ MAYOR TOWN CLERK REVIEWED BY: APPROVED AS TO FORM: __________________________________ ________________________________ Town Manager Town Attorney TOWN OF FOUNTAIN HILLS PERSONNEL POLICIES Amended and Restated April 20, 2018 TOWN OF FOUNTAIN HILLS 16705 E. AVENUE OF THE FOUNTAINS FOUNTAIN HILLS, AZ 85268 480-816-5100 TABLE OF CONTENTS Page No. ABOUT THE ORGANIZATION.....................................................................................1 MISSION STATEMENT ................................................................................................2 I. GENERAL INFORMATION (101) General Provisions and Purpose …………………………. ...................................3 (102) Loyalty Oath …………………………………………… ......................................4 (103) Equal Employment ………………………………………. ...................................6 II. CONDITIONS OF EMPLOYMENT (201) Proof of Right to Work in the United States …………….. ...................................7 (202) Temporary Assignments ……………..…………….. ...........................................8 (203) Temporary Staffing ................................................................................................9 (204) Identification Badges & Building Access ……………….. .................................10 (205) Basic Work Week and Hours of Work ……………............................................11 (206) Code of Conduct …………………......................................................................12 (207) Conflict of Interest …………………………………………. .............................14 (208) Solicitation ……………………………………….. ............................................17 (209) Political Activity ……………………………………………….. .......................18 (210) Nepotism and Personal Relationships …………………………………………. 19 (211) Secondary Employment ……………………. .....................................................20 (212) Harassment ………………………………….. .....................................................23 (213) Absentee Reporting, Personal Telephone Calls, and Record Changes …….. .....25 (214) Dress Code and Uniforms ……….. .....................................................................28 (215) Violence in the Workplace ………………………………… ..............................32 III. RECORDS (301) Confidentiality and Employee Records ……………………..............................33 (302) Personnel Record Keeping ………………………………… .............................34 (303) Performance Evaluation …………………………………… .............................35 (304) Job Descriptions …………………………………………… .............................36 IV. HEALTH & WELFARE (401) Drug and Alcohol Abuse and Testing – All Employees ……………………… .37 (402) Drug and Alcohol Abuse and Testing – Employees Required to Maintain a…….. Valid Commercial Driver’s License ...............................................................….44 (403) Smoke-Free Workplace …………………………………….. .............................52 (404) Weapons ……………………………………………………. .............................53 (405) On-the-Job Injury and Illness ………………………………. .............................54 (406) Temporary Modified Duty ………………………………….. ............................55 (407) Disability & Accommodations …………………………………. .......................56 V. RECRUITMENT AND ANNOUNCEMENT OF POSITIONS (501) Recruitment ………………………………………………… .............................62 (502) Background Checks ………………………………………….............................63 VI. CLASSIFICATION (601) Exempt/Non-Exempt Employee Classifications ………………… .....................64 (602) Employee Classifications ……………………………………. ...........................66 (603) Call-Back Pay ……………………………………………….. ............................67 (604) Stand-By Duty (On-Call) ………………………………………………. ...........69 (605) Job Sharing ………………………………………………….. ............................71 VII. WAGE AND SALARY ADMINISTRATION (701) Wage and Salary Administration ……………………………. ...........................72 (702) Pay Period and Workweek …………………………………………………… ..76 VIII. INTRODUCTORY PERIOD (801) Introductory Employment Period ……………………………. ...........................77 IX. FRINGE BENEFITS & LEAVES (901) Eligibility for Benefits ………………………………………... ..........................80 (902) Sick Leave – Full-Time and Part-Time Regularly Scheduled Employees …......81 (903) Sick Leave – Part-Time Non-Regularly Scheduled, Temporary Seasonal, and Other Employees …...… ...........................................................…84 (904) Vacation Leave ……………………………………………….. ..........................86 (905) Holidays ………………………………………………………. .........................88 (906) Personal Leave (Optional) …………………………………….. .........................90 (907) Family & Medical Leave Act (FMLA) ………………………………………... 91 (908) Exempt Leave……………………………………………….. .............................95 (909) Miscellaneous Leave with Pay…………………………………. ........................97 (910) Leaves of Absence without Pay………………………………… .......................99 (911) Merit Leave ……………………………….. .....................................................100 (912) Military Leave ………………………………………………… .......................101 (913) Health & Welfare Benefits …………………………………… ........................102 (914) 401A Retirement Plan ………………………………………… .......................103 (915) Deferred Compensation ……………………………………….........................104 (916) Employee Assistance Program ……………………..………………………… 105 (917) Tuition Reimbursement ……………………………… .....................................106 (918) Training Funding ………………………………………………. ......................111 (919) Service Awards………………………………... ...............................................112 X. TRAVELING ON OFFICIAL BUSINESS (1001) Travel Time ………………………………………………………..…………113 XI. OTHER WORKPLACE POLICIES (1101) Membership in Professional and Civic Organizations …………… ................114 (1102) Use of Town Vehicles by Town Employees ………………....... ....................115 (1103) Use of Town Premises, Property and Materials ……………….. ....................117 (1104) Acceptable Use of Information Systems ……………………… .....................118 (1105) Intranet/Internet and Email…………………………………………… ...........122 (1106) Software/Hardware……………………………………...................................130 (1107) Audit of Information Systems…………………………………………. .........135 (1108) Town Furniture and Walls …………………………………….......................137 XII. SUPERVISION AND DISCIPLINE (1201) Supervision and Discipline ……………………………………......................138 XIII. SEPARATION FROM SERVICE (1301) Separation from Employment …………………………………. ....................147 (1302) References ……………………………………………………... ....................150 (1303) Reduction in Workforce ……………………………………….. ....................151 XIV. PROBLEM SOLVING AND GRIEVANCE PROCEDURES (1401) Problem Solving ………………………………………………. .....................152 (1402) Grievances …………………………………………. ......................................154 (1403) Covered / Uncovered Positions …………………......................... ..................160 1 ABOUT THE ORGANIZATION The Town of Fountain Hills (or the “Town”) municipal government provides a variety of services such as zoning ordinances and the Town code. 1 Major departments include Administration, Community Services, the Court, Development Services, law enforcement (contracted with the Maricopa County Sheriff’s Office), and fire and emergency medical service (contracted with Rural Metro). The Town is operated with a seven-member Town Council handling policy decisions for Fountain Hills. The Town Manager is responsible for all personnel and administrative matters at Town Hall. The Town of Fountain Hills has an unrelenting commitment to excellence and equitable treatment to its employees and customers. 2 Town of Fountain Hills MISSION STATEMENT The Town of Fountain Hills’ purpose is to serve the best interests of the community by: providing for its safety and well-being; 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 and respect, and provide trust and stewardship. 3 Town of Fountain Hills Personnel Policies SECTION: GENERAL INFORMATION POLICY: GENERAL PROVISIONS AND PURPOSE POLICY NO: 101 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish Town of Fountain Hills Personnel Policies and describe overall content and relationships to other regulations. STATEMENT OF POLICY: The Town Council enacts these policies in order to further the following goals: 1. To provide a uniform system of personnel administration throughout the Town service. 2. To assist managers in the development of sound management practices and procedures, and to make effective and consistent use of human resources throughout the Town. 3. To promote communication between department heads, supervisory staff, and employees. 4. To ensure, protect, and clarify the rights and responsibilities of Town employees. SCOPE: These personnel policies shall apply to all Town employees unless otherwise noted. Elected officials; officers subject to appointment and removal by the Council; consultants hired on a contract basis; contract employees; volunteer workers who receive no regular compensation from the Town; and members of boards, committees and commissions established by the Council may be subject to separate rules. In the event of conflict between these policies and any Town ordinance, or state or federal law, the terms and conditions of those ordinances or laws shall prevail. In all other cases these policies shall apply. In the event of the amendment of any ordinance, rule, or law incorporated in these policies or upon which these policies rely, these policies shall be deemed amended in conformance with those changes. The Town Manager shall have the authority to make such amendments, as mandated by local, county, state or federal ordinance, regulation or law, and shall also have the authority to make non-substantive amendments. Amendments shall be reported to the Town Council. The Town of Fountain Hills specifically reserves the right to repeal, modify or amend these policies at any time, with or without notice. None of these provisions shall be deemed to create a vested or contractual right in any employee, or limit the power of the Town Manager to repeal or modify these policies. These policies are not to be interpreted as promises or specific treatment. The Town may terminate an employee for any reason or no reason during the introductory period as long as the termination is not based on discrimination. In addition, the Town may terminate an employee for cause after the introductory period. Likewise, the employee may terminate employment at any time. No individual supervisor, manager or officer can make a contrary agreement. 4 Town of Fountain Hills Personnel Policies SECTION: GENERAL INFORMATION POLICY: LOYALTY OATH POLICY NO: 102 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 PURPOSE: The purpose of this procedure is to document and ensure compliance with the loyalty oath requirements of State law. STATEMENT OF POLICY: All Town employees are required to sign a loyalty oath and such document must be submitted with new hire paperwork and filed in the employee's official personnel file. (See Exhibit 102-A - Loyalty Oath). Arizona Revised Statutes §38-231 requires in part that an officer or employee within the meaning of the section who fails to take and subscribe the oath or affirmation provided within the time limits prescribed shall not be entitled to any compensation unless and until such officer or employee does so take and subscribe to the form of oath or affirmation set forth. 5 EXHIBIT 102-A LOYALTY OATH A. In order to ensure the statewide application of this section on a uniform basis, each board, commission, agency and independent office of this state, and of any of its political subdivisions, and of any county, city, town, municipal corporation, school district and public educational institution, shall completely reproduce this section so that the form of written oath or affirmation required in this section contains all of the provisions of this section for use by all officers and employees of all boards, commissions, agencies and independent offices. B. Any officer or employee who fails to take and subscribe to the oath or affirmation provided by this section within the time limits prescribed by this section is not entitled to any compensation until the officer or employee does so take and subscribe to the form of oath or affirmation prescribed by this section. C. Any officer or employee having taken the form of oath or affirmation prescribed by this section, and knowingly at the time of subscribing to the oath or affirmation, or at any time thereafter during the officer's or employee's term of office or employment, does commit or aid in the commission of any act to overthrow by force, violence or terrorism as defined in section 13-2301 the government of this state or of any of its political subdivisions, or advocates the overthrow by force, violence or terrorism as defined in section 13-2301 of the government of this state or of any of its political subdivisions, is guilty of a class 4 felony and, on conviction under this section, the officer or employee is deemed discharged from the office or employment and is not entitled to any additional compensation or any other emoluments or benefits which may have been incident or appurtenant to the office or employment. D. Any of the persons referred to in article XVIII, section 10, Constitution of Arizona, as amended, relating to the employment of aliens, are exempted from any compliance with this section. E. In addition to any other form of oath or affirmation specifically provided by law for an officer or employee, before any officer or employee enters upon the duties of the office or employment, the officer or employee shall take and subscribe the following oath or affirmation: State of Arizona, County of __________________ I, _________________________ (type or print name) do solemnly swear (or affirm) that I will support the Constitution of the United States and the Constitution and laws of the State of Arizona, that I will bear true faith and allegiance to the same and defend them against all enemies, foreign and domestic, and that I will faithfully and impartially discharge the duties of the office of ______________________ (name of office) ________________________ according to the best of my ability, so help me God (or so I do affirm). ______________________________________ (signature of officer or employee) F. For the purposes of this section, "officer or employee" means any person elected, appointed or employed, either on a part-time or full-time basis, by this state or any of its political subdivisions or any county, city, town, municipal corporation, school district, public educational institution or any board, commission or agency of any county, city, town, municipal corporation, school district or public educational institution. 6 Town of Fountain Hills Personnel Policies SECTION: GENERAL INFORMATION POLICY: EQUAL EMPLOYMENT POLICY NO: 103 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To define the Town of Fountain Hills’ position regarding nondiscrimination in all matters pertaining to employment throughout the organization. STATEMENT OF POLICY: The Town provides equal opportunity for all applicants and employees. The Town does not discriminate on the basis of race, color, religion, gender, national origin, ancestry, marital status, sexual orientation, age, physical or mental disability, medical condition, veteran status or any other status protected by law. The Town also makes reasonable accommodations for the disabled and for employee’s religious observances and practices to the extent provided by law. It is the responsibility of every employee to cooperate with the spirit and intent of this policy. SCOPE: This policy applies to all applicants and employees throughout every aspect of the employment relationship including, but not limited to: recruitment, selection, placement, training, compensation, benefits, promotion, transfer, discipline, termination, and social and recreational programs. 7 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: PROOF OF RIGHT TO WORK IN THE UNITED STATES POLICY NO: 201 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 PURPOSE: To establish procedures to comply with federal law regulating eligibility to work in the United States. STATEMENT OF POLICY: The Town of Fountain Hills requires all new hires to provide documentation of eligibility to work in the United States no later than three working days after the employee commences work. Employment is contingent upon satisfactory completion of the verification requirement. SCOPE: This policy applies to all Town employees. PROCEDURE: When an offer of employment is made to an applicant, the applicant shall be informed that proof of identity and eligibility to work in the United States will be required upon hire. A list of acceptable documents will also be described and/or mailed to the candidate. All new employees hired by the Town will be required to complete Section 1 of INS Form I-9 at the time of hire. In addition to completing the I-9 form, all new employees must also be cleared by the Department of Homeland Security (DHS) as being eligible to work in the United States through the E-Verify Program required by the Legal Arizona Workers Act (A.R.S. §23-211 et. seq.). It is completed by a representative from Human Resources inputting into a secure DHS web site the information provided by the new employee from the completed I-9 form and their social security number. Typically, DHS will respond within seconds whether the person is cleared to work or if they have issues that must be cleared up with either the Social Security Administration or DHS. These forms will be maintained by the Human Resources Office. The Department Director, or designee, will ensure that the Human Resources Office verifies the candidate’s documents no later than three working days after the commencement of employment. 8 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: TEMPORARY ASSIGNMENTS POLICY NO: 202 EFFECTIVE: April 20, 2018 REVISED: April 20, 2018 PURPOSE: To clarify the circumstances by which the Town may utilize temporary assignments or temporarily staff a position. STATEMENT OF POLICY: “Acting” Assignments – Town employees may be temporarily assigned to perform all of the duties and assume all of the responsibilities of another position. “Increased Work Duties” Assignments – From time to time, Town employees may be temporarily assigned by the Town Manager to perform some or all of the duties and assume some or all of the responsibilities of a position or other positions. SCOPE: This policy applies to all Town Employees and all Town Departments. PROCEDURE: Temporary Assignments shall be administered in the following manner: 1. “Acting” Assignments – When the Town Manager identifies or otherwise determines that a Town Department is in need of an “Acting” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best-suited to meet the Department’s needs. During such temporary assignments, the Town employee shall be designated as having an “Acting” positon. Changes in compensation during an “Acting” assignment shall be determined by the Town Manager. Temporary assignments do not become “Acting” assignments unless and until such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks. “Acting” assignments should generally not last longer than nine (9) months, unless extended in writing by the Town Manager. 2. “Increased Work Duties” Assignment – When the Town Manager identifies or otherwise determines that a Town Department is in need of an “Increased Work Duties” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best- suited to meet the Department’s needs. Changes in compensation during an “Increased Work Duties” assignment shall be determined by the Town Manager. Temporary assignments (“Increased Work Duties”) do not become assignments for purposes of changes in compensation unless and until such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks. A temporary assignment (increase in work duties) can be in place of or in addition to an employee’s regular duties. 9 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: TEMPORARY STAFFING POLICY NO: 203 EFFECTIVE: April 20, 2018 REVISED: April 20, 2018 PURPOSE: To clarify the circumstances by which the Town may temporarily staff a position. STATEMENT OF POLICY: From time to time, Town Departments may be in need of staffing to meet needs and/or fulfill responsibilities the Department may otherwise be incapable of performing with its current staffing. In such cases, the Town may determine that the Department’s needs warrant additional staff in order to meet its needs and/or fulfill its obligations. SCOPE: This policy applies to all Town Employees and all Town Departments. PROCEDURE: Temporary staffing shall be administered in the following manner: Town Departments in need of temporary staffing (usually for periods of no greater than one year), may obtain such staffing from outside agencies, temporary employees, or through the use of temporary Town employees. Town Departments in need of temporary staffing shall consult with Human Resources before initiating any temporary staffing in order to discuss, among other things, the potential implications of the temporary staffing. Outside agencies may be used for temporary staffing with approval of Human Resources and Finance. Generally, agencies on a previously approved statewide contract are to be used. 10 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: IDENTIFICATION BADGES AND BUILDING ACCESS POLICY NO: 204 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 PURPOSE: To protect the safety and maintain the security of all employees. STATEMENT OF POLICY: Every employee is required to wear a picture identification badge at all times while on Town premises. Failure to do so will subject the employee to corrective action. SCOPE: This policy applies to all Town employees. PROCEDURE: Human Resources will arrange for all new employees to receive an ID badge during orientation on their first day of employment. Loss or damage of the ID badge should be reported to Information Technology immediately in order for the badge to be deactivated in the system. The badge is the property of the Town of Fountain Hills and must be returned upon termination of employment. Because employee ID badges are also the means by which employees enter and leave the premises, employees must not loan their badges to anyone, including other employees, nor should employees allow anyone to enter the premises that the employee does not know to be an employee of the Town of Fountain Hills without first signing the Visitor Log and obtaining a Visitors Pass. Failure to observe these safety regulations could endanger the safety and security of all other employees and could subject the employee to corrective action up to and including termination. 11 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: BASIC WORK WEEK AND HOURS OF WORK POLICY NO: 205 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To set forth a basic policy for the Town of Fountain Hills regarding attendance and hours of work. SCOPE: The standard workweek for full-time employees is forty (40) hours. General office hours are from 7:00 a.m. to 6:00 p.m., Monday through Thursday. The standard workweek shall be seven (7) consecutive days commencing on Monday at 12:01 a.m. and ending the following Sunday at midnight. Any work shift in progress at midnight Sunday shall be included as part of the work period in which that shift commenced. With approval of the Department Director, modifications to this provision may be arranged in any manner consistent with departmental operations and to provide essential Town services, subject to any applicable federal or state statutory or constitutional limitations relating to hours of work. The Town Manager shall approve any modifications prior to implementation. Workday and workweek lengths for exempt employees are determined primarily by their current workloads and the organization’s needs. Hours of attendance shall be maintained on official Town payroll documents as specified by the Human Resources office. Any falsification of individual time records or payroll documents by any Town employee will result in disciplinary action up to and including termination. PROCEDURE: All non-exempt employees are required to fill out time sheets daily in a complete and accurate manner. Exempt employees are required to fill out time sheets for the purpose of paying vacation days, sick days, or personal days during the pay period. Non-exempt employee time sheets shall be reviewed by each supervisor and approval designated by signature. Corrections or changes to the time sheet shall be made by placing a line through the error, inserting the correct information and initialing the changes. The supervisor must approve any corrections on the time sheet and initial same. REST PERIODS: Town employees who work at least eight (8) hours in a day are allowed two (2) fifteen- minute rest periods per day or shift, but will not exceed fifteen minutes in any consecutive four-hour period. The supervisor schedules all rest periods so that work areas are covered. Rest periods are counted as time worked and cannot be combined or “banked” to provide an extended lunch or rest period or shorten the workday. Overtime pay is not granted for rest periods not taken or for work performed during a rest period. MEAL PERIODS: All Town employees who work a minimum of eight (8) hours per day will receive a minimum of a one-half (1/2) hour unpaid meal period. The supervisor schedules all meal periods so that work areas are covered. Unpaid meal periods may be scheduled for employees working less than eight (8) hours with approval of the supervisor and employee. An employee must be completely relieved from duty in order for the time to be a “bona fide meal period”. Skipped meal periods cannot be used to make up time or to shorten the workday without approval of the supervisor 12 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: CODE OF CONDUCT POLICY NO: 206 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a code of conduct for the basic guidance of Town employees concerning matters affecting their work. STATEMENT OF POLICY: A Town government that upholds high standards of integrity and impartiality is a cornerstone of the democratic way of governing ourselves. Town employees must manage business and personal affairs so as to avoid situations that might lead to conflict, or the appearance of conflict, between self- interest and public duty. PERFORMANCE OF DUTIES: A. Employees should perform official duties diligently during working hours. B. Employees should always perform their duties with courtesy and respect for the public and for co-workers and without bias or prejudice, manifest by words or conduct, based upon race, color, religion, national origin, gender, age, sexual orientation, disability, or political affiliation. C. Employees should seek to maintain and improve their personal and professional growth and development and that of their co-workers through cooperation and participation in educational programs relevant to their duties and through any licensing or certification required for their position. D. Employees should perform their duties impartially in a manner consistent with law and the public interest, un-swayed by kinship, position, partisan interests, public clamor or fear of criticism or reprisal. E. All duties shall be performed with honesty and truthfulness without falsification in any manner. F. Employees should conform their conduct at all times to the policies and procedures established by the Town. ABUSE OF POSITION: A. No employee should use or attempt to use their official position to secure unwarranted privileges or exemptions. B. No employee or a member of the employee’s immediate family should accept, solicit, or agree to accept any gift, favor or anything of value with the understanding that the official actions, decisions or judgment of any employee will be influenced. 13 C. No employee shall request or accept any fee or compensation, beyond that received by the employee in their official capacity, for advice or assistance given in the course of their public employment. D. Each employee should use the public resources, property and funds under the employee’s control and responsibility for the public purpose intended by law and not for any private purpose. CONFIDENTIALITY: As public servants, Town employees should carry out their duties in a manner that will withstand public scrutiny. Nevertheless, some employees handle confidential Town-related or employee-related documents while others handle sensitive matters, such as health records, private employee information such as addresses, phone numbers and social security numbers and investigations. Consequently, employees should maintain the confidentiality of matters they handle, assuring information about these activities is made public only upon appropriate authorization. If there is a question regarding confidentiality, Human Resources and/or the Town Manager shall be contacted for clarification. NOTE: Separate polices cover CONFLICT OF INTEREST, SECONDARY EMPLOYMENT, AND POLITICAL ACTIVITY. 14 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: CONFLICT OF INTEREST POLICY NO: 207 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines for Town employees to identify, disclose, avoid and manage conflicts of interest as required by law. SCOPE: Employees are subject to the provisions of A.R.S. Section 38-501 through 38-532 regarding conflict of interest. The Arizona Legislature has provided a series of laws covering the subject of conflict of interest. The laws apply to all officials, officers and employees of the Town. The law allows an official, officer or employee (or relative of an official, officer or employee) to do business with or to obtain services from the Town so long as the officer, official or employee makes known their conflict of interest and refrains from participating in the decision in any way. The Town Attorney will assist any employee or official who has any questions regarding conflict of interest. At any time, an employee is responsible for notifying their supervisor of any potential of conflict of interest. It is the duty of the employee and/or supervisor, if there is any concern regarding the possible conflict of interest, to contact the Town Attorney and request a written opinion. PROCEDURE: While not exclusive, specific examples of conflict of interest are enumerated below for the guidance of employees. a. Interest in Appointments Employees should not canvass the Mayor or members of the Town Council, directly or indirectly, in order to obtain preferential consideration in connection with any appointment to a Town job. This does not apply to positions filled directly by the Council. Conversely, the Mayor, members of the Town Council, Board or Commission members, directly or indirectly, should not canvass the Town Manager or Human Resources Director to obtain preferential treatment for any appointment to a Town job on behalf of relatives. b. Preferential Treatment to Individuals Granting any special consideration, treatment, or advantage to any citizen beyond that which is available to every other citizen is prohibited. i. Disclosure of Confidential Information The Town maintains confidential materials of various kinds (i.e., financial records, personnel data, administrative/legal opinions, software programs, and nonpublic records) designated as confidential by the Town Manager or his/her designee. 15 All employees are expected to assume responsibility for safeguarding Town records, equipment, property, and other materials. Access to certain material is based upon job classification and a need-to-know basis. Appropriate confidentiality will always be maintained. ii. Representing Private Interest before Town Agencies or Courts No person whose salary is paid in whole or in part by the Town shall appear on behalf of private interests before any agency related to Town activities. They shall not represent private, business, and/or financial interests in any action or proceeding against the interest of the Town in any litigation to which the Town is a party. iii. Interest in Contract with the Town No employee of the Town shall have any interest in any contract made by them in their official capacity or by any committee, board, or commission of which he is a member, agent, or employee. iv. Disclosure of Interest An employee who has a financial or other private interest shall disclose conflict of interest in writing on the records of the Town or other appropriate authority, the nature and extent of such interest. Any employee who has, or whose relative has, a substantial interest in any contract, sale, purchase, or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale, purchase, or service. Any employee who has, or whose relative has, a substantial interest in any decision of a public agency shall make known such interest in the official records of such public agency and shall refrain from participating in any manner as an employee in such decision. 16 GUIDELINES: Common sense and good judgment will dictate the proper course of action in most situations. However, remember that if there is a question in your mind of even a slight conflict of interest, others will tend to exaggerate it. The best policy is to resolve such questions by addressing them at the outset so they will not become embarrassing problems later. Such matters can easily be addressed by discussing them with your supervisor. Handling these matters in this manner should avoid any occasion for disciplinary action. However, depending upon the severity, any violation of this policy may result in disciplinary action up to and including termination. A. Employees and their relatives should not enter into any contract with any component of the Town for financial gain, apart from any employment contract, without full disclosure and satisfactory management of any potential conflict of interest in accordance with this policy to avoid an actual conflict of interest. B. Employees should not be involved in the decision to hire or in the supervision of any member of their immediate family. C. Employees should not participate in decisions regarding conduct of Town business with any private party by whom the employee or a relative is employed or is actively seeking employment. D. Employees must refuse any and all non-food gifts presented by any member of the public (i.e. citizens, developers, applicants, etc.). Employees may accept gifts of food (i.e. cookies, candy, donuts, muffins, etc.) as long as the item is placed in the break room or in any other area where it may be shared with all Town employees. Employees may not solicit or accept a meal (lunch, dinner, etc.) from any member of the public. If it is necessary for an employee to attend a business lunch or dinner, they will be reimbursed for their out-of-pocket expenses in accordance with the Finance Department’s reimbursement procedures. This provision does not prohibit: 1. Solicitation or acceptance by an employee of loans from banks or other financial institutions on customary terms to finance proper and usual activities of the employee. 2. Acceptance of unsolicited advertising or promotional material such as pens, pencils, calendars, and other items of nominal intrinsic value. E. No Town employee in their official capacity as an employee of the Town shall publicly endorse the product or service of a commercial vendor. Employees shall not knowingly permit any commercial vendor the use of the employee’s name or photograph, as associated with the Town, in any manner, which gives the appearance of an endorsement or the promotion of such vendor’s product or service. F. Employees may refer to the ICMA Code of Ethics, which is available from Human Resources. 17 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: SOLICITATION POLICY NO: 208 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a policy concerning solicitation in the workplace. STATEMENT OF POLICY: Solicitation by an employee of another employee is prohibited during the working time of either person. Working time is defined as time when an employee’s duties require that they be engaged in work tasks. Girl Scout cookie sales or containers asking for donations during the holiday season, etc. are examples. Distribution of printed materials or literature of any nature shall be limited to non- work areas at non-work times. No literature shall be posted anywhere on the premises without the authorization of Human Resources. Solicitation and/or distribution of materials on Town property by persons not employed by the Town is prohibited at all times. SCOPE: This policy applies to all Town employees. 18 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: POLITICAL ACTIVITY POLICY NO: 209 EFFECTIVE: August 1, 2013 REVISED: April 20, 2018 PURPOSE: To establish a policy governing the political activity of Town employees in conformity with A.R.S. § 9-500.14 and Town Code § 3-2-4. STATEMENT OF POLICY: All employees will remain free from any political activity in a Fountain Hills municipal election: 1. No employee may solicit or attempt to solicit support for a candidate or political party involved in a Fountain Hills municipal election. 2. No employee may take any part in the campaign of a candidate participating in a Fountain Hills municipal election but may vote as a citizen. 3. An employee may exercise their rights as a citizen to vote and to express opinions as an individual citizen, but not as a representative of the Town. No paid employee will seek election to public office with the Town while still employed by the Town. Any employee desiring to hold such office will resign from their position upon filing for the office. Employment will terminate upon filing for the office of Town Council by any employee. Political activity on the national, state, or county level is unrestricted, except that no paid employee will use their position to sell, solicit or distribute any campaign material during working hours or in a uniform used by or identified with the Town government. No paid employee will use their position to introduce, guide or recommend any candidate for public office on Town property. SCOPE: This policy applies to all Town employees. PROCEDURE: Violation of any provision of this Policy shall be deemed sufficient cause for disciplinary action up to and including termination. Nothing contained in this Policy shall be interpreted or construed in a way that denies any employee their civil or political liberties as provided by law. This section does not prohibit an employee from voting as provided by law and are encouraged to do so. 19 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: NEPOTISM AND PERSONAL RELATIONSHIPS POLICY NO: 210 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: The purpose of these guidelines is to clarify the Town’s process for the hiring and retention of relatives of current employees and personal relationships between employees. In all cases, professional standards and expectations should be discussed during a credible selection process and if conflicts arise during employment, they should be dealt with promptly. STATEMENT OF POLICY: As explained in the Town’s policy on conflicts of interests, favoritism or extended courtesies can create unwanted problems for an organization. For this reason, the Town desires to avoid situations where there is a romantic, personal or marital relationship between a supervisor and a subordinate, or between co-workers in the same department. The Town will not employ individuals in close personal relationships which may include, but are not limited to, spouses, children, stepchildren, grandchildren, parents, grandparents, siblings and in-laws to work under the direct supervision of another such family member. No relative (spouse, child, grandchild, parent, grandparent, sibling, or in-law), of a Town Council member or the Town Manager, shall be employed by the Town during that individual’s tenure. The Town believes that romantic, dating, or sexual relationships between employees who are in the same chain of command, has the potential to disrupt the work environment. Some of the possible adverse effects of such relationships may include the following: poor work performance or attitude; distraction from work duties; creation or suggestion of a sexually hostile or offensive work environment for the involved employees or others around them; and the possibility, appearance, and/or perception of favoritism or conflict of interest. For these reasons, and in furtherance of its policy against sexual harassment in the workplace, the Town forbids its supervisors to have a romantic, dating, or sexual relationship with any other employee who is under them in the chain of command. In regard to non-supervisory relationships, the Town will become involved and will take appropriate action if problems resulting from such relationships manifest themselves on the job. In all cases of employment with the Town, the Town reserves the right to transfer or reassign any employee at any time with/without cause or notice. 20 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: SECONDARY EMPLOYMENT POLICY NO: 211 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines for Town employees concerning outside employment. STATEMENT OF POLICY: The Town of Fountain Hills does not generally prohibit employees from engaging in secondary employment. However, each full-time employee’s Town position should be considered the employee’s primary employment. Therefore, the Town of Fountain Hills does prohibit secondary employment when it interferes with the employee’s Town duties, involves a potential conflict of interest, or in any way compromises the integrity or credibility of the Town of Fountain Hills government in the community. SCOPE: Town of Fountain Hills’ employees should avoid: A. Secondary employment with an entity that conducts business with the Town without full disclosure and satisfactory management of any potential conflict of interest. B. Secondary employment which cannot be accomplished outside of the employee’s normal working hours or is otherwise incompatible with the performance of the employee’s duties by placing the employee in a position of conflict between the employee’s role with the Town and the employee’s role in the outside employment. C. Performance of work for any governmental entity within the State of Arizona without the written consent of both employers. D. Secondary employment which exploits official position or confidential information, acquired in the performance of official duties for personal gain. E. Secondary employment which may be viewed by the public as work on behalf of the Town. Due to the importance of the public's perception of the Town government, all employees who engage in secondary employment must disclose such work on a "Secondary Employment Declaration" form (See Exhibit 209- A). Secondary employment is subject to review for conformance to this policy. Employees engaged in secondary employment determined not to be in conformance may be required to cease such employment. If there is any question regarding secondary employment or volunteer positions, it is recommended these be discussed in advance with supervision. Employees who hold positions classified as exempt are normally not permitted to engage in secondary employment. VOLUNTEER ACTIVITIES: Employees are encouraged to engage in volunteer activities, especially activities to improve community life. However, employees should evaluate their volunteer activities in the same manner as outside employment to identify any potential conflict with the employee’s Town position and discuss these potential conflicts with 21 their supervisor on an individual basis. Employees should declare volunteer activities only if the employee believes there is some reason for concern consistent with the spirit of the policy. EXHIBIT 211-A TOWN OF FOUNTAIN HILLS SECONDARY EMPLOYMENT DECLARATION Employee Name: ____________________________________________________________________ Position:______________________________________ Department:___________________________ In accordance with Town policy, I hereby declare the following secondary employment: Other Employer Name: _______________________________________________________________ Other Employer Address: _____________________________________________________________ Position/Title (if any): _____________________________ Hours of Work: ______________________ Description of work performed: _________________________________________________________ ___________________________________________________________________________________ Employee Signature: _____________________________________ Date:________________________ Approved:  Yes  No ____________________________________________________________________________________ Immediate Supervisor Signature Date Comments: __________________________________________________________________________ ____________________________________________________________________________________ Approved:  Yes  No ____________________________________________________________________________________ Department Head Signature Date Comments: __________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Approved:  Yes  No ____________________________________________________________________________________ Town Manager Signature Date 22 Comments: __________________________________________________________________________ 22 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: HARASSMENT POLICY NO: 212 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a policy prohibiting harassment in the workplace and provide a method by which claims of harassment may be investigated and resolved. STATEMENT OF POLICY: It is anticipated that Town employees will treat each other with courtesy and civility at all times, and harassment or intimidation of any form will not be tolerated. It is specifically unlawful, and therefore strictly forbidden, for any person to harass an employee based on sex, sexual orientation, race, color, ancestry, national origin, religion, age, disability, or any other legally protected characteristic. SCOPE: Harassment is defined as any conduct which has the purpose or effect of unreasonably interfering with an individual’s work performance or creating any intimidating, hostile, or offensive work environment, based on that individual’s race, color, gender, sexual orientation, national origin, religion, age, or disability. Sexual harassment: Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Sexual harassment may include explicit sexual propositions, sexual innuendo, suggestive comments, sexually oriented "kidding" or "teasing," "practical jokes," jokes about gender-specific traits, foul or obscene language or gestures, display of foul or obscene printed or visual material, and physical contact such as patting, pinching, or brushing against another person. Sexual harassment may occur between members of the same or opposite gender. Other harassment: Other harassment consists of unwelcome comments or conduct having specific or reasonably implied references to race, color, national origin, religion, age, disability, or any other legally protected characteristic. Such harassment may include, without limitation, insulting comments, "kidding," "teasing," and "practical jokes," slurs, taunting, verbal abuse or epithets, degrading comments or jokes, jokes about certain traits, and insulting pictures, drawings, objects, cartoons, posters, pictures, or printed or other visual material. Unlawful harassment: Such harassment is unlawful when: 1. Submission to such conduct is made, either explicitly or implicitly, a term or condition of an individual’s employment; 2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; or 23 3. Such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile or offensive working environment. PROCEDURE: Every employee of the Town has an affirmative duty to maintain a work place free of harassment and intimidation. An employee should take complaints or reports of harassment directly to their supervisor, or, if their supervisor is the subject of the complaint, or if there is some other reason for doing so, to their supervisor's supervisor (See Exhibit 212-A). Department Heads or supervisors who receive complaints or reports of harassment must immediately inform the Human Resources Administrator of such complaints. The Human Resources Administrator will expedite an investigation into the allegations. Confidentiality of all parties involved in a harassment charge shall be respected except to the extent that it interferes with the Town’s legal obligation to investigate allegations of misconduct and to take appropriate action. When an investigation has been conducted, all associated persons will normally be advised of the outcome of the investigation. The Town Manager shall take such disciplinary action as is warranted, up to and including termination of the offending party. Any reprisal or retaliation for reporting harassment under this policy or participating in an investigation is strictly prohibited. All department heads, supervisors and employees must attend harassment prevention training when provided by the Town. 24 EXHIBIT 212-A EMPLOYMENT DISCRIMINATION AND/OR HARASSMENT COMPLAINT FORM Name (please print) Home Street Address City, State, Zip Home Phone No. Work Phone No. If you are a current Town employee: Supervisor’s Name: Department: Do you believe you have been discriminated or harassed on the basis of:  Race  National Original  Age  Religion  Other  Sex  Disability  Color  Retaliation Briefly describe the nature of your complaint: Please explain the problem as you see it and any ideas you have to solve the problem. Where possible, specify the date(s) of the incident(s) and name(s) involved. If additional space is needed, please attach additional pages. _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _________________________________________________________________________________________ _______________________________________________________________________________ The Town of Fountain Hills will not tolerate employment discrimination or harassment upon an employee’s or applicant’s race, color, national origin, sex, sexual orientation, religion, disability or age. An employee or applicant asserting a good faith employment discrimination or harassment complaint and/or participating in an investigation of such a complaint will be protected from retaliation or discipline. Any employee found guilty of harassment or retaliation will be disciplined, up to and including termination. Signature: ______________________________ Date: ______________________________ 25 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: ABSENTEE REPORTING, PERSONAL PHONE CALLS, AND RECORD CHANGES POLICY NO: 213 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish procedures for absentee reporting, personal telephone calls, and record changes. PROCEDURE: ABSENTEE REPORTING: Whenever an employee is unable to report for work for any reason, they must contact their immediate supervisor or designee telephonically or by email at least thirty (30) minutes prior to the start of their scheduled working hours or as soon as otherwise practicable. When the use of earned paid sick time is foreseeable, the employee shall make a good faith effort to provide notice of the need for such time to the their supervisor or their designee in advance of the use of the earned paid sick time and shall make a reasonable effort to schedule the use of earned paid sick time in a manner that does not unduly disrupt the operations of the Town. Such notice shall be given telephonically or by email. When possible, the notice shall include the expected duration of the absence. In all cases, employees who leave a voicemail message should ensure that the recipient of the message has received it. If the employee is not able to call or email personally, another person may call the employee’s immediate supervisor or designee to relay a message on behalf of the employee prior to the start of the employee’s scheduled working hours. A brief explanation should be provided concerning the reason for the absence with an estimate of when the employee will be able to report for work. Failure to provide this notification within the time specified, except in very specific circumstances, may result in the employee being placed on leave without pay status for the duration of the absence. When an employee needs to leave work during the workday, the employee should notify their immediate supervisor or designee. In all cases, if the immediate supervisor or designee is not available, the employee should either contact their supervisor’s supervisor or the Town Human Resources Department. PERSONAL TELEPHONE CALLS Personal telephone calls during duty hours must be kept to a minimum and should be made and received as much as possible only during breaks or meal periods. 26 RECORDS CHANGES Changes of name, address (both mailing and residence), telephone number, or marital status must be reported immediately to the Human Resources Office in order to update employee records. A record change form is provided for this purpose and must be signed by the employee (See Exhibit 213-A). Supervisory managers must also be notified of such changes. This information is required to be able to reach employees in an emergency, for insurance purposes, and to properly prepare payroll-related documents. 27 EXHIBIT 213-A Town of Fountain Hills PERSONAL INFORMATION CHANGE FORM Please PRINT CLEARLY and sign and date at the bottom of the form. Return to Human Resources, 16705 E. Avenue of the Fountains, Fountain Hills, AZ 85268 Type of Change (check all that apply) _____ Name Required to be brought to Human Resources 1. New tax forms (W-4 and A-4) 2. Copy of new Social Security Card reflecting the name change or a copy of the receipt from Social Security confirming an application for a new card. 3. I-9 (with two of the sections completed; Section 1 with the OLD name; Section III with the new name). Section II must be completed by a Human Resources representative in your presence. _____ Emergency Contact _____ Telephone _____ Address _____ Marital Status _____Change of Gender (check one) _____Male to Female _____Female to Male Employee Name (Example: Smith, Jane A.) _________________________________________ New Name (Example: Jones, Jane S.) ______________________________________________ Social Security Number/Employee ID _____________________________________________ Employee Home Phone (with area code) ____________________________________________ Local Street Address ____________________________________________________________ City, State, Zip Code ____________________________________________________________  Does this address update also apply to W-2 mailings? (check one) _____Yes _____ No Emergency Contact (Example: Jones, John B.) _______________________________________ Emergency Contact Phone Number (with area code) ___________________________________ Marital Status _____ Married _____ Divorced _____ Separated _____ Single _____Widowed Employee Signature __________________________________ Date _____________________ 28 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: DRESS CODE AND UNIFORMS POLICY NO: 214 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To provide guidelines for the appearance of Town employees when performing duties and conducting business for the Town. STATEMENT OF POLICY: All Town employees are expected to present a positive, professional, and appropriate image consistent with the duties and assignments of each employee. This policy represents the minimum standards which will be applied to all departments. Most departments have at least some uniqueness in terms of operating needs, such as customer expectations and safety. Therefore, departments may have more restrictive standards if such standards are approved in writing by the Town Manager. Department Heads and supervisors are responsible for determining and enforcing the dress code for their respective areas of responsibility. SCOPE: The Town recognizes the changing nature of fashion; however, the professional image of the Town is maintained, in part, by certain expected norms of professional appearance, of personal neatness, cleanliness, and good grooming which are applicable to all employees. Extravagance and extremes of style and attire are not in good taste in a public service environment. The Town reserves the right to advise any employee at any time that their grooming, attire, or appearance is unacceptable. All clothing which is worn on duty shall be neat, clean, properly pressed and well maintained. Casual apparel and footwear are not appropriate unless directly related to the job assignment, or a special event, or medical condition approved by the Town Manager. All employees shall maintain personal grooming habits which do not detract from their ability to perform their job or adversely affect the working conditions of fellow employees. POLICY: The Town’s primary objective is to have employees project a professional image and also be able to take advantage of a ‘business casual’ dress policy as an alternative to the professional attire of dresses, suits, ties, and dress shoes. Employees are expected to maintain an appearance that is appropriate to the work situation. All employees are responsible for complying with this policy. If a supervisor feels that an employee’s apparel or grooming is not appropriate, the matter will be discussed with the employee. If a pattern of non-compliance develops, progressive discipline will be administered as appropriate, up to and including termination. The following information is intended to serve as a general overview of acceptable business casual wear as well as a listing of some of the more common items that are not appropriate for the office. Neither group is intended to be all inclusive. Rather, these items should help set the general parameters for proper casual business wear and allow you to make intelligent judgments about items that are not specifically addressed. A good rule of thumb is that if you are not sure if something is acceptable, choose something else or inquire first. 29 Professional Attire Positions that involve frequent, direct public service contact, i.e. those where meeting the public is an inherent function of the position, and where such contact would normally occur daily, are subject to the following appearance standards:  In general, male employees shall wear neat and clean dress slacks and dress shirts or conservative shirts. Neckties, suits and sport coats should be worn whenever the employee has contact with individuals similarly dressed. Footwear shall be maintained in a clean and polished manner and socks should be worn. (Sneakers and gym, jogging, and tennis shoes are inappropriate unless directly related to the job assignment, or a special event or medical condition approved by the Town Manager).  In general, female employees shall wear neat and clean dresses or skirts of an appropriate business length, generally two (2) inches above the knee or lower, or may wear dress slacks, blouses and footwear compatible with clothing worn by counterparts in the business office environment. (Gym, jogging, sneakers, beach sandals, and tennis shoes are inappropriate unless directly related to the job assignment, or a special event or medical condition approved by the Town Manager).  Field positions in Development Services and Community Services will be covered by departmental dress policies which may include a requirement to wear a Town provided uniform. Uniformed employees must wear neat and clean uniforms at all times. Business Casual The principal differences between professional dress and business casual are decreased formality, such as the absence of a tie, the substitution of a polo shirt for dress shirt, the substitution of a sweater for sports coat for men, and more informal skirts, dresses, pants and shoes for women. Business casual dress in some areas may necessarily be “dressier” than in others due to the nature and frequency of contacts with the general public or government officials. The objective of business casual dress is to be comfortable, while still maintaining a professional business environment. Casual business wear encompasses many looks, but it really means casual clothing that is appropriate for an office environment. It is clothing that allows you to feel comfortable at work, yet always looks neat and professional. Clothing such as casual slacks, polo shirts, sweaters, and casual shoes would be appropriate.  In general, acceptable male attire consists of khaki or casual style slacks, collared shirts, whether polo style or button-down shirt. Socks and a belt must be worn.  In general, acceptable female attire consists of khaki or casual style slacks, casual blouse, sleeveless blouse, or polo style shirt. Casual/Dress Down Thursday Dress-down days have become very popular as a strategy for improving morale among employees. Thursdays of each week will be considered a dress down day. Attire for dress down days will be “relaxed casual” and may include jeans, athletic or tennis shoes and sandals. There are times when traditional business attire is to be worn on casual days. Take your day’s schedule into account when you are dressing. If you have a meeting scheduled with visitors, or if you are advised that others in the department will have visitors with whom you will come in contact, you will want to dress in professional/business casual attire. And, of course, professional attire is always acceptable if that is your preference. 30 Exceptions:  Anytime scheduled meetings or other work commitments involve the general public, outside business representatives, or government employees outside the Town, good judgment in choice of attire is expected. This will normally mean wearing professional dress attire for that day.  Individuals employed in areas where safety equipment or other uniform or dress considerations are in place due to occupational health and safety or other business related reasons, must adhere to those safety standards deemed appropriate by the department head. This may preclude the wearing of tennis shoes, for example.  Under no circumstances may employees wear halter tops; strapless tops; spaghetti straps; tank tops, midriff/cropped tops; any garment with words or pictures that may be offensive, demeaning or discriminating to others; see through (sheer) or mesh clothing that shows undergarments; torn clothing, or clothing with holes in it; clothing designed specifically for sporting activities (i.e. as sweats, shorts, leggings, spandex, skorts, bib overalls, thongs, flip flops); sleepwear; faded clothing; clothing more appropriate for evening or leisure wear (i.e. miniskirts, low-cut tops, or any revealing or provocative clothing). All clothing must be clean, neat, and fit properly rather than being either excessively baggy or extremely tight. Work-Study Students Students (Interns) frequently work in support of regular department employees in return for educational credit and/or financial aid subsidies. Dress for these employees is casual but not controversial. Some consideration must be given to the fact that students have limited means and are usually working between classes. If safety clothing or equipment is deemed necessary by the department, such clothing will be furnished by the department. T-shirts bearing language or art which is likely to offend others, torn clothing, unkempt appearance, or revealing clothing which exposes parts of the body typically covered in that work setting should be avoided. Jewelry, Tattoos, Facial Hair, and Hairstyles Earrings are acceptable; however, no more than two earrings may be worn on each ear while working. Rings through the nose, eyebrow, tongue, or body parts (other than the ear lobe) visible to the public may not be worn while working. All tattoos must be small in size or covered at all times and may not be offensive in nature. Facial hair is permitted as long as it is neat and well-trimmed. Hair should be clean, combed, and neatly trimmed or arranged. (Departmental policies for uniformed field positions may require tattoos to be covered at all times, may prohibit jewelry, and may prohibit facial hair). Job-related safety when operating potentially dangerous machinery with moving parts, or jobs with public health considerations such as serving or cooking food or resuscitation may nevertheless require appropriate adjustments. This is not an all-inclusive dress code policy. Any attire which causes a distraction from the normal business of Town employees or is a safety hazard will be addressed. The very nature of our business requires daily contact with many people from all walks of life. Therefore, projecting a professional image and appearance is very important. Employees will be requested to return home to change and return to work if not complying with the Town’s appearance/grooming and footwear policies. Employees will be sent home on vacation leave (if available and with supervisory approval) or will not be compensated for this time out of the office. A documented verbal 31 counseling should be given to the employee and the Town’s dress and appearance standards should be reviewed. A second or subsequent deviation from acceptable grooming and attire standards will again result in the employee being sent home on vacation or unpaid leave. Such subsequent incidents will be cause for disciplinary action up to and including termination. Employees with religious needs related to this policy may be reasonably accommodated and should discuss those needs with their supervisor and/or Human Resources. 32 Town of Fountain Hills Personnel Policies SECTION: CONDITIONS OF EMPLOYMENT POLICY: VIOLENCE IN THE WORKPLACE POLICY NO: 215 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: The safety and security of all employees is of primary importance at the Town of Fountain Hills. STATEMENT OF POLICY: Threats, threatening and abusive behavior, or acts of violence against employees, visitors, citizens, or other individuals by anyone on Town property will not be tolerated. Violations of this policy will lead to corrective action up to, and including, termination and/or referral to appropriate law enforcement agencies for arrest and prosecution. The Town of Fountain Hills reserves the right to take any necessary legal action to protect its employees. SCOPE: This policy applies to all Town employees POLICY: Any person who makes threats, exhibits threatening behavior, or engages in violent acts on Town premises shall be removed from the premises as quickly as safety permits and shall remain off Town premises pending the outcome of an investigation initiated by the Town Manager or designee. Following investigation, the Town of Fountain Hills will initiate an immediate and appropriate response. This response may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment, and/or criminal prosecution of the person or persons involved. All employees have a duty to warn and are responsible for notifying management of any threat that they witness or receive or that they are told another person witnessed or received. Even without a specific threat, all employees should report any behavior they have witnessed that they regard potentially threatening or violent or which could endanger the health or safety of an employee when the behavior has been carried out on a Town-controlled site or is connected to Town employment or Town business. This includes, for example, threats or acts of violence, aggressive behavior, offensive acts, discussion of bringing weapons into the workplace, threatening or offensive comments or remarks, and the like. Employees are responsible for making this report regardless of the relationship between the individual who initiated the threatening behavior and the person or persons being threatened. The organization understands the sensitivity of the information requested and has developed confidentiality procedures that recognize and respect the privacy of the reporting employee. 33 Town of Fountain Hills Personnel Policies SECTION: RECORDS POLICY: CONFIDENTIALITY AND EMPLOYEE RECORDS POLICY NO: 301 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines for release of information and access to employee records. SCOPE: Town employees have a right to expect that their personal information will be held in strictest confidence and that only authorized persons will have access to the information. Regardless of the position for which an employee was hired, they are entrusted with the responsibility to maintain fellow worker’s rights to confidentiality. The release of any information to unauthorized individuals is a breach of this policy and will be cause for disciplinary action up to and including termination. Access to the personnel files of Town employees are controlled as follows: 1. The employee may examine their personnel file in the Human Resources Office at reasonable times upon reasonable notice. 2. The immediate supervisor or Department Head may examine, in the Human Resources Office upon reasonable notice, the personnel file of any employee under their supervision or being considered for a position under their supervision. 3. The Town Manager may examine any employee’s personnel file at any time. 4. Any individual who has written authorization from the employee to review the personnel file may do so (e.g. officials of an agency to which the employee has applied). 5. An employee’s personnel file may be examined upon request by an investigator of a state or federal law enforcement agency with a valid legal reason for such examination. 6. An employee’s personnel file may be duly subpoenaed in a legal action. 7. The home addresses and telephone numbers of Town employees are not public information and will not be released without the written consent of the employee. 8. Pursuant to A.R.S. §39-121 et. seq., any person may request to examine or be furnished copies of any public record. The Town of Fountain Hills’ policy prohibits the disclosure of confidential personal information about an employee without the employee's written consent. The Human Resources Administrator will release an employee's personnel file for viewing for production to outside sources only after a review t has been performed on the file to ensure that any confidential information such as birth date, SSN, home address, home phone number, spouse/dependent and medical information is redacted to the extent legally required prior to viewing it. 34 Town of Fountain Hills Personnel Policies SECTION: RECORDS POLICY: PERSONNEL RECORD KEEPING POLICY NO: 302 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 PURPOSE: To establish procedures for the creation and maintenance of personnel records for the Town. STATEMENT OF POLICY: An official personnel file is established and maintained for each employee upon hire. These files are housed in the Human Resources office and are the property of the Town. Official personnel records include, but are not limited to: Application forms; performance appraisals; written corrective action forms or memoranda; employee status forms; training records; documents relating to certification/licensure; formal commendations; benefit forms; tax forms; and payroll records. Background/reference checks; interview notes; and medical records are maintained separately. EEOC self- identification forms and I-9 forms should also be maintained in a separate file. Employees may inspect their official personnel file at reasonable times upon reasonable notice in accordance with Policy 301. SCOPE: This policy applies to all employees and all personnel records. 35 Town of Fountain Hills Personnel Policies SECTION: RECORDS POLICY: PERFORMANCE EVALUATION POLICY NO: 303 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a system of periodic evaluation of the work performance of Town employees. STATEMENT OF POLICY: The performance evaluation is an essential and effective communication tool in the management of the Town’s workforce. Performance management, of which the evaluation process is an integral part, is at the core of productivity and the quality of service provided for the citizens of the Town of Fountain Hills. The performance evaluation provides direction for individual and group staff development. SCOPE: An employee may be reviewed at any time, but a formal performance evaluation is done at least once annually. Introductory employees are reviewed prior to the end of their designated introductory period with a recommendation for regular status, introductory rejection, or extension of the introductory period. Every full-time Town employee will normally receive a formal written evaluation of work performance for the twelve (12) month period preceding the designated evaluation date of their current employment with the Town. Part-time employees will not receive a formal written evaluation of work performance until they have completed a minimum of 1040 hours. Performance evaluations will be made on the forms provided by the Human Resources office and will be completed and delivered to the Human Resources office no later than ten (10) working days after the evaluation due date. New employees will receive a performance evaluation prior to the completion of their designated introductory employment period. These reviews will take place regardless of whether the employee is eligible for a pay increase. A performance evaluation is not necessarily linked with a salary increase. Employee self-evaluations may be completed, but are not required and are strictly voluntary. Performance evaluations are completed by the employee’s supervisor. All performance reviews will be reviewed and signed by the Supervisor, Department Head, and the Human Resources Administrator prior to the performance review conference taking place with the employee. The Employee Status Change form with the recommended salary increase, if any, must also be reviewed and signed by the Supervisor, Department Head, Human Resources Administrator, and Town Manager prior to the performance review conference taking place with the employee. These signatures signify agreement with the contents of the performance evaluation, as well as format and thoroughness. After discussion, the employee signs the evaluation to confirm that an opportunity for review was provided. Refusal of the employee to sign does not invalidate the evaluation. The employee is given a copy of the evaluation and all original performance review forms are maintained in the employee’s personnel file location in the Human Resources office. Supervisors are strongly encouraged to keep employees aware of their level of performance through the normal managerial coaching process so that the performance evaluation itself is merely a formalization of what both the employee and the supervisor already know about the employee’s performance and about their development needs and desires. When an employee is away from work due to a leave of absence greater than thirty consecutive working days, the employee’s review date will be extended accordingly. 36 Town of Fountain Hills Personnel Policies SECTION: RECORDS POLICY: JOB DESCRIPTIONS POLICY NO: 304 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a job evaluation program that provides a systematic and equitable method of evaluating all jobs within the Town of Fountain Hills. STATEMENT OF POLICY: A job description is a formal document describing the nature, scope, physical requirements, and responsibilities of a specific job within the organization. Job descriptions are used for purposes of training and development, annual performance appraisals, promotions, recruiting, and hiring. Job descriptions are prepared by the incumbent employee, supervisor, and the department director, with final review by the Town Manager and Human Resources, and approval by the Town Council. SCOPE: Human Resources or the Town Manager’s designee is responsible for: 1. Administering the overall job description program; 2. Providing the necessary training, instructional materials, and assistance to employees, supervisors, and department directors; 3. Monitoring job descriptions for proper format; 4. Maintaining a central file of all current job descriptions; 5. Ensuring that all positions have a job description. Supervisors and department directors are responsible for reviewing and approving job descriptions for their areas; 6. Reviewing job descriptions on an ongoing basis to ensure their accuracy. All jobs within the organization must be evaluated and assigned a job grade and classification in accordance with Policy 601 and 701. All new positions must be evaluated and approved before the job can be posted. When the duties of a job change significantly, it may be necessary to reevaluate the job’s classification. The Town Manager has the discretion to require employees to work outside their job description as deemed appropriate under the circumstances. The Town Manager may require workgroups to cross-train and redeploy across departments, divisions, or sections in order to ensure essential functions are completed. In some cases, contractors or part-time employees will be hired on a temporary basis to fulfill essential service requirements. In these instances, provisions will be made to allow for temporary access to Town resources (door badges, access to shared physical and digital files, etc.) as necessary. 37 Town of Fountain Hills Personnel Policies SECTION: HEALTH AND WELFARE POLICY: DRUG AND ALCOHOL ABUSE AND TESTING – ALL EMPLOYEES POLICY NO: 401 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: The Town is committed to maintaining a Drug Free Workplace that is safe, healthy and productive work environment for all employees free from the effects of substance abuse. Abuse of alcohol, drugs, or controlled substances impairs employee judgment, resulting in increased safety risks, injuries, and faulty decision making. SCOPE: This policy applies to all Town employees and all applicants who have received conditional offers of employment with the Town in a “safety sensitive” position. RESPONSIBILITIES: Human Resources will be responsible for the development, coordination, and documentation of the Drug and Alcohol Abuse and Testing – All Employees Policy for the Town of Fountain Hills. All Town personnel with supervisory responsibility will have knowledge of and be responsible for the communication, enforcement, and adherence to this policy. POLICY: To ensure a safe and productive work environment the Town prohibits the use, sale, dispensation, manufacture, distribution or possession of alcohol, drugs, controlled substances, medical marijuana, or drug paraphernalia on any Town premises or work sites. This prohibition includes Town-owned vehicles, or personal vehicles being used for Town business and/or parked on Town property. Additionally, the Town may take disciplinary action, including discharge, for the illegal (under federal or state law) off-duty use, sale, dispensation, manufacture, distribution, or possession of drugs and controlled substances and the illegal use or distribution of alcohol. No employee shall report to work or be at work with alcohol or with any detectable amount of prohibited drugs in the employee’s system or otherwise be impaired. A detectable amount refers to the standards generally used in workplace drug and alcohol testing. Medical Marijuana. Subject to its designation of Safety-Sensitive Positions, the Town will not not make employment decisions relating to a medical marijuana cardholder, based solely on their status as a cardholder or solely upon a positive drug test for marijuana. However, cardholders may be disciplined or terminated if impaired while at work, or if the employee possesses or uses marijuana while at work. Signs of impairment include but are not limited to: red, bloodshot eyes; dilated pupils; poor concentration; impaired perception of time; loss of energy; impaired perception of distance; abnormal or erratic behavior; slow and deliberate responses; slow reflexes; incoherent speech; odor; and impaired balance or coordination. Additionally, if the Town would lose a monetary or licensing benefit under federal law or regulation, including the Drug-free Workplace Act, the Town will enforce its drug policy regardless of an employee’s status as an Arizona medical marijuana registered cardholder. 38 When an employee must take prescription or over-the-counter drugs, the employee must ask the medical professional or pharmacist if the drug has any side effects which may impair the employee’s ability to safely or productively perform the employee’s job duties. If there is potential impairment of the employee’s ability to work safely or productively, the employee must report this information to the supervisor. With input from the employee, the Town will determine if the employee should work in their regular job, be temporarily assigned to another job, or placed off work. Furthermore, if the Town has designated a position as safety-sensitive and the Town has a good faith belief that the employee is using any drug, whether legal, decriminalized, or prescribed by a physician, that could cause an impairment while working, or otherwise impact the employee’s job performance or ability to perform job duties, then the Town may take appropriate action to exclude the employee from the safety-sensitive position. For instance, the Town may assign the employee to another job or place the employee off work. Any violation of this policy will result in disciplinary action up to and including termination. EMPLOYEE AND APPLICANT DRUG AND ALCOHOL TESTING To promote a safe and productive workplace, the Town will conduct the following types of Drug and Alcohol testing as described below: A. Post-Offer/Pre-Employment B. Reasonable Suspicion C. Post-accident D. Return-to-Duty/Follow-up Testing CATEGORIES OF EMPLOYEE SUBSTANCE TESTING A. Post-Offer/Pre-Employment Testing: 1. All persons seeking employment with the Town in a position designated as “safety-sensitive” shall undergo post-offer drug testing on or around the time employment commences. Applicants will be informed that as a condition of employment they must pass a drug screening test. 2. Applicants who test positive will be notified that they have not met the standards for employment and will be informed they can have the confirmed positive test re-tested by a government certified lab selected by the applicant. B. Reasonable Suspicion Testing: An employee will be asked to submit to drug and alcohol testing when the Town reasonably suspects the employee is impaired or has used illegal drugs. 1. Reasonable suspicion testing may result from one of the following examples, and is not limited to the following: a. Specific, personal, and articulable observations concerning the employee’s speech, walking, standing, physical dexterity, agility, coordination, actions, movement, demeanor, appearance, clothing, odor, or irrational or unusual behavior. b. The employee’s negligence or carelessness in operating equipment, machinery or production or manufacturing processes; disregard for the safety of the employee or others; involvement 39 in an accident that results in serious damage to equipment, machinery or property, disruption of a production or manufacturing process, or any injury to the employee or others. c. Violation of a safety rule or other unsafe work incident which, after further investigation of the employee’s behavior, leads the supervisor/manager to believe that the employee’s functioning is impaired. d. Other physical, circumstantial, or contemporaneous indicators of impairment. 2. When a supervisor/manager has reasonable suspicion to request testing, the supervisor/manager will arrange to transport the employee to the collection site and will arrange for the employee’s transport home. 3. The Town will place the employee on a leave pending the receipt of drug testing. If the results of the testing are negative, upon return to work, the employee shall be paid for the leave. However, if the results of the testing are positive, employee will not receive pay for the leave. C. Post-accident Testing: An employee must submit to a drug and alcohol test after an on-the-job accident, including workplace injuries. 1. An accident for purposes of this policy is defined as an incident or occurrence in which: a. A person dies or requires medical treatment. b. Property damage is estimated at greater than $250. c. The accident involves use of a Town vehicle. d. The accident involves an employee in a personal vehicle accident while on the job. 2. An employee who is involved in an accident must immediately report the accident to their supervisor/manager. 3. When a supervisor/manager observes or is notified of an accident as defined in #1 above, the supervisor/manager will initiate drug and alcohol testing. The supervisor/manager will order the employee to submit to a urine and/or breath test. The supervisor/manager will arrange to transport the employee to the collection site and will arrange for the employee’s transport home. 4. The Town will place the employee on leave pending the receipt of drug testing. The employee shall be paid for the leave if the testing results are negative. The employee will not be paid for the leave if the results are positive. D. Return to Duty/Follow-up Testing If the Town elects to allow an employee to return to work following a positive test result, the employee must first pass a drug and alcohol test and subsequently submit to a program of unannounced testing for a period of not more than 12 months from the date of return to duty. 40 THE KINDS OF SUBSTANCES TESTED MAY INCLUDE, BUT ARE NOT LIMITED TO, THE FOLLOWING SUBSTANCES OR THEIR METABOLITES A. Marijuana B. Cocaine C. Opiates D. Phencyclidine (PCP) E. Amphetamines F. Alcohol INSPECTION AND SEARCHES The Town may conduct unannounced inspection for violations of this policy in the workplace, work sites, or Town premises. Employees are expected to cooperate during any inspection. VOLUNTARY TREATMENT The Town supports sound treatment efforts. Whenever practical, the Town will assist employees in overcoming drug and/or alcohol problems as long as this policy has not already been violated. If an employee seeks treatment for drug and/or alcohol use, the employee may be eligible to go into a drug and/or alcohol treatment program either through The Town medical insurance program or at their own expense. If the employee enters an appropriate treatment program, The Town may place the employee on unpaid statusi, but the employee will be required to use any accrued vacation time and sick leaveii while participating in the program, so long as the employee is complying with the conditions of treatment. The Town can require a release to work and/or verification that the employee has successfully completed the entire rehabilitation, treatment, and/or counseling program treatment from the health care provider. More information regarding availability of treatment resources and possible insurance coverage for treatment services is available from the Human Resources Department. The employee may also be required to pass a retest, at the employee's expense, before returning to work upon completion of such rehabilitation, treatment, and/or counseling. The employee may also be subject to periodic retesting after return from leave. SAFEGUARDS/CONFIDENTIALITY All drug tests are performed by a government-certified outside laboratory. All government-certified outside laboratories strictly follow chain of custody guidelines to ensure the integrity of the testing process. If the results of the initial test are positive, that is, if the results exceed the permitted levels for any of the drugs tested or for alcohol, a second confirmatory test shall be performed. Only specimens that are confirmed positive on the second (confirmatory) test are reported as positive for review and analysis. Human Resources will contact the employee in the case of a positive test result. An applicant or employee who does not pass a drug test may request that the original sample be analyzed again at the individual’s expense by a government certified laboratory. All requests for an independent analysis must be made in writing within 72 hours of notification of a confirmed positive test result. Each applicant or employee will have an opportunity to discuss the test results in a confidential setting. The Town will keep the test results confidential and will share the results only within the Town on a business need to know basis, in administrative law proceedings, and/or when required by law. 41 Each applicant or employee upon their written request may be provided with a written copy of the positive test result. Upon written request within seven days of taking the test, an employee may access records relating to his drug and/or alcohol test. DISCIPLINARY ACTION A. Testing Positive Employees who test positive for drugs and/or alcohol are in violation of this policy. B. Refusal to Comply Employees who refuse required testing are in violation of this policy. C. Interference with Testing Employees who adulterate, tamper with, or otherwise interfere with accurate testing are in violation of this policy. D. Any employee who has been observed using or possessing illegal drugs, medical marijuana, or alcohol during work time, including lunch breaks, or on Town premises is in violation of this policy. Assistance The Town recognizes that alcohol and drug abuse and addiction are treatable illnesses. The Town also realizes that early intervention and support improve the success of rehabilitation. To support its employees, the Town drug-free workplace policy:  Encourages employees to seek help if they are concerned that they or their family members may have a drug and/or alcohol problem.  Offers all eligible employees and their family members assistance with alcohol and drug problems through the Employee Assistance Program (EAP). If you have a problem with drugs and/or alcohol and wish to undertake rehabilitation, you may request an unpaid leave of absence for this purpose, which may be covered leave under the Family and Medical Leave Act under certain circumstances. It is your responsibility to seek help before the problem adversely affects your work performance or results in a violation of this policy. If you need assistance in seeking this help, you may contact the Employee Assistance Program (EAP). There is no adverse treatment against an employee for voluntarily undertaking rehabilitation (as opposed to being impaired in the workplace or failing a drug test which do have adverse consequences). Treatment for alcoholism and/or other drug use disorders may be covered by the employee benefit plan. However, the ultimate financial responsibility for recommended treatment belongs to the employee. For an employee who is permitted to seek treatment after a failed drug test, the employee shall not be permitted to return to work until they have successfully completed the entire rehabilitation, treatment, and/or counselling program and only for so long as the employee successfully remains in any aftercare program recommended by the rehabilitation, treatment, and/or counselling program. The employee shall also be required to pass a retest, at the employee's expense, before returning to work upon completion of such 42 rehabilitation, treatment, and/or counselling. The employee may also be subject to periodic retesting after return from leave. Shared Responsibility A safe and productive drug-free workplace is achieved through cooperation and shared responsibility. Both employees and management have important roles to play. All employees are required to report to work unimpaired in a drug free state. In addition, employees are encouraged to:  Be concerned about working in a safe environment.  Support fellow workers in seeking help.  Use the Employee Assistance Program.  Report dangerous behavior to their supervisor. It is the supervisor's responsibility to:  Inform employees of the drug-free workplace policy.  Observe employee performance.  Investigate reports of dangerous practices.  Document negative changes and problems in performance.  Counsel employees as to expected performance improvement.  Refer employees to the Employee Assistance Program.  Clearly state consequences of policy violations. Communication Communicating the drug-free workplace policy to both supervisors and employees is critical to its success. To ensure all employees are aware of their role in supporting our drug-free workplace program:  All employees will receive a written copy of the policy.  The policy will be reviewed in orientation sessions with new employees. 43 EXHIBIT 401-A DRUG & ALCOHOL ABUSE – ALL EMPLOYEES POLICY ACKNOWLEDGMENT I acknowledge that I have received a copy of the Drug & Alcohol Abuse – All Employees Policy of the Town of Fountain Hills. I further understand that it is my obligation to read and that compliance with the rules and provisions contained within the Policy is a condition of continued employment with the Town. I understand that this policy in no way implies, infers, or guarantees my continued employment for any definite term and that I may be non-selected for hire, disciplined, and/or discharged by the Town for other reasons than failing to follow the terms of the Policy. _________________________________________ 44 Town of Fountain Hills Personnel Policies SECTION: HEALTH AND WELFARE POLICY: DRUG AND ALCOHOL ABUSE AND TESTING – EMPLOYEES REQUIRED TO MAINTAIN A VALID COMMERCIAL DRIVER’S LICENSE POLICY NO: 402 EFFECTIVE: April 20, 2018 REVISED: April 20, 2018 PURPOSE: To establish a drug-free workplace and a drug and alcohol testing program conducted in accordance with state and federal law, including Department of Transportation regulations applicable only to certain Town employees. SCOPE: This policy applies only to those Town employees and prospective Town employees whose positions require the possession of a valid commercial driver’s license (“CDL”). For purposes of this policy, a Town employee is covered by DOT regulations as those regulations relate to the employee’s fitness-for-duty and use of alcohol prior to going on duty, while on duty, or while operating or having physical control of a commercial motor vehicle. DOT testing for controlled substances under this policy requires that employees abstain from the use of controlled substances at any time or risk violating DOT regulations prohibiting the presence of controlled substances in their body. For purposes of this policy, the term “controlled substances” means marijuana, cocaine, amphetamines (including ecstasy and analogous drugs), opiates, and phencyclidine (PCP). Under this policy performing a safety sensitive function means all of the time after an employee begins to work or is required to be ready to work until the time the employee is relieved from work and all responsibility for performing work. Safety-sensitive functions include: (1) All time spent at Town facilities, property, or any other public property, waiting to be dispatched, unless the employee has been relieved from duty by the Town; (2) All time inspecting equipment as required by the law or otherwise inspecting, servicing, or conditioning any commercial motor vehicle at any time; (3) All time spent at the driving controls of a commercial motor vehicle in operation; (4) All time, other than driving time, in or upon any commercial motor vehicle except time spent resting in a sleeper berth; (5) All time loading or unloading a vehicle, supervising, or assisting in the loading or unloading, attending a vehicle being loaded or unloaded, remaining in readiness to operate the vehicle, or in giving or receiving receipts for shipments loaded or unloaded; and (6) All time repairing, obtaining assistance, or remaining in attendance upon a disabled vehicle. When an employee must take prescription or over-the counter drugs, the employee must ask the medical professional or pharmacist if the drug has any side effects which may impair the employee’s ability to safely or productively perform the employee’s job duties. If there is the potential impairment of the employee’s ability to work safely or productively, the employee must report this information to the supervisor. With input from the employee, the Town will determine if the employee should work in his regular job, be temporarily assigned to another job or placed off work. 45 RESPONSIBILITIES: Human Resources will be responsible for the development, coordination, and documentation of the Drug and Alcohol Abuse Policy for the Town of Fountain Hills. All Town personnel with supervisory responsibility will have knowledge of and be responsible for the communication, enforcement, and adherence to this policy. POLICY: The Town is committed to protecting the safety, health and well-being of all employees and other individuals in the workplace. The Town recognizes that alcohol abuse and drug use pose a significant threat to its goals. Therefore, the Town has established a drug-free workplace program that balances its respect for individuals with the need to maintain an alcohol and drug-free environment. The Town encourages employees to voluntarily seek help with drug and alcohol problems. In order to further these objections, the Town requires that all Town employees covered by this Policy comply with the following: 1. No employee shall unlawfully manufacture, use, possess, or distribute controlled substances. 2. No employee shall report for work, perform any safety-sensitive functions or, while in the employ of the Town, have at any time, any controlled substance present in their body. Presence of controlled substances will be determined by testing performed as described in this policy. 3. No employee shall perform safety-sensitive functions within 4 hours after consuming alcohol. 4. No employee shall consume alcohol while performing safety-sensitive functions. 5. No employee shall possess alcohol while on duty. 6. No employee shall report to work or perform safety-sensitive functions while having an alcohol concentration of .02 or greater. Employee alcohol concentration will be determined by testing performed as described in this policy. 7. No employee shall leave the scene of an accident, without a valid reason, before arranging to have both a controlled substance and alcohol test performed. 8. No employee shall consume alcohol after an accident unless 8 hours have expired, the employee has been tested or the Town has determined that the employee’s performance could not have contributed to the accident, whichever occurs first. 9. No employee shall refuse to take a required test. Any violation of this policy will result in discipline up to and including termination under the Town’s independent authority, as provided for by the DOT. An employee who tests positive for marijuana is in violation of this Policy, even if the employee is an Arizona medical marijuana registered cardholder. Be advised that a positive drug test for marijuana constitutes a violation of this Policy and may lead to your termination. For more information, please speak your supervisor and/or Human Resources. Employees who adulterate or otherwise interfere with accurate testing required pursuant to this policy are in violation of this policy. Any employee who has been observed using or possessing controlled substances or alcohol during work time, including lunch breaks, or on Town property, is in violation of this policy. 46 The Town will not hire applicants who test positive for controlled substances. The Town will provide to any employee who violates a DOT drug and alcohol regulation a listing of Substance Abuse Professionals readily available to the employee. Minimum Consequences of Violation as Mandated by D.O.T. If an employee tests positive for a controlled substance or has an alcohol concentration of .02 or greater, the employee will be removed from safety-sensitive functions. To be eligible to return to work after testing at an alcohol concentration of .02 to .039, the employee must be off-duty for at least 24 hours. Pursuant to the Town’s independent authority, employee testing between 0.02 and 0.039 may be subjected to discipline up to and including termination. To be eligible to return to work after a positive controlled substance test or test indicating an alcohol concentration of .04 or greater, the employee must be evaluated by a Substance Abuse Professional (SAP). If the SAP determines that additional treatment is necessary, the employee must complete such treatment. In addition, the employee will be subject to follow-up testing. The above consequences are minimum requirements as set out by the D.O.T. Compliance with the above does not guarantee an employee will be returned to work following a violation of this policy. Employees will be subject to disciplinary action up to and including termination for violation of this policy, regardless of eligibility to return to work under the DOT regulations. Before an employee returns to duty requiring the performance of a safety-sensitive function after violating the alcohol or controlled substance provisions outlined by DOT, the employee shall undergo a return-to-duty test with a result indicating a verified negative result. PROCEDURES: TESTING: General For the purpose of ensuring compliance with the Federal Department of Transportation regulations and this policy, applicants for safety-sensitive positions and employees who perform safety-sensitive functions will be subject to controlled substance and alcohol screening under the circumstances described below. Applicants and employees are required to submit to testing in the following circumstances as a condition of their employment. Post-Offer/Pre-Employment Testing Applicants for Town positions that require possession of a valid commercial driver’s license that are deemed by the Town to be “safety-sensitive” undergo a test for the presence of controlled substances post-offer and on or about the time employment commences. Under no circumstances may an employee perform a safety- sensitive function until a confirmed negative result is received. Applicants who refuse to submit to testing will not be hired. Testing for Current Employees 1. Post-Accident Testing 47 Any employee involved in an accident in which a fatality occurs must immediately submit to a controlled substance and an alcohol test. Any employee who receives a citation for a moving traffic violation must immediately submit to a controlled substance test, and an alcohol test if, (a) the accident results in a fatality, or bodily injury to a person who must immediately receive medical treatment away from the scene, or (b) one or more of the vehicles involved is towed from the scene. An employee will not be allowed to return to work until a confirmed negative test result is received. The Town will place the employee on a paid leave pending the receipt the of drug testing results. 2. Reasonable Suspicion Testing An employee will be required to submit to controlled substance or alcohol test upon reasonable suspicion. Reasonable suspicion means that the actions, appearance or conduct of the employee on duty are indicative of the use and/or presence in the employee’s body of a controlled substance or alcohol. Reasonable suspicion is based on specific, contemporaneous, articulable observations concerning the appearance behavior, speech or body odors of the employee. An employee will not be allowed to return to work until a confirmed negative test result is received. The Town will place the employee on a paid leave pending the receipt of drug testing results. 3. Random Testing Employees will be subject to controlled substance testing and alcohol testing at any time on a random basis as a term and condition of holding an employee position. Upon being notified of selection, the employee must immediately proceed to the testing site. Random testing will be spread reasonably throughout the year and will be unannounced to ensure that no employee receives advanced knowledge of the time of testing. All employees will have an equal chance of being selected each time a random selection is made number of controlled substances tests conducted annually shall equal or exceed 50 percent of the number of employee positions subject to testing. The number of alcohol tests conducted annually shall equal or exceed 10 percent of the number of employee positions subject to testing. An employee shall only be tested for alcohol while the employee is performing safety-sensitive functions, just before the employee is to perform safety-sensitive functions, or just after the employee has ceased performing such functions. 4. Follow-Up and Return to Duty Any employee who has been required to or voluntarily undergoes rehabilitation for substance abuse must submit to a drug test and receive a confirmed negative test result and an alcohol test (with a result of less than .02) before returning to work. In addition, the employee will be subject to follow-up testing not to exceed 60 months following the employee's return to work. TESTING PROCEDURES 1. Controlled Substances 48 Controlled substance screening shall be conducted in a laboratory certified by the Department of Health and Human Services (DHHS) and in accordance with the Procedures for Transportation Workplace Drug Testing Programs. All controlled substance screening includes split sampling which provides that a urine sample be split into two separate containers. Precautions shall be taken to ensure that the specimen is not adulterated or diluted during the collection procedure and that the information on the sample matches the information on the custody and control form. Dilute test results will be treated as follows:  Dilute positives are treated as a verified positive test;  Dilute negatives with the creatinine concentration equal to or greater than 2 mg/dL but less than or equal to 5 mg/dL will be retested under direct observation. A second dilute negative result will be treated as a negative test result;  Dilute negatives with the creatinine concentration greater than 5 mg/dL will be retested. A second dilute negative result will be treated as a negative test result unless the MRO directs the Town to retest under direct observation. The substance screen will test for the following drugs - marijuana, cocaine, opiates, amphetamines, phencyclidine (PCP) and ecstasy. Any positive initial test will be confirmed by a gas chromatography/mass spectrometry (GC/MS) test. The Town shall employ a Medical Review Officer (MRO) who will receive the laboratory results of the testing procedure. The MRO shall be a licensed physician and have knowledge of substance abuse disorders and appropriate medical training to evaluate positive test results, medical history, and any other relevant biomedical information. The MRO shall review all medical records made available by the tested individual when a confirmed positive test could have resulted from legally prescribed medication. The MRO shall also review all specimens which are found to be adulterated or substituted specimens. In the instances of an adulterated or substituted specimen, the MRO will provide the employee an opportunity to present a legitimate medical explanation. If no legitimate medical explanation is provided, the MRO will report the verified adulterated or substituted specimen to the Town. The Town will consider the verified adulterated or substituted specimen as a refusal to test and immediately remove the employee from performing safety sensitive functions. The employee may then be subjected to the disciplinary action under the Town’s independent authority. The MRO will be the sole custodian of the individual test results. The Medical Review Officer will advise the Town only of whether the test results were negative or positive. After receiving notification of a verified positive test, an adulterated or substituted specimen, an employee may request that the split sample be analyzed. Such a request must be made within 72 hours of notification of the verified positive test. If such a request is made, the sample will be tested at another DHHS certified laboratory, at the employee’s expense. Upon written request within 7 days of a verified positive test, the employee may obtain copies of any records pertaining to their controlled substance tests. Each applicant or employee will have an opportunity to discuss the test results with a representative of the employer in a confidential setting. The Town will keep the test results confidential and will share the results only within the Town on a business need to know basis, in administrative law proceedings, and when required by law. 49 2. Alcohol Testing Alcohol testing shall be conducted by a Breath Alcohol Technician (BAT) using an Evidential Breath Testing Device (EBT). The employee will provide a breath sample. If an employee’s alcohol concentration is greater than .02, a second, confirmation test will be performed. REFUSAL TO SUBMIT TO TESTING This provision regarding the refusal to submit to testing excludes applicants for employment. Refusal to submit to testing is a violation of this policy. Any Employee refusing to submit to testing will be referred to a Substance Abuse Professional and will face appropriate disciplinary action. The following behaviors constitute a refusal: Refusal to submit is defined as: a. refusal to appear for testing, b. failure to remain at the testing site until the testing process is complete, c. failure to provide a urine specimen, d. in instances of observed or monitored collection, failure to allow observation or monitoring, e. refusal to sign the testing form, f. failure to provide adequate breath, g. failure to take a second test as directed, h. otherwise fail to cooperate in the testing process, i. perform any actions which prevent the completion of the test, j. a test result reported by the MRO as a verified adulterated or substituted test, k. inability to provide sufficient quantities of breath or urine to be tested without a valid medical explanation, l. failure to undergo a medical examination or evaluation when directed, m. tampering with, attempting to adulterate, adulteration or substitution of the specimen, or interference with the collection procedure, n. not reporting to the collection site in the time allotted, o. leaving the scene of an accident without a valid reason before the tests have been conducted. ASSISTANCE The Town recognizes that alcohol and drug abuse and addiction are treatable illnesses. The Town also realizes that early intervention and support improve the success of rehabilitation. To support its employees, the Town drug-free workplace policy:  Encourages employees to seek help if they are concerned that they or their family members may have a drug and/or alcohol problem.  Offers all eligible employees and their family members assistance with alcohol and drug problems through the Employee Assistance Program (EAP). If you have a problem with drugs and/or alcohol and wish to undertake rehabilitation, you may request an unpaid leave of absence for this purpose, which may be covered leave under the Family and Medical Leave Act under certain circumstances. It is your responsibility to seek help before the problem adversely affects your work performance or results in a violation of this policy. If you need assistance in seeking this help, you may contact the Employee Assistance Program (EAP). No one will be discriminated against for undertaking rehabilitation. 50 Treatment for alcoholism and/or other drug use disorders may be covered by the employee benefit plan. However, the ultimate financial responsibility for recommended treatment belongs to the employee. Confidentiality All information received by the Town through the drug-free workplace program is confidential communication and will be maintained in separate confidential records. Access to this information is limited to those who have a legitimate need to know in compliance with relevant laws and management policies. Tested employees have the right to obtain their written test results if they request them. 51 EXHIBIT 402-A ACKNOWLEDGMENT AND RECEIPT DRUG & ALCOHOL ABUSE – EMPLOYEES REQUIRED TO MAINTAIN A VALID COMMERCIAL DRIVER’S LICENSE POLICY I have received a copy of the Town’s Drug and Alcohol Abuse and Testing – Employees Required to Maintain a Valid Commercial Driver’s License Policy. I further acknowledge that I understand it is my obligation to read and that compliance with the rules and provisions contained within the Policy is a condition of continued employment with the Town. Employee’s Printed Name _________________________________________ _______________________________ Employee’s Signature Date I understand that this policy in no way implies, infers, or guarantees my continued employment for any definite term and that I may be non-selected for hire, disciplined, and/or discharged by the Town for other reasons than failing to follow the terms of the Policy. ________________________ _________________________ Employee Date 52 Town of Fountain Hills Personnel Policies SECTION: HEALTH & WELFARE POLICY: SMOKE-FREE WORKPLACE POLICY NO: 403 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 PURPOSE: To establish a policy concerning smoking in the workplace. STATEMENT OF POLICY: The Town of Fountain Hills strives to maintain a healthy environment for its employees and customers. Smoke is recognized as a carcinogen and is to be eliminated from work areas. All Town buildings and vehicles are designated as smoke-free. All Town buildings will be signed to state that smoking is not permitted. The Town Manager, Department Heads and supervisors will ensure that there is no smoking in Town buildings and vehicles. 53 Town of Fountain Hills Personnel Policies SECTION: HEALTH & WELFARE POLICY: WEAPONS POLICY NO: 404 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a policy concerning weapons in the workplace. STATEMENT OF POLICY: Despite some laws that allow people to carry firearms in public, except as provided below, the Town of Fountain Hills prohibits anyone from possessing or carrying weapons of any kind on Town property, in Town owned vehicles, or during working hours. This includes:  Any form of weapon or explosive  All firearms; and  All illegal knives or knives with blades that are more than six (6) inches in length If an employee is unsure whether an item is covered by this policy, please contact Human Resources. Employees are responsible for making sure that any item they possess is not prohibited by this policy. Police officers, security guards, and other individuals who have been given consent by the organization to carry a weapon on the property will be allowed to do so. Pursuant to Arizona law, employees may have a firearm that is lawfully possessed stored in a locked vehicle so long as such firearm is not visible from outside of the vehicle. This policy does not apply to Town vehicles. No firearms or weapons of any kind may be transported or stored in Town vehicles. 54 Town of Fountain Hills Personnel Policies SECTION: HEALTH & WELFARE POLICY: ON-THE-JOB INJURY AND ILLNESS POLICY NO: 405 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish procedures to be followed when an employee is injured at the workplace. SCOPE: All employees. STATEMENT OF POLICY: The Town provides a comprehensive workers' compensation insurance program to its employees. This program does not cost the employee anything. The workers' compensation program covers injuries or illnesses that might happen during the course of employment that require medical, surgical, or hospital treatment. There are well-defined provisions that must be met to ensure that employees qualify for workers’ compensation benefits. Workers’ compensation covers only work-related injuries and illnesses. Generally, neither the Town nor its insurance carrier will pay workers’ compensation benefits for any injuries that might happen if an employee voluntarily participates in an off-duty recreational, social, or athletic activity. PROCEDURE: Employees must tell their supervisors immediately about any work-related injury or illness, regardless of how minor it might seem at the time. Prompt reporting helps to make sure that employees qualify for coverage as quickly as possible and lets the Town investigate the matter promptly. 1. Work-related injury or illness should be reported in writing within 24 hours to the employee’s supervisor. 2. A physician approved by Human Resources must treat the injured employee on a first visit. Medical attention should be sought from a medical facility providing occupational health services for the Town and the employee, or another person on behalf of the employee, should inform the medical facility that the employee is employed by the Town. 3. The employee should provide physicians’ statements, including releases to return to work and modifications required, to Human Resources. An employee who fails to return to work after being released by an approved physician will be considered to have resigned and will be terminated. 4. An employee who is receiving workers' compensation benefits may use sick leave to make up the difference between the workers' compensation payments and current hourly rate of pay. If the employee has exhausted sick leave, then they may use vacation time to make up the difference between the workers' compensation payments and current hourly rate of pay. Employees shall not be permitted to utilize sick or vacation time in such a way that would compensate the employee with an amount greater than their current hourly rate of pay. If an employee uses sick or vacation time to make up the difference between compensation received through workers' compensation and the employee’s current hourly rate, it shall be the responsibility of the supervisor to record the appropriate time on the biweekly time sheet. 55 Town of Fountain Hills Personnel Policies SECTION: HEALTH & WELFARE POLICY: TEMPORARY MODIFIED DUTY POLICY NO: 406 EFFECTIVE: October 7, 2004 REVISED: The Town of Fountain Hills is committed to providing work, when possible, for employees who have been restricted by a health care provider. Such work will be provided subject to availability. Work will be assigned due to the nature of the injury or illness and the limitations set forth by the treating physician. Every effort will be made to place employees in positions within their own departments, but if necessary, employees will be placed wherever an appropriate position is available. While on temporary modified duty, employees will continue to receive their regular rate of pay. Employees who are placed outside their department will continue to have their salary charged to their regular department. Employees on temporary modified duty must furnish a written update of their medical condition to their supervisor and the Human Resources Administrator from the treating physician after each visit in order to remain in the reassigned job. Temporary modified duty assignments are limited to a period of 90 days, subject to review. It is not intended to accommodate employees with non-temporary disabilities. Being placed on a temporary modified duty assignment does not excuse an employee from following all rules and regulations. 56 Town of Fountain Hills Personnel Policies SECTION: HEALTH & WELFARE POLICY: DISABILITY & ACCOMMODATIONS POLICY NO: 407 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To define the Town’s position on reasonable accommodations for qualified individuals with disabilities and for employees whose work requirements interfere with a religious belief. STATEMENT OF POLICY: The Town of Fountain Hills is committed to complying fully with the Americans with Disabilities Act, as amended, (ADA) and state law concerning the employment rights of qualified persons with disabilities. It is the policy of the Town to conduct all employment practices and activities on a non-discriminatory basis. The Town will make reasonable accommodation to the known physical or mental disabilities of qualified applicants or employees unless doing so would result in an undue hardship to the Town or cause a direct threat to health or safety. The Town will also make reasonable accommodations for employees whose work requirements interfere with a religious belief, unless doing so poses an undue hardship on the Town or causes a direct threat to health or safety. Examples of undue hardship would include if it is costly, compromises workplace safety, decreases workplace efficiency, infringes on the rights of other employees, or requires other employees to do more than their share of potentially hazardous or burdensome work. PROCEDURES: An applicant or employee who requests an accommodation should submit a Request for Accommodation Form (See Exhibit 407-A) to the ADA Coordinator. The applicant or employee may be required to provide medical documentation of their disability and of the effectiveness of the accommodation sought. The Town may also require a medical examination to assist in assessing the existence of a disability and the effectiveness of accommodations. The determination of whether an accommodation will be provided will be made by the ADA Coordinator, following consultation with the applicant or employee and the supervisor (See Exhibit 407-B) and with Town legal counsel if deemed necessary. An employee or applicant who fails to provide requested information or otherwise fails to engage in the interactive process of assessing the existence of a disability and the necessity, availability, and effectiveness of an accommodation will be deemed to have withdrawn any request for accommodation. Any employee who is not satisfied with the response to an accommodation request should let the ADA Coordinator know and should work together with the ADA Coordinator to identify reasonable accommodation. Implementation: The Human Resources Administrator is the ADA Coordinator and is responsible for implementing this policy. Specific responsibilities may be delegated to other management, administration, or supervisors. 57 Medical Records: The Town will maintain any employee health information in a confidential file separate from the personnel file. The health file will be accessible only on a need-to-know basis. Supervisory employees and employees with any first aid or safety duties may be informed of any medical conditions that may require emergency treatment, and all such information shall be kept confidential by those informed. Medical Exams: Post-offer, fitness for duty, and other medical exams that serve a legitimate business interest may be required. In evaluating whether an employee or applicant is able to perform the essential functions of the job, an individualized analysis will be conducted based upon information reasonably available, including information from the employee or applicant, health care providers (if any were consulted), the employee’s or applicant’s personal physician or health care provider, if the employee or applicant provides such information to the Town, and any other pertinent information. Similarly, an individualized analysis will be conducted based on the same types of information to determine whether an employee or applicant would pose a direct threat in the job. 58 EXHIBIT 407-A TOWN OF FOUNTAIN HILLS ADA Accommodation request In order to complete this form, you will need to discuss the essential functions of your job with your supervisor. You may also contact Human Resources if you have questions or need information about the ADA or the process for requesting reasonable accommodation. Employee Information Name Job Title Department Division Telephone Email Supervisor’s Name Supervisor’s Telephone 1. Describe how your condition affects your ability to perform a major life activity and whether you use any mitigating measures (medication, assistive technologies such as wheelchairs, etc.). Which major life activity(s) is/are most significantly affected? Examples of major life activities are: seeing, hearing, breathing, walking, smelling, care for yourself, thinking, concentrating or working. 2. Describe how your condition limits your ability to perform the essential functions of your job. Identify the essential functions affected and be specific about how the medical condition impairs your ability in each instance. 59 3. Describe the accommodation you are requesting. 4. Explain how the accommodations you are requesting will enable you to perform the essential functions of your job. Be Specific. 5. Will you be able to perform all of the essential functions of your job if you receive the requested accommodation? If not, describe the specific functions you will not be able to perform. 6. Do you need assistance to identify accommodations that will enable you to perform the essential functions of your job? If you do, explain what type of assistance you need. 7. Provide any information or suggestion you can on how the requested accommodations(s) can be provided. If known, include the names, addresses and telephone numbers of vendors and the model number and approximate cost of any equipment requested. _________________________________________ ___________________________________ Employee Name (Please print) Work Telephone _________________________________________ __________________________________ Signature Date 60 EXHIBIT 407-B TOWN OF FOUNTAIN HILLS RESPONSE TO REQUEST FOR ACCOMMODATION PURSUANT TO TOWN OF FOUNTAIN HILLS’ DISABILITY ACCOMMODATION POLICY Employee’s Name: _____________________________________________________________ Department: ___________________________________________________________________ Position: _____________________________________________________________________ Supervisor: ___________________________________________________________________ Today’s Date: _________________________________________________________________ I have considered your Request for Accommodation dated _______________ and have made the following determination:  Your request will be granted effective __________________________________, and will be implemented as follows: _________________________________________________________________________________ _________________________________________________________________________________ ________________________________________________________________________  I have determined no accommodation is required because: _________________________________________________________________________________ _________________________________________________________________________________ ________________________________________________________________________  Your requested accommodation is not reasonable and poses an undue hardship on the Town because: _________________________________________________________________________________ _________________________________________________________________________________ ________________________________________________________________________ 61  Your requested accommodation will not be granted, but the following accommodation will be provided: _________________________________________________________________________________ _________________________________________________________________________________ _________________________________________________________________________________ Please note: The Town of Fountain Hills is committed to working with you to determine whether there is any reasonable accommodation that will enable you to perform your job and will not pose an undue hardship to the Town. Please let me know as soon as possible if you have an idea for a different form of accommodation or if anything about our accommodation process needs to be discussed further. Sincerely, __________________________________ ADA Coordinator Please note the Town of Fountain Hills is not obligated to offer an accommodation for every physical or medical condition, but only under certain circumstances and for conditions that constitute “disabilities” as defined in state and federal law. Nonetheless, the Town reserves the right, within its judgment, to offer accommodations to employees who may not have such a disability. Granting any accommodation should not be considered an expression of the Town’s belief as to the existence or non-existence of an employee’s disability. 62 Town of Fountain Hills Personnel Policies SECTION: RECRUITMENT AND ANNOUNCEMENT OF POSITIONS POLICY: RECRUITMENT POLICY NO: 501 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines to fill vacant positions. SCOPE: Selection techniques used by the Town are intended to be impartial, practical, job-related, and consistent with business necessity. The examinations used may include, but are not necessarily limited to, oral, written, performance, physical/mental fitness, and training/experience evaluations. In addition, evaluation of past work performance, work samples, personal interviews, and background investigations may be used in the selection process. PROCEDURE: Recruitment for positions shall occur in the following order: 1. Permission shall be obtained by Department Heads from the Town Manager to initiate recruitment proceedings. 2. Recruitment shall be advertised as the Town Manager deems advisable. 3. All hiring decisions of the Town Manager shall be final. 4. All applications, resumes, interview forms, recruitment information and process information shall be retained by the Town in accordance with State of Arizona retention laws. Application Process Applicants are expected to submit a completed Town of Fountain Hills online application form. Failure to complete the online application form may result in disqualification. Completed applications become the property of the Town of Fountain Hills and are not returned to applicants. If an applicant needs an accommodation in order to submit a Town application form, they should notify Human Resources. Any application may be rejected for reasons including, but not limited to: 1. The applicant appears not to possess the qualifying experience and training required for the position. 2. The applicant has made any misstatement of any material fact. 3. The applicant has practiced any deception or fraud in their application. The Town Manager may abbreviate the recruitment process up to and including direct appointment, for positions that report directly to the Town Manager, only in circumstances where both the Human Resources Head and Town Manager approve of, and recommend the appointment. 63 Town of Fountain Hills Personnel Policies SECTION: RECRUITMENT AND ANNOUNCEMENT OF POSITIONS POLICY: BACKGROUND CHECKS POLICY NO: 502 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a policy concerning background checks. STATEMENT OF POLICY: All employees applying for any position with the Town of Fountain Hills will be subject to reference checks with former employers and/or managers. Unless required by law, reference checks will not be shared with the potential employee. The position an individual applies for and the information they give during the interview process will determine which contingencies may apply to an offer of employment. Individuals, who claim to have certain educational credentials, either in writing or in an interview, are subject to verification. Any individual offered a position that has responsibility for initiating or affecting financial transactions may be required to submit to a credit check. These responsibilities could include, among other things, collecting or handling cash or checks, writing checks or approving them, access to a direct money stream, or being a fiduciary to the organization. Any employee subject to a credit check will be provided with written notices required under the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. (“FCRA”). The Town will obtain the applicant or employee’s consent, in writing, to the procurement of the report. If the report is used as the basis for adverse employment action, the employer must do the following. For purposes of this section, “adverse action” means any decision that “adversely affects” the applicant, including without limitation a denial of employment to an applicant. Any potential employees who will be driving a Town vehicle or driving their personal vehicles on Town business will be subject to an inspection of their Motor Vehicle Records annually. Depending on the job requirements, some employees may have to comply with the Department of Transportation requirements for a Commercial Driver’s License. All potential employees are subject to a criminal background check. Only individuals in Human Resources, who are authorized to do so, may initiate or receive a criminal background check. Information gained from any of the above background checks will be held in confidence and shared with management individuals only on a need-to-know basis, unless the law otherwise requires. 64 Town of Fountain Hills Personnel Policies SECTION: CLASSIFICATION POLICY: EXEMPT/NON-EXEMPT EMPLOYEE CLASSIFICATIONS POLICY NO: 601 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines that ensure that all Town employees are classified in compliance with the Fair Labor Standards Act (FLSA) and state law. SCOPE: The Town of Fountain Hills takes appropriate action to ensure compliance with the FLSA and state law. All employees are identified as exempt from coverage or non-exempt from coverage as provided by law and in accordance with prescribed FLSA guidelines. EXEMPT – Employee positions with the Town that are not eligible for overtime pay. Exempt employees must be paid on a salary basis. This means exempt employees will regularly receive a predetermined amount of compensation each pay period on a weekly basis that shall ordinarily not be subject to reduction because of variations in the quality or quantity of work performed. The Town is committed to complying with salary basis requirements which allows properly authorized deductions. If an exempt Town employee believes an improper deduction has been made to their salary or that their salary has been improperly docked, they should immediately report this information to their supervisor and/or Human Resources. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, the employee shall be promptly reimbursed. NON-EXEMPT – Employee positions with the Town that are eligible for overtime pay. Positions within the Town may be changed from one category to another as the requirements of the law change or as the nature and scope of duties and responsibilities of a particular job change. Existing and newly established positions will be evaluated and assigned to the appropriate category by Human Resources. OVERTIME COMPENSATION The primary implication of assignment of a particular position to either exempt or non-exempt status pursuant to the Fair Labor Standards Act involves determination of eligibility for overtime compensation. 1. Non-exempt Overtime compensation for non-exempt employees is paid at the rate of one and one-half the regularly hourly wage. The rules for overtime are as follows: Overtime must be scheduled and approved by an employee’s immediate supervisor. No overtime may be worked without such advance approval, and failure to obtain approval before working overtime may result in 65 discipline, up to and including dismissal. If you believe that an assigned task requires overtime hours for timely completion, it is your responsibility affirmatively to bring this to the attention of your supervisor. The Town generally compensates for overtime through the payment at a rate of one-and one-half hour for each hour of work for which overtime compensation would be required. Holiday time will be included as time worked in the computation of overtime. Sick time, vacation time, personal time, standby time, jury duty, military leave, bereavement leave, etc., are not counted toward hours worked during a week. Thus, for example, the circumstance may arise where an employee may be paid for more than (40) forty hours during any given workweek and not be entitled to receive overtime compensation. 2. Exempt Employees whose work meets established criteria may be classified as exempt. Situations in which exempt employees are required to work more than forty hours shall not normally result in additional compensation. Exempt Town employees generally need not use accrued leave for absences of four (4) consecutive hours or less in a workday. However, in order to promote public accountability, and notwithstanding any other provisions of these Personnel Policies or any other Town policy, all exempt (i.e., salaried) Town employees are required to use available accrued leave during absences of more than four (4) consecutive hours unless approval is given by the Town Manager, or from a designated Acting Town Manager. 66 Town of Fountain Hills Personnel Policies SECTION: CLASSIFICATION POLICY: EMPLOYEE CLASSIFICATIONS POLICY NO: 602 EFFECTIVE: July 1, 2017 REVISED: June 15, 2017 PURPOSE: To classify employees into one of three categories for eligibility to receive certain benefits offered by the Town of Fountain Hills. STATEMENT OF POLICY: All Town employees fall into one of these three categories: 1. FULL-TIME – An employee who is normally scheduled to work forty (40) hours per week for fifty-two (52) weeks per year. 2. PART-TIME REGULARLY SCHEDULED – An employee who is consistently scheduled, for less than forty (40) hours per week, is expected to establish a continuity of service, and whose weekly scheduled work hours do not normally vary. A regularly-scheduled part-time employee is expected to work more than twenty-six (26) weeks per year. 3. PART-TIME NON-REGULARLY SCHEDULED, TEMPORARY (or SEASONAL) – An employee whose work schedule is intermittent, variable, or seasonal in nature. It is expected that an employee should not remain in temporary job status longer than six (6) months. 67 Town of Fountain Hills Personnel Policies SECTION: CLASSIFICATION POLICY: CALL-BACK PAY POLICY NO: 603 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish conditions under which Town employees are eligible to receive compensation for providing emergency type services during nonscheduled work hours. STATEMENT OF POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may receive compensation in the form of Call-Back Pay for hours worked outside of normally scheduled work hours. SCOPE: All non-exempt Town employees whose specialized skills and abilities qualify them to perform emergency type services to protect public safety and property outside of non-scheduled work hours. PROCEDURE: 1. Eligibility a. Call Back Pay applies to FLSA non-exempt Town employees who are called back to work outside of their regularly scheduled hours for emergency type work. b. Scheduled attendance to perform tasks during weekend and/or holiday hours is not eligible for Call- Back Pay. 2. Assignment Call Back Pay does not apply when: a. The employee is still on the clock and additional work is assigned that will extend their regular workday, in which case normal overtime may apply. b. The employee works overtime hours that were planned in advance (i.e. scheduled overtime). c. The employee requests the opportunity to work additional hours outside of their normal scheduled shift, in which case normal overtime may apply. d. The employee’s call-back hours overlap their regular work schedule as a result of the employee’s request to leave work early, thereby substituting the time worked for their regularly scheduled shift. These hours are not considered call-back, but are compensated as regular hours worked. 3. Compensation a. An employee who is called back to work to perform services, will be compensated for a minimum of two (2) hours or for the amount of time worked, whichever is greater. 68 b. Travel time to and from the work site is not compensable under Call Back Pay status; only hours actually worked. c. An employee shall not be considered on more than one (1) Call-Back Pay status at any given time. d. Subsequent calls received to perform services within two (2) hours of the start time of the initial call, will be compensated as an extension of the initial call; not as a new call with another two (2) hour minimum. Example 1: First call received at 9:00 am First call completed at 9:30 am Second call received at 9:50 am Second call completed at 10:30 am In Example 1, the employee will be compensated for two (2) hours The second call was received within the two (2) hour window of the first call. Therefore, the second call will be compensated as an extension of the first call received. Example 2: First call received at 9:00 am First call completed at 9:30 am Second call received at 11:15 am Second call completed at 12:00 pm In Example 2, the employee will be compensated for four (4) hours. The second call was received two (2) hours and fifteen (15) minutes after the initial first call. Therefore, the second call will be compensated as a separate additional call with the two (2) hour minimum applicable to both calls. Example 3: First call received at 9:00 am First call completed at 9:30 am Second call received at 10:00 am Second call completed at 12:30 pm Third call received at 1:00 pm Third call completed at 2:00 pm In Example 3, the employee will be compensated for five (5) hours and thirty (30) minutes. The second call was received within the two (2) hour window of the first call. The second call will be compensated as an extension of the first call received. However, the third call was four (4) hours after the initial first call. The third call will be compensated as a separate additional call with the two (2) hour minimum applicable. Payment for call-back hours will be made on regularly scheduled pay days and will not be paid in advance. 69 Town of Fountain Hills Personnel Policies SECTION: CLASSIFICATION POLICY: STAND-BY DUTY (ON-CALL) POLICY NO: 604 EFFECTIVE: April 20, 2009 REVISED: April 20, 2018 PURPOSE: To establish a Town-wide policy for Stand-by Duty that acknowledges and compensates employees for emergency type services during non-scheduled work hours for which an employee remains available to respond. STATEMENT OF POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may be required to be placed on stand-by for duty. SCOPE: All non-exempt Town employees whose specialized skills and abilities qualify them to perform or coordinate emergency type services to protect public safety and property during non-scheduled work hours. PROCEDURE: 1. Eligibility: a. Stand-by Duty is restricted to those employees qualified to perform specialized emergency services. b. Scheduled attendance to perform tasks during weekend and/or holiday hours is not eligible for Stand- by Duty Pay. c. In cases of Town emergency or need, employees may be contacted to work during their off hours. Employees who are called in, and are not on Stand-by Duty status, are not eligible for Stand-by Duty Pay. These hours will be calculated under Call-back Pay status. 2. Assignment: a. The responsible Department Supervisor shall maintain a stand-by roster of qualified personnel (capable of performing specialized emergency services that may be required) to serve on Stand-by Duty. b. Stand-by duty shall be allocated fairly amongst qualified employees as follows: i. First – on a rotational basis, qualified employees who volunteer to be put on Stand-By Duty. ii. Second – If there is an insufficient number of qualified employees to volunteer, qualified staff members will be assigned to cover required hours on a rotational basis. c. Stand-By Duty shall be scheduled and assigned in advance. 70 d. While assigned to Stand-By Duty employees shall maintain a physical readiness to respond to emergency call situations and be capable of performing safety-sensitive functions. e. While assigned to Stand-By Duty employees shall maintain a physical proximity to the applicable Department building that allows for no more than a thirty (30) minute response time for call to duty. f. Employees while assigned to Stand-By Duty shall remain accessible at all times by pager and/or by telephone. g. Exchanging Stand-By Duty assignments – Employees may exchange stand-by weeks/days assignments with supervisory approval. h. Subject to meeting the above obligations, employees on stand-by are free to go about their normal day-to-day activities. 3. Compensation a. Stand-by Duty employees will be paid one (1) hour of pay for each regular scheduled workday and two (2) hours of pay for each non-scheduled workday while on-call. These hours begin after the completion of the workday and continue until resuming work the following workday. Employees are not eligible for on-call pay during hours that they are scheduled to work (including weekends and holidays). Employees are not eligible for on-call pay unless they have been formally scheduled for coverage. Typically, no more than one employee per service area should be scheduled for an on-call assignment. b. An employee on Stand-By Duty, who is called to perform services, will be compensated for a minimum of two (2) hours at 1.5 times their hourly rate. 71 Town of Fountain Hills Personnel Policies SECTION: CLASSIFICATION POLICY: JOB SHARING POLICY NO: 605 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish conditions under which Town employees are eligible to work in a job share position. STATEMENT OF POLICY: In order to accommodate the needs of our employees, the Town of Fountain Hills will permit some employees in specific positions to job share. The supervisor and Human Resources will determine whether a specific job may be effectively performed by two individuals and whether both individuals can effectively work in a job sharing arrangement. SCOPE: Many positions within the Town, by their very nature, cannot be shared. For example, positions that require the supervision of other employees usually cannot be shared since it is an integral part of the position for the supervisor to establish a one-on-one coaching relationship to assist employees in their growth and development. PROCEDURE: If the supervisor identifies a position deemed conducive to job sharing, the supervisor should meet with the department director, then Human Resources in order to be aware of job share logistics and benefit eligibility consequences (See “Eligibility for Benefits” #901). Human Resources, the department director, supervisor and employees should be clear on: 1. The hours and days each employee must be present in the workplace; 2. The work equipment that will be necessary for the employees to job-share; 3. The performance expectations; 4. The reporting requirements for each job under the job-sharing arrangement; 5. Holiday compensation; and 6. Usage of leave. The Town of Fountain Hills reserves the right to revise or rescind this arrangement at its sole discretion. 72 Town of Fountain Hills Personnel Policies SECTION: WAGE AND SALARY ADMINISTRATION POLICY: WAGE AND SALARY ADMINISTRATION POLICY NO: 701 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a policy governing the creation and maintenance of a wage and salary plan for Town positions. STATEMENT OF POLICY: The Human Resources Administrator, with approval from the Town Manager, develops, maintains, and modifies, as necessary, a non-discriminatory, uniform and equitable wage and salary plan. SCOPE: The wage and salary plan applies to all Town positions that have been approved and budgeted by the Town Council, with the exception of Elected Officials. PROCEDURE: Town positions are allocated to a class, or group of positions having similar duties, levels of skill, and responsibilities based on the position descriptions developed within each department. The group of positions allocated to a common class is then assigned a single pay range within the Town’s compensation plan. Department Heads shall be responsible for informing the Human Resources Administrator in writing of changes in a position’s duties/responsibilities in their office or department that might possibly affect the classification of such a position. The Human Resources Administrator may initiate a classification review to update and modify classification specifications or any component of the classification as is deemed necessary. Reclassifications A reclassification may occur when a position or group of positions and/or classification have undergone a significant change in the type, difficulty, or degree of responsibility entailed in the work performed within that position. Such a situation may result in the assignment of classification to a higher, lower, or similar classification based on the type of changes which have occurred. A reclassification is only appropriate on a Town or department-wide basis. The concept of reclassification will not be used to circumvent promotions into a higher job classification. If any Department Head desires that a position be reviewed for a possible reclassification, they will forward a request to the Human Resources Administrator, including the following information: A memo stating what factors or duties of the position have changed, the reason for change, and the potential impact of the reclassification, if any, on other positions. 73 Upon receipt of the above documentation, the Human Resources Administrator shall review the information provided. Additional information and/or a position audit may also be required. Following the position review, the Human Resources Administrator shall evaluate the position and determine the proper class allocation A reclassification may result in one of four actions: (1) no change; (2) a change in classification with no change made to pay grade; (3) change in pay grade upward; (4) change in pay grade downward. If a classification action results in a change in pay grade, the corresponding change in the incumbent’s salary will be to the new grade at their current pay rate or at entry level of the new grade, whichever is higher. If a classification results in a change of range upward, the requesting department will be responsible for funding the increase to include additional funds that are necessary in the budget request for subsequent increases. Requests for any additional funding in current or future budget years must be transmitted to the Finance Department for review and forwarding to the Town Manager for action by the Town Council as may be required. Effective dates for classification changes will follow conclusion of a classification review/study and shall not be made on a retroactive basis. Development of New Job Positions and/or Classifications The Town’s position/classification system strives to be responsive to organizational and environmental changes. The Human Resources Department will assist with the revision of position/classification specifications and the development of new position/classification specifications within the broad class concept as necessary to meet the on-going operational requirements of the Town. Job Evaluation Job evaluation is a system used to determine the relationship of each job relative to all other jobs in the Town without regard to the incumbent in the position. The Town Manager is responsible for selecting the method of job evaluation. Pay Structure The Human Resources Administrator is responsible for establishing a pay structure, as approved by the Town Council, based upon job evaluation results. Each position is assigned a pay range and advancement within the pay range shall be contingent upon the available funds and budget requirements of the Town and based upon the employee's performance. Starting Pay Initial appointment to a position shall be made at the minimum salary level for the position unless the Town Manager determines that entry at a higher level is desirable for a particular applicant. This decision shall be based on the outstanding and unusual character of the applicant's experience, education, and ability over and above the normal minimum qualifications specified for the position. Promotions Employees may be promoted up to the starting salary range of the applicable position. If the employee is already being paid more than the starting salary range of the new position a promotional increase may be given at the discretion of the Town. All promotional appointments require written Town Manager approval. 74 Transfers/Demotions A transfer is defined as a change in the assignment of an employee from one position to another position in the same range of pay. An employee who is transferred will be compensated at the same rate as for their previous position. A demotion is defined as a move to a job in a lower salary grade. An employee who is demoted either voluntarily or as a disciplinary measure will be compensated at the equivalent rate on the new pay range. Equity Adjustments An equity adjustment is a discretionary adjustment to an employee’s pay outside of the Town’s normal salary programs (e.g., reclassifications, promotions, merits, COLAs, etc.) to remedy pay issues such as external pressure in high demand areas, internal salary compression, retention considerations, and other, similar issues. Equity adjustments are not granted to reward performance. Procedure: A. A request for an equity review may be initiated by a Department Director by submitting an Equity Review Request to Human Resources. The request shall include reasons why the request fits this adjustment category as opposed to other categories such as reclassification, promotion, COLA, and why the equity review is warranted. If a previous request was submitted within the past two years, the request shall identify specific conditions that have changed since the previous request. B. After receiving a request for an equity review, Human Resources will identify other positions performing similar work and compare the qualifications, experience and education of incumbents and evaluate the compensation to assure equity in pay and compliance with this policy. Such review shall be completed as soon as practicable. C. As part of the equity review, Human Resources will also take into consideration the employee’s pay factors including, but not limited to:  Merit and Cost of Living Increases for the position(s) being considered;  Comparison of positions within the employee’s Department;  Relative value to the organization;  Unique job responsibilities  Pay for similar duties and responsibilities at comparable public entities within the State of Arizona. D. Human Resources shall make a recommendation as to whether an equity adjustment is appropriate based upon the information gathered. Any recommendation for an equity adjustment shall not go outside of the salary range for the position. E. An equity review that results in a pay increase may be retroactively applied, depending on factors including the Town’s Annual Budget and fiscal year, but in no case shall such retroactive application extend beyond the beginning of the current fiscal year during which the equity review was completed. Any request for review that results in a decrease in pay shall be effective upon completion of the equity review. F. The Human Resources Department will submit a recommendation for equity adjustments to the Town Manager. 75 G. The Town Manager shall be responsible for making a final determination as to whether the equity adjustment will be made. This decision by the Town Manager is final and not appealable. H. The Department Director requesting such review and any employees impacted by the review shall be notified in writing of the determination. Merit Increases Such an increase is an award for employee performance that meets or exceeds standards set by the Department and evaluated on the Town performance appraisal form. Merit increases shall not be granted if the increase would cause the individual to exceed the maximum pay established in the Pay Plan (refer to annual budget). It shall be the responsibility of the Town Manager or Department Head to ensure that employees receive performance evaluations at the appropriate intervals for the purpose of merit increases. The evaluation is required regardless of a change in supervisory personnel. 1. The first merit increase eligibility date shall follow successful completion of an employee's original introductory period. 2. The date that an employee attains regular status in the class by successful completion of the introductory period becomes the employee's annual evaluation date, which shall be the date the employee shall be eligible for future annual merit consideration. 3. On the date that an employee successfully completes a promotional introductory period in a new class, the employee may be eligible for merit consideration and that date becomes the employee's new evaluation date. 4. Evaluation date and merit eligibility may also be affected by terms of demotion or reduction in classification due to layoff. 5. Absence of an employee on authorized leave without pay for more than 30 calendar days during a promotional introductory period shall result in extension of the promotional introductory period by an equivalent amount. 6. If the necessary documentation has not been completed in a timely fashion to allow for the granting of a merit increase on the first pay period falling on or after the evaluation date, the employee will receive the increase retroactive to the date upon which they were eligible. 7. Merit increases are dependent on the availability of funds as determined by the Town’s Annual Budget. Cost of Living Adjustments Cost of living adjustments may be given with the approval of the Town Council. Cost of living adjustments are not automatic and are based upon the Town's ability to fund such increases. An employee whose job classification is in the Pay Plan is to be eligible for a cost of living adjustment for the fiscal year authorized by the Town Council. Cost of living adjustments shall not be granted if the increase would cause the individual to exceed the maximum pay established for their class. 76 Town of Fountain Hills Personnel Policies SECTION: WAGE AND SALARY ADMINISTRATION POLICY: PAY PERIOD AND WORKWEEK POLICY NO: 702 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To identify the Town’s Pay Periods and established Workweek. STATEMENT OF POLICY: The pay for all Town employees is based in part on the Town’s workweek PROCEDURE: Workweek The Town’s Workweek begins on Monday at 12:00 AM and ends on Sunday at 11:59 PM. Pay Period Town employees are paid based upon the services rendered over two (2) Town Workweeks. Employees are paid bi-weekly, typically on Thursdays. New employees should be advised by their supervisor when they can expect to receive their first payroll check. Due to payroll processing time, all hours worked by employees through the Sunday prior to the payroll date will typically be included on the payroll check for that pay period. SCOPE: This Policy applies to all Town employees. 77 Town of Fountain Hills Personnel Policies SECTION: INTRODUCTORY PERIOD POLICY: INTRODUCTORY EMPLOYMENT PERIOD POLICY NO: 801 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish a period of time which shall be regarded as part of the orientation period utilized for training and critiquing the employee’s work habits, skill level, and suitability for continued employment in their assigned position with the Town. STATEMENT OF POLICY: The provisions contained in the Town of Fountain Hills Personnel Policies relating to notices required before demotion, suspension, or dismissal of a regular status employee shall not apply to employees in their introductory period of employment. Informal communication and feedback is encouraged throughout an introductory period so that the employee will have clear expectations and an opportunity to make corrections as necessary. This is also a time for encouragement, support, and reinforcement from the immediate supervisor and Department Head. At the conclusion of the introductory employment period, a formal performance evaluation will be completed which becomes a part of the employee’s personnel file in the Human Resources Department. The employing department will make a decision whether to retain the employee, extend the introductory period, or terminate the employee, based on work performance. This determination must be clearly stated in the performance evaluation. Every effort shall be made to complete formal introductory performance evaluations by the supervisor, not earlier than ten (10) working days prior to the evaluation due date, and not later than ten (10) working days after the evaluation due date. SCOPE: Introductory period for full-time employees, is defined as the first six (6) months. Introductory period for part-time employees is defined as the first 1,040 hours worked. PROCEDURE: Introductory Periods 1. Initial Introductory Period: All full- and part-time employees will be placed in an initial introductory period following their initial date of hire. Upon successful completion of the initial introductory period and in accordance with the provisions of this Policy, the employee shall achieve regular status in Town employment, and given consideration for a merit increase based on performance. Merit increases will only be awarded to as Town budget dollars are appropriated. All employees hired after July 1, 2017 are eligible to begin utilizing accrued Paid Sick Time on the 90th calendar day after commencing employment with the Town, in accordance with the Arizona Fair Wages and Healthy Families Act. Full- and Part-Time, Regularly-Scheduled employees are eligible to begin utilizing accrued vacation or other leave as applicable, after satisfying their initial introductory period. 78 During the initial introductory period, an employee may be dismissed, suspended or demoted by the Town Manager. Dismissal during the initial introductory period shall be defined as an introductory release and shall not be considered a dismissal for cause. Initial introductory employees may be subject to a pay reduction by the Town Manager. 2. Promotional Introductory Period: A promotion is defined as the movement of an employee to a position in a higher salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly increased in nature and scope. Employees will be placed in a promotional introductory period following the effective date of their promotion with a time frame as defined above, Employees shall be provided written notice of the introductory period. Upon successful completion of a promotional introductory period and in accordance with the provisions of this Policy, the employee shall be given merit increase consideration based on performance. This date becomes the employee’s new evaluation date for merit review consideration. A promoted employee who is not successful in completing an introductory period may be eligible for demotion to a vacant position for which they meet the minimum qualifications. A determination by the Department Head that the employee’s performance was not satisfactory shall be sufficient cause for demotion. 3. Demotion Introductory Period: A demotion is defined as the movement of an employee to a position in a lower salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly decreased in nature and scope. Employees will be placed in an introductory period following the effective date of their demotion with a time frame as defined above. Employees shall be provided written notice of the introductory period. A demoted employee who successfully completes a demotion introductory period is not eligible for merit increase consideration at the conclusion of the period. The Regular Status of an employee serving a demotion introductory period shall not be affected. However, an employee demoted for disciplinary reasons, who unsuccessfully completes a demotion introductory period, shall be dismissed. Failure to meet the requirements of the position to which the employee is demoted or to successfully complete the demotion introductory period shall constitute a sufficient factual basis for further discipline, up to and including termination. 4. Lateral Transfer Introductory Period: A lateral transfer is defined as the movement of an employee to a position in the same salary grade as the one presently assigned. Employees will be placed in an introductory period following the effective date of their transfer with a time frame as defined above. Employees shall be provided written notice of the introductory period. A formal performance evaluation will be conducted documenting the conclusion of this introductory period and become part of the employee’s official record in the Human Resources Department. A laterally transferred employee who successfully completes an introductory period is not eligible for merit increase consideration at the conclusion of the period. 79 A laterally transferred employee whose performance falls below acceptable levels at the end of their introductory period may be returned to their former position or another similar position for which they qualify, if vacant. The Regular Status of an employee serving a lateral transfer introductory period shall not be affected. Employees are not allowed to be promoted within the initial, promotional, demotion, or lateral transfer introductory periods. Introductory Period Extensions A Department Head may request authorization for an introductory period to be extended longer than the applicable period as defined within this Policy to further assess an employee’s work performance and suitability for continued employment. A request to extend an introductory period must be in writing and approved by the Town Manager. Introductory extensions are not to exceed two times (2x) an individual’s applicable introductory period. Any type of leave taken (e.g., vacation, personal, etc.) during the introductory period (with the exception of sick leave) or while drawing compensation under Workers’ Compensation that is in excess of five (5) consecutive calendar days shall not be credited toward an employee’s introductory period. Instead, the employee’s introductory period shall be extended for a length of time equal to the length of leave taken. Rehire An employee who is terminated from Town employment and rehired shall be required to serve an initial introductory period upon re-employment, unless otherwise waived by the Town Manager. 80 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: ELIGIBILITY FOR BENEFITS POLICY NO: 901 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 An employee’s eligibility to participate in the benefits program is determined by the following classifications:  FULL-TIME REGULARLY-SCHEDULED employees are eligible for all benefits currently offered by the Town.  PART-TIME REGULARLY SCHEDULED employees are eligible for some but not all of the benefits currently offered by the Town.  PART-TIME NON-REGULARLY SCHEDULED, TEMPORARY, OR SEASONAL employees are currently only eligible for sick leave benefits (See Policy 903 “Sick Leave – Part-Time Non-Regularly Scheduled, Temporary, Seasonal and Other Employees”) unless otherwise required by federal, state, or local law. Classification as a “full-time”, “part-time regularly-scheduled”, or “part-time non-regularly-scheduled” employee is determined by the classification of the employee’s position, not solely by the number of hours actually worked in any given week. (See Policy 602 “Employee Classifications”). For questions concerning classification, please contact Human Resources. The Town of Fountain Hills pays a significant portion of the costs of these benefits for employees. Employee contributions for certain benefits will be deducted from employee paychecks as applicable. 81 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: SICK LEAVE – FULL-TIME AND PART-TIME REGULARLY SCHEDULED EMPLOYEES POLICY NO: 902 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the means by which Town of Fountain Hills employees may earn and use sick leave and to provide for the compensation of unused sick leave upon separation from Town service. STATEMENT OF POLICY: Sick leave is part of the integrated program of benefits for Town employees. Such leave is intended for use only under specific conditions as set forth in this policy. SCOPE: All Full-Time Town employees are eligible to earn sick leave for paid-status hours. Part-time regularly scheduled employees are also eligible to earn proportional sick leave for paid-status hours. (See policies 602 “Employee Classifications” and 901 “Eligibility for Benefits”). PROCEDURE: Upon hire, all Full-Time Town employees and Part-Time, Regularly-Scheduled Town employees (as outlined above) will begin to accrue sick leave. Full-time Town employees will accrue sick leave at a rate of 4.0 hours biweekly, assuming they are in a paid-status. Eligible part-time Town employees will accrue sick leave at a rate proportionate to the accrual rate of Full-Time Town employees based on their paid-status hours and may carryover hours, subject to the caps on accumulation of sick leave. Use of sick leave is permitted during the initial introductory employment period with the Town. Accumulation of sick leave shall not exceed 1040 hours at any time. Time off in excess of hours accrued may be deducted first from vacation days if available, and thereafter will be uncompensated. Employees who are exempt from overtime requirements under the Fair Labor Standards Act of 1938 (29 United States Code section 213(A)(1)) will be assumed to work 40 hours in each work week for purposes of earned paid sick time accrual unless their normal work week is less than 40 hours, in which case earned paid sick time accrues based upon that normal work week. Actual accrual amounts, for eligible part-time employees will vary depending on the actual amount of paid- status hours reported through payroll records by an eligible part-time employee. Paid status hours include actual hours worked as well as leave taken under the Town’s Vacation, Sick Leave, Holiday, and other paid leave policies. Sick leave may be used for any of the following reasons:  An employee’s mental or physical illness, injury or health condition; an employee’s need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition; an employee’s need for preventive medical care.  Care of a family member with a mental or physical illness, injury or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; care of a family member who needs preventive care. 82  Closure of the employee’s place of business by order of a public health official or need to care for a child whose school or place of care has been closed by order of a public health official.  Care for oneself or family member when it has been determined by health authorities or a health care provider that the employee’s or family member’s presence in the community may jeopardize the health of others because of their exposure to a communicable disease.  Absence due to domestic violence, sexual violence, abuse or stalking, provided the leave is to allow the employee to obtain for the employee or the employee’s family member: o Medical attention needed to recover from injury or disability caused by domestic violence, sexual violence, abuse or stalking o Services from a domestic or sexual violence program or victim services organization o Psychological or other counseling o Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking; or o Legal services related to the domestic violence, sexual violence, abuse or stalking. The term “family member” means the following for purposes of this policy:  Regardless of age, a biological, adopted or foster child, stepchild or legal ward, a child of domestic partner, a child to whom the employee stands in loco parentis, or an individual to whom the employee stood in loco parentis when the individual was a minor,  A biological, foster, stepparent or adoptive parent or legal guardian of an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee or employee’s spouse or domestic partner was a minor child,  A person to whom the employee is legally married under the laws of any state, or a domestic partner of an employee as registered under the laws of any state or political subdivision;  A grandparent, grandchild or sibling (whether biological, foster, adoptive or step) of the employee or the employee’s spouse or domestic partner, or  Any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship. For earned paid sick time of three (3) or more consecutive work days, the employee may be required to submit reasonable documentation that the earned paid sick time has been used for a purpose covered in this policy. Documentation signed by a heath care professional indicating that earned paid sick time is necessary shall be considered reasonable documentation. In cases of domestic violence, sexual violence, abuse or stalking, documentation set out in A.R.S. § 23-373(G) shall be sufficient. Any employee who abuses sick leave will be subject to disciplinary action. Actions that may lead to disciplinary action include, but are not limited to, falsifying illness or reasons for using leave, unsubstantiated excessive use (three (3) or more consecutive absences without appropriate documentation) and not complying with the authorization requirements above. Employees will be permitted to use sick time in incremented units of one-half (1/2) hour or more, in any one day. Sick time shall not be advanced to an employee nor may sick time be transferred between employees. The Town may require that accrued and unused sick leave under this Policy be used concurrently with leave taken under other applicable leave policies, including leave taken under the Family and Medical Leave Act (FMLA). Sick leave hours will not count toward hours worked for purposes of computing overtime. 83 Upon retirement, Full- and Part-Time, Regularly-Scheduled employees with 10+ years of continuous service will qualify for a payout of fifty percent (1/2) of their available accrued sick leave hours at their regular rate of pay upon separation of service. Sick leave will not be paid out under any other circumstances. Refer to Policy 901 “Eligibility for Benefits” and Policy 602 “Employee Classifications” for clarification on eligibility. If an employee separates from employment with the Town and is rehired within nine (9) months, that employee’s previously accrued and unused sick leave will be reinstated and will be available for immediate use. Employees who are denied needed sick leave for one of the purposes listed in this Policy should contact Human Resources for an individualized review. 84 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: SICK LEAVE – PART-TIME NON-REGULARLY-SCHEDULED, TEMPORARY, SEASONAL, AND OTHER EMPLOYEES POLICY NO: 903 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the means by which Town of Fountain Hills part-time non-regularly scheduled, temporary, seasonal, and other employees may earn and use paid sick time. STATEMENT OF POLICY: Paid sick time is a form of sick leave and part of the integrated program of benefits for Town employees. Such leave is intended for use only under specific conditions as set forth in the Arizona Fair Wages and Healthy Families Act and reflected in this this policy. SCOPE: All part-time non-regularly-scheduled, temporary or, seasonal, and other Town employees are eligible to earn paid sick time for hours worked. PROCEDURE: Upon hire, all part-time non-regularly scheduled, temporary, seasonal, and other Town employees will begin to accrue sick leave at a rate of one (1) hour of sick leave for every thirty (30) hours worked. Up to forty (40) hours of accrued and unused sick leave may be carried over. The Town limits use and accrual of sick leave under this policy to forty (40) hours per calendar year. Use of sick leave is permitted during the initial introductory employment period with the Town. Sick leave may be used for any of the following reasons:  An employee’s mental or physical illness, injury or health condition; an employee’s need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition; an employee’s need for preventive medical care.  Care of a family member with a mental or physical illness, injury or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; care of a family member who needs preventive care.  Closure of the employee’s place of business by order of a public health official or need to care for a child whose school or place of care has been closed by order of a public health official.  Care for oneself or family member when it has been determined by health authorities or a health care provider that the employee’s or family member’s presence in the community may jeopardize the health of others because of their exposure to a communicable disease.  Absence due to domestic violence, sexual violence, abuse or stalking, provided the leave is to allow the employee to obtain for the employee or the employee’s family member: o Medical attention needed to recover from injury or disability caused by domestic violence, sexual violence, abuse or stalking 85 o Services from a domestic or sexual violence program or victim services organization o Psychological or other counseling o Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking; or o Legal services related to the domestic violence, sexual violence, abuse or stalking. The term “family member” means the following for purposes of this policy:  Biological, adopted or foster child, stepchild or legal ward, a child of domestic partner, a child to whom the employee stands in loco parentis, or an individual to whom the employee stood in loco parentis when the individual was a minor,  Biological, foster, stepparent or adoptive parent or legal guardian of an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee or employee’s spouse or domestic partner was a minor child,  A person to whom the employee is legally married under the laws of any state, or a domestic partner of an employee as registered under the laws of any state or political subdivision. domestic partner  Grandparent, grandchild or sibling (whether biological, foster, adoptive or step) of the employee or the employee’s spouse or domestic partner, or  Any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship. For earned paid sick time of three or more consecutive workdays, the employee may be required to submit reasonable documentation that the earned paid sick time has been used for a purpose covered in this policy. Documentation signed by a heath care professional indicating that earned paid sick time is necessary shall be considered reasonable documentation. In cases of domestic violence, sexual violence, abuse or stalking, documentation set out in A.R.S. § 23-373(G) shall be sufficient. Any employee who abuses sick leave will be subject to disciplinary action. Events that may lead to disciplinary action include, but are not limited to, falsifying illness or reasons for using leave, unsubstantiated excessive use (three (3) or more consecutive absences without appropriate documentation) and a failure to comply with the authorization requirements above. Employees will be permitted to use sick leave in incremented units of one-half (1/2) hour or more, in any one day. Sick leave shall not be advanced to an employee nor may sick time be transferred between employees. The Town may require that accrued and unused sick leave under this policy be used concurrently with leave taken under other applicable leave policies, including leave taken under the Family and Medical Leave Act (FMLA). Sick leave hours will not count toward hours worked for purposes of computing overtime. Employees may not exceed the 40 hours paid sick time in any given year. Paid sick leave accrued under this Policy will not be paid out at separation from employment. If an employee separates from employment with the Town and is rehired within nine (9) months, that employee’s previously accrued and unused sick leave will be reinstated and will be available for immediate use. 86 Employees who are denied needed sick leave for one of the purposes listed in this Policy should contact Human Resources for an individualized review. 87 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: VACATION LEAVE POLICY NO: 904 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the means by which Town of Fountain Hills employees may earn and use vacation leave and to provide for the compensation of unused vacation leave upon separation from Town service. STATEMENT OF POLICY: Vacation leave is part of the integrated program of benefits for Town employees. Such leave is intended as a necessary break from normal duties to allow employees to engage in outside recreational activities as a means of achieving and sustaining high levels of productivity during regularly scheduled duty. SCOPE: All full-time Town employees accrue vacation leave hours. Part time, regularly scheduled employees accrue vacation leave at a proportional rate up to the maximum accrual rate of full-time employees (based on 40 hours per work week). Part-time, non-regularly scheduled, temporary, or seasonal employees do not earn vacation leave. (See “Eligibility for Benefits” Policy 901 and “Employee Classifications” Policy 602). The amount of vacation time employees are eligible to receive each year increases with the length of their employment. Vacation time begins to accrue with the employee’s first full bi-weekly pay cycle, subject to the following: Upon completion of six (6) months of actual service, each full-time employee shall be credited with up to fifty-two (52) hours of vacation and shall accrue vacation thereafter at the rate specified in this policy. Upon completion of six (6) months of actual service, eligible part-time employees shall be credited with a proportional amount of vacation leave relative to the accrual of full-time employees (based on 40 hours per work week). ACCRUAL RATE MAXIMUMS & OVERALL MAXIMUMS – ELIGIBLE EMPLOYEES (Based on 40 Hours per Work Week): Length of Service Maximum Hours per Pay Period / Year Overall Maximum Start date through completion of 3rd year 4.00 / 104 208 4th year through completion of 7th year 5.00 / 130 260 8th year through completion of 10th year 6.00 / 156 312 11th year through completion of 15th year 7.00 / 182 364 16 + Years 8.00 / 208 416 Maximum vacation accruals increase with length of service as depicted in the chart and the overall maximum is limited to two times the yearly maximum accrual. 88 Actual accrual amounts for eligible part-time regularly scheduled employees will vary depending on the actual amount of paid-status hours reported through payroll records by an eligible part-time employee. Paid-status hours include hours worked as well as leave taken under the vacation, sick leave, and other paid leave policies. The “Overall Maximum” column in the table represents a fixed amount and will not vary with actual amount of hours worked. All vacation leave is to be taken at the convenience of the department and shall be approved in writing, or through automation, by the supervisor or the supervisor’s designee. It is the responsibility of the employee to schedule their vacation time in compliance with departmental workloads and needs. Requests for vacation time should be submitted to the supervisor as far in advance as possible. Employees may be recalled from vacation leave, or may have their scheduled vacation leave postponed, when deemed necessary by the department director. When an employee is recalled from vacation leave, the employee’s vacation leave will be rescheduled to the earliest convenient time. Employees will be permitted to use vacation leave in incremented units of one-half (1/2) hour or more, in any one day. Vacation time shall not be advanced to an employee nor may vacation time be transferred between employees. Vacation time will not accrue for workweeks in which there are no hours paid by the Town of Fountain Hills. If the employee has an accrued vacation balance, the vacation time must be used before any unpaid time off is approved. Vacation hours must be used for sick leave if accrued sick leave hours have been exhausted. Vacation hours will not count toward hours worked for purposes of computing overtime. If a holiday falls within an employee’s vacation, the employee will not be charged with vacation hours for the holiday, but will be paid for the holiday at the appropriate holiday rate. Separation of Employment Accrued but unused vacation leave hours will be paid at the employee’s regular hourly rate upon separation of employment. No more than the maximum allowable accrual of vacation leave is compensable upon separation of employment. Vacation leave accrued during the initial introductory employment period will not be compensated if separation occurs during the initial introductory period. 89 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: HOLIDAYS POLICY NO: 905 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To provide a policy for Town employees setting forth paid holidays and to implement a system to increase the flexibility for employees to utilize their holiday compensation. STATEMENT OF POLICY: The annual holiday leave bank for each Full-Time, employee is 80 hours. Part- time, regularly-scheduled employees are not subject to the holiday leave bank; however, these employees will receive Holiday compensation for the number of hours they were originally scheduled to work if a designated holiday falls on one of those days. Part-Time, Non-Regularly scheduled employees do not receive Holiday compensation unless they work on the designated Holiday. The Town of Fountain Hills observes holidays as identified below: 1. New Year’s Day January 1 2. Martin Luther King, Jr/Civil Rights Day Third Monday in January 3. President’s Day Third Monday in February 4. Memorial Day Last Monday in May 5. Independence Day July 4 6. Labor Day First Monday in September 7. Veteran’s Day November 11 8. Thanksgiving Day Fourth Thursday in November 9. Day after Thanksgiving Fourth Friday in November 10. Christmas Day December 25 SCOPE: When any of the holidays listed above falls on a Sunday, the following Monday shall be observed as a holiday; if any such holiday falls on a Saturday, the preceding Friday shall be observed as a holiday. For staff members on a seven-day standard workweek schedule, a holiday falling on a Saturday or Sunday is observed on that day. On any other day or part of a day during which the Town shall be closed by special proclamation of the Mayor, with the approval of the Town Council, employees shall be eligible for holiday pay if they are normally scheduled to work that day. ACCUMULATION OF HOLIDAY LEAVE: a. The annual holiday leave bank for each Full-Time, Regularly Scheduled employee is 80 hours. For purposes of this policy, the holiday will be defined as the 24 hour period (12:00 AM – 11:59 PM) on the designated holiday. Eligible part-time employees normally scheduled to work on a day that falls on a designated holiday shall be compensated with holiday pay for the number of hours they are normally 90 scheduled to work on such days. Temporary, seasonal and other non-regularly-scheduled employees are not eligible for holiday compensation unless they work on the designated holiday. b. The leave banks will be populated during the first payroll in January. New hires will receive a prorated number of hours based upon their hire date. USE OF HOLIDAY LEAVE: a. If a designated holiday falls on a scheduled work day, employees will be required to use their holiday leave to cover their scheduled work hours. Employees required to work on a designated holiday due to business need, or who are not scheduled to work on a designated holiday, will not be required to utilize their holiday leave. If an employee works a partial day, they shall utilize holiday bank hours to cover hours not worked. Any holiday leave hours not used for designated Town holidays shall be considered floating holiday leave. b. Floating holiday leave shall be approved to be used at such a time that is mutually agreeable to the employee and the employee’s supervisor. Holiday leave will not be available for use on an unplanned or call-in basis. c. Holiday leave must be used in full day increments, unless you work a partial day on a designated holiday. A full day will be considered the number of hours scheduled for the day that the leave was taken (e.g. employee was scheduled to work ten hours on a holiday, ten hours of holiday pay would be utilized). In the event that the employee does not have enough holiday hours in her/his bank to cover a full day’s absence, vacation hours will be used to make up the difference. d. In the event that a non-exempt employee does not have either holiday hours or vacation hours to cover a designated holiday, they will not be paid for that holiday. e. Holiday hours must be used by December 31 of each year or will be forfeited. There will be no “cash out” or carryover of holiday hours. f. All holiday hours not taken prior to the last day of employment with the Town shall be forfeited. HOLIDAY COMPENSATION: a. Holiday hours will count toward hours worked for purposes of overtime for hourly employees. b. In the event an employee is on paid leave when a holiday occurs, the employee shall receive no pay in addition to holiday pay. Therefore, the employee shall not be charged with applicable paid leave time (i.e. vacation or sick leave) for that day. c. An employee must be in an authorized paid status on the working day immediately preceding the holiday and the working day immediately following the holiday in order to receive pay for the particular holiday. d. Non-exempt employees required to work on a scheduled holiday will be paid holiday pay plus their regular rate of pay for each hour worked (equals 2X their regular hourly rate of pay). 91 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: PERSONAL LEAVE (OPTIONAL) POLICY NO: 906 EFFECTIVE: December 17, 2015 REVISED: April 20, 2018 PURPOSE: To provide for personal leave for Town employees. SCOPE: This policy applies to all Full-Time, Regularly-Scheduled Town employees. STATEMENT OF POLICY: Full-Time, Regularly-Scheduled Town employees hired before July 1st are eligible for thirty (30) hours of personal leave time during their first calendar year of employment and 30 hours each year thereafter. Full-Time, Regularly-Scheduled Town employees hired after July 1st but before October 1 are eligible for twenty (20) hours of personal leave time during their first calendar year of employment and thirty (30) hours of personal leave time each year thereafter. Full-Time, Regularly-Scheduled Town employees hired on or after October 1st do not receive any personal leave time within the balance of the calendar year, but are eligible to receive thirty (30) hours of personal leave time each year thereafter. Personal leave time must be scheduled in advance whenever possible and approved by the employee’s supervisor. 92 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: FAMILY & MEDICAL LEAVE ACT (FMLA) POLICY NO: 907 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 The Town shall provide Family and Medical Leave in accordance with the federal Family and Medical Leave Act ("FMLA"), as summarized below. This policy is intended to summarize the material terms of the FMLA, and not to create an independent policy in addition to the FMLA. Any conflict between this policy and procedure and the terms of the FMLA is inadvertent and the terms of the FMLA shall govern. FMLA is available to employees with at least twelve (12) months of service and who have worked at least 1,250 hours within the preceding 12-month period. If eligible, an employee may be able to take up to twelve (12) weeks of unpaid leave during the calendar year (based on a 12-month rolling calendar) for the following reasons:  The birth of a child or to care for a child within the first 12 months after birth:  The placement of a child with the employee for adoption or foster care within the first 12 months of placement;  To care for an immediate family member who has a serious health condition; or  For a serious health condition that makes the employee unable to perform the functions of their position. Where the need for leave is foreseeable for the birth or placement of a child, or for planned medical treatment, the employee must provide at least thirty days' notice before the leave is to begin if possible, or such notice as is "practicable." Medical certification will be required if the leave request is for the employee’s own serious health condition or to care for a family member’s serious health condition. Failure to provide the requested medical certification in a timely manner may result in denial of the leave until it is provided. Because the Town wishes to ensure the well-being of all employees, any employees returning from FMLA for their own serious health condition will need to provide a Fitness for Duty statement signed by their treating physician. An employee failing to provide a Fitness for Duty statement will not be permitted to resume work until it is provided. Qualifying FMLA leave will not be counted as an absence under the organization’s attendance policy. The Town of Fountain Hills will maintain health care benefits for the employee while on FMLA leave, but the employee is responsible for paying the normal monthly contribution. If the employee elects not to return to work at the end of the leave period, the employee will be required to reimburse the Town for the cost of premiums paid for maintaining coverage during the leave period if not previously paid by the employee. All other benefits cease to accrue during the unpaid portion of the leave. Employees must use any accumulated sick, vacation, or personal time to the extent available during this leave period, unless such leave is covered under Workers’ Compensation, in which case the employee may only use accumulated leave time for the purpose of satisfying any waiting period. Absences in excess of these accumulated days will be treated as leave without pay. Upon return from leave, the employee will be restored 93 to their original or an equivalent position. If an employee fails to return at the end of the FMLA leave, the employee will be considered to have voluntarily resigned their position with the Town of Fountain Hills. If the employee and their spouse both work for the Town of Fountain Hills, they are both eligible for leave. In cases other than the employee’s own serious health condition, the total leave period for the employee and the employee spouse may be limited to 12 weeks total (combined). It may be medically necessary for some employees to use intermittent FMLA leave. The organization will work with employees to arrange reduced work scheduled or leaves of absence in order to care for a family member’s serious medical condition or their own serious medical condition. Leave because of the birth or adoption of a child must be completed within the 12 month period beginning on the date of birth or placement of the child. It may not be taken intermittently without special permission from Human Resources. All but "key" employees will be reinstated to their job, or a substantially equivalent position, at the expiration of leave and upon the presentation of a fitness for duty certificate (unless they would have lost their job in any event for any other reason, such as layoff). "Key" employees, who may be reinstated to their job, are salaried employees who are among the highest paid 10 percent of all the employees employed by the Town. Upon conclusion of 12 weeks, FMLA leave is no longer available. An employee may requests an extension of medical leave beyond the 12-week period because of their own serious medical condition by submitting medical certification. The Town of Fountain Hills will review such requests on a case-by-case basis in order to determine whether it can reasonably accommodate such a request. 94 Exhibit 907-A Family and Medical Leave Request/Notification Employee Name ______________________________________ ____________________________ (Last, First, MI) Security Number Department Work Telephone ____________________________________ Dates of Leave  Actual  Anticipated From_________________________________ To_________________________________ Reason for Leave (check all that apply)  Birth of my child or care for my newborn child or placement of my child for adoption or foster care.  To care for my spouse, child or parent with a serious health condition.  Intermittent  Reduced Work Schedule  Full-time Leave  A serious health problem which makes me unable to work.  Intermittent  Reduced Work Schedule  Full-time Leave Describe the medical necessity for intermittent or reduced work schedule. Describe when time off or what change in work schedule will be required. I hereby certify that all of the statements contained herein are true to the best of my knowledge. I understand that omissions or misuse of this law may cause rejection of my leave request and/or disciplinary action. ___________________________________________________ _______________________________ Employee’s Signature Date 95 EMPLOYEE - DO NOT WRITE BELOW THIS LINE Eligibility Verification by the Supervisor On all requests for FMLA - Within 2 days verify with payroll and the Human Resources Office that the employee has been employed by the Town for 12 months, worked 1250 hours in the last year, and the number of hours of FMLA that have been taken in the preceding 12 months from the effective date of this request does not exceed 12 weeks. If ineligible, sign and return to employee. If eligible, sign and forward to appropriate authority for final signature.  Eligible for ______ weeks in accordance with this request.  Ineligible  Insufficient months of work  Insufficient hours of work  FMLA entitlement exhausted for the 12 month period. _________ weeks of FMLA have been taken within 12 months. Will be eligible: ________________________ ______________________________________________ ____________________________________ Verifying Authority Signature Date Human Resources Office - I have reviewed medical documentation submitted and find the health condition described therein to meet the requirements for approval of FMLA. (Within 2 days forward the FMLA Request to the Town Manager for signature.) _______________________________________________ ___________________________________ Personnel Liaison Signature Date Final Acknowledgement  Approved  Disapproved ________________________________________________ __________________________________ Town Manager's Signature Date Distribution: Original - Employee Medical File Copy – Employee 96 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: EXEMPT LEAVE POLICY NO: 908 EFFECTIVE: January 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the Exempt Leave benefit for salaried employees in positions that are exempt under the Fair Labor Standards Act (exempt employees), to provide a definition of the Exempt Leave benefit, and describe how Exempt Leave should be administered, for eligible employees. SCOPE: Exempt Town employees are not entitled to overtime pay. POLICY: Overview: While hours may fluctuate, Exempt employees are expected to normally work a minimum of forty (40) hours per week. The job requirements of most exempt employees mean that they regularly work considerably more than 40 hours, and that the time worked frequently occurs during hours outside of the normal work schedule. It is not the Town’s intent to replace time on an hour-for-hour basis, but to provide “Exempt Leave” to acknowledge these realities. Exempt Leave: Exempt Leave is scheduled, paid time taken off the job that is available to FLSA exempt employees who work beyond the normal workweek. Exempt Leave is a benefit provided in recognition of the many hours in excess of forty (40) hours per week, which may be required but are not directly compensated on an hourly basis. Exempt leave is in addition to other leave provided by the Town as a benefit to employees. Exempt Leave is awarded as time off, up to a maximum of forty (40) hours per payroll calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day of the last pay period of the year. Exempt Leave is not accruable beyond the payroll calendar year. An Exempt Employee shall not be paid out any accrued unused Exempt Leave when the employee’s employment with the Town ends. Exempt Leave shall not be carried over beyond the end of the last day of the last pay period of the payroll calendar year. Exempt Leave is a “use it or lose it” benefit based on the payroll calendar year. The full forty (40) hours are available to an eligible exempt employee as soon as they are appointed to an FLSA exempt position on a pro rata basis, depending on the time of the payroll calendar year the employee starts in said position. See table on the next page. Exempt Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the exempt employee to request to use their Exempt Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. 97 Exempt Leave Table Following are suggested guidelines for approving the use of Exempt leave during the first year of hire into a position eligible for Exempt Leave: Start Date on the Job Number of Hours of Exempt Leave Jan 1 – February 28 40 March 1 – April 30 30 May 1 – June 30 25 July 1 – August 30 20 September 1 – October 30 10 The Town Manager may grant additional leave to employees throughout the year in recognition of commendable or outstanding performance in the form of “Merit Leave”. Please see the Policy entitled “MERIT LEAVE”. 98 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: MISCELLANEOUS LEAVE WITH PAY POLICY NO: 909 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish a policy for Town employees to provide for leave with pay for Jury Duty, Witness Duty, Voting, Bereavement, and Administrative Leave. SCOPE: This policy applies to all Town employees. STATEMENT OF POLICY: Jury Duty/Witness Service - Full-time, part-time, or temporary employees called to serve on a jury will be paid for the day or days in which the court requires attendance if they were scheduled to work that day. Full- time, part-time, or temporary employees called to testify as a voluntary witness at the request of the Town of Fountain Hills (by subpoena or otherwise) will be paid for the day or days in which the court requires attendance. If employees are subpoenaed to appear in court as witnesses, but not at the request of the Town of Fountain Hills, they will be excused from work in order to comply with the subpoena but will not be paid for the time. Employees must present any summons to their supervisor on the first working day after receiving the notice. If an employee is not required to serve on a day they are normally scheduled to work or if the employee is excused before serving four hours of jury duty, they are expected to report to work. Employees may keep any compensation they are paid for jury duty or witness service. They will be paid their straight time base rate of pay for all hours missed due to jury duty or witness service on behalf of the Town of Fountain Hills in addition to any compensation received from the court. Compensation for witness service will only be paid if the employee is summoned for witness service by the Town of Fountain Hills. Voting – The Town of Fountain Hills encourages its employees to participate in the election of government leaders. Therefore, if an employee does not have sufficient time outside their regular work hours to vote, adequate time off will be allowed at the beginning or end of the workday to exercise this right. If possible, employees should make their requests at least forty-eight (48) hours in advance of Election Day. The employee may wish to inquire of their Registrar of Voters about the possibility of voting by absentee ballot. Every effort should be made to vote either before or after the employee’s normal workday. Bereavement Leave - The Town of Fountain Hills recognizes the need for time away from work in instances of personal loss. Should a death occur in the immediate family of any full-time or part-time regularly scheduled employee, they will be granted a paid leave of absence, not to exceed three (3) consecutive working days, as determined by their regular work schedule. If employees need time in excess of three days, they may use accrued vacation or personal leave time with the approval of their supervisor and the Human Resources Administrator. 99 Immediate family for the purpose of such leave is defined as spouses, children, grandchildren, parents, grandparents, siblings and in-laws and all “step” relationships in these categories. Payment for bereavement leave is at the employee’s straight time rate of pay. Vacation or personal days may be granted to attend the funerals of other close relatives or friends upon approval by the employee’s supervisor. Time off without pay will only be considered if the employee does not have vacation or personal days available. To be eligible for the excused absence and pay provisions of this policy, employees are to request bereavement leave through their supervisor no later than the first scheduled workday following the death of an immediate family member. The Town of Fountain Hills reserves the right to request all pertinent information including deceased relative’s name, the name and address of the funeral home, and the date of the funeral. Administrative Leave - Such leaves with pay are granted by the Town Manager, or designee, in emergency conditions such as weather, fire, or flood; in a declared state of emergency or disaster; or for reasons, either collective or individually, deemed for the good of the Town as determined by the Town Manager in his or her discretion. 100 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: LEAVES OF ABSENCE WITHOUT PAY POLICY NO: 910 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the conditions under which Town employees may be granted leaves of absence without pay. SCOPE: This policy applies to full-time Town employees in regular status. PROCEDURE: Leaves of absence request will be considered first under the Family and Medical Leave Act (FMLA) Policy (Policy 907). Should the request for leave fail to meet the criteria specified under the FMLA policy, only then will a non-FMLA leave without pay be considered. Generally, a leave without pay shall not normally exceed two (2) calendar weeks. A longer leave of absence may be granted if appropriate for legal reasons, such as ADA (which is not bound by the two week limitation) or other circumstances. Requests for such leave must be made in writing to the employee’s immediate supervisor. Requests for leave without pay will not be granted until the employee has exhausted available leave with pay to include vacation, sick leave, personal leave and FMLA leave. If the immediate supervisor approves the leave, approvals must also be obtained from the Department Head and Town Manager. Leave of absence without pay may be granted for the following purposes: 1. ADA leave as a reasonable accommodation 2. Education 3. Travel 4. Care of a disabled person 5. Temporary employment by another public agency within the United States, its territories or possessions 6. Religious activities (non-compensated) 7. Peace Corps Duty (special two-year limitations). Employees on approved leave without pay may elect to continue group insurance coverage while on such leave. Employees on qualifying FMLA leave will continue to pay the employee’s share of any health insurance premium. Employees on unpaid leave (but not FMLA) must bear the entire cost and remit both the employee and Town portions of the premiums to the Human Resources Department on a monthly basis. If such payments are not made in a timely manner, coverage will be terminated. Except for ADA reasonable accommodation leave, the Town is not obligated to hold the employee’s position open while the employee is on leave without pay and the employee’s right to return to a position from such leave shall be conditioned on the availability of an appropriate position and sufficient funding. The position may be filled on a temporary or regular basis. 101 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: MERIT LEAVE POLICY NO: 911 EFFECTIVE: January 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the Merit Leave benefit that can be awarded occasionally by the Town Manager for commendable or outstanding employee performance. To provide a definition of Merit Leave, and describe how it should be administered. SCOPE: All Town employees are eligible regardless of FLSA (Fair Labor Standards Act) status. Both “exempt” and “non-exempt” employees are eligible. STATEMENT OF POLICY: Merit Leave is scheduled, paid time taken off the job. The Town Manager may approve Merit Leave to Town employees (both exempt and non-exempt) for commendable or outstanding performance. Award of Merit Leave is generally limited to instances when the employee has demonstrated exceptional effort or achievement on a special project. No more than forty (40) hours of Merit Leave may be awarded to an employee in a calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day of the last pay period of the year. Merit Leave must be used within twelve (12) months from when it was awarded and Merit Leave is not accruable beyond the payroll calendar year. Merit Leave is a “use it or lose it” benefit, and may not be carried over beyond twelve months after awarded. An employee shall not be paid out any accrued unused Merit Leave when the employee’s employment with the Town ends. Merit Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the employee to request to use their Merit Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. 102 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: MILITARY LEAVE POLICY NO: 912 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To provide for military duty in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA) and Arizona law. SCOPE: This policy applies to all Town employees. STATEMENT OF POLICY: The Town of Fountain Hills will grant a military leave of absence to employees who are absent from work because they are serving in the U.S. uniformed services in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA). Employees must give their supervisors advance notice of upcoming military service, unless military necessity prevents advance notice or it is otherwise impossible or unreasonable. An employee’s salary will not continue during military leave unless required by law. However, an employee may use any available accrued paid time off, such as vacation or sick leave, to help pay for the leave. Reservists in any branch of the Armed Forces and members of the National Guard will be granted time off for military training. Such time will not be considered vacation time. However, employees may also elect to have their training duty period be considered as vacation time to the extent they have such time available. Continuation of health insurance benefits is available as required by USERRA based on the length of the leave and subject to the terms, conditions and limitations of the applicable plans for which the employee is otherwise eligible. If an employee is on military leave for up to 30 days, they must return to work on the first regularly scheduled work period after service ends (allowing for reasonable travel time). If an employee is on military leave for more than 30 days, they must apply for reinstatement in accordance with USERRA and applicable state laws. Employees returning from military leave (depending on the length of military service in accordance with USERRA) will be placed either in the position they would have attained if they had stayed continuously employed or in a comparable position. For the purpose of determining benefits that are based on length of service, employees will be treated as if they had been continuously employed. Questions about military leave should be direct to the Human Resources Administrator. 103 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: HEALTH & WELFARE BENEFITS POLICY NO: 913 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 Once employees have met the appropriate eligibility requirements, they may be eligible to participate in the plans described below. This is merely a summary. More detailed information about each plan can be found in the plan documents maintained in Human Resources and the summary plan descriptions (SPDs). SPDs are the official documents regarding employee benefit plans and supersede all references to employee benefits in this manual. Medical Insurance First of the month following 30 days of continuous employment Dental Insurance First of the month following 30 days of continuous employment Life Insurance First of the month following 30 days of continuous employment Long Term Disability Insurance First of the month following 30 days of continuous employment Short Term Disability Insurance First of the month following 30 days of continuous employment Dependent Life Insurance First of the month following 30 days of continuous employment Flexible Spending Accounts First day of employment Employee Assistance Program First of the month following 30 days of continuous employment Retirement Plan (401A) First day of employment Deferred Compensation Plan (457) First day of employment 104 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: 401A RETIREMENT PLAN POLICY NO: 914 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 The Town of Fountain Hills does not deduct Social Security taxes from full-time benefited employees’ paychecks. Instead, the Town has a mandatory 401A Retirement Plan. This plan is administered by a registered third party administrator. Eligible employees will contribute 11 % of their gross pay to their retirement account. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. The Town of Fountain Hills will also contribute 11% of the eligible employee’s gross pay. The Town’s contributions are subject to a vesting schedule as follows: Years of Vesting Service % Vested 1 YR. 20% 2 YR 40% 3 YR 60% 4 YR 80% 5 YR 100% Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 105 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: DEFERRED COMPENSATION POLICY NO: 915 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 The Town of Fountain Hills provides an optional deferred compensation plan for all employees. Employees become eligible on their first day of employment. This plan is administered by a registered third party administrator. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. There is no employer match of contributions. Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 106 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: EMPLOYEE ASSISTANCE PROGRAM POLICY NO: 916 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 The Employee Assistance Program (EAP) was established to provide professional, confidential assistance for any type of personal problem. The program is designed to encourage early intervention and awareness of such problems and to offer help at the earliest opportunity. Employees are responsible for their performance and for taking constructive action to resolve any personal problems that affect or threaten to affect their on-the-job behavior. Supervisors are responsible for remaining alert to all instances of substandard work performance and bringing these instances to the attention of the employee, along with an offer of assistance, at the earliest indication of a recurrent problem. Utilization of the EAP is most times on a voluntary basis. If an employee is referred by a member of management as a condition of continued employment, utilization is mandatory. In the case of mandatory utilization, the only information the Town of Fountain Hills will receive is that the employee is in the program, cooperating, and making their appointments. The decision to seek or accept assistance through the EAP will not adversely affect an employee’s job security or advancement opportunities. However, participation in the EAP in no way relieves the employee of the responsibility to meet acceptable work performance and attendance standards. All full-time employees and benefit-eligible dependents are eligible to receive assistance through the EAP. The EAP will not reveal any information that the individual discloses to the EAP except in the following circumstances: • The employee consents in writing; • The law requires disclosure; or • It is believed that life or safety is threatened by nondisclosure. 107 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: TUITION REIMBURSEMENT POLICY NO: 917 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To provide a means of assistance for Town of Fountain Hills employees to obtain job related education. STATEMENT OF POLICY: The Town of Fountain Hills encourages employees to further their development and skills through continuing education. Employees who meet the eligibility requirements stated herein shall be reimbursed for approved courses, in an approved course of study by an accredited school, college, or university. For purposes of this policy, accredited refers to accreditation provided by a body recognized by the US Department of Education. The maximum amount of reimbursement is based on the IRS educational assistance “exclusion from wages” limit that has been set at $5,250 per year since 1999 (IRS publication 15-B Fringe Benefits) and is subject to availability of Town funds on a fiscal year basis. Town employees should contact Human Resources to obtain information regarding the maximum annual reimbursement amount they may be eligible to receive. The Town reserves the right to limit or expand reimbursements if this limit fluctuates. Reimbursable expenditures include tuition only. Administrative fees, laboratory and technical fees, required textbooks, incidental fees such as parking permits, supplies, recreation fees/activity fees are not covered under this plan. Tuition reimbursement is available to eligible employees pursuing advanced education in a field which is directly related to their duties performed for the Town. SCOPE: All Full-Time, Regularly-Scheduled Employees who have completed a minimum of twelve (12) months of paid continuous service. PROCEDURE: Definitions: 1. “Allowable amount” is approved by the Finance Division based upon budgeted funding and the criteria set forth within this policy. The determination of the allowable amount is made prior to the beginning of each fiscal year. Funds in excess of those approved in the Town’s budget cannot be expended without prior Town Manager approval. 2. “Fiscal Year” is defined as July 1st through June 30th. Eligibility Requirements - Individual courses as well as degree programs (undergraduate and graduate) may be considered for assistance under this program if they meet the following requirements: 108 1. The course must be related to the employee's current job or future career growth with the organization. If a degree program is approved, all courses necessary to obtain the degree are eligible for reimbursement even if the course is not directly related to the employee's job. However, a Tuition Reimbursement Application must be submitted and approved prior to the beginning of each course under the degree program (see Reimbursement below). 2. Courses must be taken from an accredited school, college, or university. Accredited refers to accreditation provided by a body recognized by the US Department of Education. 3. Work schedules are not reduced for participating employees. Courses must be taken outside of the employee's normal work hours. 4. All course homework must be completed during non-scheduled work hours. Reimbursement - To be eligible to receive reimbursement, the following must be satisfied: 1. A completed Tuition Reimbursement Application, including the Department Head’s signature of approval, must be provided to the Human Resources no less than thirty (30) days prior to the first session of class. 2. The employee must be actively employed by the Town of Fountain Hills in a full-time, regularly- scheduled status at the time the course is completed and when the employee receives the final grade. 3. The actual amount of reimbursement is dependent on funding availability and total dollar amount requested for reimbursement. Reimbursement will be made upon successful completion of the course (a grade of “C” or better or a “pass” for a pass/fail course). 4. Proof of satisfactory completion and detailed invoices must be submitted to the Human Resources. 5. Employees who receive financial assistance for their education from grants, scholarships, or other sources must disclose the source on the request for tuition reimbursement. If employees are receiving funding other than student loans for their education from another source, the Town will not provide reimbursement for that portion of the cost. The amount of reimbursement shall be reduced by any financial assistance the employee receives from any outside source. Approvals Required – All requests for Tuition Reimbursement require the approval of the employee’s Department Head. 1. All required approvals must be satisfied prior to registering for or enrolling in requested course(s). Requests received after registration or enrollment may not be eligible for reimbursement. Note: A new Tuition Reimbursement Application must be submitted and approved prior to taking courses for which the employee requests tuition reimbursement, including those that are taken as part of a previously approved degree program. 2. The Town Manager will review the request and approve or disapprove the reimbursement request based on the job-relevance of the request, potential benefit to the Town, and funds available. Note: A set funding amount is allocated to this program on a fiscal year basis. For that reason, funds are distributed on a “First Come – First Serve” basis at time of application. 109 Procedure: 1. All requests for tuition reimbursement must be submitted on a Tuition Reimbursement Application (see Exhibit 917-A). 2. All requests must include identification of the agency accrediting the college and a description of the course(s). Both of these may be photocopied from the school catalog or website. For degree programs, a copy of the requirements for the degree must be submitted, including a list of all required courses. As above, a photocopy from the school catalog or website will generally suffice. 3. Upon final approval or disapproval, a copy of the Application is returned to the requesting employee and Department Head. 4. Upon successful completion of the course, the employee shall re-submit their copy of the Application to Human Resources, along with proof of successful completion (grade report) and detailed invoices for reimbursement within thirty (30) days of completion of the class(s). Separation from Employment - It is anticipated that the employee and the Town of Fountain Hills will both benefit from employee development activities and the organization's financial investment in such activities. In order to remain eligible for tuition reimbursement, an employee must remain employed by the Town at the time the course(s) completes and a final grade is issued. If an employee’s employment with the Town is terminated for any reason prior to such time, the employee will be no longer eligible for tuition reimbursement. Tuition reimbursement may be paid prior to completion of requested courses, but only on an exception basis. The employee must furnish an explanation of need that would justify payment in advance, and an affirmative endorsement by the individual’s Department Head prior to consideration. Each request for exception will stand on its own merits. 110 EXHIBIT 917-A TUITION REIMBURSEMENT APPLICATION You must meet eligibility requirements and receive all required approvals before registering for or enrolling in course(s) to be approved for tuition reimbursement. (Refer to the Tuition Reimbursement Policy for details) SECTION I – PREAPPROVAL FOR TUITION REIMBURSEMENT DATE: _____________________ EMPLOYEE NAME: _______________________DATE OF EMPLOYMENT: _____________ JOB TITLE: ___________________________________________________________________ (ELIGIBILITY – Full-Time, Regularly-Scheduled, Post-Introductory employee who has completed 12 months of paid continuous service at the time of request) _________________________________________________________________________________________ ______________________________________________ SCHOOL NAME:_______________________________________________________________ (ELIGIBILITY – Universities and colleges must be accredited by a body recognized by the US Dept of Education) DEGREE PROGRAM: ___________________MAJOR COURSE OF STUDY:_____________ ACADEMIC SEMESTER (Circle One): Fall Winter Spring Summer COURSE TITLE: ________________________COURSE START DATE: _________________ (ELIGIBILITY – Course must be related to the employee’s current job or future career growth with the organization. If a degree program is approved, all courses necessary to obtain the degree will be eligible for reimbursement, even if the course is not directly related to the employee’s job. However, a Tuition Reimbursement Application must be submitted and approved prior to the beginning of each course under the degree program.) REQUIREMENT: You must attach identification of the agency accrediting the college and a description of the course(s). Both of these may be photocopied from the school catalog or website. For degree programs, a copy of the requirements for the degree must be submitted, including a list of all required courses. As above, a photocopy from the school catalog or website will generally suffice. REQUESTED AMOUNT: $_______________________________ EMPLOYEE’S SIGNATURE: _____________________________ DATE:_________________ DEPT HEAD’S SIGNATURE: _____________________________DATE:_________________ HUMAN RESOURCES SIGNATURE :______________________DATE:_________________ TOWN MANAGER’S SIGNATURE:________________________DATE:_________________ __ ***************************************************************************** 111 SECTION II – TUITION REIMBURSEMENT REQUEST COMPLETION DATE OF ABOVE COURSE: _______________GRADE RECEIVED:______ (ELIGIBILITY – A grade of “C” or higher (“pass” in a pass/fall system) must be attained to receive the reimbursement.) TUITION REIMBURSEMENT AMOUNT: $___________________ REQUIREMENT: Upon successful completion of the course, employee shall resubmit their copy of Application, along with proof of successful completion (grade report) and detailed invoices (receipts) to Human Resource for reimbursement. ****************************************************************************** SECTION III – HR ONLY APPROVED REIMBURSEMENT AMOUNT TO EMPLOYEE: $______________________________ HUMAN RESOURCES SIGNATURE:________________________ DATE:__________________ TOWN MANAGER’S SIGNATURE: _____________________________DATE: __________________ 112 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: TRAINING FUNDING POLICY NO: 918 EFFECTIVE: August 1, 2013 REVISED: April 20, 2018 PURPOSE: To maximize the return on investment for Town funded, job-related training outside the scope of the Tuition Reimbursement Policy. STATEMENT OF POLICY: The Town seeks to assist employees in obtaining job related training to enhance the personal skills of the employee in areas that are beneficial to Town operations. SCOPE: This guideline applies to all Town employees. Town employees who attend job-related training may, at the discretion of the Town Manager, have some or all of their expenses paid for through Town funds, including travel, accommodations, auto rental, attendance and required material fees, up to a maximum of $1,500 per fiscal year. PROCEDURE: Employees who attend a training event that costs $1,000 or more (minus wages, but inclusive of expenses incurred from travel, per diem, lodging, auto rental, attendance and material fees) will be required to sign an agreement stating that if they separate voluntarily from Town employment within one year following the conclusion of the training, an amount based upon the total will be withheld from the final paycheck according to the following schedule: Date of Separation Percentage Withheld Up to 90 days following conclusion 100% 91 to 180 days following conclusion 50% 181 to 365 days following conclusion 25% The original signed agreement will be forwarded to the Human Resources Office for inclusion in the employee's personnel file. Under special circumstances, the repayment requirement provision of this guideline may be waived at the discretion of the Town Manager. Nothing in this policy implies any type of contract with respect to continued employment, or limits the rights of the Town to terminate any individual in accordance with Town policy. 113 Town of Fountain Hills Personnel Policies SECTION: FRINGE BENEFITS AND LEAVES POLICY: SERVICE AWARDS POLICY NO: 919 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 The Town of Fountain Hills has established a Service Award Program to honor employees at certain times during their years of service to the Town. All part-time and full-time employees are eligible. Awards will be issued to employees completing five (5) years of service. Additional service awards will be issued at five year intervals. Employees will be recognized for their years of service at a Staff Meeting. 114 Town of Fountain Hills Personnel Policies SECTION: TRAVELING ON OFFICIAL BUSINESS POLICY: TRAVEL TIME POLICY NO: 1001 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a set of uniform guidelines for the compensation of employees during periods of business related travel. STATEMENT OF POLICY: It shall be the policy of the Town of Fountain Hills to comply with applicable provisions of the Fair Labor Standards Act as it relates to the compensation of employees during periods of business-related travel. Commute Time An employee who travels from home before the regular workday and returns to their home at the end of the workday is engaged in ordinary home to work travel, which is not work time. If an employee who regularly works at a fixed location in one town is given a special one day assignment in another town or city and returns home the same day, the time spent in traveling to and returning from the other town or city is work time, except that the Town will deduct the time the employee would normally spend commuting to the regular work site. Travel During the Workday Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site during the workday, is work time and will be counted as hours worked. The Town allows employees to attend conferences and general educational activities for personal growth and as a fringe benefit. Travel to and from professional conferences for career advancement, where the employee does not engage in an activity directly related to the employee's "principal activity" and where attendance is voluntary, is not compensable. Out-of-Town Travel Travel away from home that involves an overnight stay will be work time when it cuts across the employee’s workday. The time will be hours worked on regular workdays during normal working hours and during corresponding hours on nonworking days. The Town will not count time spent in travel away from home outside working hours as a passenger on an airplane, train, boat, bus, or automobile as work time. 115 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: MEMBERSHIP IN PROFESSIONAL AND CIVIC ORGANIZATIONS POLICY NO: 1101 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 Membership in a professional organization is valuable to our employees as well as to our organization. The Town of Fountain Hills will pay the annual membership fee required for an employee to belong to job-related professional organizations that are approved in the annual budget. The Town of Fountain Hills will also pay the fees required for employees to maintain and/or obtain professional designations that are directly related to their jobs and that are approved in the annual budget. A department director must approve in writing any exceptions to these limits. The Town of Fountain Hills cannot pay for student memberships in professional organizations. If membership in a professional or civic organization or a professional designation is not job related but is beneficial to an employee and our organization, the employee may request that their dues be paid for by the Town of Fountain Hills. The employee should make a written request to their department director. The employee will be advised in writing whether any, or all of the dues, will be paid by the Town of Fountain Hills. The Town of Fountain Hills will also pay expenses associated with attending periodic job related meetings, conferences and seminars sponsored by professional organizations that are approved in the annual budget. 116 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: USE OF TOWN VEHICLES BY TOWN EMPLOYEES POLICY NO: 1102 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish guidelines for the appropriate use of Town vehicles. Each Town Department shall adopt this regulation or may adopt more stringent guidelines with the written permission of the Town Manager. STATEMENT OF POLICY: SCOPE: All personnel driving Town vehicles shall have a valid State of Arizona Driver’s License with the appropriate license classification for the type of vehicle they are operating, acquire a complete knowledge and understanding of vehicular operations, and obtain all necessary approvals from Risk Management required to operate the vehicle. If a Town employee should lose their driver’s license for any reason, that employee shall notify their supervisor at the beginning of the next working shift. The responsibility for assuring complete compliance with the provisions of this regulation rest with the Department Head, supervisors at all levels, and the individual employees involved. PROCEDURES: A. The use of Town vehicles shall be restricted to official business, subject to the following guidelines: 1. Transporting of passengers shall be limited to Town employees, persons in an advisory capacity to the Town, persons participating in approved Town programs, and other agency representatives on Town business. 2. Employees assigned a Town vehicle for use during their normal workday schedule may use the vehicle during normal work hours to either go home or to a restaurant for lunch if their personal vehicle is not readily available. Employees assigned a vehicle for use during their normal workday schedule are to exercise discretion in its use. Town vehicles may not be used for personal business. 3. Alcoholic beverages shall not be consumed or transported in Town vehicles nor shall Town employees have consumed any alcohol or any substance (as defined by the Town’s Drug Free Work Environment Policy) before or while operating the vehicle. Under no circumstances shall any Town employee who registers a positive blood alcohol level be permitted to operate any Town vehicle or heavy equipment. 4. It is inappropriate for a Town vehicle to be parked in front of certain types of businesses, such as a liquor store or bar unless the vehicle is being used to conduct official Town business, such as an inspection. Considerable discretion should be exercised when using the vehicle for the purposes noted in this paragraph. B. Department Heads may assign Town vehicles for overnight use under the following circumstances: 117 1. To employees who are frequently required to use a Town vehicle at night, during the weekend, or if they have substantial emergency responsibilities. This does not include employees whose homes are outside Fountain Hills unless the Town’s emergency response or other important Town business would be greatly facilitated. 2. In situations where the conduct of Town business can be facilitated by overnight use of a Town vehicle by an employee who normally does not keep a Town vehicle overnight. 3. To any number of employees rotating a specific assignment and vehicle at night or on weekends. 4. All employees making overnight trips with a Town vehicle must have prior approval of their Department Head as denoted on a Travel Authorization form. C. Town vehicles shall be operated in a responsible, safe manner, as outlined below: 1. Seat belts shall be worn by all employees and passengers using a Town vehicle and the vehicle shall not be operated until all vehicle occupants have buckled their seat belt. 2. Town vehicles shall be driven in compliance with motor vehicle laws. 3. Employees are personally responsible for the prompt and proper reporting to their supervisor, and payment, of fines for any citations received while using a Town vehicle. Under no circumstances are these citations to be paid for by the use of Town funds. All moving traffic citations shall be reported within three (3) working days to the appropriate Department Head. 4. All employees who operate a Town vehicle shall become familiar with policies and procedures relating to the reporting of accidents. Employees involved in an accident may be required to submit to a test for drugs or alcohol, including possible urine or blood screening. Such tests would be conducted in accordance with Town regulations as outlined under the Drug Free Work Environment Policy and Town of Fountain Hills Personnel Rules. 5. Employees operating Town vehicles are responsible for keeping them clean and litter free. Employees assigned to a specific Town vehicle on a regular basis are also responsible for ensuring the vehicle is in good working order at all times. Any known defects or malfunctions of a Town vehicle are to be reported promptly to the Fleet Mechanic. 6. Routine maintenance and repair of Town vehicles will be supervised through the Fleet Mechanic employed by the Town of Fountain Hills. 7. Fuel cards shall remain in Town vehicles at all times and should be stored in the glove compartment. 8. Use of cell phones or texting while operating a Town vehicle is prohibited. 118 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: USE OF TOWN PREMISES, PROPERTY AND MATERIALS POLICY NO: 1103 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 Meetings held on the Town of Fountain Hills’ premises must be for the purpose of conducting Town business. Meetings for other purposes are strictly forbidden. The use of business stationery and/or the Town’s postage meter for personal correspondence is strictly forbidden. The personal use of its facsimile or copying machines also is forbidden without first receiving management approval and reimbursing the Town of Fountain Hills at the current prevailing rates. Sending or receiving personal mail at the Town of Fountain Hills’ address is strongly discouraged because it adds to an already enormous mail volume. No product or materials, including that put in any trash container, is to be removed from the buildings except by authorized personnel. Anyone who removes product or materials without proper authority will be subject to discipline up to termination. 119 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: ACCEPTABLE USE OF INFORMATION SYSTEMS POLICY NO: 1104 EFFECTIVE: December 17, 2015 REVISED: April 20, 2018 OVERVIEW The Town is committed to protecting the integrity of its information systems The enterprise network and Internet/ Intranet/ Extranet-related systems, mobile communications and data, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, WWW browsing, and FTP, are the property of the Town. These systems are to be used for business purposes in serving the interests of the town, and our customers in the course of normal operations. Any and all functions performed by an employee while utilizing Town electronic equipment and resources is considered as public in nature and can in no way be considered personal or private. And thus, employees should understand that there is no expectation of privacy when using such resources. It is the responsibility of all computer users to know these guidelines, and to conduct their activities accordingly. PURPOSE This policy is intended to outline the acceptable use of computer equipment owned by the Town. These rules are in place to protect the Town, its employees and its citizens. Inappropriate use exposes the Town to risks including virus attacks, compromise of network systems and services, and legal issues. SCOPE This policy applies to employees, contractors, consultants, temporary employees, and other workers at the Town, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by the Town. POLICY General Use and Ownership  Users should be aware that the data they create on the Town systems remains the property of the Town. Because of the need to protect the Town’s network, management cannot guarantee the confidentiality of information stored on any device belonging to the Town.  Employees should not engage in personal use of Town information systems in a manner that results in a detrimental impact on the Town. Employees should presume that personal use other than minimal amounts might result in a detrimental impact on the Town. The Information Technology Administrator shall have discretion to determine detrimental use.  For security and network maintenance purposes, authorized individuals within the Town may monitor equipment, systems and network traffic at any time, per Information Technology Division’s Audit Policy. 120  The Town reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy. Security and Proprietary Information  Passwords must be kept secure and NOT be shared with other users. Authorized users are responsible for the security of their passwords and accounts. Application passwords should be changed quarterly, network passwords will expire every 75 days and must be changed.  Because information contained on portable computers is especially vulnerable, special care should be exercised. Protect laptops in accordance with the “Laptop Security Tips.”  Postings by employees from a Town e-mail address to any online venue must contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of the Town, unless the posting is in the course of business duties.  All hosts used by the employee that are connected to the Town Internet/Intranet/Extranet, shall be continually executing approved virus-scanning software with a current virus database.  Employees must use extreme caution when opening e-mail attachments received from unknown senders; such attachments may contain malicious programs (e.g. viruses, e-mail bombs, Trojan horse code, etc.). Unacceptable Use  The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services).  Under no circumstances is an employee of the Town authorized to engage in any activity that is illegal under local, state, federal or international law while utilizing the Town-owned resources.  The lists below are by no means exhaustive, but instead are an attempt to provide a framework for activities that fall into the category of unacceptable use. 1. System and Network Activities The following activities are strictly prohibited:  The installation or distribution of “pirated” or other software products that are not appropriately licensed for use by the Town.  The installation of “freeware” software applications without the prior authorization of the Information Technology Division.  Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. Users should consult the IT Helpdesk prior to export of any material that is in question.  Knowingly introducing malicious programs into the network or server (e.g., viruses, worms, Trojan horses, e-mail bombs, etc.).  Revealing your account password to others or allowing use of your account by others. This includes family and other household members when work is being done at home.  Using a Town information systems asset to obtain and/or transmit material could create a hostile and offensive workplace or a sexually charged workplace in violation of applicable law.  Viewing or transmitting sexually oriented materials.  Making fraudulent offers of products, items, or services originating from any Town account.  Causing security breaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a 121 server or account that the employee is not expressly authorized to access, unless these duties are within the scope of regular duties.  Port scanning or security scanning is expressly prohibited unless prior notification is made to, and permission has been granted by, the Information Technology Division.  Executing any form of network monitoring that will intercept data not intended for the employee’s host, unless this activity is a part of the employee’s normal job/duty.  Circumventing user authentication or security of any host, network or account.  Interfering with or denying service to any user other than the employee’s host (for example, denial of service attack).  Using any program/script/command, or sending messages of any kind, with the intent to interfere with, or disable, a user’s terminal session, via any means, locally or via the Internet/Intranet/Extranet. 2. E-mail and Communications Activities The following is a summarized list of prohibited uses. Please see the Intranet/Internet and E-mail for more detailed information.  Any form of harassment via e-mail, voicemail, telephone or paging, whether through language, frequency, or size of messages.  Sending email that are unprofessional, use foul language, sarcasm or other language that is not proper business etiquette.  Mass mailing of e-mail “junk mail”, jokes or non-Town-business-related advertising material to individuals who did not specifically request such material (e-mail spam).  Solicitation of e-mail for any other e-mail address, other than that of the poster’s account, with the intent to harass or to collect replies.  E-mail posting the same or similar non-business-related messages to large numbers of Usenet newsgroups (newsgroup spam).  Unauthorized use, or forging, of e-mail header information.  Use of the Town’s information systems to engage in threatening, intimidating or harassing conduct including but not limited to constituting the alleged harassment that constitute threats, intimidation or any other kind of act that interferes with the individual’s ability to function as an employee of the Town.  Sending an email using another person’s log-in/identity without authorization. Confidential Files The files of confidential employees will be preserved to contain confidential information, and will not be accessed by IT or anyone else until permission to do so has been granted by a person having authority to do so. Examples of confidential employees are Human Resources and the Town Attorney. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. If an employee violates this policy, Information Technology will inform the employee’s supervisor, or someone higher in rank, in writing and the department director or other authorized individual may authorize the Information Technology Administrator to remove the employee’s access to the Town’s computer network resources and/or to take appropriate remedial action. 122 Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. 123 Laptop & Personal Electronic Device Security Tips  Never leave your laptop or personal electronic device in open view in your vehicle; remove it or secure it in the trunk or other secure location! Do not leave the device stored in the trunk for any great length of time; exposure to either extreme cold or heat can damage the machine. Always use your laptop or personal electronic device in a cool, dry place.  Never leave your laptop or personal electronic device unattended in a public place. Don’t forget to secure all other products associated with your laptop: batteries, power cords, cables, external drives, LCD projectors, etc.  Never put your laptop or personal electronic device on the airport security x-ray machine belt before you have a clear path to the end of the belt. Check your device’s battery and make sure it’s fully charged. If you take your machine through an airport, the security checkpoint personnel may ask you to turn it on to prove it isn’t a suspicious device.  Back up all irreplaceable information daily. Remember, it’s not just the loss of the device, it is also the loss of the hard work and important information. 124 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: INTRANET/INTERNET AND EMAIL POLICY NO: 1105 EFFECTIVE: December 17, 2015 REVISED: April 20, 2018 OVERVIEW Electronic mail (e-mail) is a fast and efficient way to communicate internally within an organization using an internal e-mail system and Intranet and externally using the Internet. The Internet is also a powerful research tool that can greatly expand the amount of information gathered on a subject and reduce the amount of time it takes to conduct research activities. It is the policy of the Town to encourage the proper use of e-mail and the Internet to communicate inside and outside our organization. Furthermore, it is the Town’s policy to encourage using the Internet as a research tool. Employees should use good judgment and common sense when using e- mail, the Internet, and the Intranet and understand the Town’s policy outlined below. PURPOSE The purpose of this policy is to ensure that use of the Intranet, Internet and e-mail technologies among employees of the Town is consistent with Town policies, guidelines, operating procedures for use of specific Town resources, all applicable laws, and the individual employee’s job responsibilities. SCOPE This policy applies:  To all Intranet/Internet and e-mail services provided, owned, or funded in part or in whole by the Town;  To all users and holders of Town Intranet/Internet and e-mail systems or accounts, regardless of intended use;  To all Town Intranet/Internet and e-mail Official Records and/or Public Records in the possession of or generated by Town employees and other users of e-mail services provided by the Town; and  Equally to transmission and receipt of data including e-mail headers, summaries, and addresses associated with e-mail records and attached files or text. This policy does not apply to:  Printed copies of e-mail, but other laws and policy may apply to such documents. Under Arizona public records laws and other state laws, information appearing in this format may need to be retained as Official Records or treated as State Publications under A.R.S. § 35-103. 125 INTRANET/INTERNET AND E-MAIL ACCESS Intranet/Internet Access  Unauthorized access into the Intranet/Internet using Town equipment or Town Intranet/Internet accounts, or another employee’s Intranet/Internet account, or through other means, is in violation of policy. Obtaining e-mail access  Unless otherwise directed by the employee’s immediate supervisor or designated representative, employees are automatically given an e-mail account upon receipt of a LAN account. Removing Internet or e-mail access  The department director must submit a request to the IT HELPDESK to remove or disable an employee’s Internet and/or e-mail account.  By request, the department director can be given access to the files in the disabled account for a period of 30 days after notification to disable.  LAN and e-mail accounts of employees who have separated from the Town will be deleted 30 days after separation of employment to disable the account unless otherwise directed by a department director. Email will be forwarded to a designated address for a period of up to one year. Access and usage limits  The Town’s Internet access method has a finite capacity and is subject to periods of heavy use. Therefore, employees may be requested to limit access when system capacity is being exceeded.  Employees must abstain from personal use of Internet or e-mail services for any reason during the time when employees should otherwise be engaged in Town business and performance of their job duties. Investigative access  The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator. Electronic mail messages are public information.  Request for e-mail messages, calendars, or records may be treated like any other public record in the possession of the Town.  E-mail contents may be subject to subpoena in legal matters and may be subject to public records request.  Management reserves the right to retrieve and/or review e-mail messages to monitor or prevent misuse of the system. Procedures to request access to an employee’s e-mail files: 1. Action by department director: a) Submit a request to Human Resources for investigative access on the employee’s account. 2. Action by Human Resources: a) Consult with the Town Manger about the investigative access request. 126 b) Coordinate with the Information Technology Administrator. ACCEPTABLE USE OF THE INTRANET/INTERNET AND E-MAIL The definition of acceptable use of the Internet is any use that is related to Town business or the performance of work related duties. Research and general information access on behalf of the Town  Authorized employees may use Internet and e-mail technologies to conduct official Town business, gain technical or analytical advice as part of their jobs, communicate or exchange files and/or data with employees, citizens, clients, vendors and contractors as part of their jobs.  Databases can be accessed for information as needed as long as they do not require some form of subscription to participate. Access to subscription-based Internet services must be initiated using existing Town policies for purchased services. Participation in News/Discussion Groups  Users may participate in news/discussion groups based around a topic in which the Town has an interest.  Users may participate in news/discussion groups, listservs or web sites created by professional organizations of which the Town or the user in their professional capacity is a member.  Disclaimer: Postings by employees from a Town e-mail address to newsgroups should contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of Town, unless posting is in the course of business duties. Limited Personal Use  The Town’s Intranet/Internet and e-mail resources are intended for business use in performing the duties of an employee’s job. Limited personal use may be permitted, according to the following guiding principles:  It is incidental, occasional and of short or moderate duration.  It does not interfere with any employee’s job activities.  It does not result in incremental expense to the Town. Examples of “incremental expense” include, but are not limited to: a) If the Town were paying for a limited bandwidth connection to the Internet, and an employee’s personal use incurred additional charges; and b) Long-distance telephone, cellular phone or fax charges.  The employee has their supervisor’s prior approval for said personal use, which approval shall only be given when consistent with the requirements of this policy. 127  It does not solicit for or promote commercial ventures, religious or political causes, outside organizations or other non-job related solicitations.  It does not violate the other “unacceptable uses” or other specific limitations outlined in this policy.  It will not create a real or perceived conflict of interest. UNACCEPTABLE USES OF THE INTRANET/INTERNET AND E-MAIL Activities of law enforcement or Town Attorney’s office related to criminal investigations, or personal investigations by any department in general, would not constitute a prohibited or inappropriate use. The following are unacceptable uses of the Intranet/Internet and e-mail technologies. All issues raised in the Town of Fountain Hills Code of Ethics are applicable. The unacceptable uses shall include, but are not limited to: Appropriate Email  Email should be business-like  Be truthful and accurate  Avoid sensational and exaggerated language  Focus on the facts  Comply with the “New York Times Rule” – the writer would not be concerned or embarrassed if the email were published on the front page of a newspaper Inappropriate e-mail and Intranet/Internet content  Communication of material that is offensive or derogatory, slanderous and/or defaming towards any individual, corporation, agency or organization and disparagement of any trade or product.  Communication that is derogatory or discriminatory in any way toward persons for reasons of their race, religion, gender, age, disability, lifestyle, political affiliations, social status or any other personal characteristic.  Communication describing or picturing specified anatomical areas of the human body and communication describing or picturing sexual activities.  Sexually oriented content or materials. Non-IT purchase of software or computer equipment for Town business  Users must not download any software packages and/or upgrades from the Internet, and must comply with the Town of Fountain Hills software policy.  The Information Technology Division purchases all software and/or computer equipment (e.g. microcomputers, printers, modems, hubs, speakers, subwoofers, keyboards, mouse, etc.). Departments 128 should always submit a request via e-mail to purchase software and/or computer equipment to the IT Helpdesk. Non-Town business solicitations and subscriptions  Employees shall refrain from any type of postings or subscriptions, whether on a Web site, to a news group or via e-mail, that constitutes a solicitation of any type (i.e. religious, political, personal gain, or in support of illegal activities).  Employees shall refrain from using the Town’s e-mail or Internet resources for personal for-profit business activities or schemes to generate income or result in personal financial gain. Advertising  Employees shall refrain from any type of postings, whether on a web site, to a news group or via e-mail, that are for the purpose of advertising. Distributing chain and spam e-mail  Distribution of chain mails, “Ponzi” or other “pyramid” schemes of any type or other communication that is any way in violation of public law or Town policy is prohibited.  Users should not in any way participate in the further dissemination or re-distribution of e-mail “spam” e- mails, communications with long mailing lists of other recipients, or other inappropriate e-mail communications. Upon receipt of any of these items, a user should immediately delete it from their e-mail in box and trash, and completely refrain from sending it on to other persons in or outside the Town. Performing copyright infringements and other illegal actions  Any use of the Internet that violates copyright laws is prohibited. Infringing on third party copyrights or other intellectual property rights, license agreements or other contracts; for example, illegally installing or making available copyrighted software.  E-mail shall not be used to send (upload) or receive (download) copyrighted materials, and any other unauthorized materials, without prior written authorization of the originator.  Users will refrain from the posting of any materials that violate federal or state laws.  Use of the Intranet/Internet or e-mail in support of illegal activities is prohibited.  Unauthorized attempts to break into any computer whether in the Town or another organization. Causing disruption of service and performance  Use of the Intranet/Internet or e-mail must not disrupt the operation of the Town network or the networks of other users.  Hacking or modifications to the Intranet/Internet and e-mail software in a manner that restricts the ability of the Town to monitor its resources is prohibited. 129  One or more files totaling 30mb or more in size should not be attached to internal e-mail messages. Users instead should utilize the network share drives to distribute the files to other users.  Using the Intranet/Internet and e-mail for political purposes  The Town’s Intranet/Internet and e-mail resources are not to be used for political purposes. For Misrepresentation  The use of aliases while using the Intranet/Internet is prohibited. Anonymous messages are not to be sent. No employee shall attempt to obscure the origin of any message.  The misrepresentation of an employee’s job title, job description, or position in the Town is prohibited.  The release of untrue or distorted information regarding Town business is prohibited. Execute real-time utilization of Intranet/Internet resources for non-Town-business-related services  The accessing, viewing, downloading, or any other method for retrieving non-Town business information or services that utilizes the Internet resource in real-time is prohibited. This includes, but is not limited to, streaming audio or video (such as Pandora, XMRadio, Hulu, or NetFlix), streaming wallpaper or screen savers. INTRANET/INTERNET AND E-MAIL PRIVILEGE RESPONSIBILITY Use and compliance  Access to the Intranet/Internet and e-mail is a privilege. Employees are expected to use the Intranet/Internet and e-mail in a professional manner that reflects positively upon themselves and the Town.  Employees and their immediate supervisors are jointly responsible to ensure compliance with this policy.  Employees are responsible for text, graphic or audio content they place, send or receive over the Intranet/Internet and e-mail. It is recognized that some unsolicited electronic mail may be received or random access to an undesirable Internet site may occur. In those instances, the individual will not be held responsible for that content or undesired site access. Account  Employees shall not “loan” their access to the Intranet/Internet to other employees who have not been authorized use of the Internet and e-mail technologies. Employees will be held responsible for all actions taken using their access permissions.  Employees shall not intercept or disclose messages, or assist in the interception or disclosure of messages unless otherwise authorized. Information Technology, under the authorization of Town Attorney may intercept or disclose messages when misuse of the Town system is suspected. 130 USER’S RESPONSIBILITIES REGARDING RECEIPT OF OFFENSIVE MATERIAL Generally, the same policies of appropriate behavior apply in network usage, as apply in the workplace. If you believe that you are the victim of harassment, do not delete the message. Immediately notify your immediate supervisor or department director and Information Technology. Confidential Disclosure Public Records and Privacy  E-mail from an internal system and/or the Internet, is NOT private nor can the security of e-mail be guaranteed. Caution shall be used when conveying confidential or sensitive information, as part of normal business transactions, when confidentiality cannot be maintained. This includes documents such as performance reviews, disciplinary and/or corrective actions, attorney-client-privileged information, personnel information, and health or medical information.  All e-mail messages (whether created or received) are the property of the Town and may be considered to be public records pursuant to the Arizona Public Records Law. If there is concern about potential public disclosure or internal disclosure, e-mail should not be used.  The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator.  When communicating with legal counsel or seeking legal advice, consideration should always be given to the fact that e-mail may contain information that may not be entirely confidential. It is advisable to check with the Town Attorney’s Office as to whether such request should be made by e-mail or through written communication.  All requests for public records disclosure of data shall be routed to the Town Clerk. E-mail messages may be recoverable  Deleting e-mail messages from a computer does not guarantee it has been erased from the system. Further, email constituting a public record must be maintained.  Employees should use good judgment when creating e-mail and always assume that it is discoverable. Monitoring and auditing  The Town owns the network providing access to Internet and e-mail technologies. The electronic records created by use of the system may be considered public records under Arizona Revised Statutes and the law governing retention of public records. The Town reserves the right to monitor all electronic records, at any time, to insure compliance with state law and this policy. Retention of E-Mail  All e-mail messages that are not subject to a specific retention schedule are stored by Information Technology for 1095 days and may be required to be stored longer in the event of litigation. 131  Any messages that are permanent records are required to be copied or moved to the appropriate file location.  Information Technology is not responsible for backup or restoration of any e-mail items saved outside of the e-mail system by individual users.  Records retention schedules can be found on the Arizona Secretary of State’s Arizona State Library, Archives & Public Records website – www.azlibrary.gov. Virus Exposure  Use of the Internet and e-mail risks exposure to viruses that can cause serious damage to Town computer resources.  Material downloaded from the Internet must be virus checked before use. Inbound and outbound attachments to e-mail will be scanned for viruses. Plug-Ins and Helper Programs Plug-ins and Helper programs should be used prudently and only if its purpose is to enhance the browser to provide services that are within the “acceptable uses” and it does not violate the “unacceptable uses” or other specific limitations outlined in this policy. Enforcement  The Town, through the Town Manager, its department directors and Information Technology Division, reserves the right to review an employee’s use of Town provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy.  If an employee is found violating this policy, the department director together with the Information Technology Administrator may remove the employee’s access to the Town’s computer network resources.  Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. 132 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: SOFTWARE/HARDWARE POLICY NO: 1106 EFFECTIVE: December 17, 2015 REVISED: April 20, 2018 PURPOSE It is the policy of the Town to respect all software copyrights and to adhere to the terms of all software licenses to which the Town is a party. The Town users may not duplicate any licensed software or related documentation for use either on Town premises or elsewhere unless the Town is expressly authorized in writing to do so by agreement with the licenser. Unauthorized duplication of software may subject users and/or the Town to both civil and criminal penalties under the United States Copyright Act. The purpose of this policy is to prevent copyright infringement and to protect the integrity of Town’s computer environment. SCOPE This policy applies to employees, contractors, consultants, temporary employees, volunteers and other workers at the Town. This policy applies to all software that is owned or leased by the Town. Contractors with the Town shall become aware of the requirements of this policy. POLICY Budgeting for Software/Hardware  Some software and hardware needs are limited to specific departments. Departments are responsible for requesting new software or hardware specific to the department’s needs through the Information Technology Division.  When requesting such software or hardware, departments must work with the IT Department to ensure technology costs, compatibility, licensing, support, and integration issues are addressed. Approval for Purchase of Software/Hardware To purchase software or hardware, users must obtain the approval of their supervisors and the Information Technology Division, then submit a request to the IT Helpdesk to acquire the software/hardware. Acquisition of Software/Hardware  All software or hardware acquired for the Town must be purchased through the Information Technology Division.  Software or hardware may not be purchased through user corporate credit cards or petty cash.  Software and hardware acquisition channels are restricted to ensure that the Town has a complete record of all software that has been purchased for Town computers and can register, support, and upgrade such software accordingly. 133  Freeware software or mobile apps downloaded from the Internet must be authorized by the Information Technology Division. License Agreements Software may only be used in compliance with applicable license (including “shrink-wrap” agreements) and purchasing agreements. Ownership of Software All software acquired for or on behalf of the Town or developed by Town employees or contract personnel on behalf of the Town is and shall be deemed Town Property. All such software must be used in compliance with applicable purchase and license agreements. Storage of Software Media/Licenses  All software media and original license agreements are kept and stored by the Information Technology Division.  Software media that must be accessed for support of an application (e.g. clip art, GIS data, etc.) will be kept with the workstation licensed for its use. Use and distribution of these types of media must be in compliance with the software licensing agreement.  IT will monitor the license term length and will notify users of any necessary actions Duplication of software  Users are not authorized to produce backup or duplicate copies of any software for any purpose.  Unless otherwise provided in the applicable license or contract document, any duplication of copyrighted software may be a violation of federal and state law and is strictly prohibited.  The Information Technology Division creates all authorized duplicate media and retains the master copy. The software inventory registry will be updated with this information. Registration  The IT Helpdesk is responsible for completing the registration documentation and returning it to the software publisher  All software that is Town Property must first be delivered to the IT Helpdesk to complete registration and inventory requirements.  All software must be registered in the name of the Town. Because of personnel turnover, software will never be registered in the name of the individual user. Information Technology maintains a register of all software and will keep a library of software licenses. The register will contain:  the title and publisher of the software;  the date and source of software acquisition; 134  the location of each installation as well as the serial number of the hardware on which each copy of the software is installed;  the name of the authorized user(s);  the existence and location of the media and any back-up copies;  the software product’s serial number and/or key codes. Installation of Software  No software, including freeware, may be installed on any Town-owned or leased computer without prior approval by the Information Technology Division and without being registered to the Town.  After the registration requirements above have been met, the software will be installed with the authorization of, assistance of, or performance by, Information Technology support personnel. Manuals, tutorials and other user materials will be provided to the user.  Once installed on the hard drive, the original media (USB drives, CD-ROM, DVD, etc) will be kept in a safe storage area maintained by the IT Helpdesk.  Users may not give software to anyone, including contractors, customers and others.  Town users may use software on local area networks or on multiple machines only in accordance with applicable license agreements.  Town computers are Town-owned assets and must be kept both software legal and virus free. Only software purchased through the procedures outlined above may be used on Town machines.  Installation of personal non-business related software on Town computers is not authorized. The Town will remove any unauthorized software that puts the Town at risk or liability. Removable Media Drives & USB Drives To protect the Town’s network and computers, restrictions have been placed on external drives including USB hard drives and flash drives, and the following guidelines should be followed to enhance security. In addition, files written to or copied from such devices may be logged and audited to ensure compliance with policy.  Software may not be executed from external and USB hard drives and flash drives.  Confidential files or files with sensitive data should be encrypted when saved on removable drives to protect the contents in the event the device is lost or stolen.  Any removable or USB drive should be scanned for malicious code and viruses prior to use. Support Software compatible with installed operating system, client, application and system configuration standards for workstations and/or file servers will be supported by the Information Technology Helpdesk. 135 Uninstalling Software  Unauthorized removal of software from Town computers is prohibited.  Software removals should not be performed without the authorization of, assistance of, or performance by, Information Technology support personnel.  IT reserves the right to uninstall or remove any software found to be causing a negative impact on the workstation, the Town’s enterprise network, or any Internet/Intranet/Extranet-related systems. User Responsibilities Each User is individually responsible for reading, understanding, and adhering to all licenses, notices, and agreements in connection with software that they cause to be acquired, copied, transmitted, or used or seeks to acquire, copy, transmit, or use. IT will provide all necessary copies of such licenses. If a computer must be reconfigured or replaced and it contains software that has been licensed specifically for that computer, the user should notify Information Technology of such installation to ensure the software is reinstalled, tested and documentation of the installation location is updated. Shareware Software It is the policy of the Town to pay shareware authors the fee they specify for use of their products. Registration of shareware products will be handled the same way as outlined above. Software Games  The installation of computer games on Town computers is prohibited unless there is a Town business or service justification.  Games packaged with the operating system installation (e.g. FreeCell, Minesweeper, Pinball, and Solitaire) are included in the workstation image and are exceptions. However, IT reserves the right to remove these games.  Software Games that impact network resources are strictly forbidden. Screensavers and Wallpaper  Screensaver and wallpaper software are permissible only after the Software Policy procedures to purchase (commercial and/or shareware), license, register and install have been applied.  Decompiling software No User shall decompile, disassemble, or reverse-engineer any software. Transfer of Software No User may sell, rent, sublicense, lend, transmit, distribute, give, or otherwise convey or make available Town-owned software or an interest therein to any unauthorized individual or entity. 136 Audits The Information Technology Division will conduct audits of all PCs, including portables, to ensure that the Town is in compliance with all software licenses. Audits will be conducted using an auditing software product or through manual inspection. Enforcement  A Town user who makes, acquires, or uses unauthorized copies of software will be subject to disciplinary action up to and including termination.  The Town does not condone the illegal duplication of software and will not tolerate it. Any doubts concerning whether any employee may copy or use a given software program should be addressed with IT Helpdesk.  Any User who suspects an incident of noncompliance with the Software Policy by another User shall promptly notify the Information Technology Division.  The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy.  If an employee is found violating the sections of this policy, the Department Director together with the Information Technology Administrator may remove the employee’s access to the Town’s computer network resources.  Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. 137 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: AUDIT OF INFORMATION SYSTEMS POLICY NO: 1107 EFFECTIVE: December 17, 2015 REVISED: December 17, 2015 PURPOSE To provide the authority for members of Town’ Information Technology team to conduct a security audit on any computer or communication system (hardware or software) at the Town. Audits may be conducted to:  Ensure integrity, confidentiality and availability of information and resources  Investigate possible security incidents  Monitor user or system activity  Enforce information system policies SCOPE This audit policy covers any equipment owned, leased or otherwise possessed by the Town, including, but not limited to all of the following devices: 1. hand-held devices (iPhone, iPad, etc.) 2. computers (desktop and laptops) Communication devices, including but not limited to: 1. telephone and voicemail system 2. network hardware (routers, printers, firewalls, etc.) 3. other wireless devices, including pagers Employees should be aware that loading Town programs or property on their own personal devices may result in public record information being on those devices and creating a Town interest in those devices to the extent such information is present. The use of personally-owned information and communication devices for Town business is discouraged unless a department head and the Information Technology Administrator determines there is a necessary business use for such equipment. 138 POLICY When requested, and for the purpose of performing an audit, any access needed will be provided to members of Town’ Information Technology team. This access may include:  User level and/or system level access to any computing or communications device  Access to information (electronic, hardcopy, etc.) that may be produced, transmitted or stored on Town equipment or premises  Access to work areas (labs, offices, cubicles, storage areas, etc.)  Access to interactively monitor and log traffic on Town networks. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. If an employee is found to be violating the sections of this policy, the department director together with the Information Technology Administrator, may remove the employee’s access to the Town’s computer network resources. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. 139 Town of Fountain Hills Personnel Policies SECTION: OTHER WORK PLACE POLICIES POLICY: TOWN FURNITURE AND WALLS POLICY NO: 1108 EFFECTIVE: October 7, 2004 REVISED: August 1, 2013 All employees are asked to contribute to a professional looking work environment. Our customers, residents and businesses deserve impressive public facilities. Employees are asked to:  Check with department directors before hanging items on walls. Appropriate items could include artwork, diplomas, awards, plaques, Town related items, etc.  Frame all pictures or items for display  Do not tape, magnetize or tack any items to walls, cubicles or their supports, overheads or furniture. An exception could be if clipped with a magnet, out of view, and is not unsightly or destructive to furniture. This would include any quick reference material such as phone number lists, referral lists, etc. which should be displayed in the most professional manner available.  Refrain from displaying items that may cause others to be uncomfortable or may find to be offensive.  Employees may not post material on bulletin boards without the approval of Human Resources or Information Technology Divisions. 140 Town of Fountain Hills Personnel Policies SECTION: SUPERVISION AND DISCIPLINE POLICY: SUPERVISION AND DISCIPLINE POLICY NO: 1201 EFFECTIVE: July 1, 2017 REVISED: April 20, 2018 PURPOSE: To establish the employee discipline process. PROCEDURES: Each employee shall generally be supervised by the individual to whom they are responsible in the organization. Each employee shall customarily be responsible to one immediate supervisor; however, when an employee divides responsibilities among two or more programs, the responsibilities for supervision and evaluation shall be furnished in writing to the employee. The Town Manager has authority to take disciplinary action against any employee. The Town Manager may delegate this authority to any management employee for subordinate employees. Disciplinary actions shall be considered as constructive means of dealing with an employee’s unacceptable behavior or performance and should be appropriate to the seriousness of infraction or performance deficiency. Normally, with the exception of serious misconduct, the supervisor will counsel or give written warning to an employee and advise them about any aspects of work performance or conduct that need improvement and provide an opportunity for improvement. However, there is no right to progressive discipline. The seriousness of an offense may lead to any level of discipline up to dismissal. A combination of disciplinary actions may also be used. Grounds for Disciplinary Action Grounds for disciplinary action(s) include but are not limited to the following: 1. The employee fails to competently or efficiently perform assigned duties and responsibilities. 2. The employee is unsafe to oneself, other employees, the public, or Town property in the performance of duties or responsibilities; or the employee has violated safety rules or practices. 3. The employee has been abusive in attitude, language, behavior, bullying, or conduct toward a fellow employee, a supervisor, or the public; or their action has resulted in physical harm, injury, or fear of harm to such persons. 4. The employee has been insubordinate, willfully disobedient, or has failed to follow reasonable direction from a supervisor. 5. The employee has been convicted of a criminal offense while employed by the Town. 6. The employee has stolen public or private property, misappropriated Town funds, or has been an accomplice in any of these practices while employed by the Town. 7. The employee has made unauthorized use and/or removal of Town property. 141 8. The employee, through negligence or willful misconduct, has caused damage to public property or waste of public supplies. 9. The employee has engaged in conduct, on or off duty that is of such a nature that it causes discredit to the Town. 10. The employee has purchased, possessed, used, manufactured, distributed, dispensed, or sold alcoholic beverages, unauthorized drugs or controlled substances, or any other intoxicants on Town property, while operating Town equipment, or while in the performance of Town duties unless authorized to do so. The employee has reported to work under the influence of alcohol or drugs or otherwise violated the Town’s procedures regarding drug free workplace. 11. The employee has intentionally falsified any document, report or statement relating to their employment with the Town. 12. The employee has secured employment with the Town through misrepresentation or fraud. 13. The employee has refused to subscribe to any oath or affirmation required in connection with Town employment. 14. The employee has violated the rule or regulation governing outside employment (See Policy 211, Secondary Employment). 15. The employee has been inexcusably absent, has failed to receive prior approval for any paid or unpaid absence other than those absences taken pursuant to the Town’s Sick Leave Policies, has abandoned their position, feigns sickness or injury, or otherwise deceives a supervisor as to their condition or ability to perform the duties of the position, or the employee has falsified a certificate justifying medical leave. 16. The employee has had excessive absenteeism or tardiness (absenteeism or tardiness shall not include work time missed as a result of leave taken pursuant to the Town’s Sick Leave Policies, Policy No. 902 and No. 903. 17. The employee has refused to perform reasonable modified duty that is assigned because of an illness, injury or disability. 18. The employee has worked at outside employment while on medical leave, industrial accident leave, or Family and Medical Leave. 19. The employee has concealed information or failed to properly report an accident or incident under the purview of any state statute or Town resolution or regulation. 20. Failure of an employee convicted under a criminal drug statute for a violation occurring in the workplace to notify their Department Head within five (5) days after such a conviction. 21. The employee holds a Town of Fountain Hills elective office prior to resigning from a Town position or holding any other office incompatible with a position with the Town. 22. The employee has used or attempted to use political influence in securing a promotion, leave of absence, transfer, or an increase in pay. 142 23. The employee has accepted a fee, gift, or other item in the course of performing the duties and responsibilities of their position in violation of the conflict of interest rules. 24. The employee has committed an act of discrimination or harassment based on race, color, religion, sex, sexual orientation, national origin, age, disability or any other category identified in the nondiscrimination policy or otherwise protected by law. 25. The employee has failed to follow appropriate chain-of-command. 26. The employee has committed any other conduct of equal gravity to the reasons enumerated in this section. 27. The employee has committed a material violation of the rules of this Manual. TYPES OF DISCIPLINARY ACTIONS: Counseling Counseling is a private discussion between a supervisor and an employee concerning expectations of future conduct. The supervisor should keep notes regarding the discussion and the date, and the employee should be told that a record of the counseling session shall become part of the employee’s personnel record. Counseling is not discipline and is not subject to the appeal/grievance procedure. Warning A written warning may be given to an employee describing the performance or behavior which needs to be improved. The employee shall sign the statement and receive a copy. This warning shall become part of the employee’s personnel record. Reprimand When counseling or warning have not resulted in the correction of a situation, or when more severe initial action is warranted, the supervisor or the Department Director may issue a written reprimand stating the date of any prior discussion or warning, a description of the unacceptable behavior or performance, and possible consequences if behavior is not improved or corrected. The employee shall sign the statement and receive a copy. If the employee refuses to sign the statement, the supervisor or Department Director shall sign the statement as such, and indicate the employee’s refusal to sign. The written reprimand shall become part of the employee’s personnel file. Special Review Period When performance or behavior warrant the action, a special review period may be established. The special review period may not exceed 90 calendar days. The supervisor or Department Director shall prepare a written performance evaluation and memorandum outlining the improvement required, the time established for the period, and possible consequences if performance does not improve. Ten days before the end of the period, the supervisor or Department Director shall submit a written performance evaluation and recommendation for the employee’s future status to the Human Resources Administrator, which shall become a part of the employee’s personnel record. 143 Demotion An employee whose ability to perform the required duties falls below standard or who merits disciplinary action may be demoted upon approval of the Town Manager. Written notice shall be given to the employee within three days before the effective date of the demotion. Suspension Without Pay The Town Manager may suspend an employee from any position at any time without pay for a disciplinary purpose. A supervisor or Department Director may recommend suspension of a subordinate employee to the Town Manager for his/her approval. No supervisor or Department Director may suspend a subordinate for any period of time without the approval of the Town Manager. A suspended employee receives written notification on a “Record of Counseling/Disciplinary Action” form, or by separate letter which will be attached to the “Record of Counseling/Disciplinary Action” form, listing the specific charge(s), period of suspension, and administrative review and appeal rights, if any. The employee is given a copy of the written notification and the original is immediately forwarded to the Human Resources Office for inclusion in the personnel record. Suspension of Exempt Employees An exempt employee (those exempt from the provisions of the Fair Labor Standards Act) may not be suspended without pay for disciplinary sanctions for a period of less than one or more full days except for infractions of safety rules “of major significance.” Suspensions for exempt employees must occur within the same workweek. Safety rules of major significance are those (rules) and supervisory directives relating to the prevention of serious hazard, damage or danger to the Town, its facilities, employees or the public. Administrative Leave With Pay: The Town Manager may place an employee on Administrative Leave With Pay at any time as a non-disciplinary measure to permit an investigation into matters concerning a possible disciplinary action. No supervisor or Department Director may place a subordinate on administrative leave with pay for any period of time without the approval of the Town Manager. During this period, the employee is considered to be on full duty and available to participate and aid in the investigation. In making the determination to place an employee on administrative leave with pay, the following factors are considered: A. Whether or not the employee’s presence on the job or at the work site would hinder the investigation, OR B. If the employee’s presence would be detrimental to the public interest or the continued efficient operation of the Town. The Town Manager must approve administrative leave. An employee placed on Administrative Leave with Pay receives written notification on a “Record of Counseling/Disciplinary Action” form, or by separate letter which will be attached to the “Record of Counseling/Disciplinary Action” form, listing the nature of the investigation, period of leave, and administrative review and appeal rights, if any. The employee is provided a copy of the written notification and the original is immediately forwarded to the Human Resources Office for inclusion in the personnel record. Dismissal Employees may be dismissed with cause by the Town Manager by written notice which shall state the cause for dismissal, the effective date, and the employee's appeal rights, if any. Only employees who have successfully completed the introductory period have appeal rights. 144 Due Process: Prior to an involuntary termination, or a suspension without pay an employee who has successfully completed their Introductory period will be provided with a written notice from their supervisor and/or Department Director of the intent to terminate with the supporting reasons. The employee shall be given an opportunity to respond to the charge, orally or in writing within ten (10) calendar days to their supervisor and/or Department Director contesting the proposed action. The department’s explanation in the notice shall be sufficient to apprise the employee of the basis for the proposed action. This shall not limit the employer at subsequent proceedings from presenting a more detailed and complete information as to the reason for the adverse action. If, after considering the employee’s response, the Town proceeds with termination, the employee may appeal in writing within ten (10) calendar days of the decision. Human Resources will then set an administrative hearing to adjudicate the appeal. The employee may have legal counsel present at the hearing. Employees who are not directly supervised by the Town Manager shall generally have the Town Manager as their hearing officer. In cases involving an employee working with the Town Manager as their direct supervisor, the hearing officer shall be the Presiding Judge of the Fountain Hills Municipal Court. The Town Manager or the Presiding Judge may appoint the town of Fountain Hills Human Resources head, another manager, or Judge from another Arizona city or town to serve as the hearing officer in their place if they so choose. The hearing officer shall, no later than five (5) calendar days after the conclusion of the hearing, deliver a written opinion which shall contain three (3) basic elements: 1. A statement of relevant facts 2. A statement of applicable rules 3. Conclusions/recommendations The written opinion shall be delivered to the affected employee, their supervisor and/or department director, and the applicable appointment authority (Town manager or Presiding Judge). A copy of the opinion shall also be placed in the employee’s personnel file. Within five (5) calendar days after the receipt of the written opinion of the hearing officer, the appointment authority (either the Presiding Judge or the Town manager) shall either affirm or reject the determination of the hearing officer. The decision of the appointing authority shall be final and binding upon both the employee and the Town, and therefore, not appealable to any office or body of the Town or to any other administrative or judicial forum. 145 TOWN OF FOUNTAIN HILLS RECORD OF COUNSELING/DISCIPLINARY ACTION FORM Employee Name: _______________________________________________________________ PART I: ALLEGED OFFENSE State unsatisfactory incident, performance, or violation committed and specific rule violated. Personnel Rules and Regulations, Section __________. If used for counseling interview or oral reprimand, state what was discussed and agreed upon, if appropriate; no employee response required. PART II: EMPLOYEE RESPONSE ___________________________________________ ________________________________ Employee’s Signature Date 146 PART III: TYPE OF ACTION RECOMMENDED [ ] No Action [ ] Disciplinary Suspension ______________Hours [ ] Oral Reprimand [ ] Disciplinary Pay Reduction [ ] Written Reprimand [ ] Involuntary Demotion [ ] Administrative Leave [ ] Dismissal – Written Notice STATEMENT OF FINAL ACTION: State what was determined from an investigation and indicate the recommended resolution. Please note that it is necessary to complete the “Counseling/Disciplinary Action Form.” ___________________________________________________ ______________________________ Employee’s Signature Date I hereby certify that I understand my due process rights and that I have read this disciplinary action form and acknowledge its receipt. I understand that my signature does not necessarily indicate agreement. _______________________________________________ ____________________________ Employee’s Signature Date 147 TOWN OF FOUNTAIN HILLS COUNSELING/DISCIPLINARY ACTION FORM Employee Name (Please Print): ___________________________________________ Title: ___________________________Department/Division: _____________________ Supervisor’s Signature: ______________________________Date:________________ Department Head’s Signature:________________________ Date:________________ Town Manager’s Signature (if required):______________________ Date:___________ Personnel Rules and Regulations Violated (Section/Item____): Oral Reprimand - The non-written notification to an employee of job performance deficiency or misconduct and notification of the Town’s level of expectations. Supervisor or Department Director should document the date and nature of the reprimand on the “Record of Counseling/Disciplinary Action” form. Date of Oral Reprimand: __________________________________ Written Reprimand - The official notification to an employee that there is cause for dissatisfaction with the employee’s job performance or that there is misconduct. Date of Written Reprimand: _______________________________ Administrative Leave - The non-disciplinary suspension of an employee with pay to permit an investigation into matters concerning possible disciplinary action. Must be approved by Town Manager. Duration: From: To: Total Hours:___________________ Disciplinary Suspension of 40 hours or less - The temporary separation of an employee from Town service without compensation. Must be approved by the Town Manager. Exempt employees may not be suspended without pay for disciplinary sanctions for a period of time less than one or more full days per the Fair Labor Standards Act. Duration: From: To: Total Hours:___________________ Disciplinary Suspension of Greater Than 40 Hours - The temporary separation of an employee from Town service without compensation must be approved by the Town Manager. 148 Duration: From: To: Total Hours:___________________ Disciplinary Pay Reduction - The reduction of an employee’s salary will be at the discretion of the Town. The reduction may be permanent or temporary and must be approved by the Town Manager. This disciplinary action does not apply to exempt employees per the Fair Labor Standards Act. Temporary Pay Reduction: From: To: Old Hourly Rate: $ New Hourly Rate: $ Permanent Pay Reduction: Effective Date: Old Hourly Rate: $ New Hourly Rate: $ Involuntary Demotion - The movement of an employee from one class to another class at a lower rate of pay. The demotion may be permanent or temporary and must be approved by the Town Manager. Old Classification: New Classification: Old Range: New Range: Old Hourly Rate of Pay:$ New Hourly Rate of Pay: $ Effective Date: Dismissal - The discharge for cause of an employee from Town service. Must be approved by the Town Manager. Effective Date: ________________________________ Employees may appeal disciplinary action through the grievance procedure. An employee serving an initial introductory period, may not appeal. I hereby certify that I understand my grievance rights and that I have read this disciplinary action form and acknowledge its receipt. I understand that my signature does not necessarily indicate agreement. _________________________________________ __________________________________ Employee’s Signature Date COPY:  Employee  Department Head  Human Resources (Copies of all disciplinary actions must be forwarded to the Human Resources Office) 149 Town of Fountain Hills Personnel Policies SECTION: SEPARATION FROM SERVICE POLICY: SEPARATION FROM EMPLOYMENT POLICY NO: 1301 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a process the Town will follow for all terminations of employment, whether voluntary or involuntary. STATEMENT OF POLICY: All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be required to make proper disposition and accounting for all funds and property (s)he was responsible for and to repay any amounts owed to the Town before final payment will be made to the employee. All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be afforded an opportunity to participate in an exit interview. However, participation is entirely voluntary on the part of the terminating employee. SCOPE: All employees. PROCEDURE: 1. Voluntary Resignation a. If termination is the result of a voluntary resignation, the employee is to document their intent to resign their position by submitting a letter of resignation to their supervisor bearing the current date, the last day of work, and the employee’s signature. A “Voluntary Resignation and Retirement Notice” (See Exhibit 1301-A) may be used for notification purposes. b. Failure to give at least ten (10) working days resignation notice, fifteen (15) working days for Department Heads, could result in separation with prejudice and denial of rehire. Waiver of required notice may be granted by the Town Manager (in writing). c. The effective date of termination is the last day the employee actually works. Exception: The effective date of termination due to expiration of a leave of absence is the last day of the approved leave. d. Group benefits such as medical, dental and life insurance terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed (e.g., pro-rating insurance). Contact Human Resources for further detail. e. The Town, acting through the Town Manager, reserves the discretionary right, upon receiving the ten day resignation notice, to immediately accept such resignation and provide the employee with two (2) weeks of regular pay pay in lieu of notice. f. All documentation is to be promptly forwarded to Human Resources. 150 g. Arizona law requires final payment to voluntarily terminated employees to take place no later than their next regularly scheduled pay date. 2. Involuntary Termination a. An employee, regardless of employment status, may be terminated by the Town Manager at any time during their initial Introductory Period. b. Introductory, seasonal, and temporary employees may be terminated at-will. c. The Due Process in Policy 1201 will apply for other terminations. d. Group benefits such as medical, dental, and life insurance, terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed (e.g., pro-rating insurance). Contact Human Resources for further detail. e. Arizona law requires final payment to involuntarily terminated employees to take place on the earlier of the next regular payday or within seven (7) working days. In regard to all departures with employment from the Town, amounts payable to the employee shall be paid only after offset for any advances or monies owed to the Town by the employee. This includes, without limitation, the cost to replace any Town equipment that the employee fails to return. 3. Notice An Employee is encouraged to communicate to the employer whenever the employee believes working conditions may become intolerable to the employee and may cause the employee to resign. Under section 23- 1502, Arizona Revised Statutes, an employee may be required to notify an appropriate representative of the employer in writing that a working condition exists that the employee believes is intolerable, that will compel the employee to resign or that constitutes a constructive discharge, if the employee wants to preserve the right to bring a claim against the employer alleging that the working condition forced the employee to resign. Under the law, an employee may be required to wait for fifteen calendar days after providing written notice before the employee may resign if the employee desires to preserve the right to bring a constructive discharge claim against the employer. An employee may be entitled to paid or unpaid leave of absence of up to fifteen calendar days while waiting for the employer to respond to the employee's written communication about the employee's working condition. 151 EXHIBIT 1301-A VOLUNTARY RESIGNATION and RETIREMENT NOTICE Failure to give at least ten (10) working days resignation notice, fifteen (15) working days for Department Heads, could result in separation with prejudice and denial of rehire. VOLUNTARY RESIGNATION I, __________________________, voluntarily resign my position of ______________________ Print Name Job Title with the Town of Fountain Hills. My last day of work will be: ___________________________ Last day worked is termination date Reason for resignation: (Check one)  To accept another job  To attend school  To stay at home  Moving out of area  Dissatisfied with job  Other (explain) RETIREMENT RESIGNATION I, _____________________________________, submit notice of retirement from my position of Print Name _______________________________________with the Town of Fountain Hills. My last day of Job Title work/retirement will be: ________________________________________ Last day worked is termination date Arizona State Law requires final payment of voluntary resignations no later than the next regularly scheduled pay date. My mailing address with the Town of Fountain Hills is current:  Yes  No If no, please provide current or forwarding mailing address: __________________________________________________________________________________ Mailing Address City State Zip __________________________________________ _____________________________________ Employee’s Signature Date Resignation Accepted _____________________________ ________________________________ Supervisor’s Signature Date 152 Town of Fountain Hills Personnel Policies SECTION: SEPARATION FROM SERVICE POLICY: REFERENCES POLICY NO: 1302 EFFECTIVE: October 7, 2004 REVISED: All inquiries regarding employees who are currently employed or who have been previously employed by the Town of Fountain Hills are to be referred to Human Resources. Supervisors and/or coworkers should refrain from writing letters of reference. All requests for letters of reference are to be referred to Human Resources. When Human Resources receives inquiries regarding previously employed employees, they will refer to the signed Employee Authorization to Release Reference Information Form in the employee’s personnel file and release only the information authorized. When Human Resources receives inquiries regarding currently employed employees, they will only provide information limited to dates of employment and job title. The only exception to the above statement is that Human Resources may release salary information to credit institutions when the request for salary information is made in writing and the employee authorizes release of the information. 153 Town of Fountain Hills Personnel Policies SECTION: SEPARATION FROM SERVICE POLICY: REDUCTION IN WORKFORCE POLICY NO: 1303 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To establish a systematic process which the Town will follow in the event the Town Manager deems it necessary to reduce positions due to reorganization, lack of work, funds, or other budgetary limitations, and ensure business operations remain sound and employees are treated objectively. STATEMENT OF POLICY: A Reduction in Workforce (RIWF) is an extremely difficult business decision for an organization. It is the Town of Fountain Hills’ intent to treat all impacted employees with dignity and respect, and to assist employees through the RIWF process. The Town Manager, with input from Department Heads, shall determine the number and classifications of employees to be laid off. In addition, the Town Manager and the Human Resources Administrator shall determine the specific procedures to be followed and the benefits that may be offered to affected employees. Employees affected by a Reduction in Workforce shall have the opportunity to continue their medical, dental, and vision insurance coverage (if applicable) in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions. SCOPE: All employees. PROCEDURE: In selecting employees who will remain with the organization, only job-related criteria will be used. The criteria used will be determined based on the reason for the reduction in force and the determination of the department’s needs. Job related criteria may include, but are not limited to, the employee’s current performance (as noted by the most current performance review), competencies, skills, responsibilities, experience, leadership, education and training, personal commitment, and salary. Seniority will be used only in the case of a tie. Severance Full-time employees who are laid off may be provided a severance package as determined by the Town Manager. Grievance Rights Grieving a Reduction in Workforce action is specifically excluded from the grievance procedure. 154 Town of Fountain Hills Personnel Policies SECTION: PROBLEM SOLVING AND GRIEVANCE PROCEDURES POLICY: PROBLEM SOLVING POLICY NO: 1401 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: To effectively and professionally address work-related issues or concerns. STATEMENT OF POLICY: The Town will treat all employees fairly, with respect, and as members of the team. This includes you, your fellow workers, supervisors, management, elected officials, Board and Commission members, our customers, and the Fountain Hills community. In order for this to happen, the following procedure needs to be followed. DISCUSSION: This policy establishes the policies and procedures for the administration of the Town’s Problem Solving process. This process does not replace the Grievance procedures in Policy 1402 or any other complaint or reporting procedures established in policy. Rather, this process has been established to advise employees of the proper avenues to use in communicating work-related issues or concerns. Examples of issues or concerns include, but are not limited to, any issues that impact an employee’s work unit or impact an employee’s ability to do their job. Employees need to remember that they may not take work-related employment issues and concerns to the Mayor and Town Council. Taking employment issues and concerns to the Mayor and Town Council disrupts chain-of-command of employees under the jurisdiction of the Town Manager (Ord. 230-97); and any such issues or concerns will be referred back to staff. This process does not prohibit staff from discussing Town projects and/or business with Council that would normally be brought to their attention. Town of Fountain Hills employees who have work-related issues or concerns should address them within a timely manner. Matters raised within five working days will be considered timely. Employees are to use the following process to resolve such matters. For matters involving harassment, discrimination, or legal violations, Policy 212, (“Harassment”) is to be followed. PROCEDURE: 1. Employees are to go to their first-line supervisor in a timely manner with any work-related issue or concern unless it involves harassment or discrimination, in which case they should follow the procedures set forth in Policy 212, (“Harassment”). For legal violations involving their supervisor, employees should go to their supervisor’s superior, the Human Resources Administrator, or the Town Manager. Employees may have a regular employee of the Town as a silent witness at meetings in which work issues or concerns are discussed. 2. If the work-related issue or concern has not been resolved at the first-line supervisor level within five working days after the meeting in step 1 (above), employees should go to the next higher level of management. Both the employee and supervisor should document the reasons as to why the concern or issue was not resolved at the first-line level. 155 3. Only after employees have worked their way through their respective Department Head should they take their work-related issue or concern to the Human Resources Administrator or Town Manager. 4. Employees are required to exhaust all internal avenues before taking their work-related issue or concern outside this procedure. 5. The Mayor and Town Council, as well as those outside of the organization, are not in an employee’s chain-of-command and therefore are not in a position to address work-related issues or concerns. There will be times in every employee’s career when decisions are made that they do not agree with. That is natural; however, employees are expected to abide by decisions made under this grievance system whether agreed with or not. Failure to follow this process will have a negative effect on Town organization and will therefore be considered a violation of the Town's Personnel Rules. No employee will be subject to any form of retaliation or discipline for using this process. Any employee found guilty of retaliation will be disciplined. 156 Town of Fountain Hills Personnel Policies SECTION: PROBLEM SOLVING AND GRIEVANCE PROCEDURES POLICY: GRIEVANCES POLICY NO: 1402 EFFECTIVE: October 7, 2004 REVISED: April 20, 2018 PURPOSE: 1. To promote improved employer-employee relations by establishing grievance procedures on matters for which appeal or hearing is not provided by other regulations. 2. To afford employees a systematic means of obtaining further consideration of problems after every reasonable effort has failed to resolve them through discussion. 3. To provide that grievances shall be settled at the lowest possible level. 4. To provide that appeals shall be conducted informally. STATEMENT OF POLICY: The Town of Fountain Hills, in keeping with its policy of maintaining satisfactory working conditions, will provide a means to insure fair handling of employee complaints and grievances. Any employee whose state of mind is so affected by a grievance that they will not endeavor to, or cannot do the proper thing in the course of performing their regular duties, should immediately pursue the prescribed procedures for grievances. SCOPE: Covered Employees defined in Policy 1403 (“Covered/Uncovered Positions”) shall have the right to file a grievance under this rule regarding a decision affecting their employment over which their immediate supervisor has partial or complete jurisdiction, with the exception of suspensions, demotions, or dismissals, which shall be appealed directly to the Town Manager. A. This procedure may be used to review the following types of problems, which are intended as examples and not strict limitations: 1. Work Hours 2. Assigned Duties 3. Working Conditions 4. Application of Town policies, as they relate to the employee (e.g. discipline) B. This procedure shall not be used for problems concerning: 1. Due Process related to involuntary termination 2. Compensation 3. Classification 4. Matters covered by state or federal law 5. Performance evaluation 157 PROCEDURE: A. Informal Grievance Procedure 1. An employee who has a problem or complaint should first try to get it settled through discussion with their immediate supervisor without undue delay. 2. If, after this discussion, the employee does not believe the problem has been satisfactorily resolved, they will have the right to discuss it with their supervisor’s immediate department director. If the employee’s supervisor does not have a department director, the employee shall discuss the matter with Human Resources. In some circumstances, Human Resources will determine that the matter should be referred to the Town Manager, or his designee, at this stage. 3. Every effort should be made to find an acceptable solution by informal means at the lowest level of supervision. If an employee fails to follow this informal procedure, the grievance will be denied and they will not be permitted to proceed to the formal grievance procedure outlined below. B. Formal Grievance Procedure Levels of review through the chain of command are listed below: 1. If the employee has properly followed the informal grievance procedure and the matter is not resolved, the employee is eligible to elevate the grievance to this level. Initially, the employee must reduce the grievance to writing citing the article and section of the Personnel Policies alleged to have been violated, if applicable, the date of the violation that forms the basis for the grievance, the nature of the grievance and the relief requested. 2. The written grievance will be presented to the employee’s immediate supervisor, within twenty (20) calendar days of the occurrence, and no later than ten (10) calendar days after the informal grievance procedure has been fully exhausted. The supervisor will render his/her decision and comments in writing and return them to the employee within fifteen (15) calendar days after receiving the grievance. 3. If the employee does not agree with their supervisor’s decision, or if no answer has been received within fifteen (15) calendar days, and the employee wishes to continue in the process, the employee may present the grievance in writing to their supervisor’s immediate department director, or in the absence of a department director, to Human Resources. 4. Failure of the employee to take further action within five (5) calendar days after receipt of the written decision of their supervisor or within a total of twenty (20) calendar days if no decision is rendered, will constitute a withdrawal of the grievance. Further Level(s) of Review as Appropriate 1. The second level supervisor receiving the grievance will review it, render his/her decision, and comments in writing, and return them to the employee within fifteen (15) calendar days after receiving the grievance. 2. If the employee does not agree with the decision, or if no answer has been received within fifteen (15) calendar days, and the employee wishes to continue in the process, they may present the grievance in writing to the Town Manager – through the Human Resources Administrator. 158 3. Failure of the employee to take further action within five (5) calendar days after receipt of the decision, or within a total of twenty (20) calendar days of referral to their second level supervisor if no decision is rendered, will constitute a withdrawal of the grievance. Town Manager – Final Step 1. Upon receiving the grievance, the Town Manager or his/her designated representative should discuss the grievance with the employee and with other appropriate persons. 2. The Town Manager or designee may, but is not required, to designate an external fact-finding committee to advise him/her concerning the grievance. 3. The Town Manager or designee will render a final decision. The Town Manager’s or designee’s decision may not be appealed. 159 TOWN OF FOUNTAIN HILLS EMPLOYEE GRIEVANCE FORM Step 1: In accordance with Town of Fountain Hills Personnel Policy 1402, the employee is responsible for instituting the first step of the grievance procedure without undue delay after becoming aware of, or being reasonably expected to be aware of, a violation of the Town of Fountain Hills’ Personnel Rules and Regulations. The employee and the supervisor should make a good faith effort to informally resolve the grievance at Step 1 of the grievance process. Step 2: I have informally discussed this situation with the appropriate supervisory staff, but have been unable to reach an acceptable resolution. I therefore submit a formal grievance to my immediate supervisor in accordance with Town of Fountain Hills Personnel Policy 1402. Grievant’s Name: Job Title: Submitted to: At Step II Date: HISTORY AND FACTS OF GRIEVANCE: Provide as much specific information as possible, including all pertinent names, dates and places. Indicate specifically which section of the Personnel Rules and Regulations you believe was violated, if applicable. Attach additional sheets and supporting documentation if necessary. REMEDY SOUGHT: State specifically what action(s) you are requesting to resolve your complaint. Grievant’s Signature: ___________________________________ Date: __________________ 160 Step II – Supervisor’s Response: Grievance response must be returned to the aggrieved employee within fifteen (15) calendar days of receipt. Attach additional sheets and documentation if necessary. Step II – Supervisor’s Signature _________________________________ Date: _____________ GRIEVANT’S ANSWER TO STEP II RESPONSE: I accept resolution at Step II: Yes No Submitted to: At Step III Date: If answer is no, grievance must be submitted to Step III within five (5) calendar days of receipt of Step II response. Give specific reasons why the Step II response is unsatisfactory, and what further action(s) you are requesting to resolve your complaint. Grievant’s Signature: ______________________________________Date: _________________ Step III – Department Head’s Response: Grievance response must be returned to the aggrieved employee within fifteen (15) calendar days of receipt. Attach additional sheets and documentation if necessary. Step III – Department Head’s Signature: _______________________________Date: _________ 161 GRIEVANT’S ANSWER TO STEP III RESPONSE: I ACCEPT RESOLUTION AT Step III: Yes No Submitted to: At final step Date: If answer is no, grievant may submit the grievance within five (5) calendar days of receipt of Step III, the grievance may be submitted to the Town Manager at the Final Step. Give specific reasons why the Step III response is unsatisfactory, and what further action(s) you are requesting to resolve your complaint. GRIEVANT’S SIGNATURE: _______________________________ DATE: _______________ Final step – Town Manager’s Response: The Town Manager’s grievance response will be returned to the aggrieved employee within a reasonable amount of time to fully review the complaint. The Town Manager may respond using the grievance form OR by separate letter which will be attached to the grievance form. TOWN MANAGER’S FINAL DECISION: As per Town of Fountain Hills Personnel Policy 1402 (“Grievances”), the decision of the Town Manager is final and is not subject to appeal. TOWN MANAGER’S SIGNATURE: _________________________________ DATE: ______ 162 Town of Fountain Hills Personnel Policies SECTION: PROBLEM SOLVING AND GRIEVANCE PROCEDURES POLICY: COVERED/UNCOVERED POSITIONS POLICY NO: 1403 EFFECTIVE: August 1, 2013 REVISED: April 20, 2018 PURPOSE: To distinguish covered and uncovered positions with respect to the Town’s merit system in accordance with Town Code § 3-2-1 STATEMENT OF POLICY: The merit system regulating the conditions of employment and removal of employees of the Town (including grievance procedures established in Policy 1402) shall not apply to:  elected officials;  officers subject to appointment and removal by the council;  consultants hired on a contract basis;  contract employees;  non-permanent or temporary employees;  volunteer workers who receive no regular compensation from the Town; and  members of boards, committees and commissions established by the Council. PHOENIX 77018-1 440207v2 TOWN OF FOUNTAIN HILLS PERSONNEL POLICY MANUAL Amended and Restated December 2023 TOWN OF FOUNTAIN HILLS 16705 E. AVENUE OF THE FOUNTAINS FOUNTAIN HILLS, AZ 85268 480-816-5100 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 2 Contents INTRODUCTION MATTERS .......................................................................................................... 6 100. General Policy Statement ......................................................................................................... 6 101. About the Organization ............................................................................................................ 7 102. Mission Statement .................................................................................................................... 7 EMPLOYMENT MATTERS ............................................................................................................ 8 200. Equal Employment Opportunity .............................................................................................. 8 201. Recruitment And Selection ...................................................................................................... 9 202. Background Checks................................................................................................................ 10 203. Loyalty Oath ........................................................................................................................... 11 204. Immigration Law Compliance ............................................................................................... 11 205. Introductory Employment Period ........................................................................................... 12 206. Nepotism and Personal Relationships .................................................................................... 15 207. Secondary Employment ......................................................................................................... 16 208. Job Descriptions ..................................................................................................................... 17 209. Temporary Work Assignments .............................................................................................. 17 210. Temporary Staffing ................................................................................................................ 19 211. Reduction In Workforce ......................................................................................................... 19 212. Separation from Employment ................................................................................................ 20 TIME AT WORK AND TIME AWAY .......................................................................................... 22 300. Work Week and Hours of Work ............................................................................................ 22 301. Breaks/Meal Period ................................................................................................................ 23 302. Breastfeeding/Lactation ......................................................................................................... 24 303. Attendance .............................................................................................................................. 25 304. Absentee Reporting ................................................................................................................ 25 305. Sick Leave .............................................................................................................................. 26 306. Vacation ................................................................................................................................. 29 307. Holidays ................................................................................................................................. 32 308. Paid Personal Leave ............................................................................................................... 34 309. Bereavement Leave ................................................................................................................ 35 310. Jury/Witness Duty .................................................................................................................. 36 311. Voting Leave .......................................................................................................................... 36 312. Federal Family and Medical Leave (FMLA) ......................................................................... 37 313. Military Leave ........................................................................................................................ 40 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 3 314. Leave of Absence Without Pay .............................................................................................. 41 315. Exempt Leave ......................................................................................................................... 42 316. Recognition Leave.................................................................................................................. 43 WAGES AND COMPENSATION .................................................................................................. 45 400. Wage And Salary Administration .......................................................................................... 45 401. Employment Categories ......................................................................................................... 48 402. Exempt/Non-Exempt FLSA Classifications .......................................................................... 49 403. Call-Back Pay ......................................................................................................................... 50 404. Stand-By Duty (On-Call) ....................................................................................................... 52 405. Job-Sharing............................................................................................................................. 53 406. Payroll and Timekeeping ....................................................................................................... 54 407. Garnishments .......................................................................................................................... 55 408. Personal Data Changes ........................................................................................................... 55 409. Direct Deposit ........................................................................................................................ 56 410. Travel Time ............................................................................................................................ 56 BENEFITS ......................................................................................................................................... 58 500. Benefits................................................................................................................................... 58 501. Medical, Pharmacy, Dental, Vision, and Cobra Continuation ............................................... 58 502. Other Benefits ........................................................................................................................ 60 503. 401A Retirement Plan ............................................................................................................ 61 504. Deferred Compensation (457) ................................................................................................ 61 505. Health Savings and Flexible Spending Accounts .................................................................. 62 506. Employee Assistance Program ............................................................................................... 62 507. Officer Craig Tiger Act .......................................................................................................... 63 508. Tuition Reimbursement .......................................................................................................... 64 509. Training Funding .................................................................................................................... 66 510. Memberships .......................................................................................................................... 67 511. Service Awards ...................................................................................................................... 67 HEALTH, SAFETY & SECURITY ................................................................................................ 68 600. Drug and Alcohol-Free Workplace ........................................................................................ 68 601. Drug and Alcohol Testing ...................................................................................................... 69 602. Smoke-Free Workplace .......................................................................................................... 75 603. Firearms/Weapons .................................................................................................................. 75 604. Violence in the Workplace ..................................................................................................... 76 605. Identification Badges and Building Access ........................................................................... 78 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 4 606. Family or Guests in Non-Public Areas .................................................................................. 78 607. Safety Equipment/Uniforms ................................................................................................... 79 608. Workplace Safety ................................................................................................................... 79 609. Reporting Accidents & Incidents ........................................................................................... 80 610. Workers Compensation .......................................................................................................... 81 611. Temporary Modified Duty ..................................................................................................... 83 612. Fitness for Duty ...................................................................................................................... 85 613. Reasonable Accommodations ................................................................................................ 86 614. Medical Examinations ............................................................................................................ 87 615. Immunizations ........................................................................................................................ 88 616. Service Animals in the Workplace ......................................................................................... 88 617. Surveillance System ............................................................................................................... 89 618. Use of Town Property ............................................................................................................ 89 619. Use of Town Premises and Office Materials ......................................................................... 92 EMPLOYEE CONDUCT ................................................................................................................ 94 700. Dress Code and Personal Appearance .................................................................................... 94 701. Performance Evaluation ......................................................................................................... 96 702. Conflict Of Interest................................................................................................................. 97 703. Outside Activities of Staff ...................................................................................................... 99 704. Gifts Policy ............................................................................................................................. 99 705. Customer Service Expectations ............................................................................................ 100 706. Code of Conduct................................................................................................................... 100 707. Harassment ........................................................................................................................... 101 708. Whistleblower Protection ..................................................................................................... 103 709. Confidentiality ...................................................................................................................... 104 710. HIPAA .................................................................................................................................. 105 711. Work Rules ......................................................................................................................... 1066 712. Corrective and Disciplinary Action.................................................................................... 1088 713. Problem Solving ................................................................................................................. 1122 714. Grievances .......................................................................................................................... 1133 TECHNOLOGY POLICIES ......................................................................................................... 115 800. Technology ........................................................................................................................... 115 800-A. Intranet/Internet and Email .............................................................................................. 121 801. Software/Hardware............................................................................................................... 126 802. Audit of Information Systems .............................................................................................. 130 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 5 803. Workplace Monitoring ......................................................................................................... 131 804. Social Media ......................................................................................................................... 131 805. Cellular Devices ................................................................................................................... 133 OTHER WORKPLACE POLICIES ............................................................................................ 134 900. Personnel Files ..................................................................................................................... 134 901. Reference Inquiries .............................................................................................................. 135 902. Bulletin Boards ..................................................................................................................... 135 903. Solicitation ........................................................................................................................... 136 904. Office Decor ......................................................................................................................... 136 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 6 INTRODUCTION MATTERS 100. General Policy Statement PURPOSE: The Personnel Policy Manual (or the “Manual”) has been developed to provide clarity to all employees of Fountain Hills. It is meant to communicate our mission, expectations, policies, and procedures. It is the responsibility of each employee to read and be familiar with the information contained in this Manual. SCOPE: These personnel policies shall apply to all Town employees unless otherwise noted. These personnel policies do not apply to elected officials; officers subject to appointment and removal by the Council; consultants hired on a contract basis; contract employees; volunteer workers who receive no regular compensation from the Town; and members of boards, committees and commissions established by the Council; however, these individuals to which the personnel policies do not apply, may be subject to separate rules. In the event of conflict between these policies and any Town ordinance, or state or federal law, the terms and conditions of those ordinances or laws shall prevail. POLICY: The Town Council enacts these policies in order to further the following goals: 1. To familiarize employees with the human resources policies of the Town. 2. To assist managers in the development of sound management practices and procedures, and to make effective and consistent use of human resources throughout the Town. 3. To promote communication between department heads, supervisory staff, and employees. 4. To ensure, protect, and clarify the rights and responsibilities of Town employees. This Policy Manual supersedes and replaces all previous personnel policies and procedures on issues that are addressed in this document. In the event of the amendment of any ordinance, rule, or law incorporated in these policies or upon which these policies rely, these policies shall be deemed amended in conformance with those changes. The Town Manager shall have the authority to make such amendments, as mandated by local, county, state or federal ordinance, regulation or law, and shall also have the authority to make non-substantive amendments. Amendments shall be reported to the Town Council. The Town of Fountain Hills specifically reserves the right to repeal, modify or amend these policies at any time, with or without notice. None of these provisions shall be deemed to create a vested or contractual right in any employee or limit the power of the Town Manager to repeal or modify these policies. These policies are not to be interpreted as promises or specific treatment. Violation of these policies will be perceived as a serious matter and may result in disciplinary or other administrative action, up to and including termination of employment. The Town may terminate an employee for any reason or no reason during the introductory period as long as the termination is not based on discrimination. In addition, the Town may terminate an employee for cause after the introductory period. Likewise, the employee may terminate employment at any time. No individual supervisor, manager or officer can make a contrary agreement. Scope of Coverage Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 7 These policies apply to all employees of the Town of Fountain Hills except where specifically stated otherwise in the Town Code, in these human resources policies, or in a written employment agreement between the Town and certain management-level employees, such as the Town Manager and Town Magistrate. These policies and procedures do not apply to non- employee positions as defined in the Town Code, including elected officials; members of boards, committees, and commissions; persons engaged by the town on a contractual basis; persons appointed by Council; and other personnel whom the Council may designate. Policy Administration Administration of the Town’s personnel policies is the responsibility of the Town Manager. Disclaimer Any statement or promise made by any supervisor or other employee will not change this Manual or create a legal agreement. Final interpretation and implementation of any of the policies or rules in this Manual are vested solely with Town Administration. This Manual is subject to change and modification by the Town with or without notice. Every employee is responsible for policy compliance, including any policy revision/update that has been distributed. Language Conflicts In the event of conflict between these policies and procedures and state, local, or federal law, the terms, and conditions of the state, local, or federal law shall prevail. 101. About the Organization The Town of Fountain Hills has an unrelenting commitment to excellence and equal treatment of its employees and customers. The Town of Fountain Hills (or the “Town”) municipal government provides a variety of services such as zoning ordinances and the Town code. Major departments include Administration, Community Services, the Court, Development Services, law enforcement (contracted with the Maricopa County Sheriff’s Office), and fire and emergency medical service. The Town is operated with a seven-member Town Council handling policy decisions for Fountain Hills. The Town Manager is responsible for all personnel and administrative matters and has a broad authority to lead the organization, ensuring the policy decisions of the council are carried out, strategic planning, preparing the annual budget, serving as a key advisor to all of the elected officials, lead and supervise the department directors, and ensuring operational and administrative functions are complete. The oversite of the department operations is a function of the department directions, who are hired by the Town Manager, to be the subject matter experts in their field of expertise. The department directors are responsible for leading and engaging a highly qualified workforce to carry out the Council’s vision and mission for the organization. 102. 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 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 8 responsive government; and maintaining the stewardship and preservation of its financial and natural resources. To serve and respect, and provide trust and stewardship. EMPLOYMENT MATTERS 200. Equal Employment Opportunity PURPOSE: To provide equal opportunity in employment to all qualified employees and applicants for employment. SCOPE: This policy applies to all applicants and employees throughout every aspect of the employment relationship including, but not limited to: recruitment, selection, placement, training, compensation, benefits, promotion, transfer, discipline, termination, and social and recreational programs. POLICY: The Town of Fountain Hills is an equal opportunity employer. The Town does not discriminate on the basis of race, color, religion, sex, age, disability, or any other legally protected status. All employees are required to have proof of identity and authorization to work. It is our policy to seek and employ the best qualified personnel in all positions, to provide equal opportunity for advancement for all employees, including promotion and training. Further, the Town is committed to providing a work environment in which employees are treated with courtesy, respect and dignity. As an employer, the Town will not tolerate any form of harassment, verbal or physical, with regard to an individual’s race, sex, national origin or any other protected characteristics. All employees are encouraged to bring any concerns to the attention of the Human Resources Administrator or direct supervisor as set forth in the Harassment Policy, contained herein. The Town also provides reasonable accommodations for qualified individuals with disabilities in accordance with the Americans with Disabilities Act and for employee’s religious observances and practices to the extent provided by law. It is the employee’s responsibility to notify the Town of the need for a reasonable accommodation and to provide medical documentation upon request. It is the responsibility of every employee to cooperate with the spirit and intent of this policy. Violations and/or complaints of this section shall be referred to any of the following: supervisor, manager, department director, or human resources department. It is the intent that issues be dealt with in a timely and appropriate manner. Employees found to be in violation of this policy will be subject to disciplinary action. Positive action is required from all employees to help ensure the Town complies with its obligations under state and federal law. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 9 201. Recruitment and Selection PURPOSE: To establish guidelines to fill vacant positions. SCOPE: This policy applies to all vacant positions. POLICY: Fountain Hills observes all equal employment opportunity laws and regulations in its recruitment and selection efforts. Selection techniques used by the Town are intended to be impartial, practical, job-related, and consistent with business necessity. The examinations used may include, but are not necessarily limited to, oral, written, performance, physical/mental fitness, and training/experience evaluations. In addition, evaluation of past work performance, work samples, personal interviews, and background investigations may be used in the selection process. Recruitment for positions shall occur in the following order: Permission shall be obtained by Department Heads from the Town Manager to initiate recruitment proceedings. 1. Recruitment shall be advertised as the Town Manager deems advisable. 2. All hiring decisions of the Town Manager shall be final. 3. All applications, resumes, interview forms, recruitment information and process information shall be retained by the Town in accordance with State of Arizona retention laws. Application Process When the Town determines that a vacancy or new position will be filled, Human Resources may advertise publicly as needed to yield the most qualified candidates. The Town will normally display a position announcement of such vacancy or new position on the Town website, other public websites, professional organization websites, and via internal email communications. Applicants are expected to submit a completed Town of Fountain Hills online application form. Failure to complete the online application form may result in disqualification. Completed applications become the property of the Town of Fountain Hills and are not returned to applicants. A Town application is required of all applicants, regardless of current employment status with Fountain Hills. If an applicant needs an accommodation in order to submit a Town application form, they should notify Human Resources. On occasion, the Town Manager may abbreviate the recruitment process up to and including direct appointment, for positions that report directly to the Town Manager, only in circumstances where both the Human Resources Head and Town Manager approve of and recommend the appointment. Minimum Qualifications Meeting the minimum qualifications does not automatically guarantee an interview. The selection process will include an evaluation of the applicant’s education, relative abilities, skills, knowledge, and experience. Internal Applications Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 10 To be eligible to apply for a posted job, current employees must have performed competently for the last six (6) months in their current position. In addition, employees who have been in a disciplinary process within the last year are not eligible to apply for posted jobs. Rejection Any application may be rejected for reasons including, but not limited to: 1. The applicant appears not to possess the qualifying experience and training required for the position. 2. The applicant has made any misstatement of any material fact. 3. The applicant has practiced any deception or fraud in their application. 202. Background Checks PURPOSE: To establish a policy regarding background checks, reference checks, motor vehicle record checks, to be in compliance with the Fair Credit Reporting Act and any other screens to serve the position posted. SCOPE: This policy applies to all internal and external applicants. POLICY: The Deputy Town Manager/Administrative Services Director will administer or make the decision to delegate this process to a third-party vendor. All employees applying for any position with the Town of Fountain Hills will be subject to a background and/or reference check with current and former employers and/or managers. Unless required by law, reference checks and background checks will not be shared with the potential employee. Candidates will be notified during the hiring process which checks will be performed. The required information may include, but is not limited to education, licenses, certifications and degrees, employment history, criminal history, and driving records, if applicable. Employment will be offered pending the return and disposition of such background checks and contingent upon the results of the checks. Only individuals in Human Resources or their designee, who are authorized to do so, may initiate or receive a pre-employment criminal background check. Information gained from any of the above background checks will be held in confidence and shared with management individuals only on a need-to-know basis, unless the law otherwise requires. Fair Credit Reporting Act Any individual offered a position that has responsibility for initiating or affecting financial transactions may be required to submit to a credit check. These responsibilities could include, among other duties, collecting or handling cash or checks, writing checks or approving them, access to a direct money stream, or being a fiduciary to the organization. Any employee subject to a credit check will be provided with the proper legal notices required under the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. (“FCRA”). The Town will obtain the applicant or employee’s consent, in writing, to the procurement of the report. If the report is used as the basis for adverse employment action, the Town must give the individual notice of the consumer report and a copy of A Summary of Your Rights Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 11 Under the Fair Credit Reporting Act. For purposes of this section, “adverse action” means any decision that “adversely affects” the applicant, including without limitation, a denial of employment to an applicant. Motor Vehicle Record Check Any applicant who will be driving a Town vehicle or driving their personal vehicles on Town business will be subject to an inspection of their Motor Vehicle Records annually. Depending on the job requirements, some applicants may have to comply with the Department of Transportation requirements for a Commercial Driver’s License and may have additional stipulations. Pre-Employment Drug and Alcohol Testing Applicants selected for employment in certain positions must pass a pre-employment drug and alcohol test. Any potential hire who refuses to test or fails the drug and alcohol test will be ineligible for employment with the Town. Physical and Mental Examination Applicants selected for employment in certain positions shall be of sufficient mental and physical fitness to be able to perform the essential functions of the positions for which they have applied. On acceptance of an offer of employment, the physical and mental fitness of individuals entering Town employment may be evaluated by medical professionals approved by the Town in accordance with applicable law. Reasonable accommodation for a qualified individual with a disability shall be provided unless the provision of such accommodation would impose an undue hardship upon the Town. The physical and mental qualifications of employees or candidates who have been selected for hire and accepted a conditional offer of employment may be evaluated by medical professionals approved by the Town. 203. Loyalty Oath PURPOSE: The purpose of this procedure is to document and ensure compliance with the loyalty oath requirements of State law. SCOPE: This oath applies to all individuals hired. POLICY: All Town employees are required to sign a loyalty oath and this document must be submitted with new hire paperwork and filed in the employee's official personnel file. Arizona Revised Statutes §38-231 requires, in part, that an officer or employee within the meaning of the section who fails to take and subscribe the oath or affirmation provided within the time limits prescribed shall not be entitled to any compensation unless and until such officer or employee does so take and subscribe to the form of oath or affirmation set forth. 204. Immigration Law Compliance Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 12 PURPOSE: The Immigration Reform and Control Act (IRCA) and Legal Arizona Workers Act requires employers to verify the identity of each employee hired to perform labor or services, in return for wages or other remunerations. SCOPE: This law applies to all individuals hired. POLICY: All employees, citizens and non-citizens, are required to complete an Employment Eligibility Verification form (I-9 Form) as a condition of employment. The Town of Fountain Hills requires all new employees, upon being hired, to complete Section 1 of the I-9 Form by their first day of employment. Appropriate documentation must be provided, and the Verification of Employment Eligibility (Section 2 of the I-9 Form) must be completed by Human Resources within three (3) business days of the date employment begins. Any employee who fails to complete the I-9 Form with appropriate documentation within the 3-day time period cannot continue to work for the Town of Fountain Hills. Employment is contingent upon satisfactory completion of the verification requirement. When an offer of employment is made to an applicant, the applicant shall be informed that proof of identity and eligibility to work in the United States will be required upon hire. A list of acceptable documents will also be described to the candidate. In addition to completing the I-9 form, all new employees must also be cleared by the Department of Homeland Security (DHS) as being eligible to work in the United States through the E-Verify Program required by the Legal Arizona Workers Act (A.R.S. §23-211 et. seq.). The Town of Fountain Hills is an E-Verify employer. E-Verify is a web-based program administered by the U.S. Department of Homeland Security, USCIS Verification Division, and the Social Security Administration that supplements the current I-9 employment eligibility verification process. The program determines whether the information provided by the new hire matches government records and whether the new hire is authorized to work in the United States. It is completed by a representative from Human Resources inputting into a secure DHS web site the information provided by the new employee from the completed I-9 form and their social security number. These forms will be maintained by the Human Resources Office. 205. Introductory Employment Period PURPOSE: To establish a period of time which shall be regarded as part of the orientation period utilized for training and critiquing the new employee’s and rehires work habits, skill level, and suitability for continued employment in their assigned position with the Town. SCOPE: The Introductory period for new full-time employees and rehires is defined as the first six (6) months. The introductory period for part-time employees and rehires is defined as the first 1,040 hours worked. POLICY: The provisions contained in the Town of Fountain Hills Personnel Manual relating to notices required before demotion, suspension, or dismissal of a regular status employee shall not apply to employees in their introductory period of employment. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 13 During this time the employee will be receiving orientation, on-the- job training, and informal communication and feedback will be encouraged throughout an introductory period so that the employee will have clear expectations and an opportunity to make corrections as necessary. This is also a time for encouragement, support, and reinforcement from the immediate supervisor and Department Head; as well as a time for the employee to determine if they are satisfied with their position. At the conclusion of the introductory employment period, a formal performance evaluation will be completed which becomes a part of the employee’s personnel file in the Human Resources Department. The employing department will make a decision whether to retain the employee, extend the introductory period, or terminate the employee, based on work performance. This determination must be clearly stated in the performance evaluation. Every effort shall be made to complete formal introductory performance evaluations by the supervisor, not earlier than ten (10) working days prior to the evaluation due date, and not later than ten (10) working days after the evaluation due date. The Town reserves the right to terminate employment of any employee, both during and after the Introductory Period, as they deem appropriate. Employees within the Town will also serve the same Introductory Period as a new employee, in cases of promotions, transfers, or demotions. Any employee who, in the sole judgment of management, is not successful in their new position, can be removed from that position and be subject to discipline, up to and including termination from employment. As an alternative, the Town has the authority to place the employee in a comparable position for which the employee is qualified, depending on the availability of such positions and the Town’s needs. Introductory Periods 1. Initial Introductory Period: All full- and part-time employees, as well as rehires, will be placed in an initial introductory period following their initial date of hire. Upon successful completion of the initial introductory period and in accordance with the provisions of this Policy, the employee shall achieve regular status in Town employment. All employees hired after July 1, 2017, are eligible to begin utilizing accrued Paid Sick Time on the 90th calendar day after commencing employment with the Town, in accordance with the Arizona Fair Wages and Healthy Families Act, Proposition 206. Full- and Part-Time, regularly scheduled employees are eligible to begin utilizing accrued vacation or other leave as applicable, after satisfying their initial introductory period. During the initial introductory period, an employee may be dismissed, suspended or demoted by the Town Manager. Dismissal during the initial introductory period shall be defined as an introductory release and shall not be considered a dismissal for cause. 2. Promotional Introductory Period: A promotion is defined as the movement of an employee to a position in a higher salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly increased in nature and scope. Employees will be placed in a promotional introductory period following the effective date of their promotion Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 14 as specified in the time frame listed above. Employees shall be provided written notice of the introductory period. A promoted employee who is not successful in completing an introductory period may be eligible for demotion to a vacant position for which they meet the minimum qualifications. A determination by the Department Head that the employee’s performance was not satisfactory shall be sufficient cause for demotion. 3. Demotion Introductory Period: A demotion is defined as the movement of an employee to a position in a lower salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly decreased in nature and scope. Employees will be placed in an introductory period following the effective date of their demotion with a time frame as defined above. Employees shall be provided written notice of the introductory period. The regular status of an employee serving a demotion introductory period shall not be affected. However, an employee demoted for disciplinary reasons, who unsuccessfully completes a demotion introductory period, shall be dismissed. The employee will be given a written notification of such dismissal. Failure to meet the requirements of the position to which the employee is demoted or to successfully complete the demotion introductory period shall constitute a sufficient factual basis for further discipline, up to and including termination. 4. Lateral Transfer Introductory Period: A lateral transfer is defined as the movement of an employee to a position in the same salary grade as the one presently assigned. Employees will be placed in an introductory period following the effective date of their transfer with a time frame in the timeframe listed above. Employees shall be provided written notice of the introductory period. A formal performance evaluation will be conducted documenting the conclusion of this introductory period and become part of the employee’s official record in the Human Resources Department. A laterally transferred employee whose performance falls below acceptable levels at the end of their introductory period may be returned to their former position or another similar position for which they qualify, if vacant. The regular status of an employee serving a lateral transfer introductory period shall not be affected. Employees are not allowed to be promoted within the initial, promotional, demotion, or lateral transfer introductory periods. Questions about this process can be directed towards the Human Resources Department. Introductory Period Extensions A Department Head may request authorization for an introductory period to be extended longer than the applicable period as defined within this Policy to further assess an employee’s work performance and suitability for continued employment. A request to extend an introductory period must be in writing and approved by the Town Manager. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 15 Rehire An employee who is terminated from Town employment and rehired shall be required to serve an initial introductory period upon re-employment, unless otherwise waived by the Town Manager. 206. Nepotism and Personal Relationships PURPOSE: To clarify the Town’s process for restriction of hiring and retention of relatives of current employees and personal relationships between employees. Compliance with this Policy is intended to prevent potential or perceived favoritism; or perceived or actual conflict of interest among employees, and to promote a harassment-free working environment. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: It is the policy of the Town to restrict employment of immediate family members. Compliance with this Policy is intended to prevent potential or perceived favoritism; or perceived or actual conflict of interest among employees, and to promote a harassment-free working environment. No two (2) members of immediate family (spouse, child, grandchild, parent, grandparent, sibling, or in-law), and no relative of a Town Council member or the Town Manager shall be employed in, or promoted or transferred to, any department, division, shift and/or work unit when as a result they would be in a superior-subordinate relationship, unless prior written approval is received from the Town Manger. Further, the Town believes that romantic, dating, or sexual relationships between employees who are within the same chain of command has the potential to disrupt the work environment. Some of the possible adverse effects of such relationships may include the following: poor work performance or attitude; distraction from work duties; creation or suggestion of a sexually hostile or offensive work environment for the involved employees or others around them; and the possibility, appearance, and/or perception of favoritism or conflict of interest. For these reasons, and in furtherance of its policy against sexual harassment in the workplace, the Town prohibits its supervisors to have a romantic, dating, or sexual relationship with any other employee who is under them within the chain of command, regardless if it is a direct or indirect reporting relationship. Regarding non-supervisory relationships, the Town will become involved and will take appropriate action if problems resulting from such relationships manifest themselves on the job. In cases where a conflict or the potential for conflict arises because of the relationship between employees, even if there is no line of authority or reporting involved, the employees may be separated by reassignment or terminated from employment. While the definition of Nepotism identifies relationships that are likely to be perceived as a conflict of interest in an immediate superior-subordinate relationship, employees should also guard against other superior-subordinate relationships that could be perceived as creating a conflict of interest. Employees in close personal relationships in the workplace should refrain from public workplace displays of affection or excessive personal conversation. To safeguard the interests of both employees and Town, Human Resources should be alerted to any employee relationships that pose, or potentially pose, a conflict of interest. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 16 In all cases of employment with the Town, the Town reserves the right to transfer or reassign any employee at any time with/without cause or notice. 207. Secondary Employment PURPOSE: To establish guidelines for Town employees concerning secondary employment. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town of Fountain Hills does not generally prohibit employees from engaging in secondary employment. However, each full-time employee’s Town position should be considered the employee’s primary employment. The Town of Fountain Hills prohibits secondary employment when it interferes with the employee’s Town duties, negatively impacts job performance, involves a potential conflict of interest, is detrimental to the Town’s interests, involves the use of Town data or resources, or in any way compromises the integrity or credibility of the Town of Fountain Hills government in the community. Town of Fountain Hills’ employees should avoid: 1. Secondary employment with an entity that conducts business with the Town without full disclosure and satisfactory analysis by the Town Administration for any potential conflict of interest. 2. Secondary employment which cannot be accomplished outside of the employee’s normal working hours or is otherwise incompatible with the performance of the employee’s duties. 3. Secondary employment placing the employee in a position of conflict between the employee’s role with the Town and the employee’s role in outside employment. 4. Performance of work for any governmental entity within the State of Arizona without the written consent of both employers. 5. Secondary employment which exploits official position or confidential information, acquired in the performance of official duties for personal gain. 6. Secondary employment which may be viewed by the public as work on behalf of the Town. Due to the importance of the public's perception of the Town government, all employees who engage in secondary employment must disclose such work on a "Secondary Employment Declaration" form. Secondary employment is subject to review for conformance to this policy. Employees engaged in secondary employment determined not to be in conformance may be required to cease such employment. If there are any questions regarding secondary employment or volunteer positions, it is recommended these be discussed in advance with supervision. Volunteer Activities Employees are encouraged to engage in volunteer activities, especially activities to improve community life. However, employees should evaluate their volunteer activities in the same manner as outside employment, to identify any potential conflict with the employee’s Town position and discuss these potential conflicts with their supervisor on an individual basis. Employees should declare volunteer activities only if the employee believes there is some reason for concern consistent with the spirit of this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 17 208. Job Descriptions PURPOSE: To document and describe the skills, qualifications, and responsibilities of each position and thereby promote organizational effectiveness and efficiency. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town recognizes that it is essential for each staff member to be fully aware of the duties and responsibilities of his or her position. A job description is a formal document describing the nature, scope, physical requirements, and responsibilities of a specific job within the organization. However, a job description cannot capture every nuance of the position and may be generically descriptive of similar jobs. Job descriptions are used for the purposes of training and development, annual performance appraisals, promotions, recruiting, and hiring. Job descriptions are prepared by the incumbent employee, supervisor, and the department director, with final review by the Town Manager and Human Resources. Human Resources or the Town Manager’s designee is responsible for: 1. Administering the overall job description program. 2. Providing the necessary training, instructional materials, and assistance to employees, supervisors, and department directors. 3. Monitoring job descriptions for proper format. 4. Maintaining a central file of all current job descriptions. 5. Ensuring that all positions have a job description. (Supervisors and department directors are responsible for reviewing and approving job descriptions for their areas.) 6. Reviewing job descriptions on an ongoing basis to ensure their accuracy. All new jobs within the organization must be evaluated and classified in the pay plan. All new positions must be evaluated and approved before the job can be posted. All job descriptions will be reviewed annually for adjustment in duties/responsibilities and expectations of the position. If or when the duties of a job change significantly, it may be necessary to reevaluate the job’s classification. Any recommended adjustments to the job description will be submitted to Human Resources for review. Cross training and Contractor Provisions The Town Manager has the discretion to require employees to work outside their job description as deemed appropriate under certain circumstances. The Town Manager may require workgroups to cross-train and redeploy across departments, divisions, or sections in order to ensure essential functions are completed. In some cases, contractors or part-time employees will be hired on a temporary basis to fulfill essential service requirements. In these instances, provisions will be made to allow for temporary access to Town resources (door badges, access to shared physical and digital files, etc.) as necessary. 209. Temporary Work Assignments PURPOSE: To clarify the circumstances by which the Town may utilize temporary assignments or temporarily staff a position. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 18 SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: “Acting” Assignments – Town employees may be temporarily assigned to perform all the duties and assume all the responsibilities of another position. “Increased Work Duties” Assignments – From time to time, Town employees may be temporarily assigned by the Town Manager to perform some or all the duties and assume some or all the responsibilities of a position or other positions. Temporary Assignments shall be administered in the following manner: 1. “Acting” Assignments – When the Town Manager identifies or otherwise determines that a Town Department needs an “Acting” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best-suited to meet the Department’s needs. During such temporary assignments, the Town employee shall be designated as having an “Acting” position. Changes in compensation during an “Acting” assignment shall be determined by the Town Manager, except in the case of fire department fire protection employees where the base pay shall be increased by ten percent (10%) above their current pay rate for hours worked in a temporary assignment above their current job title. Fire department fire protection employees working at a position compensated below their current job title shall have no temporary pay adjustment. Temporary assignments do not become “Acting” assignments unless, and until, such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks, except in the case of fire department fire protection employees where temporary assignments have a minimum of one (1) work shift. “Acting” assignments should generally not last longer than nine (9) consecutive months, unless extended in writing by the Town Manager. The Town Council may appoint an Acting Town Manager as deemed appropriate by the circumstances. In the case of the Town Council appointing an Acting Town Manager, the Council sets the length of time of the assignment and the compensation of the Acting Town Manager. 2. “Increased Work Duties” Assignment – When the Town Manager identifies or otherwise determines that a Town Department needs an “Increased Work Duties” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best-suited to meet the Department’s needs. Temporary changes in compensation during an “Increased Work Duties” assignment shall be determined by the Town Manager. Temporary assignments (“Increased Work Duties”) do not become assignments for purposes of changes in compensation unless and until such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks. A temporary assignment (increase in work duties) can be in place of or in addition to an employee’s regular duties. “Increased Work Duties” assignments should generally not last longer than nine (9) consecutive months, unless extended in writing by the Town Manager. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 19 210. Temporary Staffing PURPOSE: To clarify the circumstances under which the Town may temporarily staff a position. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Town Departments may need staffing to meet requirements and/or fulfill responsibilities the Department may otherwise be incapable of performing with its current staffing. Temporary staffing shall be administered in the following manner: Town Departments in need of temporary staffing (usually for periods of no greater than one (1) year), may obtain such staffing from outside agencies, temporary employees, or through the use of temporary Town employees. Town Departments in need of temporary staffing shall consult with Human Resources before initiating any temporary staffing in order to discuss the potential implications of the temporary staffing. Outside agencies may be used for temporary staffing with the approval of Human Resources and Finance. Generally, agencies on a previously approved statewide contract are to be used. 211. Reduction in Workforce PURPOSE: To establish a systematic process which the Town will follow in the event the Town Manager deems it necessary to reduce positions due to reorganization, lack of work, funds, or other budgetary limitations, and to ensure business operations remain sound and employees are treated objectively. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: It is the Town of Fountain Hills’ intent to treat all impacted employees with dignity and respect, and to assist employees through the Reduction in Workforce (RIWF) process. The Town Manager, with input from Department Heads, shall determine the number and classifications of employees to be laid off. In addition, the Town Manager and Human Resources shall determine the specific procedures to be followed and the benefits that may be offered to affected employees. Employees affected by a (RIWF) shall have the opportunity to continue their medical, dental, and vision insurance coverage (if applicable) in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions. Only job-related criteria will be used to determine employees who will remain with the organization. The criteria used will be determined based on the reason for the reduction in force and the determination of the department’s needs. Job related criteria may include, but are not limited to, the employee’s performance competencies, skills, responsibilities, experience, leadership, education and training, and salary. Seniority will be used only in the case of a tie. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 20 Severance Full-time employees who are laid off may be provided with a severance package as determined by the Town Manager. Grievance Rights A Reduction in Workforce action is specifically excluded from the grievance procedure. 212. Separation from Employment PURPOSE: To establish a process for terminations of employment, whether voluntary or involuntary. SCOPE: This policy applies to all Town Employees and all Town Departments POLICY: All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be required to make proper disposition and accounting for all funds and property the employee was responsible for. Employees must repay any amounts owed to the Town before final payment will be issued. All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be offered an opportunity to participate in an exit interview. However, participation is entirely voluntary on the part of the terminating employee. Voluntary Resignation If termination is the result of a voluntary resignation, the employee is to document their intent to resign their position by submitting a letter of resignation to their supervisor bearing the current date, the last day of work, and the employee’s signature. Failure to give at least ten (10) working days resignation notice, fifteen (15) working days for Department Heads, could result in immediate separation and denial of rehire. waiver of required notice may be granted by the Town Manager. The effective date of termination is the last day the employee actually works. Exception: The effective date of termination due to expiration of a leave of absence is the last day of the approved leave. Group benefits such as medical, dental, and life insurance terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed to pay for coverage (e.g., pro-rating insurance). Contact Human Resources for further details. The Town, acting through the Town Manager, reserves the discretionary right, upon receiving the ten (10) day resignation notice, to immediately accept such resignation and provide the employee with two (2) weeks of regular pay in lieu of notice. All documentation is to be promptly forwarded to Human Resources. Arizona law 23-353, “Payment of Wages of Discharged Employees” requires final payment to voluntarily terminated employees to take place no later than their next regularly scheduled pay date. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 21 Involuntary Termination An employee, regardless of employment status, may be terminated by the Town Manager at any time during their initial Introductory Period. Introductory, seasonal, non-regularly scheduled, and temporary employees may be terminated at-will. The Due Process as outlined in the Policy Manual will apply for other terminations. Group benefits such as medical, dental, and life insurance, terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed to pay for coverage (e.g., pro-rating insurance). Contact Human Resources for further details. Arizona law 23-353. “Payment of Wages of Discharged Employees” requires final payment to involuntarily terminated employees to take place on the earlier of the next regular payday or within seven (7) working days. In regard to all departures with employment from the Town, amounts payable to the employee shall be paid only after offset for any advances or monies owed to the Town by the employee. This includes the cost to replace any Town equipment that the employee fails to return. The Town may also take other legal action deemed appropriate to recover or protect its property. Notice An employee is encouraged to communicate with the employer whenever the employee believes working conditions may become intolerable to the employee and may cause the employee to resign. Under section 23-1502, Arizona Revised Statutes, an employee may be required to notify an appropriate representative of the employer, in writing, that a working condition exists that the employee believes is intolerable, that will compel the employee to resign or that constitutes a constructive discharge. If the employee wants to preserve the right to bring a claim against the employer alleging that the working condition forced the employee to resign, they must bring this notification forward prior to resignation. Under the law, an employee may be required to wait for fifteen (15) calendar days after providing written notice before the employee may resign if the employee desires to preserve the right to bring a constructive discharge claim against the employer. An employee may be entitled to paid or unpaid leave of absence of up to fifteen (15) calendar days while waiting for the employer to respond to the employee's written communication about the employee's unacceptable working condition. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 22 TIME AT WORK AND TIME AWAY 300. Work Week and Hours of Work PURPOSE: To provide employees with hours of operation and a policy to assist departments in creating work schedules that ensure proper coverage for effective operations. Work schedules for employees will vary due to the position they hold. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Workweek The standard workweek shall be seven (7) consecutive days commencing on Monday at 12:00 a.m. and ending the following Sunday at midnight. Any work shift in progress at midnight Sunday shall be included as part of the work period in which that shift commenced. Work Period for Public Safety Section 207(k) of the FLSA allows employees engaged in fire suppression to be paid overtime on a work period basis. The Town has defined the work period to be a 14-day work period which requires overtime over 106 hours worked in the 14-day work period for fire protection classifications. Work Schedules The standard workweek for full-time employees is forty (40) hours. The Town reserves the right to schedule and/or change all hours and schedules of work as deemed necessary and nothing contained herein shall be construed as a guaranteed work week. The core hours of operation for Town offices are generally from 7:00 a.m. to 6:00 p.m., Monday through Thursday. However, this does not guarantee a work schedule of such, and scheduling may be adjusted according to the operational needs of a department. The Fire Departments works varied hours based on 24/7 operations. Fire protection personnel may be assigned to work rotating 48-hour shifts followed by 96-hours off, which results in 96-120 hours every 14-days, and 2912 hours per year. Supervisors will advise employees of their individual work schedules. Staffing needs and operational demands may necessitate variations in starting and ending times, as well as variations in the total hours that may be scheduled each day and week. The Town reserves the right to schedule and/or change all hours and schedules of work as deemed necessary and nothing contained herein shall be construed as a guaranteed work week. With approval of the Department Director, modifications to this provision may be arranged in any manner consistent with departmental operations and to provide essential Town services, subject to any applicable federal or state statutory or constitutional limitations relating to hours of work. The Town Manager shall approve any modifications prior to implementation. Workday and workweek lengths for exempt employees are determined primarily by their current workloads and the organization’s needs. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 23 Work Performed Outside the Typical Workplace Generally, non-exempt employees shall perform their duties only at the designated worksite. Non- exempt employees must receive advanced approval from their supervisor for any work performed outside the typical workplace. Non-exempt employees approved for work outside the workplace must document and submit their hours, including but not limited to any and all time spent accessing work related emails and other programs and files, according to payroll policy. Maximum Hours Worked Employees may be required to work additional hours in a day to meet operational demands for a department. Employees are required to have at least eight (8) hours off after 16 consecutive hours worked, with the exception of the Fire Department operations personnel, who are required to have at least 24 hours off after a maximum of 96 consecutive hours worked. Emergency Operations Exceptions Emergency operations may require employees to work longer consecutive hours. During emergency operations, employees may request rest time from their Department Director/Manager. Each Director/Manager is then required to make arrangements for such rest time on an individual basis, giving consideration to the needs of the employee as well as continued coverage for emergency services. The Director/Manager has the authority to require employees to take rest time and remove them from work at any point while providing emergency operations. Rest time shall not count as hours worked. On-site flexible work arrangements will generally be based on mutual agreement. However, the Town may require employees to be onsite, based on the Town’s business needs. Employees are not entitled to or guaranteed the opportunity to use a flexible work arrangement. All flexible work arrangements must comply with applicable federal and state laws, and all Town rules, policies, and practices. The Department Director or Human Resources may discontinue or alter the flexible schedule at any time. When discontinuing or altering an established flexible schedule, the Town will normally provide advance notice of such change whenever possible. 301. Breaks/Meal Period PURPOSE: To establish guidelines for paid and unpaid employee rest periods. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Meal Periods All Town employees who work a minimum of eight (8) hours per day will receive a minimum of a one-half (½) hour unpaid meal period. The supervisor schedules all meal periods so that work areas are covered. Unpaid meal periods may be scheduled for employees working less than eight (8) hours with approval of the supervisor and employee. An employee must be completely relieved from duty in order for the time to be a “bona fide meal period”. Skipped meal periods cannot be used to make up time or to shorten the workday without approval of the supervisor. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 24 Exceptions Due to the nature of the work and scheduling of fire suppression operation positions are granted an exception to the meal period requirement. Rest Periods Town employees who work at least eight (8) hours in a day are allowed two (2) fifteen-minute rest periods per day or shift but will not exceed fifteen minutes in any consecutive four-hour period. The supervisor schedules all rest periods so that work areas are covered. Rest periods are counted as time worked and cannot be combined or “banked” to provide an extended lunch or rest period or shorten the workday. Overtime pay is not granted for rest periods not taken or for work performed during a rest period. Employees who miss a break period may not take an extended lunch period, arrive at work later than the normal starting time, or leave work before the normal quitting time. Employees are not permitted to leave the work premises during 15-minute break periods. Any employee who needs to leave the premises for personal reasons shall clock out. Scheduling Rest periods/meal periods may not be taken in the first or last hour of the employee’s workday. Meal periods and rest periods may be combined only with advanced approval by the supervisor. Supervisors are responsible for scheduling meal periods and break periods to ensure that adequate staff coverage is provided. Eating and Drinking at Workstations For health, sanitation, and respect for the public, meals should not be consumed in view of the public. Any food items brought into the workplace should not emit strong odors. Beverages may be kept at the workstation but must be in a container with a lid. Employees are expected to clean up after themselves and use appropriate receptacles for waste. No employee shall be allowed to consume food or beverage in an area with hazardous or toxic chemicals. 302. Breastfeeding/Lactation PURPOSE: To establish guidelines for employees who are nursing mothers with reasonable rest periods and physical space to express breast milk during scheduled work hours. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town supports the decision for mothers to breastfeed and is committed to enabling employees to maintain the breast-feeding relationship. In keeping with this philosophy and in compliance with certain provisions of Section 7 of the Fair Labor Standards Act, the Town will take the following appropriate measures to facilitate breastfeeding and expression of milk by mothers of newborns less than one (1) year of age. The Town will provide reasonable rest periods for an employee to express breast milk for a nursing child for one (1) year after the child's birth each time such employee has a need to express milk. Mothers may use their paid rest periods and/or unpaid meal periods for breastfeeding or expression of milk. If the designated break periods are not adequate, or the scheduled break periods do not meet the needs of the mother, the mother should discuss scheduling options with the supervisor. If the normal Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 25 break period provided to the employee is not enough adequate time, the mother may use available vacation time. The Town will provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. When requested by the employee or supervisor, Human Resources will work with the employee and supervisor to determine individual space options, which may be the employee’s office, or another space temporarily created or converted into a space for expressing milk. Employees are expected to provide their own equipment and storage. 303. Attendance PURPOSE: To establish guidelines and expectations for employee attendance. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: In order for the Town to run effectively, the Town expects employees to make every effort to be present for work. Further, while at work, the Town has an expectation for employees to perform their assigned duties and work all scheduled hours, unless the employee has received approved leave or prior approval from the supervisor. The Town expects all employees to assume diligent responsibility for their attendance and promptness. Recognizing, however, that time off is necessary, the Town has established various paid time options for employees for certain absences. Hours of attendance shall be maintained on official Town payroll documents as specified by Human Resources. Any falsification of individual time records or payroll documents by any Town employee will result in disciplinary action up to and including termination. All scheduled time not spent working needs to be accounted for. The Town will monitor attendance and absence patterns. Habitual lateness or excessive absenteeism will not be tolerated by the Town and will be subject to disciplinary action. Any employee absent from work for two (2) consecutive days of scheduled work without notifying the supervisor will be considered to have voluntarily quit. All non-exempt employees are required to fill out time sheets daily in a complete and accurate manner. Exempt employees are required to fill out time sheets for the purpose of paying vacation days, sick days, or other leave during the pay period. Non-exempt employee time sheets shall be reviewed by each supervisor and approved through electronic workflow. Corrections or changes to the time sheet shall be made only by supervisors or their designees. 304. Absentee Reporting PURPOSE: To establish procedures for absentee reporting. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 26 SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Whenever an employee is unable to report for work for any reason, they must contact their immediate supervisor or designee telephonically or by email at least thirty (30) minutes prior to the start of their scheduled working hours or as soon as otherwise practicable. When the use of earned paid sick time is foreseeable, the employee shall make a good faith effort to provide notice of the need for such time to their supervisor or their designee in advance of the use of the earned paid sick time and shall make a reasonable effort to schedule the use of earned paid sick time in a manner that does not unduly disrupt the operations of the Town. Such notice shall be given telephonically or by email. When possible, the notice shall include the expected duration of the absence. In all cases, employees who leave a voicemail message should ensure that the recipient of the message has received it. If the employee is not able to call or email personally, another person may call the employee’s immediate supervisor or designee to relay a message on behalf of the employee prior to the start of the employee’s scheduled working hours. A brief explanation should be provided concerning the reason for the absence with an estimate of when the employee will be able to report for work. Failure to provide this notification within the time specified, except in very specific circumstances, may result in the employee being placed on leave without pay status for the duration of the absence. When an employee needs to leave work during the workday, the employee should notify their immediate supervisor or designee. In all cases, if the immediate supervisor or designee is not available, the employee should either contact their supervisor’s supervisor or the Town Human Resources Department. 305. Sick Leave PURPOSE: Sick leave is part of the integrated program of benefits for Town employees. The purpose of sick leave is to provide employees with time off from work for periods of temporary absence due to illnesses or injuries or medical appointments that cannot be scheduled outside the employee’s work schedule. Sick leave benefits are intended solely to provide income protection for qualifying absences. Such leave is intended for use only under specific conditions as set forth in this policy. SCOPE: This policy applies to all full-time Town employees, part-time regularly scheduled employees, and Part-time non-regularly scheduled, temporary, seasonal, and other employees. POLICY: Calculation 1. Full-time General Town employees will accrue sick leave at a rate of 4.0 hours biweekly, assuming they are in a paid-status. Accumulation of sick leave shall not exceed 1,040 hours at any time. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 27 2. Full-time Fire Protection Shift Operations employees working the 2,912 hour per year schedule will accrue sick leave at a rate of 6.0 hours biweekly, assuming they are in paid-status. Accumulation of sick leave shall not exceed 1,456 hours at any time. 3. Part-Time Regularly-Scheduled Town employees will accrue sick leave at a rate proportionate to the accrual rate of Full-Time General Town employees based on their paid-status hours and may carryover hours, subject to the 1,040-hour cap accumulation of sick leave. 4. Part-time non-regularly scheduled, temporary, seasonal, and other employees will accrue sick leave at a rate of one (1) hour of sick leave for every thirty (30) hours worked. The Town limits use and accrual of sick leave under this policy to forty (40) hours per calendar year. Up to forty (40) hours of accrued and unused sick leave may be carried over. Use of sick leave is permitted during the initial introductory employment period with the Town. Time off in excess of hours accrued will be deducted first from vacation or other available leave if available, and thereafter will be uncompensated. Employees who are exempt from overtime requirements under the Fair Labor Standards Act of 1938 (29 United States Code section 213(A)(1)) will be assumed to work 40 hours in each work week for purposes of earned paid sick time accrual unless their normal work week is less than 40 hours, in which case earned paid sick time accrues based upon that normal work week. Actual accrual amounts for eligible part-time employees will vary depending on the actual number of paid-status hours reported through payroll records by an eligible part-time employee. Paid status hours include actual hours worked as well as leave taken under the Town’s Vacation, Sick Leave, Holiday, and other paid leave policies. Sick leave may be used for any of the following reasons: 1. An employee’s mental or physical illness, injury or health condition; an employee’s need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition; an employee’s need for preventive medical care. 2. Care of a family member with a mental or physical illness, injury or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; care of a family member who needs preventive care. 3. Closure of the employee’s place of business by order of a public health official or need to care for a child whose school or place of care has been closed by order of a public health official. 4. Care for oneself or family member when it has been determined by health authorities or a health care provider that the employee’s or family member’s presence in the community may jeopardize the health of others because of their exposure to a communicable disease. 5. Absence due to domestic violence, sexual violence, abuse or stalking, provided the leave is to allow the employee to obtain for the employee or the employee’s family member: a. Medical attention needed to recover from injury or disability caused by domestic violence, sexual violence, abuse or stalking b. Services from a domestic or sexual violence program or victim services organization c. Psychological or other counseling d. Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking; or e. Legal services related to domestic violence, sexual violence, abuse or stalking. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 28 The term “family member” means the following for purposes of this policy: 1. Regardless of age, a biological, adopted or foster child, stepchild or legal ward, a child of domestic partner, a child to whom the employee stands in loco parentis, or an individual to whom the employee stood in loco parentis when the individual was a minor, 2. A biological, foster, stepparent or adoptive parent or legal guardian of an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee or employee’s spouse or domestic partner was a minor child, 3. A person to whom the employee is legally married under the laws of any state, or a domestic partner of an employee as registered under the laws of any state or political subdivision; 4. A grandparent, grandchild or sibling (whether biological, foster, adoptive or step) of the employee or the employee’s spouse or domestic partner, or 5. Any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship. Verification The employee may be requested to provide a physician’s verification statement for use of sick time for purposes for absences spanning less than three (3) consecutive workdays when no prior approval has been given, or for absences reflective of a pattern of time off. A physician’s verification statement may be required for the employee to return to work following a medical absence of three (3) consecutive workdays or more depending on the situation and/or if the absence is reflective of a pattern of time off. The physician’s verification statement must substantiate the need for time off and indicate the employee is fit to return to duty. In cases of domestic violence, sexual violence, abuse or stalking, documentation set out in A.R.S. § 23-373(G) shall be sufficient. Any employee who abuses sick leave will be subject to disciplinary action. Actions that may lead to disciplinary action include, but are not limited to, falsifying illness or reasons for using leave, unsubstantiated excessive use three (3) or more consecutive absences without appropriate documentation) and not complying with the authorization requirements above. Increments Employees will be permitted to use sick time in incremented units of one-half (1/2) hour or more, in any one day. Sick time shall not be advanced to an employee, nor may sick time be transferred between employees. Coordination with FMLA The Town may require that accrued and unused sick leave under this Policy be used concurrently with leave taken under other applicable leave policies, including leave taken under the Family and Medical Leave Act (FMLA). Sick leave hours will not count toward hours worked for purposes of computing overtime. In this event, Sick leave must be used before available vacation. Sick leave will not count towards hours worked for purposes of computing leave. Coordination with Worker’s Compensation Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 29 The employee may use accrued sick leave to compensate for time lost that is not reimbursed by workers’ compensation. The combination of any such payments and sick time cannot exceed the employee's normal weekly earnings. The employee must use sick leave prior to vacation. Unpaid Time With the exception of qualified Federal FMLA leave, an employee may not take unpaid leave until such time that the employee’s vacation, sick, and other available leave bank has been exhausted. At no time shall an employee be authorized to carry a negative sick leave balance. In the event an employee has insufficient sick leave to cover a qualified absence, the employee will immediately revert to unpaid time. In the event an employee unilaterally uses unpaid time without prior authorization, the employee may be subject to disciplinary action. Employees on unpaid status, for any reason, shall not accrue sick leave on the unpaid time and all other benefits shall be prorated. Restrictions An employee shall not be paid for time at work and receive sick pay for the same time. Separation/Death Upon retirement, Full- and Part-Time, Regularly-Scheduled employees and Fire Operations staff with five (5) or more years of continuous service will qualify for a payout of fifty percent (50%) of their available accrued unused sick leave hours at their regular rate of pay upon separation of service. Sick leave will not be paid out under any other circumstances, except death. Upon death of a Full- and Part-Time, Regularly-Scheduled employees and Fire Operations staff, the Town shall pay to the estate of the deceased employee 50% of the available and accrued unused sick leave at the regular rate of pay at the time of his/her death. Reinstatement If an employee separates from employment with the Town and is rehired within nine (9) months, that employee’s previously accrued and unused sick leave will be reinstated and will be available for immediate use. 306. Vacation PURPOSE: Vacation leave is part of the integrated program of benefits for Town employees. Such leave is intended to provide employees time off from work to relax and enjoy personal pursuits without loss of income. SCOPE: This policy applies to all full-time Town employees and part-time regularly scheduled employees. POLICY: Calculation 1. Full-time General Town employees accrue vacation leave hours based on 40 hours of work per work week. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 30 2. Full Time Fire Protection Shift Operations, and Part time regularly scheduled employees accrue vacation leave at a proportional rate up to the maximum accrual rate of full-time general employees. The amount of vacation time employees are eligible to receive each year increases with the length of their employment. Vacation time begins to accrue with the employee’s first full bi-weekly pay cycle, subject to the following: New employees may accrue but are not eligible to use vacation leave until completion of the Introductory Period. Employees who do not pass the Introductory Period are not eligible to receive any vacation payout. Service Credit at Hire A Department Director may submit a request to the Town Manager that a prospective applicant be granted a one-time beginning balance credit of vacation or be given credit for length of service for employment experience that is directly related to the position. The request shall be in writing before the applicant is hired and shall be based on the Director’s assessment of the candidate’s qualifications beyond the minimum requirements, recruitment considerations, or service accrual provided by the previous employer. No additional length of service credit shall be granted after initial appointment with the Town. The Town Manager shall make all determinations for length of service credit. ACCRUAL RATE MAXIMUMS & OVERALL MAXIMUMS – ELIGIBLE EMPLOYEES (Based on 40 Hours per Work Week): Length of Service Maximum Hours per Pay Period / Year Overall Maximum Start date through completion of 3rd year 4.00 / 104 314 4th year through completion of 7th year 5.00 / 130 364 8th year through completion of 10th year 6.00 / 156 437 11th year through completion of 15th year 7.00 / 182 510 16 + Years 8.00 / 208 582 Maximum vacation accruals increase with length of service as depicted in the chart and the overall maximum is limited to at least two times the yearly maximum accrual. When the employee’s length of service reaches the next higher rate of accrual, accrual at the new rate begins on the first day of the pay period following the effective date of eligibility. Actual accrual amounts for eligible part-time regularly scheduled employees and full-time fire protection shift operations employees will vary depending on the actual number of paid-status hours reported through payroll records by an eligible part-time or full-time fire protection shift operations employee. Paid-status hours include hours worked as well as leave taken under the vacation, sick leave, and other paid leave policies. The “Overall Maximum” column in the table represents a fixed amount and will not vary with the actual number of hours worked. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 31 Usage All vacation leave is to be taken at the convenience of the department and shall be approved in writing, or through automation, by the supervisor or the supervisor’s designee. It is the responsibility of the employee to schedule their vacation time in compliance with departmental workloads and needs. Requests for vacation time should be submitted to the supervisor as far in advance as possible. Employees may be recalled from vacation leave, or may have their scheduled vacation leave postponed, when deemed necessary by the department director. When an employee is recalled from vacation leave, the employee’s vacation leave will be rescheduled to the earliest convenient time. Vacation time shall not be advanced to an employee nor may vacation time be transferred between employees. Vacation time will not accrue for workweeks in which there are no hours paid by the Town of Fountain Hills. If the employee has an accrued vacation balance, the vacation time must be used before any unpaid time off is approved. Vacation hours must be used for sick leave if accrued sick leave hours have been exhausted. Vacation hours will not count toward hours worked for purposes of computing overtime. If a holiday falls within an employee’s vacation, the employee will not be charged with vacation hours for the holiday but will be paid for the holiday at the appropriate holiday rate. Coordination with FMLA The Town reserves the right to require substitution of paid leave, subject to applicable federal law. Therefore, an employee must use vacation for any federal FMLA qualifying leave including, but not limited to, intermittent leaves, after sick time is exhausted. Coordination with Worker’s Compensation The Town reserves the right to require use of vacation while an employee is on worker’s compensation. Therefore, an employee must use enough vacation hours, if available to the employee, while on worker’s compensation to recover the employee share of benefits and mandatory deductions, after sick time is exhausted. Part-Time Employee Utilization of Vacation The number of hours that a part-time employee may record when taking a “day off” from work is what they would normally have been scheduled to work. Part-time employees may only take vacation on days that they would have normally been scheduled to work. Restrictions An employee shall not be paid for time at work and receive vacation pay for the same time. Increments of Time Employees shall use vacation in increments of thirty (30) minutes. Unpaid Time With the exception of qualified Federal FMLA leave, an employee may not take unpaid leave until such time that the employee’s sick, vacation, and other available leave has been exhausted. At no time shall an employee be authorized to carry a negative vacation balance. In the event an employee has an insufficient vacation balance to cover an absence for any reason, the employee will immediately revert Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 32 to unpaid time. In the event an employee unilaterally uses unpaid time without prior authorization, the employee may be subject to disciplinary action. Employees on unpaid status, for any reason, shall not accrue vacation on the unpaid time and all other benefits shall be prorated. Payout / Buy Back Provision Employees may elect to convert up to a maximum of 56 hours of accrued vacation and unused vacation into a cash value on an annual basis if they meet specific criteria included below. Town employees must have a minimum of 300 hours accrued unused vacation leave at the time of the request. Requests can only be made once per 12-month period and will be processed through payroll and direct deposited during a normally scheduled pay day, within eight (8) weeks of the request. Vacation payouts are subject to all federal and state withholdings and are not included in the Town’s 401A retirement program. Payout/Buy back hours are paid at the employees base hourly rate and are excluded from the calculation of overtime. Separation of Employment Accrued but unused vacation leave hours will be paid at the employee’s regular hourly rate upon separation of employment. No more than the maximum allowable accrual of vacation leave is compensable upon separation of employment. Vacation leave accrued during the initial introductory employment period will not be compensated if separation occurs during the initial introductory period. Death Upon the death of an employee, the Town shall pay to the estate of the deceased employee all earned and unused vacation leave hours for which the deceased employee may have otherwise been eligible for payout at the time of his/her death. 307. Holidays PURPOSE: To provide a policy for Town employees setting forth paid holidays and to implement a system to increase the flexibility for employees to utilize their holiday compensation. SCOPE: This policy applies to all full-time Town employees and part-time regularly scheduled employees. POLICY: The annual holiday leave bank for each Full-Time employee is 80 hours; except for Full- Time Fire Protection Shift Operations employees. Part-time, regularly scheduled employees and fire protection shift operations employees are not subject to the holiday leave bank. Part-time regularly scheduled employees will receive Holiday compensation for the number of hours they were originally scheduled to work if a designated holiday falls on one of those days. Full-time fire protection shift operations employees will receive 12 hours of Holiday compensation for each of the ten designated Town holidays. Workers’ Compensation benefits are not eligible for compensation for holidays that fall during their period of disability. Employees on any type of unpaid leave of absence on the observed Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 33 holiday are not eligible for compensation for the holiday. Part-time Non-Regularly scheduled employees do not receive Holiday compensation unless they work on the designated Holiday. Designated Town Holidays The following are ten (10) paid holidays for eligible employees: Holiday Description New Year’s Day January 1 Martin Luther King Jr. Day 3rd Monday of January President’s Day 3rd Monday of February Memorial Day Last Monday of May Independence Day July 4 Labor Day First Monday of September Veteran’s Day November 11 Thanksgiving Day 4th Thursday of November Day after Thanksgiving Day following Thanksgiving Christmas Day December 25 When any of the holidays listed above falls on a Sunday, the following Monday shall be observed as a holiday; if any such holiday falls on a Saturday, the preceding Friday shall be observed as a holiday. For staff members on a seven (7) -day standard workweek schedule, including fire protection shift employees, a holiday falling on a Saturday or Sunday is observed on that day. On any other day or part of a day during which the Town shall be closed by special proclamation of the Mayor, with the approval of the Town Council, employees shall be eligible for holiday pay if they are normally scheduled to work that day. Accumulation of Holiday Leave 1. The annual holiday leave bank for each Full-Time, Regularly Scheduled employee is 80 hours. For purposes of this policy, the holiday will be defined as the 24-hour period (12:00 AM–11:59 PM) on the designated holiday. Eligible part-time employees normally scheduled to work on a day that falls on a designated holiday shall be compensated with holiday pay for the number of hours they are normally scheduled to work on such days. Temporary, seasonal and other non-regularly-scheduled employees are not eligible for holiday compensation unless they work on the designated holiday. 2. The leave banks will be populated during the first payroll in January. New hires will receive a prorated number of hours based upon their hire date. Use of Holiday Leave (excluding Fire Protection Shift Operations personnel): 1. If a designated holiday falls on a scheduled workday, holiday leave will be used to cover their scheduled work hours. Salaried/Exempt employees required to work on a designated holiday due to business need, or who are not scheduled to work on a designated holiday, will not be required to utilize their holiday leave. If an employee works a partial day, they shall utilize holiday bank hours to cover hours not worked. Any holiday leave hours not used for designated Town holidays shall be considered floating holiday leave. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 34 2. Floating holiday leave shall be approved to be used at such a time that is mutually agreeable to the employee and the employee’s supervisor. Holiday leave will not be available for use on an unplanned or call-in basis. 3. Holiday leave must be used in full day increments, unless you work a partial day on a designated holiday. A full day will be considered the number of hours scheduled for the day that the leave was taken (e.g., an employee was scheduled to work ten hours on a holiday, ten hours of holiday pay would be utilized). In the event that the employee does not have enough holiday hours in her/his bank to cover a full day’s absence, vacation hours will be used to make up the difference. 4. In the event that a non-exempt employee does not have either holiday hours or vacation hours to cover a designated holiday, they will not be paid for that holiday. 5. Holiday hours must be used by December 31 of each year or will be forfeited. There will be no “cash out” or carryover of holiday hours. 6. All holiday hours not taken prior to the last day of employment with the Town shall be forfeited. Use of Holiday Leave for Fire Protection Shift Operations Personnel: Due to the nature of 24/7 shift operations and scheduling, each employee will be paid 12.0 hours of holiday at their straight time hourly rate pay regardless of if they are scheduled on the designated holiday or on a scheduled day off. Holiday Compensation: 1. Holiday hours will count toward hours worked for purposes of overtime for hourly employees. 2. In the event an employee is on paid leave when a holiday occurs, the employee shall receive no pay in addition to holiday pay. Therefore, the employee shall not be charged with applicable paid leave time (i.e., vacation or sick leave) for that day. 3. An employee must be in an authorized paid status on the working day immediately preceding the holiday and the working day immediately following the holiday in order to receive pay for the particular holiday. 4. Non-exempt employees required to work on a scheduled holiday will be paid holiday pay plus their regular rate of pay for each hour worked (equals 2X their regular hourly rate of pay). 308. Paid Personal Leave PURPOSE: To provide personal leave for Town employees. SCOPE: This policy applies to all Full-Time, Regularly-Scheduled, Full-Time Fire Protection Shift Operations, and Part-Time Regularly Scheduled Town employees. POLICY: Full-Time, Regularly-Scheduled Town employees and Fire Protection Shift Operations employees hired before July 1st are eligible for three (3 workdays) of personal leave time during their first calendar year of employment and three (3) workdays each year thereafter. Full-Time, Regularly- Scheduled Town employees and Fire Protection Shift Operations employees hired after July 1st but before October 1st are eligible for two (2) workdays of personal leave time during their first calendar year of employment and three (3) workdays of personal leave time each year thereafter. Full-Time, Regularly-Scheduled Town employees and Fire Protection Shift Operations employees hired on or after October 1st do not receive any personal leave time within the balance of the calendar year, but Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 35 are eligible to receive three (3) workdays of personal leave time each year thereafter. Personal leave time must be scheduled in advance whenever possible and approved by the employee’s supervisor. Part-Time Regularly Scheduled Town employees are eligible for 15 hours of personal leave benefit. 309. Bereavement Leave PURPOSE: The Town of Fountain Hills recognizes the need for time away from work in instances of personal loss. SCOPE. All Full-Time Town employees, Fire Protection Shift Operation employees, and part-time regularly scheduled employees are eligible for bereavement leave. POLICY: Should a death occur in the immediate family, eligible employees will be granted a paid leave of absence, not to exceed three (3) consecutive working days, as determined by their regular work schedule. If employees need time in excess of three (3) days, they may use accrued vacation or personal leave time with the approval of their supervisor and Human Resources. Immediate family for the purpose of such leave is defined as spouses, children, grandchildren, parents, grandparents, siblings, and in-laws and all “step” relationships in these categories. Payment for bereavement leave is at the employee’s straight time rate of pay. Vacation or personal days may be granted to attend the funerals of other close relatives or friends upon approval by the employee’s supervisor. Time off without pay will only be considered if the employee does not have vacation or personal days available. To be eligible for the excused absence and pay provisions of this policy, employees are to request bereavement leave through their supervisor no later than the first scheduled workday following the death of an immediate family member. The Town of Fountain Hills reserves the right to request all pertinent information including the deceased relative’s name, the name and address of the funeral home, and the date of the funeral. All time taken under the Bereavement leave policy will be paid at regular straight time pay for the workday the leave is taken. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 36 310. Jury/Witness Duty PURPOSE: Employees are encouraged to appear before a court, public body, or commission for witness duty when subpoenaed to do so. Employees are excused from work to fulfill their civic responsibilities when required. SCOPE: This policy applies to all Town Employees and all Town Departments. Jury Duty The employee who is summoned for jury duty is required to provide a copy of the jury duty summons to the employee’s supervisor as soon as is reasonably possible. Employees are expected to report for work whenever the court schedule permits them to finish out their scheduled shift. An employee who is excused for jury duty on a scheduled workday will be granted a maximum of ten (10) hours of paid Jury Duty Pay to serve for jury duty per summons, less any jury fees provided by the Courts. Full-time Fire Protection Shift Operation employees shall report to shift upon completion of their jury duty each day to complete their remaining shift. Jury Duty Pay will be calculated on the employee’s base pay rate. If jury duty falls on a scheduled workday, the employee is to report to duty immediately following release from jury duty (unless paid leave is taken for the balance of the shift). Court Appearance/Witness Duty In the event an employee is subpoenaed to provide deposition testimony, or to testify as a witness in court proceedings or before an administrative body, commission or hearing officer in a matter that is not connected with Town business, said employee shall be excused and will be granted up to ten (10) hours of paid time off, less any witness fees provided by the Courts. The employee is to report to duty immediately following release from Court/Appearance/Witness Duty (unless paid leave is taken for the balance of the shift). In the event an employee is subpoenaed to provide deposition testimony, or to testify as a witness in court proceedings or before an administrative body, commission or hearing officer in a matter that is connected with Town business, said employee shall be considered working to appear in any such preceding. The subpoena should be shown to the employee's supervisor immediately after it is received so operating requirements can be adjusted, where necessary, to accommodate the employee's absence. The employee is expected to report for work whenever the court schedule permits. 311. Voting Leave PURPOSE: The Town of Fountain Hills encourages its employees to participate in the election of government leaders SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Generally, employees are able to find time to vote either before or after their regular work schedule. If employees are unable to vote in an election during their nonworking hours due to their work schedule, the Town will grant up to two (2) hours of paid time off to vote. The Town may specify Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 37 the time during the day the employee may vote which shall not include any time during the regular lunch period. Employees should make their requests at least forty-eight (48) hours in advance of Election Day. Advance notice is required so the necessary time off can be scheduled at the beginning or end of the work shift, or whichever provides the least disruption to the normal work schedule. The employee may wish to inquire of their Registrar of Voters about the possibility of voting by absentee ballot. Every effort should be made to vote either before or after the employee’s normal workday. 312. Federal Family and Medical Leave (FMLA) PURPOSE: The Town shall provide Family and Medical Leave in accordance with the federal Family and Medical Leave Act ("FMLA"), as summarized below. This policy is intended to summarize the material terms of the FMLA, and not to create an independent policy in addition to the FMLA. Any conflict between this policy and procedure and the terms of the FMLA is inadvertent and the terms of the FMLA shall govern. SCOPE: FMLA is available to employees with at least twelve (12) months of service and who have worked at least 1,250 hours within the preceding 12-month period. If eligible, an employee may be able to take up to twelve (12) weeks of unpaid leave during the calendar year (based on a 12-month rolling calendar) for the following reasons: 1. The birth of a child or to care for a child within the first 12 months after birth; 2. The placement of a child with the employee for adoption or foster care within the first 12 months of placement; 3. To care for an immediate family member who has a serious health condition; 4. For a serious health condition that makes the employee unable to perform the functions of their position; 5. Military Call to Duty Leave; or 6. Injured/Ill Service Member Caregiver Leave. POLICY: Notification of Need for Leave Employees shall provide 30 days’ advance notice of the need to take FMLA leave when the need is foreseeable. When 30 days’ notice is not possible, or the approximate timing of the need for leave is not foreseeable, the employees shall provide the Town with notice of the need for leave as soon as practicable under the facts and circumstances of the particular case. Failure of the employee to give 30 days’ notice for foreseeable leave, without a reasonable excuse for the delay, or to otherwise satisfy FMLA notice obligations, may result in FMLA leave being delayed or denied. The employee shall inform Human Resources of the need for FMLA qualifying leave and the anticipated timing and duration of the leave, if known. The employee may do this by either requesting FMLA leave specifically, or explaining the reasons for leave so as to allow the Town to determine that the leave is FMLA qualifying. Calling in without providing the reasons for the needed leave, shall not be considered sufficient notice for FMLA. The employee shall respond to the Town's questions to Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 38 determine if absences may qualify as FMLA. If the employee fails to explain the reasons for FMLA leave, the leave and time off may be denied. When the employee seeks leave due to FMLA-qualifying reasons for which the Town has previously provided FMLA-protected leave, he or she shall specifically reference the qualifying reason for the leave or the need for FMLA leave. Documentation Medical certification will be required if the leave request is for the employee’s own serious health condition, to care for a family member’s serious health condition, or to care for a covered service member. Medical certification shall be submitted prior to the leave beginning if the employee is able to provide a 30-day notice or more of leave. If notice for leave is not feasible, due to the circumstance of the leave, the employee shall provide a medical certification within 15 calendar days of the date of the notice of leave to Human Resources. Depending on the circumstances and duration of FMLA leave, the Town may require an employee to provide a medical recertification of the medical condition giving rise to the need for leave. The Town shall notify the employee if recertification is required and shall give the employee at least 15 calendar days to provide medical recertification. Leaves covered under FMLA must be designated as FMLA-protected and the Town must inform the employee within 5 business days of having sufficient information to determine whether the leave is for an FMLA-qualifying reason. The designation shall state if the leave request is approved, not approved or additional information is necessary. The designation shall also include the amount of leave that will be counted against the employee’s FMLA leave entitlement and if some, all, or none of the leave will be paid or unpaid. The Town may retroactively designate leave as FMLA leave with appropriate written notice to the employee, provided the Town's failure to designate leave as FMLA qualifying at an earlier date does not cause harm or injury to the employee. In all cases where the leave qualifies for FMLA protection, the Town and employee may mutually agree that leave shall be retroactively designated as FMLA leave. Return to Work Because the Town wishes to ensure the well-being of all employees, any employees returning from FMLA for their own serious health condition will need to provide a Fitness for Duty statement signed by their treating provider. An employee failing to provide a Fitness for Duty statement will not be permitted to resume work until it is provided. Qualifying FMLA leave will not be counted as an absence under the organization’s attendance policy. If an employee fails to return at the end of the FMLA leave, the employee will be considered to have voluntarily resigned their position with the Town of Fountain Hills. Certifications Supporting Need for Military Family Leave Upon request, the first time an employee seeks leave due to a qualifying exigency arising out of the active duty or call to active duty status of a covered military member, the Town may require the employee to provide: (1) a copy of the covered military member's active duty orders or other documentation issued by the military indicating the covered military member is on active duty or called to active duty status and the dates of the covered military member's active duty service; and (2) a certification from the employee setting forth information concerning the nature of the qualifying exigency for which leave is requested. An employee shall provide a copy of new active-duty orders or other documentation issued by the military for qualifying exigency leaves arising out of a different active duty or call to active-duty status of the same or a different covered military member. When leave is taken to care for a covered service member with a serious injury or illness, the Town may Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 39 require the employee to obtain certifications completed by an authorized health care provider of the covered service member. In addition, the Town may request that the certification submitted by the employee set forth additional information provided by the employee and/or the covered service member confirming entitlement to such leave. Continuation of Benefits The Town of Fountain Hills will maintain health, dental, and vision benefits for the employee while on FMLA leave, but the employee is responsible for paying the normal monthly contribution. Arrangements will need to be made for employees to pay the employee portion of health, dental and/or vision insurance premiums while on leave. Employees shall be required to pay the employee portion of all other benefits including life insurance, supplemental insurance, disability insurance, etc. during FMLA leave. Failure to make the required payments shall result in termination of the employee’s insurance coverage. Employees may elect to continue or terminate Flexible Spending Account deductions during FMLA leave. If an employee terminates the deductions, the employee shall be allowed to resume election upon return from the FMLA leave. While on FMLA leave, it is still the responsibility of the employee to ensure that all insurance and benefit changes, elections, and updates occur in accordance with the Town imposed deadlines. If the employee elects not to return to work at the end of the leave period, the employee will be required to reimburse the Town for the cost of premiums paid for maintaining coverage during the leave period if not previously paid by the employee. All other benefits cease to accrue during the unpaid portion of the leave. Termination of Benefits If the employee fails to make any required payments while on leave after appropriate waiting periods and time periods as specified by law, the Town’s obligation to maintain health care, dental and/or vision coverage ceases if an employee's premium payment is more than 30 days late. If an employee's payment is more than 15 days late, the Town shall send a letter notifying the employee that coverage shall be dropped on a specified date unless the payment is received before that date. Health, dental and/or vision insurance coverage shall then be dropped retroactively to the first of the month for the month of coverage that premium payments were not received. Recovery of Premium Payments The Town has the right to collect from an employee the Town’s portion of the health, dental and/or vision insurance premiums during a period of unpaid leave if the employee chooses not to return to work after the leave entitlement for reasons other than the FMLA leave request or for circumstances outside of the employee’s control. Such premium amounts may be deducted from any compensation owed to the employee upon termination of employment. An employee shall return to work for at least thirty (30) calendar days in order to be considered to have "returned" to work. Paid Time Substitution Employees must use any accumulated sick, vacation, or personal time to the extent available during this leave period, unless such leave is covered under Workers’ Compensation, in which case the employee may only use accumulated leave time for the purpose of satisfying any waiting period. Absences in excess of these accumulated days will be treated as leave without pay. Upon return from leave, the employee will be restored to their original or an equivalent position. Spousal Employees Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 40 If the employee and their spouse both work for the Town of Fountain Hills, they are both eligible for leave. In cases other than the employee’s own serious health condition, the total leave period for the employee and the employee spouse may be limited to 12 weeks total (combined). Intermittent Leave When employees seek intermittent leave or a reduced leave schedule for reasons unrelated to the planning of medical treatment, employees shall, upon request, advise the Town of the reason why such leave is medically necessary. In such instances, the Town and employee shall attempt to work out a leave schedule that meets the employee's needs without unduly disrupting the Town’s operations, subject to the approval of the health care provider. Leave because of the birth or adoption of a child must be completed within the 12-month period beginning on the date of birth or placement of the child. Other Provisions An employee returning from family and/or medical leave can return to his or her old position, if available, at the time the employee returns to work. If the position no longer exists, the employee may be offered an equivalent position with equivalent benefits, pay, and other terms and conditions of employment. All but "key" employees will be reinstated to their job, or a substantially equivalent position, at the expiration of leave and upon the presentation of a fitness for duty certificate (unless they would have lost their job in any event for any other reason, such as layoff). "Key" employees, who may be reinstated to their job, are salaried employees who are among the highest paid 10 percent (10%) of all the employees employed by the Town. Outside Employment Employees are prohibited from working for another employer while on federal FMLA leave. 313. Military Leave PURPOSE: To provide for military duty in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA) and Arizona law. SCOPE: This policy applies to all Town employees performing duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, an examination to determine the fitness of the person to any such duty, or performing funeral honors duty as authorized by section 12503 of title 10 or section 115 of title 32. POLICY: Employees will be granted a military leave of absence for the period of military service outlined in the military orders, in accordance with applicable laws. Employees must give their supervisors advance notice of upcoming military service, unless military necessity prevents advance notice, or it is otherwise impossible or unreasonable. Paid Leave Paid Leave not to exceed 288 hours for Fire Protection Shift Operations employees or 160 hours if Full-Time, Regularly-Scheduled Town employees, and prorated for Part-Time Regularly Scheduled may be granted in a calendar year. Employees are expected to return to shift after utilizing military Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 41 leave if military training allows Thereafter, an employee may use any available accrued paid time off, such as vacation or sick leave, to help pay for the leave. Dependent Health Insurance Under USERRA, federal law requires that health plans must offer to continue coverage for employees who are absent due to service in the uniformed services and/or their dependents. The period of coverage available under USERRA shall run concurrently with the COBRA period available to an employee and/or eligible dependents for up to 24 months. The Town will allow the employee to continue to maintain current medical, vision and dental coverage pursuant to COBRA regulations. The employee will be responsible to pay the premium that the member would have paid, absent the military leave of absence, for a maximum of 12 months. Thereafter, the employee/dependents shall be allowed the opportunity to continue to participate in Town’s group health insurance plan by utilizing their Federal COBRA rights. All other benefits shall be determined based on plan requirements. Benefited Time Vacation and Sick Leave shall accrue during periods of paid military leave. Employees on unpaid military leave are not eligible for paid holidays. Return to Work Town employees must return to work within the following time limits depending on length of service: 1. Fewer than 31 days; report on the next regularly scheduled workday after receiving adequate travel and rest. 2. 31-180 days; return within 14 days after completion of service. 3. More than 180 days; return within 90 days after completion of service. Upon return, provide the employer with a copy of your leave and earnings statement or DD-214 showing the date of entry and discharge. If an employee is on military leave for more than 30 days, they must apply for reinstatement in accordance with USERRA and applicable state laws. Employees returning from military leave (depending on the length of military service in accordance with USERRA) will be placed either in the position they would have attained if they had stayed continuously employed or in a comparable position. For the purpose of determining benefits that are based on length of service, employees will be treated as if they had been continuously employed. Questions about military leave should be directed to Human Resources. 314. Leave of Absence Without Pay PURPOSE: To establish the conditions under which Town employees may be granted leaves of absence without pay when other leave options have been exhausted. SCOPE: This policy applies to full-time Town employees and Fire Protection employees in regular status. POLICY: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 42 Length of Leave Generally, a leave without pay shall not normally exceed two (2) calendar weeks. A longer leave of absence may be granted by the Town Manager for legal reasons, such as disability accommodations or other circumstances. The approval of personal leave of absence is discretionary, with consideration given to the staffing needs of the department and determining the best interests of the Town. If the purpose of the personal leave without pay request is for time off due to a serious health condition or other reasons covered under FMLA, the employee shall exhaust FMLA before a personal leave of absence without pay may be requested or approved. Request Process Requests for such leave must be made in writing to the employee’s Department Director. Requests for leave without pay will not be granted until the employee has exhausted available leave with pay to include vacation, sick leave, personal leave, FMLA leave, and any other available leave. Leave Requests that are medical in nature must be submitted to the Department Director, but the review and approval process shall include Human Resources. Benefits Employees on approved leave without pay may elect to continue group insurance coverage while on such leave The period of coverage available shall run concurrently with the COBRA period available to an employee and/or eligible dependents. All other benefits shall be determined based on plan requirements. The employee shall be responsible for the entire cost of benefit. Leave Accruals There shall be no accrual of vacation, sick, or holiday benefits while on unpaid leave. Outside Employment An employee who is utilizing an approved Personal Leave of absence without pay is prohibited from working for another employer while on a Personal leave of absence without pay. Reinstatement The Town is not obligated to hold the employee’s position open while the employee is on leave without pay and the employee’s right to return to a position from such leave shall be conditioned on the availability of an appropriate position and sufficient funding. The position may be filled on a temporary or regular basis at the discretion of the Town. 315. Exempt Leave PURPOSE: To establish a leave benefit for exempt salaried employees SCOPE: FLSA Exempt Town employees. POLICY: While hours may fluctuate, Exempt employees are expected to normally work a minimum of forty (40) hours per week. The job requirements of most exempt employees mean that they regularly work considerably more than 40 hours, and that the time worked frequently occurs during hours Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 43 outside of the normal work schedule. It is not the Town’s intent to replace time on an hour-for-hour basis, but to provide “Exempt Leave” to acknowledge these realities. Exempt Leave is scheduled, paid time taken off the job that is available to FLSA exempt employees who work beyond the normal workweek. Exempt Leave is a benefit provided in recognition of the many hours in excess of forty (40) hours per week, which may be required but are not directly compensated on an hourly basis. Exempt leave is in addition to other leave provided by the Town as a benefit to employees. Exempt Leave is awarded as time off, up to a maximum of forty (40) hours per payroll calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day of the last pay period of the year. Exempt Leave does not carry over into a new payroll calendar year nor shall this benefit be paid out for any accrued and unused Exempt Leave when the employee’s employment with the Town ends. Exempt Leave is a “use it or lose it” benefit based on the payroll calendar year. The full forty (40) hours are available to an eligible exempt employee as soon as they are appointed to an FLSA exempt position on a pro rata basis, depending on the time of the payroll calendar year the employee starts in said position. Exempt Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in advance, in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the exempt employee to request to use their Exempt Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. Exempt Leave Table Following are suggested guidelines for approving the use of Exempt leave during the first year of hire into a position eligible for Exempt Leave: Start Date on the Job Number of Hours of Exempt Leave Jan 1 – February 28 40 March 1 – April 30 30 May 1 – June 30 25 July 1 – August 30 20 September 1 – October 30 10 316. Recognition Leave PURPOSE: To establish a Recognition Leave benefit that can be awarded occasionally by the Town Manager for commendable or outstanding employee performance. SCOPE: All Town employees. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 44 POLICY: Recognition Leave is scheduled, paid time taken off. The Town Manager may approve Recognition Leave for Town employees (both exempt and non-exempt) for commendable or outstanding performance. Award of Recognition Leave is generally limited to instances when the employee has demonstrated exceptional effort or achievement on a special project. No more than forty (40) hours of Recognition Leave may be awarded to any individual employee in a payroll calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day of the last pay period of the year. Recognition Leave must be used within twelve (12) months from when it was awarded, and Recognition Leave is not accruable beyond the payroll calendar year. Recognition Leave is a “use it or lose it” benefit and may not be carried over beyond twelve months after awarded. An employee shall not be paid any accrued and unused Recognition Leave when the employee’s employment with the Town ends. Recognition Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the employee to request to use their Recognition Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 45 WAGES AND COMPENSATION 400. Wage and Salary Administration PURPOSE: To establish a policy governing the creation and maintenance of a wage and salary plan for Town positions. SCOPE: The wage and salary plan applies to all Town positions that have been approved and budgeted by the Town Council, with the exception of Elected Officials. POLICY: Human Resources, with approval from the Town Manager, develops, maintains, and modifies, as necessary, a non-discriminatory, uniform, and equitable wage and salary plan. Classifications Town positions are allocated to a classification, based on the position descriptions developed within each department. Department Heads shall be responsible for informing Human Resources in writing of changes in a position’s duties/responsibilities in their office or department that might possibly affect the classification of such a position. Human Resources may initiate a classification review to update and modify classification specifications or any component of the classification as is deemed necessary. Reclassifications A reclassification may occur when a position or group of positions and/or classification has undergone a significant change in the type, difficulty, or degree of responsibility entailed in the work performed within that position. Such a situation may result in the assignment of classification to a higher, lower, or similar classification based on the type of changes which have occurred. A reclassification is only appropriate on a Town or department-wide basis. The concept of reclassification will not be used to circumvent promotions into a higher job classification. If any Department Head desires that a position be reviewed for a possible reclassification, they will forward a request to Human Resources, including the following information: A memo stating what factors or duties of the position have changed, the reason for change, and the potential impact of the reclassification, if any, on other positions. Upon receipt of the above documentation, Human Resources shall review the information provided. Additional information and/or a position audit may also be required. Following the position review, Human Resources shall evaluate the position and determine the proper class allocation. A reclassification may result in one of four actions: (1) no change; (2) a change in classification with no change made to pay grade; (3) change in pay grade upward; (4) change in pay grade downward. If a classification action results in a change in pay grade, the corresponding change in the incumbent’s salary will be to the new grade at their current pay rate or at entry level of the new grade, whichever Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 46 is higher. If a classification results in a change of range upward, the requesting department will be responsible for funding the increase to include additional funds that are necessary in the budget request for subsequent increases. Requests for any additional funding in the current or future budget years must be transmitted to the Finance Department for review and forwarding to the Town Manager for action by the Town Council as may be required. Effective dates for classification changes will follow conclusion of a classification review/study and shall not be made on a retroactive basis. Development of New Job Positions and/or Classifications The Town’s position/classification system strives to be responsive to organizational and environmental changes. The Human Resources Department will assist with the revision of position/classification specifications and the development of new position/classification specifications within the broad class concept as necessary to meet the on-going operational requirements of the Town. Job Evaluation Job evaluation is a system used to determine the relationship of each job relative to all other jobs in the Town without regard to the incumbent in the position. The Town Manager is responsible for selecting the method of job evaluation. Pay Structure Human Resources is responsible for establishing a pay structure, as approved by the Town Council, based upon job evaluation results. Each position is assigned a pay range and advancement within the pay range shall be contingent upon the available funds and budget requirements of the Town and based upon the employee's performance. Starting Pay Initial appointment to a position shall be made at the minimum salary level for the position unless the Town Manager determines that entry at a higher level is desirable for a particular applicant. This decision shall be based on the outstanding and unusual character of the applicant's experience, education, and ability over and above the normal minimum qualifications specified for the position. Promotions Employees may be promoted up to the starting salary range of the applicable position. If the employee is already being paid more than the starting salary range of the new position a promotional increase may be given at the discretion of the Town. All promotional appointments require written Town Manager approval. Transfers/Demotions A transfer is defined as a change in the assignment of an employee from one position to another position in the same range of pay. An employee who is transferred will be compensated at the same rate as for their previous position. A demotion is defined as a move to a job in a lower salary grade. An employee who is demoted either voluntarily or as a disciplinary measure will be compensated at the equivalent rate on the new pay range. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 47 Equity Adjustments An equity adjustment is a discretionary adjustment to an employee’s pay outside of the Town’s normal salary programs (e.g., reclassifications, promotions, merits, COLAs, etc.) to remedy pay issues such as external pressure in high demand areas, internal salary compression, retention considerations, and other, similar issues. Equity adjustments are not granted to reward performance. Procedure A request for an equity review may be initiated by a Department Director by: 1. Submitting an Equity Review Request to Human Resources. The request shall include reasons why the request fits this adjustment category as opposed to other categories such as reclassification, promotion, COLA, and why the equity review is warranted. If a previous request was submitted within the past two years, the request shall identify specific conditions that have changed since the previous request. 2. After receiving a request for an equity review, Human Resources will identify other positions performing similar work and compare the qualifications, experience and education of incumbents and evaluate the compensation to assure equity in pay and compliance with this policy. Such review shall be completed as soon as practicable. 3. As part of the equity review, Human Resources will also take into consideration the employee’s pay factors including, but not limited to: a. Merit and Cost of Living Increases for the position(s) being considered; b. Comparison of positions within the employee’s Department; c. Relative value to the organization; d. Unique job responsibilities e. Pay for similar duties and responsibilities at comparable public entities within the State of Arizona. 4. Human Resources shall make a recommendation as to whether an equity adjustment is appropriate based upon the information gathered. Any recommendation for an equity adjustment shall not go outside of the salary range for the position. 5. An equity review that results in a pay increase may be retroactively applied, depending on factors including the Town’s Annual Budget and fiscal year, but in no case shall such retroactive application extend beyond the beginning of the current fiscal year during which the equity review was completed. Any request for review that results in a decrease in pay shall be effective upon completion of the equity review. 6. The Human Resources Department will submit a recommendation for equity adjustments to the Town Manager. 7. The Town Manager shall be responsible for making a final determination as to whether the equity adjustment will be made. This decision by the Town Manager is final and not appealable. 8. The Department Director requesting such a review and any employees impacted by the review shall be notified in writing of the determination. Merit Increases Such an increase is an award for employee performance that meets or exceeds standards set by the Department and evaluated on the Town performance appraisal form. Merit increases shall not be granted if the increase would cause the individual to exceed the maximum pay established in the Pay Plan (refer to annual budget). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 48 It shall be the responsibility of the Town Manager or Department Head to ensure that employees receive performance evaluations at the appropriate intervals for the purpose of merit increases. The evaluation is required regardless of a change in supervisory personnel. 1. The first merit increase eligibility date shall follow successful completion of an employee's original introductory period. 2. The date that an employee attains regular status in the class by successful completion of the introductory period becomes the employee's annual evaluation date, which shall be the date the employee shall be eligible for future annual merit consideration. 3. On the date that an employee successfully completes a promotional introductory period in a new class, the employee may be eligible for merit consideration and that date becomes the employee's new evaluation date. 4. Evaluation date and merit eligibility may also be affected by terms of demotion or reduction in classification due to layoff. 5. Absence of an employee on authorized leave without pay for more than 30 calendar days during a promotional introductory period shall result in extension of the promotional introductory period by an equivalent amount. 6. If the necessary documentation has not been completed in a timely fashion to allow for the granting of a merit increase on the first pay period falling on or after the evaluation date, the employee will receive the increase retroactive to the date upon which they were eligible. 7. Merit increases are dependent on the availability of funds as determined by the Town’s Annual Budget. Cost of Living Adjustments Cost of living adjustments may be given with the approval of the Town Council. Cost of living adjustments are not automatic and are based upon the Town's ability to fund such increases. An employee whose job classification is in the Pay Plan is to be eligible for a cost of living adjustment for the fiscal year authorized by the Town Council. Cost of living adjustments shall not be granted if the increase would cause the individual to exceed the maximum pay established for their class. 401. Employment Categories PURPOSE: To provide a systematic and organized approach for the administration of wages and benefits to employees in a fair and consistent manner. SCOPE: All Town Employees POLICY: All Town employees fall into one of four categories: 1. FULL-TIME – An employee who is normally scheduled to work forty (40) hours per week for fifty-two (52) weeks per year. 2. FULL-TIME FIRE PROTECTION SHIFT OPERATIONS – An employee who is engaged in fire suppression/fire protection activities, normally scheduled to work 48-hour shifts followed Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 49 by 96 hours off within a 14-day work period. This category is scheduled for 2,912 hours per year. 3. PART-TIME REGULARLY SCHEDULED – An employee who is consistently scheduled, for less than forty (40) hours per week, is expected to establish a continuity of service, and whose weekly scheduled work hours do not normally vary. A regularly-scheduled part-time employee is expected to work more than twenty-six (26) weeks per year. 4. PART-TIME NON-REGULARLY SCHEDULED, TEMPORARY (or SEASONAL) – An employee whose work schedule is intermittent, variable, or seasonal in nature. It is expected that an employee should not remain in temporary job status longer than six (6) months. 402. Exempt/Non-Exempt FLSA Classifications PURPOSE: To establish guidelines that ensure that all Town employees are classified in compliance with the Fair Labor Standards Act (FLSA) and state law. SCOPE: All Town employees. POLICY: Definition. Each position is designated as either “Non-exempt” or “Exempt” from the federal Fair Labor Standards Act and state wage and hour laws. EXEMPT – Employee positions with the Town that are not eligible for overtime pay. Exempt employees must be paid on a salary basis. This means exempt employees will regularly receive a predetermined amount of compensation each pay period on a weekly basis that shall ordinarily not be subject to reduction because of variations in the quality or quantity of work performed. The Town is committed to complying with salary basis requirements which allows properly authorized deductions. Exempt Town employees generally need not use accrued leave for absences of four (4) consecutive hours or less in a workday. However, in order to promote public accountability, and notwithstanding any other provisions of these Personnel Policies or any other Town policy, all exempt (i.e., salaried) Town employees are required to use available accrued leave during absences of more than four (4) consecutive hours unless approval is given by the Town Manager, or from a designated Acting Town Manager. Safe Harbor. If an exempt Town employee believes an improper deduction has been made to their salary or that their salary has been improperly deducted, they should immediately report this information to Human Resources. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, the employee shall be promptly reimbursed. NON-EXEMPT – Employee positions with the Town that are eligible for overtime pay for hours worked in excess of 40 hours per workweek, excluding premium overtime pay (29 C.F.R. §778.201). Overtime compensation for non-exempt employees is paid at the rate of one and one- half the regular hourly wage. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 50 Fire Operations: The Town has defined the work period to be a 14-day work period which requires overtime to be paid when over 106 hours are worked in the 14-day work period for fire protection classifications. Positions within the Town may be changed from one category to another as the requirements of the law change or as the nature and scope of duties and responsibilities of a particular job change. Existing and newly established positions will be evaluated and assigned to the appropriate category by Human Resources. Overtime Overtime must be scheduled and approved in advance, by an employee’s immediate supervisor. No overtime may be worked without such advance approval, and failure to obtain approval before working overtime may result in discipline, up to and including dismissal. Employees who believe an assigned task requires overtime hours for timely completion, it is the employee’s responsibility affirmatively to bring this to the attention of the supervisor. The supervisor has the sole right to approve or deny overtime requests. Holiday time will be included as time worked in the computation of overtime. Sick time, vacation time, personal time, standby time, jury duty, military leave, bereavement leave, etc., are not counted toward hours worked during a week. Thus, for example, the circumstance may arise where an employee may be paid for more than (40) forty hours during any given workweek and not be entitled to receive overtime compensation. Requests to trade shifts cannot result in creating overtime for either party. 403. Call-Back Pay PURPOSE: To establish conditions under which Town employees are eligible to receive compensation for providing emergency type services during nonscheduled work hours. SCOPE: All non-exempt Town employees whose specialized skills and abilities qualify them to perform emergency type services to protect public safety and property outside of non-scheduled work hours. POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may receive compensation in the form of Call-Back Pay for hours worked outside of normally scheduled work hours. Procedure 1. Eligibility: a. Call Back Pay applies to FLSA non-exempt Town employees who are called back to work outside of their regularly scheduled hours for emergency type work. b. Scheduled attendance to perform tasks during weekend and/or holiday hours is not eligible for Call-Back Pay. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 51 2. Assignment: Call Back Pay does not apply when: a. The employee is still on the clock and additional work is assigned that will extend their regular workday, in which case normal overtime may apply. b. The employee works overtime hours that were planned in advance (i.e. scheduled overtime). c. The employee requests the opportunity to work additional hours outside of their normal scheduled shift, in which case normal overtime may apply. d. The employee’s call-back hours overlap their regular work schedule as a result of the employee’s request to leave work early, thereby substituting the time worked for the irregularly scheduled shift. These hours are not considered call-back but are compensated as regular hours worked. 3. Compensation: a. An employee who is called back to work to perform services will be compensated for a minimum of two (2) hours or for the amount of time worked, whichever is greater at 1.5 times their hourly rate. Overtime hours worked under this section is considered premium overtime pay and shall not be calculated in the regular rate of pay for the purposes of calculating FLSA overtime (29 C.F.R §778.203 and §778.204 or as amended). b. Travel time to and from the work site is not compensable under Call Back Pay status; only hours actually worked. c. An employee shall not be considered on more than one (1) Call-Back Pay status at any given time. d. Subsequent calls received to perform services within two (2) hours of the start time of the initial call will be compensated for as an extension of the initial call; not as a new call with another two (2) hour minimum. Example 1: First call received at 9:00 am First call completed at 9:30 am Second call received at 9:50 am Second call completed at 10:30 am In Example 1, the employee will be compensated for two (2) hours. The second call was received within the two (2) hour window of the first call. Therefore, the second call will be compensated as an extension of the first call received. Example 2: First call received at 9:00 am First call completed at 9:30 am Second call received at 11:15am Second call completed at 12:00 pm In Example 2, the employee will be compensated for four (4) hours. The second call was received two (2) hours and fifteen (15) minutes after the initial first call. Therefore, the second call will be compensated as a separate additional call with the two (2) hours minimum applicable to both calls. Example 3: First call received at 9:00 am First call completed at 9:30 am Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 52 Second call received at 10:00 am Second call completed at 12:30 pm Third call received at 1:00 pm Third call completed at 2:00 pm In Example 3, the employee will be compensated for five (5) hours and thirty (30) minutes. The second call was received within the two (2) hour window of the first call. The second call will be compensated as an extension of the first call received. However, the third call was four (4) hours after the initial first call. The third call will be compensated as a separate additional call with the two (2) hours minimum applicable. Payment for call-back hours will be made on regularly scheduled pay days and will not be paid in advance. 404. Stand-By Duty (On-Call) PURPOSE: To ensure specific employees are available at any time to respond to after normal business hours emergency situations as they arise. SCOPE: Any Non-Fire Protection Shift Operation Town employee whose specialized skills and abilities qualify them to perform or coordinate emergency type services to protect public safety and property during non-scheduled work hours. POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may be required to be placed on stand-by for duty. Procedure 1. Eligibility: a. Stand-by Duty is restricted to those employees qualified to perform specialized emergency services. b. Scheduled attendance to perform tasks during weekend and/or holiday hours are not eligible for Stand-by Duty Pay. c. In cases of Town emergency or need, employees may be contacted to work during their off hours. Employees who are called in, and are not on Stand-by Duty status, are not eligible for Stand-by Duty Pay. These hours will be calculated under Call-back Pay status. 2. Assignment: a. The responsible Department Supervisor shall maintain a stand-by roster of qualified personnel (capable of performing specialized emergency services that may be required) to serve on Stand-by Duty. b. Stand-by duty shall be allocated fairly amongst qualified employees as follows: i. First, on a rotational basis, qualified employees who volunteer to be put on Stand-By Duty. ii. Second, if there is an insufficient number of qualified employees to volunteer, qualified staff members will be assigned to cover required hours on a rotational basis. c. Stand-By Duty shall be scheduled and assigned in advance. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 53 d. While assigned to Stand-By Duty employees shall maintain a physical readiness to respond to emergency call situations and be capable of performing safety-sensitive functions. e. While assigned to Stand-By Duty employees shall maintain a physical proximity to the applicable Department building that allows for no more than a thirty (30) minute response time for call to duty. f. Employees while assigned to Stand-By Duty shall remain accessible at all times by pager and/or by telephone. g. Exchanging Stand-By Duty assignments–Employees may exchange stand-by weeks/days assignments with supervisory approval. h. Subject to meeting the above obligations, employees on stand-by are free to go about their normal day-to-day activities but are prohibited from consuming alcohol. 3. Compensation: a. Stand-by Duty employees will be paid one (1) hour of pay for each regularly scheduled workday and two (2) hours of pay for each non-scheduled workday while on-call. These hours begin after the completion of the workday and continue until resuming work the following workday. Employees are not eligible for on-call pay during hours that they are scheduled to work (including weekends and holidays). Employees are not eligible for on-call pay unless they have been formally scheduled for coverage. Typically, no more than one employee per service area should be scheduled for an on- call assignment. b. An employee on Stand-By Duty, who is called to perform services, will be compensated for a minimum of two (2) hours at 1.5 times their hourly rate. Overtime hours worked under this section is considered premium overtime pay and shall not be calculated in the regular rate of pay for the purposes of calculating FLSA overtime (29 C.F.R §778.203 and §778.204 or as amended). 405. Job-Sharing PURPOSE: To establish conditions under which Town employees are eligible to work in a job-shared position. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: In order to accommodate the needs of our employees, the Town of Fountain Hills may permit employees in specific positions to job share. The supervisor and Human Resources will determine whether a specific job may be effectively performed by two individuals and whether both individuals can effectively work in a job-sharing arrangement. PROCEDURE: If the supervisor identifies a position deemed conducive to job sharing, the supervisor should meet with the department director, then Human Resources in order to be aware of job share logistics and benefit eligibility consequences. Human Resources, the department director, supervisor and employees should be clear on: 1. The hours and days each employee must be present in the workplace; 2. The work equipment that will be necessary for the employees to job-share; 3. The performance expectations; Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 54 4. The reporting requirements for each job under the job-sharing arrangement; 5. Holiday compensation; and 6. Usage of leave. The Town of Fountain Hills reserves the right to revise or rescind this arrangement at its sole discretion. 406. Payroll and Timekeeping PURPOSE: To provide standardization of time reporting and provide each department the information needed to accurately record and submit their timesheets in accordance with applicable State and Federal guidelines. Accurately reporting time worked is the responsibility of each employee. SCOPE: This Policy applies to all Town employees. POLICY: Workweek The Town’s Workweek covers seven consecutive days for the purpose of compliance with the Fair Labor Standards Act and shall consist of seven (7) consecutive calendar days which begins on Monday at 12:00 AM and ends on Sunday at 11:59 PM. Section 207(k) of the FLSA allows employees engaged in fire suppression to be paid overtime on a work period basis. The Town has defined the work period to be a 14-day work period. Pay Period A pay period shall be the two (2) consecutive workweeks, on the conclusion of which payroll is completed. Pay Schedule Employees are paid bi-weekly, typically on Thursdays. New employees should be advised by their supervisor when they can expect to receive their first payroll check. Pay Deductions It is the Town’s policy to comply with applicable wage and hour laws and regulations. If you have any questions or concerns about your employment category or FLSA classifications or you believe that any deduction has been made from your pay that is inconsistent with your status, you should raise the matter with Human Resources who can assist you in understanding the information that is required in order to investigate the matter. The Town is committed to investigating and resolving all complaints as promptly, but also as accurately, as possible. Consistent with the U.S. Department of Labor’s policy, any complaint shall be resolved within a reasonable time given all the facts and circumstances. If an investigation reveals that you were subjected to an improper deduction from pay, you shall be reimbursed, and the Town shall take whatever action it deems necessary to ensure compliance in the future. Payroll Reporting Procedures Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 55 Hours of attendance shall be maintained on official Town payroll documents, or electronic records as specified by the Human Resources office. Any falsification of individual time records or payroll documents by any Town employee will result in disciplinary action up to and including termination. In the event of an error in reporting time, the employee should immediately report the problem to their supervisor. Non-Exempt employees shall accurately record the following on a daily basis: 1. Time beginning/ending work each day; 2. Time beginning/ending of each meal period; 3. Absence from work with appropriate pay codes; and 4. Total number of hours per day and week. It is the employee’s responsibility to sign his/her timesheet to verify accuracy. Exempt employees are required to record their time off for the purpose of paying vacation days, sick days, personal days, or any types of leave during the pay period. Non-exempt employee time records shall be reviewed and approved by each supervisor. Corrections Corrections or changes to the time sheet shall be made by contacting the supervisor. The supervisor must approve any corrections on the time sheet. If a payroll error occurs, it is the employee’s responsibility to immediately notify Human Resources. Corrections must be submitted for adjustment on the next payroll within fourteen (14) calendar days from the pay date. Penalties Altering, falsifying the time record, tampering with time records, recording time on another employee’s time record (authorized personnel excluded) or any other infraction of this policy may result in disciplinary action, up to and including termination of employment. Pay Advances The Town does not provide pay advances on unearned wages to employees. 407. Garnishments PURPOSE: To ensure accurate and lawful deductions from employee wages as required by the garnishment or wage order. SCOPE: This policy applies to all Town Employees. POLICY: The Town is required to comply with all valid claims against the wages of employees. If a wage garnishment, child support order, or some other legally valid claim is received by the Town, the employee will be notified about the amount and details of the garnishment or wage order. The Town will be required to comply with the provisions of the garnishment notice or order, as soon as practicable after it is received, to ensure its compliance with applicable law. 408. Personal Data Changes PURPOSE: To ensure that all employee information is up to date and accurate. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 56 SCOPE: All Town employees. POLICY: Each employee shall promptly notify Human Resources of any changes in personal data. Personal mailing addresses, telephone numbers, number and names of dependents, individuals to be contacted in the event of emergency, educational accomplishments, and marital status. This information is necessary as it may affect your dependents’ eligibility for benefit coverage, and other important matters. 409. Direct Deposit PURPOSE: To provide Town employees information regarding the Direct Deposit of payroll checks. SCOPE: All Town employees. POLICY: All Town employees shall have payroll wage payments and reimbursements disbursed through direct deposit to the financial institution(s) of the employee’s choice. This convenience provides the employee with funds available in their bank account each payday. Employees will receive a payroll earnings statement on payday that details the pay and deduction information. All Town employees shall adhere to the following: 1. Each employee shall complete a Direct Deposit Authorization Agreement upon hire and submit to Administration by timeframes specified by Human Resources. 2. It is the employee’s responsibility to immediately notify Human Resources if the employee’s bank account changes by completing and submitting the new Direct Deposit Authorization Agreement. 3. Any overpayments, underpayments, or failure to timely submit timesheets will be adjusted on the following payroll. Each bank will post deposits at different times. The Town is not responsible for bank policies. 410. Travel Time PURPOSE: To establish a set of uniform guidelines for the compensation of employees during periods of business-related travel. SCOPE: All Town employees. POLICY: It shall be the policy of the Town of Fountain Hills to comply with applicable provisions of the Fair Labor Standards Act as it relates to the compensation of employees during periods of business-related travel. Travel Time Any work which an employee is required to perform while traveling shall be counted as hours worked. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 57 Home to Work Travel An employee who travels from home before the regular workday and returns home at the end of the workday is engaged in ordinary home to work travel, which is not time worked, even if the work site is different each day. Commute Time An employee who travels from home before the regular workday and returns to their home at the end of the workday is engaged in ordinary home to work travel, which is not work time. Home to Work on a Special One Day Assignment in Another Town If an employee who regularly works at a fixed location in one town is given a special one-day assignment in another town or city and returns home the same day, the time spent in traveling to and returning from the other town or city is work time, except that the Town will deduct the time the employee would normally spend commuting to the regular work site. Travel That is All in a Day’s Work Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site during the workday, is work time and will be counted as hours worked. However, ordinary home to the first work site and the final work site of the day to home is not considered time worked. The Town allows employees to attend conferences and general educational activities for personal growth and as a fringe benefit. Travel to and from professional conferences for career advancement, where the employee does not engage in an activity directly related to the employee's "principal activity" and where attendance is voluntary, is not compensable. (29 CFR §785.31) Travel Away from Home Community Travel away from home that involves an overnight stay will be work time when it cuts across the employee’s workday. The time will be hours worked on regular workdays during normal working hours and during corresponding hours on nonworking days. Passengers A passenger on an airplane, train, boat, bus, or automobile will not be considered work time outside regular working hours unless the employee is actively working. Approval Department Directors will be responsible for ensuring that employees plan their travel with the principles of fiscal austerity in mind. All travel plans are subject to approval by the Department Director. Carpooling should be a consideration whenever more than one staff person is attending the same training/meeting. If employees request to drive separately, there should be a business reason to do so. Flexible Scheduling Whenever possible, Department Directors should consider the use of flex time during the workweek for employees who must travel to reduce additional hours worked in the same workweek. The Department Director may alter an employee’s work schedule for travel time purposes considering staffing needs and the best interests of the department. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 58 BENEFITS FULL-TIME REGULARLY-SCHEDULED employees are eligible for all benefits currently offered by the Town. 500. Benefits PURPOSE: To offer employment benefits to those employees who qualify for coverage. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town provides group benefits coverage for Full-Time Regularly-Scheduled employees, inclusive of fire operations. Eligible Employees The Town shall determine the design and selection of all benefits and retains the right to change these benefits. Employees shall be notified of any changes. The Human Resources Department is responsible for implementation and administration of all group benefits and insurance plans. More detailed information about each plan can be found in the plan documents maintained in Human Resources and the summary plan descriptions (SPDs). SPDs are the official documents regarding employee benefit plans and supersede all references to employee benefits in this Manual. These benefits may change from time to time and are governed by master contracts or benefit plan documents that may also change from time to time. For this reason, if there is any conflict between the benefit descriptions contained here, and the summary plan descriptions and provider policies, the summary plan descriptions and provider policies shall govern in all cases. The Human Resources Departments shall maintain an Annual Enrollment Benefits Guide for all employees to summarize the benefits, plan design, effective date, and employee cost for each benefit offered by the Town. 501. Medical, Pharmacy, Dental, Vision, and Cobra Continuation PURPOSE: To offer medical, pharmacy, vision, and dental insurance to those employees who qualify for coverage. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: Coverage The design and selection, including all levels of benefits provided to Town sponsored medical, pharmacy, vision, and dental insurance plans and insurance carriers are determined by the Town. Participation for employee groups is also determined by the Town and applicable state and federal regulations; and is governed by the contract of insurance in place between the Town and the chosen Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 59 insurance provider. Employees shall receive notification of any carrier changes, as adopted by the Town. Employee Premium Contribution Employee premium contributions are established by the Town. Any employee required to pay any portion of the health insurance premium shall make such payment by payroll deduction on a pre-tax basis. Health insurance premiums are paid each paycheck and shall be deducted 24 times per year. If an employee is on an approved leave and a payroll deduction is not possible, unless other arrangements have been approved by Human Resources, the employee shall be responsible to pay the monthly premium to the Town of Fountain Hills within five (5) business days following the applicable payroll deduction date. Failure to make premium payments may result in termination of coverage. Eligibility All full-time status employees are eligible for the Town sponsored Medical, Pharmacy, Vision, and Dental Insurance. Enrollment Those employees who do not enroll in the group benefits plans during their initial new employee eligibility period shall not be eligible again to enroll until one (1) of the following events occur: 1. Open Enrollment Event: The Town holds an open enrollment period in the second quarter of each year. Employees are eligible to make any change(s) to cancel or add insurance coverage during the open enrollment period. All elections during open enrollment shall be effective on July 1st of each year. 2. Section 125 Qualifying Event: IRS Section 125 defines the circumstances under which a plan may permit an employee to change elections with respect to group benefit coverage. A qualifying event occurs when an employee or dependent that is covered becomes (or ceases to be) eligible under the Plan. A qualifying event allows employees to adjust insurance coverage without waiting until the open enrollment period. The qualifying event shall be reported within 30 days of the event to Human Resources along with along with written proof of the event. The effective date of the change shall be determined by the insurance carrier but shall be no later than the first day of the month following the qualifying event date. Common qualifying events include, but are not limited to: a. Marriage b. Divorce or legal separation c. Birth, adoption or placement for adoption of a child d. Spouse’s loss of employment/coverage e. Death f. Reduction in hours to less than full time status g. Dependent turns 26 (effective date of the change for this event only is the last day of the month that the dependent turns 26) Waiver or Cancellation of Coverage If an employee declines, waives or cancels any insurance coverage, the employee shall complete an insurance waiver form provided by Human Resources. The effective date of any change due to waiver shall be dependent on the reason and timing of the waiver and shall be determined by the insurance carrier consistent with the reason or timing of the waiver and any regulatory requirements (such as COBRA or Section 125 qualifying event changes). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 60 Dual Coverage Not Permitted The Town provides health insurance coverage under either one (1) family plan or two (2) single plans. No Town employee may be on two Town sponsored health plans. Insurance Continuation Under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and subsequent amendments to the Act, employees covered under an employer’s group insurance plan are eligible for continuation of certain insurance coverage under the group plan. COBRA contains provisions giving certain employees, former employees, spouses, former spouses, and dependent children the right to temporary continuation of insurance coverage at group rates plus a 2% administration fee. This coverage, however, is only available when coverage is lost due to COBRA qualifying events. COBRA qualifying events are events that would cause an individual to lose insurance coverage. The type of COBRA qualifying event shall determine who the qualified beneficiaries are and the amount of time that a plan shall offer the insurance coverage to them under COBRA. COBRA qualifying events include: 1. Employee or spouse’s voluntary or involuntary separation of employment for reasons other than gross misconduct. 2. Employee or spouse’s reduction in the number of hours of employment. 3. Spouse becomes eligible for Medicare. 4. Divorce or legal separation from employee. 5. Death of employee. 6. Dependent child loss of dependent child status under the plan rules. The employee (or qualified dependent) shall report the COBRA qualifying event within 30 days of the event to Human Resources and provide written proof of the event. The effective date of the change shall be the qualifying event date. All employees, as well as their qualified dependents, shall receive notice of mandated insurance continuation benefits when the plan coverage for the employee begins. 502. Other Benefits PURPOSE: To provide additional fringe benefits to employees. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: Short Term Disability Benefit eligible employees will receive Town paid Short-Term Disability Insurance (STD). The STD plan provides income replacement for employees when they have an extended illness or injury. The benefit has a 30-day elimination period. Long Term Disability Benefit eligible employees will receive Town paid Long-Term Disability Insurance (LTD). The LTD benefits begin on the later of 90 calendar days after the onset of your disabling injury or illness or the date your short-term disability ends. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 61 Life Insurance The Town sponsors a guaranteed issue life-insurance policy for Full-Time Regularly Scheduled employees. Additional life insurance may be purchased for both the employee and qualified dependents. 503. 401A Retirement Plan PURPOSE: To provide employees a plan for saving and investing in financial security for retirement. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town of Fountain Hills does not deduct Social Security taxes from full-time benefited employees’ paychecks. Instead, the Town has a mandatory 401A Retirement Plan. This plan is administered by a registered third-party administrator. Eligible employees will contribute 11% of their gross pay to their retirement account. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. The Town of Fountain Hills will also contribute 11% of the eligible employee’s gross pay. The Town’s contributions are subject to a vesting schedule as follows: Years of Vesting Service % Vested 1 YR. 20% 2 YR 40% 3 YR 60% 4 YR 80% 5 YR 100% Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 504. Deferred Compensation (457) PURPOSE: To offer employees a plan for saving and investing in financial security for retirement. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town of Fountain Hills provides an optional deferred compensation plan for all employees. Employees become eligible on their first day of employment. This plan is administered by a registered third-party administrator. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. There is no employer match of contributions. Enrollment Eligible employees may enroll in a Deferred Compensation plan at any time. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 62 Cancellation Employees are permitted to cancel or change their payroll deduction(s) into the Deferred Compensation Plan at any time by sending a written request to Human Resources. The cancellation shall be processed during the first pay period following the date the form was received by the Human Resources Department, whenever reasonably possible given payroll processing deadlines. Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 505. Health Savings and Flexible Spending Accounts PURPOSE: To offer employees flexibility and financial incentives for personal health and wellness. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town offers two types of optional healthcare-related accounts. Eligibility for the type of account is dependent on the medical plan selected. In both cases the plans allow the employee to set aside pretax dollars each pay period to pay for certain eligible health expenses. Flexible Spending Account (FSA) Eligible employees indicate the amount they wish to defer from their pay up to the maximum allowable amount regulated by law each year for medical expenses and/or dependent care expenses during the open enrollment period for this optional FSA. This amount is set and cannot generally be changed during the year unless the employee has a qualifying life event. The Town deducts this amount in equal amounts over 24 pay periods. If the money is not spent by the end of the fiscal year, it is subject to forfeiture (use-or-lose). Health Savings Account (HSA) Employees must be in a qualified High Deductible Health Plan (HDHP) to be eligible for the optional Health Savings Account (HSA). Eligible employees indicate the amount they wish to allocate from their pay up to the maximum allowable amount regulated by law each year. Employees can change this amount throughout the year by sending a written request to Human Resources. The HSA does not have a use-or-lose provision. The funds are yours to keep whether you change plans or retire. More information can be found in the employee Open Enrollment Guide. 506. Employee Assistance Program PURPOSE: To provide employees confidential and accessible support resources to assist with personal and professional challenges. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Employee Assistance Program (EAP) is a voluntary, no cost service that provides professional, confidential assistance for many types of personal problems. The program is designed to encourage early intervention and awareness of such problems and to offer help at the earliest Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 63 opportunity. Employees are responsible for their performance and for taking constructive action to resolve any personal problems that affect or threaten to affect their on-the-job behavior. Supervisors are responsible for remaining alert to all instances of substandard work performance and bringing these instances to the attention of the employee, along with an offer of assistance, at the earliest indication of a recurrent problem. Utilization of the EAP is most times on a voluntary basis. If an employee is referred by a member of management as a condition of continued employment, utilization is mandatory. In the case of mandatory utilization, the only information the Town of Fountain Hills will receive is that the employee is in the program, cooperating, and making their appointments. The decision to seek or accept assistance through the EAP will not adversely affect an employee’s job security or advancement opportunities. However, participation in the EAP in no way relieves the employee of the responsibility to meet acceptable work performance and attendance standards. All full-time employees and benefit-eligible dependents are eligible to receive assistance through the EAP. The EAP will not reveal any information that the individual discloses to the EAP except in the following circumstances: 1. The employee consents in writing; 2. The law requires disclosure; or 3. It is believed that life or safety is threatened by nondisclosure. EAP is strictly confidential and is designed to safeguard your privacy and rights. All counselors are guided by a Professional Code of Ethics. 507. Officer Craig Tiger Act PURPOSE: To provide care for eligible employees exposed to traumatic events in the line of duty. SCOPE: This policy applies to all Public Safety Employees. POLICY: This Act provides up to twelve (12) visits of licensed counseling to eligible Public Safety Employees who are exposed to certain events while in the course of duty. Under certain conditions, the Act provides for an additional twenty-four (24) visits after the initial counseling visits. The Act allows a Public Safety Employee to choose a licensed mental health professional for their counseling services. The Town shall pay the licensed mental health professional pursuant to the schedule of fees established by the Industrial Commission of Arizona pursuant to section 23-908. A Public Safety Employee and may seek counseling services if they were exposed to any one of the following events: 1. Visually or audibly witnessing the death or maiming or visually or audibly witnessing the immediate aftermath of such a death or maiming of one or more human beings. 2. Responding to or being directly involved in a criminal investigation of an offense involving a dangerous crime against children as defined in section 13-705. 3. Requiring rescue in the line of duty where one's life was endangered. 4. Using deadly force or being subjected to deadly force in the line of duty, regardless of whether the Peace Officer or Firefighter was physically injured. 5. Witnessing the death of another Peace Officer of Firefighter while engaged in the line of duty. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 64 6. Responding to or being directly involved in an investigation regarding the drowning or near drowning of a child. In compliance with provisions set forth by this amended Act, Human Resources shall track and provide annual reporting to the State of Arizona by September of each year. 508. Tuition Reimbursement PURPOSE: To provide a means of assistance for Town of Fountain Hills employees to obtain job- related education. SCOPE: All Full-Time, Regularly-Scheduled Employees who have completed a minimum of twelve (12) months of paid continuous service. POLICY: The Town of Fountain Hills encourages employees to further their development and skills through continuing education. Employees who meet the eligibility requirements stated herein shall be reimbursed for approved courses, in an approved course of study by an accredited school, college, or university. For purposes of this policy, accredited refers to accreditation provided by a body recognized by the US Department of Education. Limits: The maximum reimbursement limit is $5,250 per calendar year and is excluded as taxable wages. This benefit is subject to availability of Town funds on a fiscal year basis. Town employees should contact Human Resources to obtain information regarding the maximum annual reimbursement amount they may be eligible to receive. The Town reserves the right to limit or expand reimbursements if this limit fluctuates. Reimbursable expenditures include tuition only. Administrative fees, laboratory, technical fees, required textbooks, incidental fees such as parking permits, supplies, and recreation fees/activity fees are not covered under this reimbursement plan. Tuition reimbursement is available to eligible employees pursuing advanced education in a field which is directly related to their duties performed for the Town. Definitions: “Allowable amount” is approved by the Finance Division based upon budgeted funding and the criteria set forth within this policy. The determination of the allowable amount is made prior to the beginning of each fiscal year. Funds in excess of those approved in the Town’s budget cannot be expended without prior Town Manager approval. “Fiscal Year” is defined as July 1st through June 30th. Eligibility Requirements Individual courses as well as degree programs (undergraduate and graduate) may be considered for assistance under this program if they meet the following requirements: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 65 1. The course must be related to the employee's current job or future career growth with the organization. If a degree program is approved, all courses necessary to obtain the degree are eligible for reimbursement even if the course is not directly related to the employee's job. However, a Tuition Reimbursement Application must be submitted and approved prior to the beginning of each course under the degree program (see Reimbursement below). 2. Courses must be taken from an accredited school, college, or university. Accredited refers to accreditation provided by a body recognized by the US Department of Education. 3. Work schedules are not reduced for participating employees. Courses must be taken outside of the employee's normal work hours. 4. All course homework must be completed during non-scheduled work hours. Reimbursement To be eligible to receive reimbursement, the following must be satisfied: 1. A completed Tuition Reimbursement Application, including the Department Head’s signature of approval, must be provided to Human Resources no less than thirty (30) days prior to the first session of class. 2. The employee must be actively employed by the Town of Fountain Hills in a full-time, regularly-scheduled status at the time the course is completed and when the employee receives the final grade. 3. The actual amount of reimbursement is dependent on funding availability and total dollar amount requested for reimbursement. Reimbursement will be made upon successful completion of the course (a letter or point value equivalent to a grade of “C” or better or a “pass” for a pass/fail course). 4. Proof of satisfactory completion and detailed invoices must be submitted to Human Resources. 5. Employees who receive financial assistance for their education from grants, scholarships, or other sources must disclose the source on the request for tuition reimbursement. If employees are receiving funding other than student loans for their education from another source, the Town will not provide reimbursement for that portion of the cost. The amount of reimbursement shall be reduced by any financial assistance the employee receives from any outside source. Approvals Required All requests for Tuition Reimbursement require the approval of the employee’s Department Head. 1. All required approvals must be satisfied prior to registering for or enrolling in requested course(s). Requests received after registration or enrollment may not be eligible for reimbursement. Note: A new Tuition Reimbursement Application must be submitted and approved prior to taking courses for which the employee requests tuition reimbursement, including those that are taken as part of a previously approved degree program. 2. The Town Manager will review the request and approve or disapprove the reimbursement request based on the job-relevance of the request, potential benefit to the Town, and funds available. Note: A set funding amount is allocated to this program on a fiscal year basis. For that reason, funds are distributed on a “First Come – First Serve” basis at time of application. Procedure 1. All requests for tuition reimbursement must be submitted on a Tuition Reimbursement Application Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 66 2. All requests must include identification of the agency accrediting the college and a description of the course(s). Both of these may be photocopied from the school catalog or website. For degree programs, a copy of the requirements for the degree must be submitted, including a list of all required courses. As above, a photocopy from the school catalog or website will generally suffice. 3. Upon final approval or disapproval, a copy of the Application is returned to the requesting employee and Department Head. 4. Upon successful completion of the course, the employee shall re-submit their copy of the Application to Human Resources, along with proof of successful completion (grade report/transcript) and detailed invoices for reimbursement within thirty (30) days of completion of the class(s). Separation from Employment - It is anticipated that the employee and the Town of Fountain Hills will both benefit from employee development activities and the organization's financial investment in such activities. In order to remain eligible for tuition reimbursement, an employee must remain employed by the Town at the time the course(s) completes, and a final grade is issued. If an employee’s employment with the Town is terminated for any reason prior to such time, the employee will no longer be eligible for tuition reimbursement. Tuition reimbursement may be paid prior to completion of requested courses, but only on an exception basis. The employee must furnish an explanation of need that would justify payment in advance, and an affirmative endorsement by the individual’s Department Head prior to consideration. Each request for exception will stand on its own merits. 509. Training Funding PURPOSE: To maximize the return on investment for Town funded, job-related training outside the scope of the Tuition Reimbursement Policy. SCOPE: This guideline applies to all Town employees. Town employees who attend job-related training may, at the discretion of the Town Manager, have some or all of their expenses paid for through Town funds, including travel, accommodations, auto rental, attendance and required material fees, up to a maximum of $1,500 per fiscal year. POLICY: The Town seeks to assist employees in obtaining job-related training to enhance the personal skills of the employee in areas that are beneficial to Town operations. Procedure Employees who attend a training event that costs $1,000 or more (minus wages, but inclusive of expenses incurred from travel, per diem, lodging, auto rental, attendance and material fees) will be required to sign an agreement stating that if they separate voluntarily from Town employment within one year following the conclusion of the training, an amount based upon the total will be withheld from the final paycheck according to the following schedule: Date of Separation Percentage Withheld Up to 90 days following conclusion 100% 91 to 180 days following conclusion 50% 181 to 365 days following conclusion 25% Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 67 The original signed agreement will be forwarded to the Human Resources Office for inclusion in the employee's personnel file. Under special circumstances, the repayment requirement provision of this guideline may be waived at the discretion of the Town Manager. Nothing in this policy implies any type of contract with respect to continued employment or limits the rights of the Town to terminate any individual in accordance with Town policy. 510. Memberships PURPOSE: To encourage active community engagement among current employees. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Membership in a professional organization is valuable to our employees as well as to our organization. The Town of Fountain Hills will pay the annual membership fee required for an employee to belong to job-related professional organizations that are approved in the annual budget. The Town of Fountain Hills will also pay the fees required for employees to maintain and/or obtain professional designations that are directly related to their jobs and that are approved in the annual budget. A department director must approve in writing any exceptions to these limits. The Town of Fountain Hills cannot pay for student memberships in professional organizations. If membership in a professional or civic organization or a professional designation is not job related but is beneficial to an employee and our organization, the employee may request that their dues be paid by the Town of Fountain Hills. The employee should make a written request to their department director. The employee will be advised in writing whether any, or all of the dues, will be paid by the Town of Fountain Hills. The Town of Fountain Hills will also pay expenses associated with attending periodic job-related meetings, conferences, and seminars sponsored by professional organizations that are approved in the annual budget. 511. Service Awards PURPOSE: To recognize and celebrate employees’ years of service to the Town. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town of Fountain Hills has established a Service Award Program to honor employees at certain times during their years of service to the Town. All part-time and full-time employees are eligible. Awards will be issued to employees completing five (5) years of service. Additional service awards will be issued at five-year intervals. Employees will be recognized for their years of service at a staff meeting. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 68 HEALTH, SAFETY & SECURITY 600. Drug and Alcohol-Free Workplace PURPOSE: To maintain a workplace free from the effects of drugs and alcohol. All employees have a right to work in a drug-free environment and to work with individuals free from the effects of prohibited substances. SCOPE: This policy applies to all employees. POLICY: Consistent with the Drug-Free Workplace Act, and to ensure a safe and productive work environment the Town prohibits the use, sale, dispensation, manufacture, distribution or possession of alcohol, drugs, controlled substances, medical marijuana, or drug paraphernalia on any Town premises or work sites. This prohibition includes Town-owned vehicles, or personal vehicles being used for Town business and/or parked on Town property. Additionally, the Town may take disciplinary action, including discharge, for the illegal (under federal or state law) off-duty use, sale, dispensation, manufacture, distribution, or possession of drugs and controlled substances and the illegal use or distribution of alcohol. Restrictions 1. Employees shall not report for duty or remain on duty under the influence of or impaired by any drugs or alcohol, including prescriptions, over-the-counter (OTC) medicines, marijuana or other intoxicants that could impair work performance, alertness, coordination, or response time. 2. Employees must not unlawfully use, possess, distribute, dispense or manufacture any alcohol, drugs or other controlled substances while working for the Town, while on Town property, operating a Town vehicle, operating a personal vehicle while on Town business or representing the Town at any location. 3. Employees shall not consume alcohol, drugs or other intoxicants during lunch periods or breaks or while on-call or stand-by when the individual is expected to return to work. If an on- call employee is requested to work and has consumed drugs and/or alcohol, the employee must disclose the use of such substances at the time the individual is called to report for duty. 4. Employees shall not consume alcohol within 4 hours before reporting to work. Employees must not consume alcohol for eight hours following involvement in an accident until the employees submit to any required post-accident drug and/or alcohol testing. 5. Employees shall not refuse to take or fail to cooperate in any way with a required drug and/or alcohol test. Employees shall not interfere with, alter, substitute, adulterate, dilute or in any way attempt to affect the outcome of the testing procedure. Prescription Medication This Policy does not prohibit an employee from using a legally obtained prescription drug that was legally issued to said employee. When an employee must take prescription or over-the-counter drugs, the employee must ask the medical professional or pharmacist if the drug has any side effects which may impair the employee’s ability to safely or productively perform the employee’s job duties. If there is potential impairment of the employee’s ability to work safely or productively, the employee Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 69 must report this information to the supervisor. An employee may be required to provide the Town with a copy of the prescription and/or other medical verification. If an employee is unable to perform his or her job duties safely and effectively while taking a prescribed medication, the employee may be re-assigned, or, if no suitable position is available, may be placed on a leave of absence. Furthermore, if the Town has designated a position as safety-sensitive and the Town has a good faith belief that the employee is using any drug, whether legal, decriminalized, or prescribed by a physician, that could cause an impairment while working, or otherwise impact the employee’s job performance or ability to perform job duties, then the Town may take appropriate action to exclude the employee from the safety-sensitive position. For instance, the Town may assign the employee to another job or place the employee off work. Drug-Related Convictions Any employee convicted of violating an Arizona or Federal Criminal Drug Statute must inform the Town of such conviction (including a plea of guilty and no contest) within five (5) days of the conviction occurring. When the federal government requires a Town to notify the federal contracting office of an employee’s drug conviction in a workplace, the Town will provide such notification to the federal contracting office within ten (10) days of receiving such notice of conviction from an employee or otherwise receiving notice of such conviction. Any employee who violates this policy shall be subject to disciplinary action up to and including discharge from employment. Nothing in this policy implies employees of the Town are employed for an indefinite period. Such employment may be terminated with or without cause or notice at the will of either the employee or the Town. This policy and any related policies, practices, or guidelines are not employment contracts or parts of any employment contract. 601. Drug and Alcohol Testing PURPOSE: The Town is committed to maintaining a Drug Free Workplace that is a safe, healthy and productive work environment for all employees free from the effects of substance abuse. Employees are prohibited from possessing, distributing, selling, or working under the influence of drugs or alcohol, which can be a serious safety risk to themselves, to other employees, or to the general public. SCOPE: This policy applies to all Town employees and all applicants who have received conditional offers of employment holding a “safety sensitive” position as defined by A.R.S. §23-493. POLICY: In order to further the Town’s goal of maintaining a drug and alcohol-free workplace, the Town has implemented a drug and alcohol testing policy. Town positions that are classified as a safety- sensitive position require specific forms of drug and alcohol testing. All Town employees may be subject to testing based on a reasonable suspicion of use. Employee and Applicant Drug and Alcohol Testing To promote a safe and productive workplace, the Town will conduct the following types of Drug and Alcohol testing as described below: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 70 1. Post-Offer/Pre-Employment 2. Reasonable Suspicion 3. Post-accident 4. Return-to-Duty/Follow-up Testing Categories of Employee Substance Testing Post-Offer/Pre-Employment Testing: All persons seeking employment with the Town in a position designated as “safety-sensitive” shall undergo post-offer drug testing on or around the time employment commences. Applicants will be informed that as a condition of employment they must pass a drug screening test. Applicants who test positive will be notified that they have not met the standards for employment and will be informed they can have the confirmed positive test re-tested by a government certified lab selected by the applicant. Current employees who are transferring or are promoted into a Safety Sensitive position will also be subject to pre-employment testing. Reasonable Suspicion Testing: An employee will be asked to submit to drug and alcohol testing when the Town reasonably suspects the employee is impaired or has used illegal drugs. The decision to require a test for reasonable suspicion will be based upon objective observations by one or more supervisors and those observations shall be recorded. If a supervisor has reason to believe that an employee is impaired while on duty, he or she should immediately ensure the safety of the employee and others by removing the employee from the worksite., Travel arrangements shall be made by the employee’s supervisor or Human Resources for the employee for testing purposes and then home. The employee will be placed on administrative leave pending notification of the test results. If a supervisor has reason to believe that an employee is impaired while on duty, he or she should immediately ensure the safety of the employee and others by removing the employee from the worksite. Travel arrangements shall be made by the employee’s supervisor or Human Resources for the employee for testing purposes and then home. The Town will place the employee on leave pending the receipt of drug testing. If the results of the testing are negative, upon return to work, the employee shall be paid for the leave. However, if the results of the testing are positive, employees will not receive pay for the leave. Post-accident Testing: An employee must submit to a drug and alcohol test after an on-the-job accident, including workplace injuries. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 71 1. An accident for purposes of this policy is defined as an incident or occurrence in which any of the following conditions are met: a. A person dies or requires medical treatment. b. The employee receives a citation for a moving traffic violation arising from the accident. c. Property damage is estimated at greater than $250. d. The accident involves use of a Town vehicle. e. The accident involves an employee in a personal vehicle accident while on the job. This section does not require the delay of necessary medical attention for the injured employee following the accident or prohibit a driver from leaving the scene of an accident in order to obtain necessary medical attention. A post-accident alcohol test should be performed within two hours of the accident and not to exceed eight hours. A post-accident drug test should be performed at the same time, but no more than 12 hours after the accident occurred. If an alcohol test is not administered within eight hours or a drug test is not administered within 32 hours following the accident, all attempts to administer testing should cease and the supervisor will prepare a written report stating the reasons a test was not administered. 2. An employee who is involved in an accident must immediately report the accident to their supervisor/manager. 3. When a supervisor/manager observes or is notified of an accident as defined in #1 above, the supervisor/manager will initiate drug and alcohol testing. The supervisor/manager will order the employee to submit to a urine and/or breath test. The supervisor/manager will arrange to transport the employee to the collection site and will arrange for the employee’s transport home. 4. The Town will place the employee on leave pending the receipt of drug testing. The employee shall be paid for the leave if the testing results are negative. The employee will not be paid for the leave if the results are positive. Return to Duty/Follow-up Testing If the Town elects to allow an employee to return to work following a positive test result, the employee must first pass a drug and alcohol test and subsequently submit to a program of unannounced testing for a period of not more than 12 months from the date of return to duty. Substance Testing As permitted by applicable law, the Town may test for any of the following substances: alcohol, marijuana/THC/CBD, cocaine, opiates, amphetamines (including methamphetamines), phencyclidine (PCP), barbiturates, or any other substance considered unlawful under the schedules of the controlled substances section of the comprehensive drug abuse prevention and control act of 1970, as amended, (P.L. 91-513; 84 Stat. 1247; 21 United States Code section 812), or the metabolite of these substances. Prohibited Conduct Employees testing positive for drugs and/or alcohol, attempting to alter the outcome of a mandatory test, refusing to participate in a required test, or in any way violating the Town’s drug and alcohol policy may be removed from their position and be subject to discipline, up to and including dismissal. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 72 If a candidate tests positive for drugs or controlled substances, his or her offer of employment will may be rescinded. Medical Marijuana Pursuant to Arizona’s Medical Marijuana Law, and except as provided herein and permitted by applicable law, the Town will not refuse to hire an applicant and will not discipline or fire an employee who is a Qualifying Patient with a Registry Identification Card solely because the individual possesses a Registry Identification Card or because that individual tests positive for a presence of marijuana in his or her system. “Qualifying Patient” means an employee or a prospective employee who has been diagnosed by a physician as having a debilitating medical condition as provided for in A.R.S. § 36- 2801, et seq. “Registry Identification Card” means a document issued by the Arizona Department of Health Services or its successor agency that identifies a person as a registered Qualifying Patient as provided for in A.R.S. § 36-2801, et seq. The Town will withdraw an offer of employment or terminate an employee based on its good faith belief that the applicant or employee was impaired by marijuana while in the work environment or during hours of employment. Employees also will be terminated if they use or possess marijuana during work hours or in the work environment. In the case of a Qualifying Patient who possesses a Registry Identification Card and is not employed in or applying for a safety-sensitive position, if initial and confirmatory drug testing reveals the presence of marijuana in an employee’s or prospective employee’s system and there is other evidence or indicators of impairment, and the employee or prospective employee does not provide an explanation that satisfies the Town, the Town will take disciplinary action, up to and including termination. In the case of a Qualifying Patient who possesses a Registry Identification Card and who is employed in a safety-sensitive position (or is a prospective employee who has applied for a safety-sensitive position), if initial and confirmatory drug testing reveals the presence of marijuana in an employee’s or prospective employee’s system and the employee or prospective employee does not provide an explanation that satisfies the Town, the Town may take disciplinary action, up to and including termination (or, in the case of a prospective employee, the Town will withdraw a conditional offer of employment). Any positive test result for which the employee cannot provide a satisfactory explanation may constitute willful misconduct. Human Resources, in consultation with the Town Attorney, will determine whether or not an explanation is satisfactory. Inspection and Searches The Town may conduct unannounced inspection for violations of this policy in the workplace, work sites, or Town premises. Employees are expected to cooperate during any inspection. Voluntary Treatment The Town supports sound treatment efforts. Whenever practical, the Town will assist employees in overcoming drug and/or alcohol problems as long as this policy has not already been violated. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 73 If an employee seeks treatment for drug and/or alcohol use, the employee may be eligible to go into a drug and/or alcohol treatment program either through The Town medical insurance program or at their own expense. If the employee enters an appropriate treatment program, The Town may place the employee on unpaid status, but the employee will be required to use any accrued vacation time and sick leave while participating in the program, so long as the employee is complying with the conditions of treatment. The Town can require a release to work and/or verification that the employee has successfully completed the entire rehabilitation, treatment, and/or counseling program treatment from the health care provider. More information regarding availability of treatment resources and possible insurance coverage for treatment services is available from the Human Resources Department. The employee may also be required to pass a retest, at the employee's expense, before returning to work upon completion of such rehabilitation, treatment, and/or counseling. The employee may also be subject to periodic retesting after returning from leave. Safeguards/Confidentiality All drug tests are performed by a government-certified outside laboratory. All government-certified outside laboratories strictly follow chain of custody guidelines to ensure the integrity of the testing process. If the results of the initial test are positive, that is, if the results exceed the permitted levels for any of the drugs tested or for alcohol, a second confirmatory test shall be performed. Only specimens that are confirmed positive on the second (confirmatory) test are reported as positive for review and analysis. Human Resources will contact the employee in the case of a positive test result. An applicant or employee who does not pass a drug test may request that the original sample be analyzed again at the individual’s expense by a government certified laboratory. All requests for an independent analysis must be made in writing within 72 hours of notification of a confirmed positive test result. Each applicant or employee will have an opportunity to discuss the test results in a confidential setting. The Town will keep the test results confidential and will share the results only within the Town on a business need-to-know basis, in administrative law proceedings, and/or when required by law. Each applicant or employee upon their written request may be provided with a written copy of the positive test result. Upon written request within seven days of taking the test, an employee may access records relating to his drug and/or alcohol test. Disciplinary Action 1. Testing Positive Employees who test positive for drugs and/or alcohol are in violation of this policy. 2. Refusal to Comply Employees who refuse required testing are in violation of this policy. 3. Interference with Testing Employees who adulterate, tamper with, or otherwise interfere with accurate testing are in violation of this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 74 4. Any employee who has been observed using or possessing illegal drugs, medical marijuana, or alcohol during work time, including lunch breaks, or on Town premises is in violation of this policy. Assistance The Town recognizes that alcohol and drug abuse and addiction are treatable illnesses. The Town also realizes that early intervention and support improves the success of rehabilitation. To support its employees, the Town drug-free workplace policy: 1. Encourages employees to seek help if they are concerned that they or their family members may have a drug and/or alcohol problem. 2. Offers all eligible employees and their family members assistance with alcohol and drug problems through the Employee Assistance Program (EAP). If you have a problem with drugs and/or alcohol and wish to undertake rehabilitation, you may request an unpaid leave of absence for this purpose, which may be covered leave under the Family and Medical Leave Act under certain circumstances. It is your responsibility to seek help before the problem adversely affects your work performance or results in a violation of this policy. If you need assistance in seeking this help, you may contact the Employee Assistance Program (EAP). There is no adverse treatment against an employee for voluntarily undertaking rehabilitation (as opposed to being impaired in the workplace or failing a drug test which do have adverse consequences). Treatment for alcoholism and/or other drug use disorders may be covered by the employee benefit plan. However, the ultimate financial responsibility for recommended treatment belongs to the employee. For an employee who is permitted to seek treatment after a failed drug test, the employee shall not be permitted to return to work until they have successfully completed the entire rehabilitation, treatment, and/or counselling program and only for so long as the employee successfully remains in any aftercare program recommended by the rehabilitation, treatment, and/or counselling program. The employee shall also be required to pass a retest, at the employee's expense, before returning to work upon completion of such rehabilitation, treatment, and/or counselling. The employee may also be subject to periodic retesting after returning from leave. Shared Responsibility A safe and productive drug-free workplace is achieved through cooperation and shared responsibility. Both employees and management have important roles to play. All employees are required to report to work unimpaired in a drug free state. In addition, employees are encouraged to: 1. Be concerned about working in a safe environment. 2. Support fellow workers in seeking help. 3. Use the Employee Assistance Program. 4. Report dangerous behavior to their supervisor. It is the supervisor's responsibility to: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 75 1. Inform employees of the drug-free workplace policy. 2. Observe employee performance. 3. Investigate reports of dangerous practices. 4. Document negative changes and problems in performance. 5. Counsel employees as to expected performance improvement. 6. Refer employees to the Employee Assistance Program. 7. Clearly state consequences of policy violations. Communication Communicating the drug-free workplace policy to both supervisors and employees is critical to its success. To ensure all employees are aware of their role in supporting our drug-free workplace program: 1. All employees will receive a written copy of the policy. 2. The policy will be reviewed in orientation sessions with new employees. 602. Smoke-Free Workplace PURPOSE: To provide a healthy environment for employees and customers, the Town prohibits smoking and use of smokeless tobacco products in Town facilities and vehicles. SCOPE: This policy applies to all employees and visitors. POLICY: The Town of Fountain Hills strives to maintain a healthy environment for its employees and customers. No smoking or use of smokeless tobacco, or use of e-cigarettes or vaping devices is permitted anywhere inside or outside (within a 10-foot radius of any doorway, open window, or air intake) of Town facilities or vehicles. No smoking is permitted at any location that signage prohibits smoking. All employees are responsible to l ensure that there is no smoking in Town buildings and vehicles. 603. Firearms/Weapons PURPOSE: To establish a policy concerning weapons in the workplace. SCOPE: This policy applies to all employees and visitors. POLICY: Except as provided below, the Town of Fountain Hills prohibits anyone from possessing or carrying weapons of any kind on Town property, in Town owned or leased vehicles, or during working hours. This includes: 1. Any form of weapon or explosive 2. All firearms; and 3. All illegal knives or knives with blades that are more than six (6) inches in length. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 76 If an employee is unsure whether an item is covered by this policy, please contact Human Resources. Employees are responsible for making sure that any item they possess is not prohibited by this policy. Police officers, security guards, and other individuals who have been given consent by the organization to carry a weapon on the property will be allowed to do so. Pursuant to Arizona law, employees may have a firearm that is lawfully possessed stored in a locked personal vehicle so long as such firearm is not visible from outside of the vehicle. This policy does not apply to Town vehicles. No firearms or weapons of any kind may be transported or stored in Town vehicles. Exceptions This policy does not apply to individuals who, within the normal scope of the individual’s employment, are required to use a device that is, or would be considered, a weapon and who is authorized to use such a device by the individual’s Department Director. 604. Violence in the Workplace PURPOSE: The Town is committed to providing a work environment that is free from violence. Any acts or threatened acts of violence shall not be tolerated. Anyone engaging in violent behavior shall be subject to discipline, up to and including discharge, and may also be personally subject to other civil or criminal liabilities. SCOPE: This policy applies to all Town employees and visitors. POLICY: Threats, threatening and abusive behavior, or acts of violence against employees, visitors, citizens, or other individuals by anyone on Town property will not be tolerated. This is a zero-tolerance policy. Anyone engaging in violent behavior shall be subject to discipline, up to and including discharge, and may also be personally subject to other civil or criminal liabilities. The Town of Fountain Hills reserves the right to take any necessary legal action to protect its employees. Enforcement of this Policy requires the combined efforts of all employees. Employees shall report any act of violence or any threat of violence to their supervisor. All such reports shall be fully investigated. The Town’s prohibition against threats and acts of violence applies to all employees, visitors, and citizens on Town property. Workplace violence is any act or threat (either verbal or implied) of physical violence, including intimidation, and/or coercion that involves or affects employees (on or off duty) or occurs on Town property. Specific examples of conduct that may be considered threats, or acts of violence include, but are not limited to, the following: 1. Hitting or shoving an individual. 2. Threatening an individual. 3. The intentional destruction or threat of destruction of Town property. 4. Threatening phone calls. 5. Surveillance or stalking. 6. The suggestion or intimation that violence in the workplace is appropriate. 7. Threats of, or use of firearms or weapons. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 77 Department Directors Supervisors will provide a working environment as safe as possible by having preventative measures in place and by dealing immediately with disruptive, threatening or potentially violent situations. No employee will engage in threatening, violent, intimidating or other abusive conduct or behaviors. In addition, employees are expected to refrain from verbal references of violence, or other conduct that may be dangerous to others. Employees shall notify their supervisor whenever they witness, experience or become aware of an act or threat of workplace violence. All suspicious individuals or activities shall be reported as soon as possible to the employee’s supervisor. When reporting a threat of violence, you should be as specific and detailed as possible. Employees who feel that they or their co-workers are in immediate or imminent danger should dial 911 to attain assistance from law enforcement. Even without a specific threat, all employees should report any behavior they have witnessed that they regard potentially threatening or violent or which could endanger the health or safety of an employee when the behavior has been carried out on a Town-controlled site or is connected to Town employment or Town business. Employees are responsible for making this report regardless of the relationship between the individual who initiated the threatening behavior and the person or persons being threatened. The organization understands the sensitivity of the information requested and has developed confidentiality procedures that recognize and respect the privacy of the reporting employee. Supervisors shall take workplace violence concerns seriously. Any person who makes threats, exhibits threatening behavior, or engages in violent acts on Town premises shall be removed from the premises as quickly as safety permits and shall remain off Town premises pending the outcome of an investigation initiated by the Town Manager or designee. Supervisors shall receive, evaluate, interview and respond to reports of workplace violence with the assistance of appropriate parties, including the Department Director and Human Resources. To maintain workplace safety, the Town Manager may place an employee on administrative leave pending an investigation. Employees are expected to cooperate with the investigation of any incidents. Employees who fail to cooperate with an investigation or who give false information shall be subject to disciplinary action, up to and including discharge. The Town of Fountain Hills will initiate an immediate and appropriate response. This response may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment, and/or criminal prosecution of the person or persons involved. Privacy rights will be observed in the investigation as much as possible. Only those individuals with a clear need to know of the potential risk will be notified in cases where a person is, or is perceived to be, a threat to others. Anonymity of employees reporting violence, threats of violence, intimidation or other abusive conduct will be maintained during the investigation to the greatest extent possible by those investigating and resolving the complaint. However, there is no right to or guarantee of anonymity since it is often necessary to make the employee or member of the public against whom the allegation has been made aware of the complaint in order to ascertain the facts. Retaliation and/or reprisal against an employee who genuinely reports threats of workplace violence in good faith are in violation of this Policy. Anyone who engages in or assists in such retaliatory actions shall be subject to disciplinary action up to and including discharge. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 78 Employees found to be in violation of this Policy shall be subject to disciplinary action, up to and including discharge, as well as arrest and prosecution. Restraining Orders Employees who are seeking or have obtained restraining orders or injunctions against other individuals should notify their supervisor so that appropriate measures can be taken. When an injunction or restraining order lists Town facilities as being protected areas, employees must provide their supervisor with a copy of any injunction or restraining order which is granted, and a copy of any injunction or restraining order which is made permanent. 605. Identification Badges and Building Access PURPOSE: To protect the safety and maintain the security of all employees and Town assets. SCOPE: This policy applies to all civilian Town employees. POLICY: Every employee is required to wear a picture identification badge at all times while on Town premises. Failure to do so will subject the employee to corrective action. Human Resources will arrange for all new employees to receive an ID badge during orientation on their first day of employment. Loss or damage of the ID badge should be reported to Information Technology immediately in order for the badge to be deactivated in the system. The badge is the property of the Town of Fountain Hills and must be returned upon termination of employment. Because employee ID badges are also the means by which employees enter and leave the premises, employees must not loan their badges to anyone, including other employees, nor should employees allow anyone to enter the premises that the employee does not know to be an employee of the Town of Fountain Hills without first signing the Visitor Log and obtaining a Visitors Pass. Failure to observe these safety regulations could endanger the safety and security of all other employees and could subject the employee to corrective action up to and including termination. 606. Family or Guests in Non-Public Areas PURPOSE: To protect the safety and maintain the security of all employees and Town assets. SCOPE: This policy applies to all Town employees. POLICY: Employees will make every effort to limit personal visitation by family or friends while on duty. Family and guests of staff will avoid interrupting other staff from their work activities and will enter another staff person’s work area only if specifically invited. Under no circumstances will family members or other guests be in non-public areas when the staff member is not present. Interruption or disturbance caused by family members or guests may be the basis for disciplinary action against the employee, including dismissal. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 79 607. Safety Equipment/Uniforms PURPOSE: To ensure that employees wear safety equipment that shall provide the necessary support and protection required for the job they are assigned. SCOPE: This policy applies to all Town employees. POLICY: The Town will provide, at no cost to employees, a sufficient amount of uniform clothing and safety apparel for all employees who are required to wear uniform clothing and safety apparel as part of their Town duties and responsibilities. All employees who are required to wear uniform clothing as part of their duties and responsibilities will adhere to the following: 1. Town employees are required to wear issued safety and identifying clothing as set forth in individual Departmental polices. 2. A Town uniform, or any part of a Town uniform, is not to be worn for personal/private use. 3. All uniforms and safety apparel will be clean and neat in appearance at the start of each work shift. 4. All employees are prohibited from wearing a Town uniform or any part of the uniform after established work hours and may not enter into any adult entertainment establishment or business that would bring possible discredit to the Town or the employee while in an authorized Town uniform. 5. All employees are prohibited from possessing or consuming alcoholic beverages at any time while wearing a Town uniform or any portion of a Town uniform. 6. Employees are responsible for the proper maintenance, laundering and care of these items. This includes laundering the uniform regularly. 7. If the uniform needs to be replaced due to normal wear and tear, the Town will replace it at no expense to the employee. 8. If anything outside of normal wear and tear results in the need for a replacement, the replacement may be at the employee’s expense depending on the frequency and severity of each occurrence. Additionally, excessive damage to or loss of company uniforms may result in disciplinary action. Payroll deductions may be arranged to cover replacement cost. 9. During the course of employment, all uniforms will remain the property of the Town. 10. Upon termination of employment, or upon management request, uniforms are expected to be returned in a reasonable state and in their entirety. Fire Department. Additional Uniform and Safety Equipment provisions for active fire suppression positions will be found in the Department’s Standard Operating Guidelines. 608. Workplace Safety PURPOSE: To provide safe working conditions. SCOPE: This policy applies to all Town employees. POLICY: The Town prioritizes the well-being and safety of its employees and strives to ensure optimal working conditions for them. Employees must make a conscientious effort to be aware of security, safety, and health procedures as well as potential hazards to staff and customers. The goal is Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 80 to avoid accidents and not to create them. To accomplish this objective, all employees are expected to work diligently to maintain safe and healthy working conditions and to adhere to proper operating practices and procedures designed to prevent injuries and illnesses. The Town provides information to employees about workplace safety and health issues through regular internal communication channels such as supervisor-employee meetings, bulletin board postings, policies and procedures. Each employee is expected to understand and obey safety rules, and to exercise caution in all work activities. Employees must conduct themselves in a safe manner at all times, adhere strictly to all safety requirements, and immediately report any accidents, hazards or potentially unsafe conditions. If the unsafe condition can be corrected immediately to avoid any additional hazard, then the employee should implement the corrective action. Employees must immediately report any unsafe condition to the appropriate supervisor. Employees who violate safety standards, who cause hazardous or dangerous situations, or who fail to report or, where appropriate, remedy such situations, may be subject to disciplinary action, up to and including termination of employment. The responsibilities of all employees in this regard include, but are not limited to: 1. Exercise maximum care and good judgment at all times to prevent accidents and injuries; 2. Report injuries to supervisors and seek first aid; 3. Report unsafe conditions, equipment, or practices to supervisory personnel; 4. Use safety equipment provided by the Town when applicable; 5. Conscientiously observe safety rules and regulations at all times; 6. Notify supervisory staff, before the beginning of the workday, of any medication they are taking that may cause drowsiness or other side effects that could lead to injury; 7. Know the locations of fire and safety exits; 8. Never attempt to catch falling objects; 9. Non-slip shoes must be worn when applicable; 10. Make certain emergency equipment, such as fire extinguishers, alarms, and exit doors, is accessible at all times; 11. Maintain all equipment in good repair. 12. Know and be familiar with all Health and Safety Plans including, but not limited to, Bloodborne Pathogen Exposure Control Plan, TB Control, Respiratory Protection Plan for TB, Hazard Communication, Workplace Violence Prevention, and Emergency Plan and Fire Safety. Department Directors are to provide safe working conditions. It is the duty of Management to establish safety regulations and to instruct employees in accident prevention. Suggestions regarding safety will be welcomed by all employees who are expected to immediately report unsafe conditions to their immediate supervisor. 609. Reporting Accidents & Incidents PURPOSE: To establish procedures to be followed when an accident or incident occurs. SCOPE: This policy applies to all Town employees. POLICY: All accidents and incidents are to be reported immediately to the supervisor. This is to ensure correct treatment and the proper handling of the situation. Employees will be required to report Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 81 accidents/incidents occurring on or with Town property or during the course of work. Employees involved in an accident may be required to submit to a test for drugs or alcohol, including possible urine or blood screening. Such tests would be conducted in accordance with the Town’s regulations as outlined in Town Policy. Any eyewitness to an accident should document what happened, how it happened, and any other information that would be helpful in the treatment of the injured individual. Refer to your supervisor to report work related accidents or injuries. Questions regarding accident reporting should be directed to the supervisor or Human Resources. 610. Workers Compensation PURPOSE: To establish procedures to be followed for job-related injury or illness. SCOPE: This policy applies to all Town employees. POLICY: Under Arizona law, it is mandatory for employers to secure workers’ compensation insurance for their employees. Workers’ compensation is a “no fault” system in which an injured or ill employee may be entitled to receive benefits for a job-related injury or illness, no matter who caused the injury or illness. If an illness or injury is job-related, then the injured employee is eligible to receive medical benefits and may receive temporary compensation and/or other workers’ compensation benefits, if eligibility requirements are met. The provisions of this policy are not intended to conflict with or supersede state law, nor should they be interpreted or construed to do so. If any provision of this policy conflicts with state law, state law shall control. Reporting Requirements Employees shall immediately report any job-related accident, illness, or injury, to their immediate supervisor. If the employee’s immediate supervisor is not available, or if the employee’s immediate supervisor is the employee’s Department Director, the employee shall report the accident, injury or illness to the employee’s Department Director. 1. Work-related injury or illness shall be reported in writing within 24 hours to the employee’s supervisor. 2. The employee’s supervisor or Department Director shall ensure that the accident, injury, or illness is reported to the Human Resources Department no later than the next business day. 3. Employees shall follow the reporting procedures established by the Human Resources Department, to include completing and submitting any required forms. The employee is responsible to provide physicians’ statements, including releases to return to work and modifications required, to Human Resources. An employee who fails to return to work after being released by an approved physician will be considered to have resigned and will be terminated. A Return-to-Work Form indicating required accommodations and/or temporary work restrictions should also be obtained and returned to Human Resources prior to returning to work. 4. A physician approved by Human Resources, or designee must treat the injured employee on a first visit. Medical attention should be sought from a medical facility providing occupational health services for the Town and the employee, or another person on behalf of the employee, Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 82 should inform the medical facility that the employee is employed by the Town. Use of Leave 1. On the day of the accident, injury or illness, the employee will not be required to use General Leave for an absence that is a direct result of the accident, injury or illness. Time spent during the workday addressing the accident, injury or illness, such as seeking medical attention, shall be treated as time worked. The employee will not be paid wages for any time spent addressing the accident, injury or illness outside the employee’s scheduled workday. 2. Beginning with the first workday following the day of the accident, injury or onset of illness, an employee who is receiving workers' compensation benefits may use sick leave to make up the difference between the workers' compensation payments and current hourly rate of pay. If the employee has exhausted sick leave, then they may use vacation time to make up the difference between the workers' compensation payments and current hourly rate of pay. Employees shall not be permitted to utilize sick or vacation time in such a way that would compensate the employee with an amount greater than their current hourly rate of pay. If an employee uses sick or vacation time to make up the difference between compensation received through workers' compensation and the employee’s current hourly rate, it shall be the responsibility of the supervisor to record the appropriate time on the biweekly time sheet. 3. If the employee used leave balances for time lost and the workers’ compensation carrier then provides retroactive compensation benefits for lost wages, the Town shall reimburse the employee’s leave balances in the appropriate amount and type of leave for the time lost that is retroactively paid through compensation benefits. The Town will correct the overpayment to the employee in the next regular pay cycle or cycles by reducing the employee’s hours paid by the Town. The employee’s pay shall not exceed the employee’s normal weekly earnings through any combination of workers’ compensation benefits, paid leave and other payments received by the employee. If the combination of payments results in the employee being paid more than the employee’s normal weekly earnings, the Town shall require the employee to reimburse the Town for the overpayment. When an employee with a job-related injury or illness returns to work, the employee must use approved leave for absences due to medical appointments, including physical therapy, for the job- related injury or illness. Any request to use paid leave balances will be considered in accordance with the leave policies set forth in this chapter. Benefits An employee who uses paid leave balances to supplement compensation benefits for lost wages due to a job-related injury or illness shall continue to pay his or her share of any group health plan and other insurance premiums through payroll deductions. An employee who does not use paid leave balances to supplement compensation benefits for lost wages due to a job-related injury or illness shall make arrangements with the Human Resources Department to make payments for his or her share of any group health plan and other insurance premiums. If payment is more than 30 days overdue, the Town shall provide written notice to the employee that payment has not been received and that coverage will be dropped. The notice shall be mailed to the employee at least 15 days before coverage is to be dropped. If the Town pays any of the employee’s share of group health plan or other premiums in order to maintain coverage, the Town may require the employee to reimburse the Town. If coverage is dropped, it shall be dropped Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 83 retroactively to the date the unpaid premium payment was due and the provisions of the federal COBRA law shall apply. Coordination with Family Medical Leave Act A job-related injury or illness may also be considered a “serious health condition” under the Family and Medical Leave Act (FMLA). In such cases, the Town will designate the employee’s absence as FMLA-qualifying, will give notice of the designation to the employee and the FMLA provisions described in these Human Resources Policies will apply. Return to Work No employee who seeks medical attention for a work-related injury will be allowed to return to duty without clearance from the health care provider. Worker’s Compensation Determination Medical expenses and wage loss are covered by provisions of the State Worker’s Compensation Act. The Town’s worker’s compensation insurance carrier (insurance carrier) makes all determination for worker’s compensation claims. 611. Temporary Modified Duty PURPOSE: To offer a program which provides safe work, when possible, for employees who have been temporarily restricted by a health care provider. SCOPE: This policy applies to all Town employees. POLICY: Alternative work or light duty assignments are intended for employees with medically documented, temporary mental or physical illnesses or injuries sustained on or off the job who have work restrictions and who are expected to eventually return to unrestricted work. This program promotes the safe return of injured employees back into the work environment and enhances the mental and physical healing of the employee, thereby shortening the period of time an injured employee is off the job. A Temporary Modified Duty (TMD) program that modifies an employee’s job duties within work recommendations of the treating health care provider(s) may be administered by, and at the discretion of the Town Manager for pregnancy or any work injury/illness that affects the employee’s ability to perform some or all of their normal work duties. Modified job assignments are temporary, and the TMD program does not create positions to permanently accommodate a person with qualified disabilities. Such work will be provided subject to availability. Work will be assigned due to the nature of the injury or illness and the limitations set forth by the treating physician. Every effort will be made to place employees in positions within their own departments, but, if necessary, employees will be placed wherever an appropriate position is available. The goal and expectation of the TMD program is that the employee shall progressively return to full work capacity. The employee should be able to perform their prior job at 100% without limitations. The primary objectives of the TMD program are as follows: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 84 1. Safely return employees to work as soon as possible. 2. Avoid deterioration in work skills due to prolonged absences from work. 3. Reduce the number of lost time incidents and total number of lost workdays. 4. Reduce disability and medical treatment costs. 5. Maintain productivity without hiring temporary employees. 6. Rapid and efficient return of employees to their original jobs. 7. Maintain a high level of communication with employees. Modified or light duty work, including transfer to another division, may be provided when: 1. The work is productive. 2. The work is within the employee’s medical restrictions as provided by a physician. 3. The work is within the employee’s skill level. 4. There is adequate capacity within the department or division to organize and supervise the work being performed. There is no guarantee that modified or light duty assignments are available. Temporary modified or light duty work shall be specific to the injured employee’s limitations, and the availability of work so as not to cause upheaval or restrict day-to-day operations. While on temporary modified duty, employees will continue to receive their regular rate of pay. Employees who are placed outside their department will continue to have their salary charged to their regular department. Employees on TMD must furnish a written update of their medical condition to their supervisor and Human Resources from the treating physician after each visit in order to remain in the reassigned job. Temporary modified duty assignments are limited to a period of 90 days, subject to review. It is not intended to accommodate employees with non-temporary disabilities. An employee in an alternative work assignment is subject to all rules, regulations, standards, policies and procedures of the Town and of the department to which the employee is assigned. The Town specifically reserves all rights to administer this policy. This policy does not have permanent modified or light duty positions, nor shall it create positions to permanently accommodate a person with a disability. If an employee reports to modified or light duty work, the employee has an obligation to work within the restrictions provided by the physician. If a supervisor or designee unknowingly asks the employee to do a task outside of the restrictions, the employee is responsible for informing the supervisor of the restrictions and shall decline the task. Employees who do not improve while participating in the TMD program may be removed from the program. Employees who have reached “end of healing” as established by a physician shall be removed from the TMD program. Interaction with Other Laws and Policies 1. An employee on FMLA leave is not required to accept an available alternative work assignment. The employee may continue on FMLA leave either until the employee is able to return to his/her job or an equivalent job, or until the 12-week FMLA leave entitlement is exhausted. 2. An employee receiving workers’ compensation benefits may forfeit the right to those benefits by refusing to accept an alternative work assignment, as determined by the Town’s workers’ compensation carrier. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 85 3. The Town will comply with the Americans with Disabilities Act (ADA) and applicable state law governing employees with disabilities. No Right to Alternative Work Assignment If granted, alternative work assignments are a privilege and shall not be considered a right or entitlement. An employee in an alternative work assignment has no rights to that assignment or any tasks associated with that assignment no matter the duration of the alternative work assignment. Compensation 1. Employees serving in alternative work assignments shall receive a formal performance appraisal in accordance with the Town’s normal performance management process. The appraisal shall address the employee’s job duties and performance for the relevant time period, including the employee’s job duties and performance in the alternative work assignment. 2. Employees serving in an alternative work assignment within the same classification as their regular position are eligible for across the board pay increases based on availability of funding. 3. Employees serving an alternative work assignment outside the classification of their regular position will be eligible for across the board pay based on availability of funding. 612. Fitness for Duty PURPOSE: To provide a consistent means of evaluating employees in determining that the physical and mental health of an individual allows them to complete assigned duties in a safe and reliable manner. SCOPE: This policy applies to all employees. POLICY: For employees, fitness for duty (FFD) means being able to perform the essential duties of their job in a safe, appropriate, and effective manner. It is the Town’s policy to provide a consistent means of evaluating employees in determining that the physical and mental health of an individual allows them to complete assigned duties in a safe and reliable manner. Primary responsibility for FFD rests with the employee. Being fit for duty means reporting to work mentally and physically fit to work safely, responsibly, productively, and reliably. Supervisors shall ensure that employees under their supervision are aware of and held responsible for FFD. If an employee fails to take personal responsibility for FFD, the supervisor shall contact Human Resources to discuss an FFD evaluation. A management request for FFD evaluation may be appropriate when: 1. The employee identifies a medical condition as a cause of a performance problem. 2. Unsafe behavior is observed that is not typical of the employee. 3. There is a documented concern about whether the employee can work in a safe and reliable manner. 4. There is reasonable suspicion of substance abuse. 5. There is a management concern about excessive use of absences that are medical in nature. 6. The employee experienced or witnessed a traumatic event in the course of employment. A FFD exam may also be required for an employee who is returning from a medical leave of absence or work-related injury prior to their return to work. The FFD process is not a substitute for using Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 86 performance guidance and counseling or the disciplinary process. Supervisors should address performance problems through the performance review process or by implementing corrective or disciplinary action despite the existence or possibility of medical issues but should first consult with Human Resources. Supervisors should consult with Human Resources if a supervisor determines that an FFD evaluation may be necessary. 613. Reasonable Accommodations PURPOSE: To define the Town’s position on reasonable accommodations for qualified individuals with disabilities and for employees whose work requirements interfere with a religious belief. SCOPE: This policy covers all Town employees. POLICY: It is the policy of the Town to comply with all federal and state laws concerning the employment of persons with disabilities and to act in accordance with regulations and guidance issued by the Equal Employment Opportunity Commission (EEOC) and the Americans with Disabilities Act, as amended (ADAAA). Furthermore, it is the Town’s policy not to discriminate against qualified individuals with disabilities in regard to application procedures, hiring, advancement, discharge, compensation, training or other terms, conditions, and privileges of employment. The Town will make reasonable accommodations for the known physical or mental disabilities of qualified applicants or employees unless doing so would result in an undue hardship to the Town or cause a direct threat to health or safety. The Town will also provide reasonable accommodations for employees whose work requirements interfere with a religious belief, unless doing so poses an undue hardship on the Town or causes a direct threat to health or safety. This Policy is neither exhaustive nor exclusive. Procedures Qualified individuals with disabilities who are otherwise able to perform the essential functions of their job may make requests for reasonable accommodation through a ‘Request for Accommodation Form’ to Human Resources. On receipt of an accommodation request, Human Resources will meet with the requesting individual to discuss and identify the precise limitations resulting from the disability and the potential accommodation(s) the Town might make to help overcome those limitations. The applicant or employee may be required to provide medical documentation of their disability and of the effectiveness of the accommodation sought. The Town may also require a medical examination to assist in assessing the existence of a disability and the effectiveness of accommodations. Reasonable accommodations may include any action which enables a qualified individual with a disability to perform the essential functions of their position, but which does not result in an undue hardship to the Town or pose a threat to the health and safety of the employee or coworkers. Any employee or applicant who fails to provide requested information or otherwise fails to engage in the interactive process of assessing the existence of a disability and the necessity, availability, and effectiveness of an accommodation will be deemed to have withdrawn any request for accommodation. Any employee who is not satisfied with the response to an accommodation request should inform Human Resources. All employees are required to comply with Town safety standards. Current employees who pose a direct threat to the health or safety of themselves or other individuals in the workplace shall be placed on leave until an organizational decision has been made in regard to the employee’s immediate Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 87 employment situation. Individuals who are currently using illegal drugs are excluded from coverage under this Policy. The ADA Coordinator and appropriate management representatives identified as having a need to know, including legal consultation, is responsible for implementing this policy, including the resolution of reasonable accommodation, safety/direct threat and undue hardship issues. Implementation The Human Resources Administrator is the ADA Coordinator and is responsible for implementing this policy. Specific responsibilities may be delegated to other management, administration, or supervisors. Medical Records The Town will maintain any employee health information in a confidential file separate from the personnel file. The health file will be accessible only on a need-to-know basis. Supervisory employees and employees with any first aid or safety duties may be informed of any medical conditions that may require emergency treatment, and all such information shall be kept confidential by those informed. Medical Exams Post-offer, fitness for duty, and other medical exams that serve a legitimate business interest may be required. In evaluating whether an employee or applicant is able to perform the essential functions of the job, an individualized analysis will be conducted based upon information reasonably available, including information from the employee or applicant, health care providers (if any were consulted), the employee’s or applicant’s personal physician or health care provider, if the employee or applicant provides such information to the Town, and any other pertinent information. Similarly, an individualized analysis will be conducted based on the same types of information to determine whether an employee or applicant would pose a direct threat in the job. 614. Medical Examinations PURPOSE: To ensure applicant capability to perform essential functions of the job, some applicants are required to undergo a post-offer, pre-employment medical examination, physical test, and alcohol and drug screening. SCOPE: The Town of Fountain Hills applicants and current employees. POLICY: Any offer of employment from the Town is contingent upon, among other things, an applicant’s satisfactory completion of this examination and screening and a determination by the Town and its examining physician that the applicant is capable of performing the essential functions of the position that has been offered, with or without a reasonable accommodation. As a condition of continued employment, employees in certain positions are also required to undergo periodic medical examinations, physical tests, and alcohol and drug screening at times specified by the Town. The Town receives only pass/fail information regarding the applicant’s or employee’s state of health. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 88 The Town of Fountain Hills pays for all business required medical examinations in full. Questions about medical examinations should be directed to Human Resources. 615. Immunizations PURPOSE: To protect the health and wellness of all Fountain Hills employees. SCOPE: All Fountain Hills employees who may come in contact with bodily fluids and/or contaminated materials. POLICY: The Town of Fountain Hills is committed to keeping its emergency response personnel healthy and safe. First Responders may come into contact with bodily fluids and/or be exposed to contaminated materials that could lead to transmission of vaccine preventable diseases. As a result, a Tetanus booster, tuberculosis screening, and Hepatitis B vaccination is recommended; in addition, talking with your personal health care provider to discuss other vaccines you may need is highly recommended. 616. Service Animals in the Workplace PURPOSE: To maintain a safe environment for all employees and visitors while providing accommodation to individuals in need of service animals. SCOPE: All Fountain Hill employees and visitors. POLICY: Service Animals for Employees A service animal may accompany an employee with a disability at work if it is deemed to be an acceptable and reasonable accommodation under the ADAAA, after consultation and approval of Human Resources. An emotional support animal and comfort animal that is not trained to work or perform a task in support of a disability does not qualify as a service animal under this policy and is therefore prohibited. If the service animal is approved by Human Resources or designee, the employee will be permitted to bring a service animal to the workplace, provided that the animal’s presence does not create any health concerns and is not a danger to others. The care of the service animal is solely the responsibility of the employee. Employees are responsible for the following: 1. Keeping service animals under control at all times. 2. Any clean-up or damage to Town property by their service animal. 3. Providing documentation proving the animal is up to date on vaccinations. 4. Having comprehensive liability insurance covering potential injuries. 5. Having a way to transport the animal in the event it creates a health concern or is a danger to others at work. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 89 Pets and other animals are prohibited from entering the workplace, except for approved service animals. 617. Surveillance System PURPOSE: To maintain a safe and secure environment through the use of surveillance technology, with respect to privacy, and ensuring the protection of employees, visitors, residents and assets. SCOPE: All Town employees and visitors. POLICY: The Town of Fountain Hills operates a system of surveillance cameras for the purpose of creating a safer environment for all those who live, work, and visit the Town. Cameras may be placed in strategic locations throughout Town owned facilities and property. These cameras may be used for detecting and deterring crime, to safeguard against potential threats, to manage emergency response situations, and to monitor the use of publicly owned buildings and facilities. Only authorized employees are allowed to access recorded images. When activity warranting further investigation or review is reported or warranted at any camera location, the authorized employee may selectively view the appropriate camera and relay any available information to law enforcement or other employees as necessary to appropriately respond to the situation. Recorded images may be used for a variety of purposes, including but not limited to: 1. Assist in criminal investigations. 2. Monitor activity around high-value or high-threat areas. 3. Assist in identifying, apprehending, and prosecuting offenders. 4. Assist in gathering evidence for criminal and civil court actions. 5. Assist emergency services personnel. 6. Assist in providing effective public services. 7. Review suspicious behavior. Surveillance monitoring shall be conducted in a professional, ethical, and legal manner at all times. The surveillance system shall not be used to invade the privacy of individuals or look into private areas or areas where the reasonable expectation of privacy exists. Efforts shall be taken to protect these rights. Surveillance monitoring shall not be used to harass, intimidate, or discriminate against any individual or group. Human Resources shall approve all authorized users before access to the system is granted. The Human Resources Department shall maintain a list of all employees authorized to access the camera system and shall provide that information to the IT Department. The IT Department shall maintain a record of the location of all active cameras in the system and all recorded images. All recorded images shall be retained per the records retention requirements. 618. Use of Town Property Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 90 PURPOSE: To establish guidelines for the appropriate use of Town property, materials, equipment and vehicles. Each Town Department shall adopt this regulation and may adopt more stringent guidelines with written permission of the Town Manager. See specific Departmental regulations for more detail related to that department. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Properly functioning equipment and vehicles are essential to accomplishing job duties. When using Town property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines. Employees are to notify the supervisor if any equipment, machines, tools, or vehicles appear to be damaged, defective, or in need of repair. Prompt reporting of damage, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment or vehicles used on the job. Licensing All personnel driving Town vehicles shall have a valid State of Arizona Driver’s License with the appropriate license classification for the type of vehicle they are operating, acquire a complete knowledge and understanding of vehicular operations, and obtain all necessary approvals from Risk Management required to operate the vehicle. If a Town employee loses their driver’s license for any reason, that employee shall notify their supervisor no later than the beginning of the next working shift. The responsibility for ensuring complete compliance with the provisions of this regulation rests with the Department Head, supervisors at all levels, and the individual employees involved. Failure to notify your supervisor of loss of license could result in disciplinary action up to and including termination. Use of Town Vehicles Only authorized Town employees are allowed to operate Town vehicles. Independent contractors and volunteers are specifically prohibited from operating Town vehicles. Use of Town vehicles shall be restricted to official business, subject to the following guidelines: 1. Transporting of passengers shall be limited to Town employees, persons in an advisory capacity to the Town, persons participating in approved Town programs, and other agency representatives on Town business. 2. Employees assigned a Town vehicle for use during their normal workday schedule may use the vehicle during normal work hours to either go home or to a restaurant for lunch if their personal vehicle is not readily available. Employees assigned a vehicle for use during their normal workday schedule are to exercise discretion in its use. Town vehicles may not be used for personal business. 3. Alcoholic beverages shall not be consumed or transported in Town vehicles, nor shall Town employees have consumed any alcohol or any substance (as defined by Town Policy) before or while operating the vehicle. Under no circumstances shall any Town employee who registers a positive blood alcohol level be permitted to operate any Town vehicle or heavy equipment. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 91 4. It is inappropriate for a Town vehicle to be parked in front of certain types of businesses, such as a liquor store or bar unless the vehicle is being used to conduct official Town business, such as an inspection. Department Heads may assign Town vehicles for overnight use under the following circumstances: 1. To employees who are frequently required to use a Town vehicle at night, during the weekend, or if they have substantial emergency responsibilities. This does not include employees whose homes are outside Fountain Hills unless the Town’s emergency response or other important Town business would be greatly facilitated. 2. In situations where the conduct of Town business can be facilitated by overnight use of a Town vehicle by an employee who normally does not keep a Town vehicle overnight. 3. To any number of employees rotating a specific assignment and vehicle at night or on weekends. 4. All employees making overnight trips with a Town vehicle must have prior approval of their Department Head as denoted on a Travel Authorization form. Town vehicles shall be operated in a responsible, safe manner, as outlined below: 1. Seat belts shall be worn by all employees and passengers using a Town vehicle and the vehicle shall not be operated until all vehicle occupants have buckled their seat belt. 2. Town vehicles shall be driven in compliance with motor vehicle laws. 3. No employee under the age of eighteen (18) shall be allowed to operate a Town vehicle. 4. Smoking/smokeless tobacco/e-cigarettes is not allowed in any Town vehicles. 5. Pets or animals of any kind are not allowed in Town fleet vehicles. 6. Employees operating a Town vehicle shall exhibit appropriate and courteous driving habits to members of the public at all times. 7. Employees are personally responsible for the prompt and proper reporting to their supervisor, and payment of fines for any citations received while using a Town vehicle. Under no circumstances are these citations to be paid for by the use of Town funds. All moving traffic citations shall be reported within three (3) working days to the appropriate Department Head. 8. All employees who operate a Town vehicle shall become familiar with policies and procedures relating to the reporting of accidents. Employees involved in an accident may be required to submit to a test for drugs or alcohol, including possible urine or blood screening. Such tests would be conducted in accordance with Town regulations as outlined Town Policy. 9. Employees operating Town vehicles are responsible for keeping them clean and litter free. Employees assigned to a specific Town vehicle on a regular basis are also responsible for ensuring the vehicle is in good working order at all times. Any known defects or malfunctions of a Town vehicle are to be reported promptly to the Fleet Mechanic. 10. Routine maintenance and repair of Town vehicles will be supervised through the Public Works department. 11. Fuel cards shall remain in Town vehicles at all times. 12. Operators shall manage their driving environment to minimize distractions that could have an impact on their ability to safely operate the vehicle (i.e., consuming food or beverages). Use of cell phones or texting while operating a Town vehicle is strictly prohibited. Use of Other Town Tools/Equipment Personal use of town owned tools and other work equipment is prohibited. Personal tools and other work equipment should not be utilized on the job and the Town will not take liability for lost or stolen personal tools and equipment used on the job. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 92 The improper, careless, negligent, destructive, or unsafe use or operation of equipment or vehicles, as well as excessive or avoidable traffic and parking violations, can result in disciplinary action, up to and including termination of employment. 619. Use of Town Premises and Office Materials PURPOSE: To establish guidelines for use of Town facilities and property. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Meetings held on the Town of Fountain Hills’ premises must be for the purpose of conducting Town business. Meetings for other purposes are strictly forbidden. The use of business stationery and/or the Town’s postage meter for personal correspondence is strictly prohibited. The personal use of its facsimile or copying machines is also forbidden without first receiving management approval and reimbursing the Town of Fountain Hills at the current prevailing rates. Sending or receiving personal mail at the Town of Fountain Hills’ address is prohibited. No product or materials, including those put in any trash container, is to be removed from the buildings except by authorized personnel. Anyone who removes products or materials without proper authority will be subject to discipline up to termination. Town Property It is the Town’s intent to provide its employees, during the course of their employment, with access to the use of various properties for the employee’s purpose of conducting business for the Town. Employees should have no reasonable expectation of privacy in the use of the Town’s and the public's property. The Town may access its property with or without the prior consent or knowledge of the employee to the extent permitted by law. Town property is to be used judiciously by employees at all times and only in the manner for which the Town and public intend the property to be used. Employee Responsibility. Employees are encouraged to exercise care and attention in safeguarding personal property brought to the workplace. The Town does not assume liability for the loss, theft or damage of personal property brought to the workplace. Right to Access The Town reserves the right to access, replace or utilize any of its property (including office, desk, files, locker, or any other area or article on town premises issued for the use of employees during their employment with the Town) without prior permission of the employee to whom it was provided to the extent permitted by law. Circumstances warranting a need to access property include, but are not limited to, the following: 1. The Town has a need to search for business items or information that is needed in a timely manner. 2. The Town is complying with applicable laws regarding review and disclosure of records and information. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 93 3. The Town has reasonable suspicion to believe that the employee is engaging in illegal or improper activities, in conjunction with committing a violation of policy, rules or general expectations of conduct, or in a way that may jeopardize the health and wellbeing of others. 4. For any other lawful reason. 5. Under these circumstances, employees may be required, upon the request of the Town, to submit to a search of any personal property brought onto the Town's premises to the extent permitted by law. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 94 EMPLOYEE CONDUCT 700. Dress Code and Personal Appearance PURPOSE: To provide guidelines for the appearance of Town employees when performing duties and conducting business for the Town. SCOPE: All Town employees. POLICY: All Town employees are expected to present a positive, professional, and appropriate image consistent with the duties and assignments of each employee. This policy represents the minimum standards which will be applied to all departments. Departments may have more restrictive standards if such standards are approved in writing by the Town Manager. Employees are expected to maintain an appearance that is appropriate to the work situation. Department Heads and supervisors are responsible for determining and enforcing this policy. The professional image of the Town is maintained, in part, by certain expected norms of professional appearance, of personal neatness, cleanliness, and grooming which are applicable to all employees. All employees are expected to use good judgement and maintain appropriate standards of dress, grooming and hygiene. Employees are to wear appropriate attire for their workday and anticipated interactions with the public. Extravagance and extremes of style and attire are not in good taste in a public service environment. The Town reserves the right to advise any employee at any time that their grooming, attire, or appearance is unacceptable. If a supervisor feels that an employee’s apparel or grooming does not meet the Town’s expectations, the matter will be discussed with the employee. The employee may be asked to leave the workplace until the issue has been resolved. Under such circumstances, employees will not be compensated for the time away from work. If an employee has a health or safety reason that will not allow them to meet these expectations, they are expected to discuss this with their supervisor. Human Resources has final authority in determining any dress or appearance issue not defined in this Policy. If a pattern of non- compliance develops, progressive discipline will be administered as appropriate, up to and including termination. Personal Appearance Guidelines 1. Be groomed in such a way that their dress, hairstyle, piercing, or tattoos do not disrupt the operations or cause a health or safety hazard. 2. Hair and facial hair must be clean, well-trimmed, and neat. a. Hairstyles are expected to be in good taste and present a professional appearance. b. For respirator fit-test requirements for personnel governed by respiratory protection guidelines, facial hair must not interfere with the sealing surface of the facepiece, nor interfere with valve function. 3. Jewelry may not be functionally restrictive, dangerous to job performance, or excessive. a. Facial jewelry of any type does not present an appropriate professional appearance and is not permitted. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 95 b. Field personnel are discouraged from wearing large rings while on duty. Rings have the potential to cut through gloves, creating an environment of possible exposures. c. Torso body piercings with visible jewelry or jewelry that can be seen through or under clothing is not permitted. 4. Visibly offensive tattoos and similar body art must be covered while on duty or anytime in uniform. 5. Employees should not wear fragrant lotion, cologne, perfume, or related products while on duty. One employee’s taste may not be that of another, and others in the work environment may be allergic or made uncomfortable by these products. Dress Code Guidelines Moderation and good taste in dress is expected of employees. Office personnel adhere to a business or business casual dress code. 1. All clothing which is worn on duty shall be neat, clean, properly pressed and well maintained. 2. Shoes must provide safe, secure footing, and offer protection against hazards relative to your position. 3. Shoes and/or boots must be clean. 4. Clothing supporting any political candidate, or displaying inappropriate words or images is not allowed. 5. Tight or revealing apparel without appropriate undergarments is not allowed. 6. Visible undergarments are not permitted. 7. Athletic clothing (ex. Shorts, T-shirts, sweatpants, spandex, jogging suits, tank tops, halter tops, hoodies, sweatshirts, and baseball caps/hats) is not allowed unless consistent with uniform policy or for physical fitness in the Fire Department. 8. Clothing must be free of stains, rips, tears, and/or fraying. 9. Tank tops, tube tops, or halter tops may not be worn unless consistent with uniform policy. Field Work Individuals employed in areas where safety equipment, or other uniform or dress considerations are in place due to occupational health and safety or other business-related reasons, must adhere to those safety standards deemed appropriate by the department head. Uniforms The Town will provide, at no cost to employees, a sufficient amount of uniform clothing and safety apparel for all employees who are required to wear uniform clothing and safety apparel as part of their Town duties and responsibilities. All field personnel will wear proper and complete uniforms while on duty. All personnel are to wear their uniforms properly at all times when on duty. All employees must be in uniform for any training conducted unless otherwise authorized by management. Uniform Guidelines 1. Uniforms must remain clean, unwrinkled, neat, and in good repair. 2. Uniform items that are faded, torn, or worn are not acceptable. If the uniform endures damage from anything other than natural wear and tear or lack of care, please contact a supervisor for direction of uniform piece replacement. This includes material or functional defects, fading or shrinkage. 3. A Town uniform, or any part of the Town uniform, is not to be worn for personal/private use. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 96 4. All uniforms and safety apparel will be clean and neat in appearance at the start of each work shift. 5. All employees are prohibited from wearing a Town uniform or any part of that uniform after established work hours and may not enter into an adult entertainment establishment or business that would bring possible discredit to the Town or the employee while in an authorized Town uniform. 6. All employees are prohibited from possessing or consuming alcoholic beverages at any time while wearing a Town uniform or any portion of the Town uniform. 7. All uniform items will be clearly marked with the Town logo and the name of the Town department. 8. All Town uniforms and safety equipment must be left at the employee’s work location daily unless otherwise agreed and approved by the Department Director. The issuance of uniforms will conform to individual departmental policies and depend upon available Town funds within the annual budget allocation. The Fire Department may have additional uniform requirements for maternity, special duty/assignments, and Mourning and Remembrance. Casual/Dress Down Thursday Thursdays of each week will be considered a dress down day. Attire for dress down days will be “relaxed casual” but must still adhere to the Town’s dress code guidelines. There are times when traditional business attire is to be worn on casual days. The Town requests that you take your day’s schedule into account when you are dressing. If you have a meeting scheduled with visitors, or if you are advised that others in the department will have visitors with whom you will come in contact, you will want to dress in professional/business casual attire. Professional attire is always acceptable. Work-Study Students Students (Interns) frequently work in support of regular department employees in return for educational credit and/or financial aid subsidies. The dress for these students may be casual to accommodate financial limitations and school schedules but shall be consistent with all other policy guidelines. Employees may discuss reasonable accommodations to this policy with their supervisor and/or Human Resources. 701. Performance Evaluation PURPOSE: To establish a system of periodic evaluation of the work performance of Town employees. SCOPE: This policy applies to all Town employees. POLICY: The performance evaluation is an essential and effective communication tool in the management of the Town’s workforce. Performance management, of which the evaluation process is Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 97 an integral part, is at the core of productivity and the quality of service provided for the citizens of the Town of Fountain Hills. The performance evaluation provides direction for individual and group staff development. An employee may be reviewed at any time, but a formal performance evaluation will be completed at least once annually, in most cases. Introductory employees are reviewed prior to the end of their designated introductory period with a recommendation for regular status, or an extension of the introductory period. Every full-time Town employee will receive a formal written evaluation of work performance for the twelve (12) month period preceding the designated evaluation date of their current employment with the Town. Part-time employees will receive a formal written evaluation of work performance once they have completed a minimum of 1040 hours. Performance evaluations will be completed on the forms or online software provided by the Human Resources office and will be completed no later than ten (10) working days after the evaluation due date. New employees will receive a performance evaluation prior to the completion of their designated introductory employment period. These reviews will take place regardless of whether the employee is eligible for a pay increase. A performance evaluation is not linked with a salary increase. Employee self-evaluations may be completed but are not required. Performance evaluations are completed by the employee’s supervisor. All performance reviews will be reviewed and signed by the Supervisor, Department Head, and Human Resources prior to the performance review conference taking place with the employee. These signatures signify agreement with the contents of the performance evaluation, as well as format and thoroughness. After discussion, the employee signs the evaluation to confirm that an opportunity for review was provided. Refusal of the employee to sign does not invalidate the evaluation. The employee will be given a copy of, or provided online access to, the evaluation and all original performance review forms are maintained in the employee’s personnel file location in the Human Resources office. Supervisors should provide ongoing performance feedback throughout the year. The performance evaluation summarizes t the employee’s performance and development needs and desires. 702. Conflict of Interest PURPOSE: To establish guidelines for Town employees to identify, disclose, avoid, and manage conflicts of interest as required by law. SCOPE: This policy applies to all officials, officers, and employees of the Town. POLICY: All employees must manage their personal and business affairs so as to avoid situations that might lead to conflict, or the appearance of conflict, between self-interest and our duty to the Town, to the people served by the Town and to the general public. Every employee has an obligation to diligently identify, disclose, avoid and/or manage conflicts of interest. A potential conflict of interest exists when an employee’s or an employee’s relative’s financial or proprietary interests may be directly or indirectly impacted, whether favorably or detrimentally, by a decision made by the Town in which the employee participates. Even if no abuse of position actually occurs, a conflict of interest or its appearance can seriously undermine the public’s confidence and trust in the Town’s Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 98 governmental system. Employees are subject to the provisions of A.R.S. Section 38-501 et. Seq. (Conflict of Interest of Officers and Employees) through 38-532 regarding conflict of interest. An employee is responsible for notifying their supervisor of any potential conflict of interest. It is the duty of the employee and/or supervisor, if there is any concern regarding a possible conflict of interest, to contact the Town Attorney and request a written opinion, who is responsible to assist any employee or official who has any questions regarding conflict of interest. The following guidelines help ensure conflicts of interest do not occur. These are not intended to be all-inclusive, or to substitute for good judgment on the part of all employees. 1. No employee may use his or her position to obtain financial gain or anything of value for the private benefit of himself or herself or his or her immediate family, or for an organization with which he or she is associated. 2. No person may offer or give to an employee, directly or indirectly, and no employee may solicit or accept from any person, directly or indirectly, anything of value if it could reasonably be expected to influence the employee’s vote, official action or judgment, or could reasonably be considered as a reward for any official action or inaction on the part of the employee. 3. No employee may take any official action substantially affecting a matter in which the employee, a member of his or her immediate family, or an organization with which the employee is associated, has a financial interest. 4. No employee may use his or her position in a way that produces or assists in the production of a benefit, direct or indirect, for the employee, one or more members of the employee’s immediate family either separately or together, or an organization with which the employee is associated. 5. An employee shall not grant any special consideration, treatment or advantage to any member of the public beyond that which is available to any other, including preferential treatment for employment. 6. An employee shall not use, or knowingly permit the use, of Town resources, vehicles, equipment, materials for unauthorized purposes or for unauthorized personal convenience or for profit. 7. An employee shall not disclose or permit the disclosure of privileged information to any person not lawfully authorized to receive such privileged information. An employee shall not use privileged information to advance his or her personal financial interest or that of his or her immediate family. 8. An employee shall not accept from any person or organization directly or indirectly, anything of value without full payment, if it could reasonably be expected to influence his or her actions or judgments or is provided to such employee because of their position could reasonably be considered as a reward for any action or inaction. Disclosure of Interest An employee who has a financial or other private interest shall disclose conflict of interest in writing on the records of the Town or other appropriate authority, the nature and extent of such interest. Any employee who has, or who’s relative has, a substantial interest in any contract, sale, purchase, or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale, purchase, or service. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 99 Any employee who has, or who’s relative has, a substantial interest in any decision of a public agency shall make known such interest in the official records of such public agency and shall refrain from participating in any manner as an employee in such decision. 703. Outside Activities of Staff PURPOSE: To provide guidelines for employee activities outside of work that may impact the Town. SCOPE: This policy applies to all Town employees. POLICY: Employees are to avoid situations in which their personal interests, activities, and associations may conflict with the interests of the Town. If such situations threaten any employee’s effectiveness, the Town reserves the right to evaluate the impact of such interest, activity or association upon an employee’s responsibilities. So that staff members may avoid situations in which their personal interests, activities, and associations may conflict with the interests of the Town, the following guidelines are provided: 1. Refrain from making public statements about private associations if such remarks are likely to violate community standards of propriety. 2. Avoid conduct and associations outside of work, which, if known, could have an adverse or harmful effect upon the Town. 3. Do not use Town property or work time to solicit or accept customers for private enterprises. 4. Refrain from expressions that would disrupt harmony among co-workers or interfere with the maintenance of discipline. 5. Do not engage in political activities during assigned hours of employment. 6. Do not conduct unapproved solicitations on Town property. 7. Do not reveal privileged/confidential information. 704. Gifts Policy PURPOSE: To establish a policy so that the Town of Fountain Hills employees understand what type of gifts are and are not acceptable. SCOPE: This policy applies to all employees. POLICY: Employees of the Town are in regular contact with citizens and many others vital to successful operations and mission achievement. Accordingly, relationships with such individuals, and other third parties require clear commitments to fair dealing and sound business decisions. The exchange of gifts may have an impact on the ability to make decisions free of any conflict of interests. Gifts of a nominal nature should not create a conflict or create the appearance of impropriety. Extravagant gifts and entertainment are never acceptable. It is possible that customary business practice and common sense may permit acceptance of a gift of significant value for the common good of the Town as a whole (For example, financial or real property is bestowed via a Will or Grant), in which the Town Manager and/or Council would be involved. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 100 Appropriate Gifts and Entertainment Acceptable gifts and entertainment must be nominal in value and are not likely to influence the judgment of individuals covered by this Policy, such as: Modest expressions of goodwill such as an inexpensive promotional item, “logo” pens, calendars, caps and the like, flowers, a fruit basket, a book or comparable items, a small collection of product samples. These items should be shared with the entire office whenever possible so that no single individual gains from the gift. Inappropriate Gifts and Entertainment Town employees should never accept or approve items such as: 1. Cash or cash convertible or cash equivalent, for instance, any kind of money transfer, bank check, loan, promise of future employment etc. 2. Any gift or entertainment that is illegal. 3. Acceptance of a gift or of entertainment that would be or perceived as “quid pro quo”. Procedure Upon Receiving an Inappropriate Gift Any gift that you receive that would be wrong or inappropriate according to the principles described above must be returned immediately, and your immediate supervisor should be informed accordingly. Where appropriate and in order to prevent further impropriety, a letter to the donor may be issued regarding this Policy. 705. Customer Service Expectations PURPOSE: To establish Town expectations of employee interactions with the public. SCOPE: This policy applies to all Town employees. POLICY: Residents and visitors to the Town of Fountain Hills are among our organization's most valuable assets. Every employee represents the Town to the public. The way we do our jobs presents an image of our entire organization. The public judges all of us by how they are treated with each personal contact. Therefore, one of our first business priorities is to assist any customer. Employees should be courteous, friendly, helpful, and prompt in the attention provided to our customers. 706. Code of Conduct PURPOSE: To establish a code of conduct for the basic guidance of Town employees concerning matters affecting their work. SCOPE: All Town employees. POLICY: A Town government that upholds high standards of integrity and impartiality is a cornerstone of the democratic way of governing ourselves. As an integral member of the Town, employees are expected to accept certain responsibilities, adhere to high standards of personal conduct, and always exhibit a high degree of personal integrity and mutual respect toward others. To ensure orderly operations and provide the best possible work environment, The Town expects employees to Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 101 follow rules of conduct that shall protect the interests and safety of all employees and the Town. Employees shall conduct themselves at all times to reflect favorably upon themselves and the Town. Whether working or not, employees shall avoid any conduct which brings the Town into disrepute. Any type of behavior and/or conduct that the Town considers inappropriate could lead to disciplinary action up to and including termination of employment. Listed below are expectations of behaviors and/or conduct, to include, but are not limited to, the following: PERFORMANCE OF DUTIES: 1. Employees should perform official duties diligently during working hours. 2. Employees should always perform their duties with courtesy and respect for the public and for co-workers. They should execute these duties without bias or prejudice, manifest by words or conduct, based upon race, color, religion, national origin, gender, age, sexual orientation, disability, or political affiliation. 3. Employees should perform their work satisfactorily and seek to maintain and improve their personal and professional growth and development, and that of their co-workers, through cooperation and participation in educational programs relevant to their duties and through any licensing or certification required for their position. 4. Employees should perform their assigned duties impartially in a manner consistent with law and the public interest, un-swayed by kinship, position, partisan interests, public clamor or fear of criticism or reprisal. 5. All duties shall be performed with honesty and truthfulness without falsification in any manner. 6. All duties shall be performed in a healthy and safe manner without causing disorderly or undue interference to other employees. 7. Employees should observe and obey all Town and department policies, procedures, and rules, and all state and federal laws, regulations, and administrative rules. 8. Employees should ensure the proper use of resources and equipment. 9. Employees should ensure the security of confidential information and similarly maintain the security of Town resources. 707. Harassment PURPOSE: To establish a policy prohibiting harassment in the workplace and provide a method by which claims of harassment may be investigated and resolved. SCOPE: All Town Employees. POLICY: It is the policy of the Town to promote a productive work environment and not tolerate verbal or physical conduct by any employee that harasses, disrupts, or interferes with another employee’s work performance or that creates an intimidating, offensive or hostile environment. It is anticipated that Town employees will treat each other with courtesy and civility at all times, and harassment or intimidation of any form will not be tolerated. Accordingly, the Town is committed to Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 102 enforcing its Harassment Policy at all levels of the organization. It is specifically unlawful, and therefore strictly forbidden, for any person to harass an employee based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age, disability, marital or domestic status, citizenship, genetic information, or any other characteristic protected by law. The Town forbids retaliation against anyone for reporting harassment of any kind or otherwise assisting in the investigation of a harassment complaint or filing a charge of discrimination with a government agency. The purpose of this Policy is to encourage early reporting and early intervention before conduct rises to the level of harassment in violation of this Policy. It is the policy of the Town to investigate all complaints of harassment. Harassment that interferes with the ability of Town employees to perform their expected job duties will not be tolerated and will be met with appropriate disciplinary action, up to and including termination. This Harassment Policy applies to all employees and makes no exceptions. If, following a complaint and investigation, the Town finds credible evidence that any employee has violated the Harassment Policy, the offending individual will be subject to discipline, up to and including termination. Sexual harassment: Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Examples of sexual harassment may include explicit sexual propositions, sexual innuendo, suggestive comments, sexually oriented "kidding" or "teasing," "practical jokes," jokes about gender-specific traits, foul or obscene language or gestures, display of foul or obscene printed or visual material, and physical contact such as patting, pinching, or brushing against another person. Sexual harassment may be subtle or not and may occur between members of the same or opposite gender. Other harassment: Harassment on the basis of any other protected characteristic is also prohibited. Under this Policy, harassment may be verbal, written or physical conduct that denigrates or shows hostility toward an individual because of any characteristic protected by law; and that: a) has the purpose or effect of creating an intimidating, hostile or offensive work environment, b) has the purpose or effect of unreasonably interfering with an individual’s work performance, or c) otherwise adversely affects an individual’s employment opportunities. Harassment can take many forms including but not limited to the following: 1. Offensive Personal Behavior Engaging in any type of conduct that would reasonably interfere with another employee’s work performance or time available to work assigned tasks by creating a work environment that is intimidating, hostile or offensive because of unwelcome or unwanted conversations, suggestions, requests, physical demands, physical contacts or unwelcome attentions. 2. Offensive Comments Offensive comments, jokes, innuendoes, or any other such statements including verbal abuse or kidding about an individual’s body or appearance where such comments are derogatory, involve the telling of “off color” or “dirty jokes”, or any other tasteless comments, innuendoes or actions that offend others. 3. Offensive Actions Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 103 Wearing insignia on clothes, hats, or other articles of clothing, defacing surfaces located in the Company with graffiti, or placing pictures, objects, or other symbols within the workplace that are objectionable to another employee. The Town is opposed to any form of retaliation, including retaliatory harassment by managers, supervisors, co-workers, or any other persons employed by the Town, for the good faith and reasonable reporting of any harassment or otherwise assisting or participating in the investigation of a harassment complaint, or filing a charge of discrimination with a governmental agency. Complaint Procedure Every employee of the Town has an affirmative duty to maintain a workplace free of harassment and intimidation. Individuals who believe they have been the victims of conduct prohibited by this policy or believe they have witnessed such conduct should discuss their concerns with their supervisor, or, if their supervisor is the subject of the complaint, or if there is some other reason for doing so, to their supervisor's supervisor or Human Resources Department heads or supervisors who receive complaints or reports of harassment must immediately inform Human Resources of such complaints. Human Resources will expedite an investigation into the allegations. Investigations will be prompt and thorough. After an investigation, the Town will normally meet with the parties involved to report the results of the investigation and, where appropriate, to inform the parties of the steps the Town will take or has taken to correct the situation. Retaliation against an individual for reporting harassment or discrimination or for participating in an investigation of a claim of harassment or discrimination is a serious violation of this Policy and, like harassment or discrimination itself, will be subject to disciplinary action, up to and including discharge. Acts of retaliation should be reported immediately and shall be promptly investigated and addressed. Misconduct constituting harassment, discrimination or retaliation shall be dealt with appropriately. Responsive action may include, for example, training, referral to counseling or disciplinary action up to and including discharge. False and malicious complaints of harassment, discrimination, or retaliation may be subject to disciplinary action, up to and including discharge. Confidentiality of all parties involved in a harassment charge shall be respected; except to the extent that it interferes with the Town’s obligation to investigate allegations of misconduct and to take appropriate action. 708. Whistleblower Protection PURPOSE: This policy identifies protections for employees to make good faith reports of suspected fraud, corruption, or other improper governmental activity, or health and safety concerns within the Town to appropriate Town officials. SCOPE: This policy covers all Town of Fountain Hills employees. POLICY: A whistleblower as defined by this policy is an employee of the Town of Fountain Hills who reports an activity that the employee considers to be illegal or dishonest to one or more of the parties specified in this policy, cooperates with an investigation, and/or testifies in legal proceedings Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 104 arising out of improper government action. The whistleblower is not responsible for investigating the activity or for determining fault or corrective measures; appropriate management officials are charged with these responsibilities. Examples of illegal or dishonest activities include but are not limited to violations of federal, state or local laws or fraudulent financial reporting. If an employee has knowledge of or a concern of illegal or dishonest fraudulent activity, the employee is to contact his/her immediate supervisor and/or human resources. The employee must exercise sound judgment to avoid baseless allegations. An employee who intentionally files a false report of wrongdoing will be subject to discipline up to and including termination. Whistleblower protections are provided to employees in both maintenance of confidentiality and against retaliation. Confidentiality of the whistleblower will be maintained to the extent possible under the law. However, identity may have to be disclosed to conduct a thorough investigation, to comply with the law and to provide accused individuals their legal rights of defense. The Town of Fountain Hills will not retaliate against a whistleblower. This includes, but is not limited to, protection from retaliation in the form of an adverse employment action such as termination, compensation decreases, poor work assignments, and threats of physical harm. Any whistleblower who believes they are being retaliated against should contact human resources immediately. The right of a whistleblower for protection against retaliation does not include immunity for any personal wrongdoing that is alleged and investigated. All reports of illegal and dishonest activities should be promptly submitted to human resources who is responsible for ensuring an investigation occurs and any appropriate corrective action is taken. 709. Confidentiality PURPOSE: To establish guidelines and safeguards for employees who come into contact or use confidential information for work matters. SCOPE: All Town Employees POLICY: Employees may come into the possession of confidential information. It is the policy of the Town that the information will not be disclosed to others who do not have a need to know it. Anyone who intentionally causes a breach of confidentiality will be held accountable and disciplinary action may result in up to and including termination. All employees are expected to understand and abide by the following practices: 1. Confidential information will not be disclosed to others, including friends or family, who do not have a need to know it. 2. Personal access codes, user ID(s), and passwords used to access computer systems are to be considered confidential information. 3. Confidential information will not be discussed where others can overhear the conversation. This includes, but is not limited to, hallways, elevators, break rooms, restaurants, and social events. 4. Employees will not make inquiries about confidential information for other personnel who do not have proper authorization to access such confidential information. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 105 5. Employees will not willingly inform another person of their computer password or knowingly use another person’s computer password instead of their own for any reason except maintenance or technical support. 6. Employees will not make any unauthorized transmissions, inquiries, modifications, or purging of confidential information in Town computer systems. Such unauthorized transmissions include but are not limited to removing and/or transferring confidential information from Town computer systems to unauthorized locations (for instance, home). 7. Employees will password-protect any computer prior to leaving it unattended. 8. Employees will comply with any security, privacy, HIPAA policy, and/or procedure promulgated by the Town to protect the security and privacy of confidential information. 9. Upon cessation of employment, all employees will immediately return any documents or other media containing confidential information to the Town. Reporting a Breach of Confidentiality A breach of confidentiality could occur through a variety of means, some unintended and others with intent to steal or do harm. These include but are not limited to: 1. Unintended mistakes that cause accidental disclosures. 2. Abuse of access privileges. 3. Knowingly accessing information for non-work-related purposes. 4. Unauthorized physical intruders. Employees will immediately report any activity by any person, including themselves, that is in violation of this Policy or of any Town security or privacy policy to their direct supervisor. This will allow the process of mitigating the effect of the breach and preventing any additional loss of data. The Town shall provide each applicable Fire Department employee with HIPAA (Health Insurance Portability and Accountability Act) training and HIPAA Policy separate from this Policy. 710. HIPAA PURPOSE: This policy addresses responsibilities and rights under HIPAA. SCOPE: All Town Employees. POLICY: The Town is required to comply with the Health Insurance Portability and Accountability Act (“HIPAA”) due to its operation as both a health care provider for emergency medical services (EMS) and as a sponsor of a self-insured health plan. Accordingly, the Town has adopted HIPAA Privacy and Security Policies and Procedures to protect the privacy of both patient information and employee information related to the provision of health care benefits, known under HIPAA as protected health information (“PHI”). These HIPAA Privacy and Security Policies and Procedures are maintained by the Fire Department as an EMS provider and by the Human Resources Department for the Town’s self-insured health plan. To summarize, Town employees who, as part of their job functions, are authorized to access, use, or disclose PHI pertaining to individuals seen by the Town’s EMS providers or employee health information obtained by the Town through its function as a self-insured health plan, are required to protect this information from unauthorized use Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 106 and disclosure and adhere to the HIPAA Privacy and Security Policies and Procedures. These policies and procedures apply to: 1. The Fire Department as a health care provider because it provides emergency medical services. 2. The Human Resources Department because of its access to employee health benefits information through its role as the sponsor of the self-insured health plan. 3. Departments which support the Fire and Human Resources Departments and who have access to PHI, including the Information Services Department. Access, use and disclosure of PHI without authorization is prohibited. Failure to comply with the HIPAA Privacy and Security Policies and Procedures may result in disciplinary action, up to and including termination of your employment. If you have questions about access, use, or disclosure of protected health information contact the Human Resources Department before you act. HIPAA does not apply to health information the Town has for some other reason, such as because the Town is an employer or because of Worker’s Compensation. Other rules and regulations address the privacy of health information in other contexts, such as under the Family Medical Leave Act, the Americans with Disabilities Act, or the Industrial Insurance Act. If you have questions about any of the other privacy laws or rules, please contact the Human Resources Department. 711. Work Rules PURPOSE: This policy addresses employee conduct and expectations not previously established. SCOPE: All Town Employees. POLICY: Whenever and wherever people work together, standards of reasonable conduct need to be established in order to maintain an orderly and efficient work atmosphere. The following types of conduct are unacceptable in our workplace. Because it is impossible to list every conceivable infraction, the list of examples below is not all-inclusive. 1. Insubordination, which is defined as an unwillingness, refusal or disregard to carry out a directive from a supervisor. Insubordination is also defined as disrespectful behavior toward a supervisor/superior. 2. Circumventing or undermining the direction of a supervisor of the authority of a supervisor/superior. 3. Incompetence or inefficiency in the performance of duties, substandard quality or quantity of work, including deliberate reduction of output, or failure to complete assignments promptly and accurately. 4. Fighting, disturbing or violent behavior, threatening, humiliating, intimidation or harassment of others. 5. Retaliation and/or reprisal against an employee who genuinely, and in good faith, reports threats of bullying or workplace violence. 6. Use of offensive, profane or abusive language, disrespectful discourteous, insulting, abusive or inflammatory conduct toward others. 7. Unauthorized or inappropriate use of identification cards or keys, or unauthorized access to data, e-mails, or restricted areas. 8. Falsification of timekeeping, reports or any other Town records. 9. Falsification of information to secure employment with the Town. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 107 10. Leaving the job without permission, or job abandonment. 11. Excessive tardiness, absenteeism or absence without notice. 12. Frequent absences from an employee’s work area due to personal conversations, personal visitors, or long breaks. 13. Falsifying or refusing to give testimony when accidents are being investigated. 14. Dishonesty in the performance of duties. 15. Making false or malicious statements with the intent to harm or destroy the reputation, authority or official standing of an individual or organization. 16. Theft or misappropriation of Town property or the property of others, including theft of work time, excessive time at break periods, misuse of sick leave or other designated leave, misrepresenting work time, or failing to accurately record work time. 17. Unauthorized possession or removal of the Town or another employee’s private property. 18. Unauthorized use of Town‐owned or leased equipment or property. 19. Damage or defacing of Town or employee property. 20. Dissemination or disclosure of confidential material or information, except to persons specifically authorized by law or policy to receive the same. 21. Disregarded or repeated violations of safety rules and regulations. 22. Failure to report injuries or unsafe conditions. 23. Fighting, immoral conduct, threats, or acts of assault or other physical violence, intimidation or harassment of customers or employees. 24. Illegal, immoral, disruptive or otherwise improper conduct that adversely and substantially injures or brings the Town into disrepute. 25. Being arrested or convicted of a crime that is substantially related to the circumstances of the job or licensed activity that the person was hired to perform, or unavailability for work due to incarceration. 26. Performing an act that the employee knows is in excess of his/her lawful authority or that he/she knows is forbidden by law to perform in his/her official capacity. 27. Engaging in unauthorized personal business such as excessive personal telephone calls and/or email/internet use during regularly scheduled work hours. 28. Soliciting, accepting or offering bribes. 29. Failure to obtain and maintain a current license or certification as required by law or the Town. 30. Conviction of a felony or misdemeanor directly related to the employee’s duties. 31. Unauthorized access to records, file cabinets, desks, offices, facilities, or computers. 32. Inappropriate dress, grooming, and/or appearance inconsistent with Policy. 33. Smoking in prohibited areas. 34. Manufacturing, possession, distribution, dispensing, sale, transfer, or use of alcohol, a controlled substance or other illegal drugs, while in the workplace, while on duty, or while operating Town‐owned vehicles or equipment. This does not prohibit an employee from ingesting a legally obtained prescription drug that was legally issued to the employee. 35. Consumption of alcohol or illegal drugs when on duty. 36. Reporting to work or remaining on duty when the employee is under the influence or using alcohol, illegal drugs, or any controlled substance, including prescription medications, except when the use is pursuant to the instructions of a licensed health care provider who has advised the employee that the substance does not adversely affect the employee’s ability to safely and competently perform his/her job. 37. Engaging in illegal conduct. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 108 The Town reserves the right to modify this list at any time or determine whether any other conduct is contrary to the interests of the Town and warranting of disciplinary action up to and including discharge. 712. Corrective and Disciplinary Action PURPOSE: To establish the employee corrective action and disciplinary process. SCOPE: All Town employees. POLICY: Each employee shall generally be supervised by the individual to whom they are responsible in the organization. Each employee shall customarily be responsible to one immediate supervisor; however, when an employee divides responsibilities among two or more programs, the responsibilities for supervision and evaluation shall be furnished in writing to the employee. The Town Manager has authority to take disciplinary action against any employee. The Town Manager may delegate this authority to any management employee for subordinate employees. Disciplinary actions shall be issued for violations of standards of employee conduct, violations of policies and procedures, or for unsatisfactory work performance. Progressive discipline is a disciplinary system that provides a graduated range of responses. The Town’s discipline system includes a series of increasingly severe disciplinary actions, ranging from a corrective action to termination. However, this does not mean that every step in the graduated range of disciplinary actions will occur in an ordered sequence in every case. Progressive discipline is a general guideline for supervisors. However, there is no right to progressive discipline. The totality of the circumstances will dictate the appropriate level of discipline for each incident. Review of the particular facts and circumstances, such as the severity of the offense and an employee’s disciplinary history, whether for the same type of offense or not, may indicate that more severe disciplinary measures, up to and including termination, are appropriate. A combination of disciplinary actions may also be used. Corrective Action Coaching Coaching is an employment measure initiated by the supervisors to the employee prior to disciplinary action and may be presented to the employee in any format the supervisor finds appropriate. Coaching is a non-disciplinary action to encourage employees and clarify expectations. Another term used for coaching may be counseling or informal corrective action. These measures are not required to be used before disciplinary action occurs or in any specific order. The supervisor may repeat coaching at their discretion. The supervisor maintains documentation of the discussion, and the employee should be informed that a record of the counseling session shall become part of the employee’s personnel record. Counseling is not a form of discipline and is not subject to the appeal/grievance procedure. Special Performance Review Period When performance or behavior warrant, a special performance review period may be established. The special performance review period may not exceed ninety (90) calendar days. The supervisor Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 109 or Department Director shall prepare a written performance evaluation and memorandum outlining the improvement required, the time established for the period, and possible consequences if performance does not improve. Ten (10) days before the end of the period, the supervisor or Department Director shall submit a written performance evaluation and recommendation for the employee’s future status to Human Resources, which shall become a part of the employee’s personnel record. Disciplinary Action The level of discipline imposed is at the sole discretion of the Town. The level of discipline imposed shall take into consideration the seriousness of the infraction, a review of the facts and circumstances of the infraction, the employee’s performance record, and history of prior disciplinary actions. Disciplinary action is an employment action initiated by the Town to an employee that results in one of the following forms: Verbal Warning A disciplinary verbal warning is an oral statement made to an employee indicating the employee’s conduct or performance fails to meet an acceptable level and expected improvement. Verbal warnings are documented and filed in the employee's personnel file. Written Warning A disciplinary written warning is a written statement made to an employee indicating the employee’s conduct or performance fails to meet an acceptable level and expected improvement. The employee shall sign the statement and receive a copy. If the employee refuses to sign the statement, the supervisor or Department Director shall sign the statement and indicate the employee’s refusal to sign. The written warning shall become part of the employee’s personnel file. Disciplinary Demotion An employee whose ability to perform the required duties falls below standard or who merits disciplinary action may be demoted upon approval of the Town Manager. Written notice shall be given to the employee within three (3) days before the effective date of the demotion. Upon demotion, an employee will have his or her pay reduced commensurate with Towns compensation policy. Disciplinary Suspension Without Pay The Town Manager may suspend an employee from any position at any time without pay for disciplinary reasons. A supervisor or Department Director may recommend suspension of a subordinate employee to the Town Manager for his/her approval. No supervisor or Department Director may suspend a subordinate for any period of time without the approval of the Town Manager. A suspended employee receives written notification listing the specific charge(s), period of suspension, and administrative review and appeal rights, if any. The employee is given a copy of the written notification, and the original is immediately forwarded to the Human Resources Office for inclusion in the personnel record. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 110 Suspension of Exempt Employees An exempt employee (those exempt from the provisions of the Fair Labor Standards Act) may not be suspended without pay for disciplinary sanctions for a period of less than one (1) or more full days except for infractions of safety rules “of major significance.”. Safety rules of major significance are those (rules) and supervisory directives relating to the prevention of serious hazard, damage or danger to the Town, its facilities, employees, or the public. Dismissal Employees may be dismissed with cause by the Town Manager by written notice which shall state the cause for dismissal if the employee has completed the introductory period, the effective date, and the employee's appeal rights, if any. Only employees who have successfully completed the introductory period have appeal rights. Administrative Process Administrative Leave With Pay The Town Manager may place an employee on Administrative Leave With Pay at any time as a non- disciplinary measure to permit an investigation into matters that may result in disciplinary action. No supervisor or Department Director may place a subordinate on administrative leave with pay for any period of time without the approval of the Town Manager. During this period, the employee is considered to be on full duty and available to participate and aid in the investigation. In making the determination to place an employee on administrative leave with pay, the following factors are considered: 4. Whether or not the employee’s presence on the job or at the work site would hinder the investigation, OR 5. If the employee’s presence would be detrimental to the public interest or the continued efficient operation of the Town. The Town Manager must approve administrative leave. An employee placed on Administrative Leave with Pay receives written notification listing the nature of the investigation, period of leave, and administrative review and appeal rights, if any. The employee is provided a copy of the written notification, and the original is immediately forwarded to the Human Resources Department for inclusion in the personnel record. Notice to Employee Except for cases of gross misconduct, prior to an involuntary termination, or a suspension without pay an employee who has successfully completed their Introductory Period will be provided with a written notice from their supervisor and/or Department Director of the intent to suspend or terminate with the supporting reasons. The employee shall be given the opportunity for a pre-action meeting date which is no less than 24 hours after notice has been given, which is the employees opportunity to respond to the charge, orally or in writing with their supervisor and/or Department Director to contest the proposed action. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 111 The department’s explanation in the notice shall be sufficient to apprise the employee of the basis for the proposed action. This shall not limit the employer at subsequent proceedings from presenting more detailed and complete information as to the reason for the adverse action. Pre-action Meeting The pre-action meeting is a meeting between the employee, the supervisor proposing the discipline, any others in the chain of command, and the Department Director. The Director of Human Resources/designee may also attend the meeting. The purpose of the meeting is to give the employee the opportunity to respond, verbally or in writing within ten business (10) days, to the written notice of intended disciplinary action. Any relevant information presented by the employee during the pre- action meeting regarding the proposed disciplinary action shall be considered by the supervisor, any others in the chain of command, and the Department Director. Failure by the employee either to attend the pre-action meeting or to submit a written response, within ten (10) business days, to the notice of intended disciplinary action shall be deemed a waiver of the employee’s right to do so and the proposed disciplinary action shall be implemented as written. Disciplinary Decision After the pre-action meeting, the Department Director shall advise the employee in writing of the decision regarding the imposition of discipline. This decision will normally occur within ten (10) business days of the pre-action meeting or receipt of the employee written response. A copy of the written disciplinary decision shall be included in the employee’s official human resources file. Employee Appeal Process If, after considering the employee’s response, the Town proceeds with termination, the employee may appeal in writing within ten (10) business days of the decision. Human Resources will then set an administrative hearing to adjudicate the appeal. The employee may have legal counsel present at the hearing. Employees who are not directly supervised by the Town Manager shall generally have the Town Manager as their hearing officer. The hearing officer will make the final decision as to whether or not the termination stands or is overturned. In cases involving an employee working with the Town Manager as their direct supervisor, the hearing officer shall be the Presiding Judge of the Fountain Hills Municipal Court. The Town Manager or the Presiding Judge may appoint the town of Fountain Hills Human Resources head, another manager, or Judge from another Arizona city or town to serve as an appeal administrator to administer the hearing and complete the written opinion if they so choose. The hearing officer or appeal administrator shall, no later than five (5) business days after the conclusion of the hearing, complete a written opinion which shall contain three (3) basic elements: 1. A statement of relevant facts 2. A statement of applicable rules 3. Conclusions/recommendations The written opinion shall be provided to the affected employee, their supervisor and/or department director, and the hearing officer (Town manager or Presiding Judge). A copy of the opinion shall also be placed in the employee’s personnel file. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 112 Within five (5) business days after receipt of the written opinion, the hearing officer (either the Presiding Judge or the Town manager) shall either affirm or reject the employee’s termination. The decision of the hearing officer (either the Presiding Judge or the Town Manager) shall be final and binding upon both the employee and the Town, and therefore, not appealable to any office or body of the Town or to any other administrative or judicial forum. 713. Problem Solving PURPOSE: To effectively and professionally address work-related issues or concerns. SCOPE: All Town Employees. POLICY: This policy establishes the policies and procedures for the administration of the Town’s Problem-Solving process. This process does not replace the Grievance Policy or any other complaint or reporting procedures established in policy. Rather, this process has been established to advise employees of the proper avenues to use in communicating work-related issues or concerns. Examples of issues or concerns include, but are not limited to, any issues that impact an employee’s work unit or impact an employee’s ability to do their job. Employees are advised they may not take work-related employment issues and concerns to the Mayor and Town Council. Taking employment issues and concerns to the Mayor and Town Council disrupts chain-of-command of employees under the jurisdiction of the Town Manager (Ord. 230-97); and any such issues or concerns will be referred back to staff. This process does not prohibit staff from discussing Town projects and/or business with Council that would normally be brought to their attention. Town of Fountain Hills employees who have work-related issues or concerns should address them within a timely manner. Matters raised within five working days will be considered timely. Employees are to use the following process to resolve such matters. For matters involving harassment, discrimination, or legal violations, the Harassment Policy is to be followed. PROCEDURE: 1. Employees are to go to their first-line supervisor in a timely manner with any work-related issue or concern unless it involves harassment or discrimination, in which case they should follow the procedures set forth in the Harassment Policy. For legal violations involving their supervisor, employees should go to their supervisor’s superior, Human Resources, or the Town Manager. Employees may have a regular employee of the Town as a silent witness at meetings in which work issues or concerns are discussed. 2. If the work-related issue or concern has not been resolved at the first-line supervisor level within five (5) working days after the meeting in step 1 (above), employees should go to the next higher level of management. Both the employee and supervisor should document the reasons as to why the concern or issue was not resolved at the first-line level. 3. Only after employees have worked their way through their respective Department Head should they take their work-related issue or concern to Human Resources or Town Manager. 4. Employees are required to exhaust all internal avenues before taking their work-related issue or concern outside this procedure. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 113 5. The Mayor and Town Council, as well as those outside of the organization, are not in an employee’s chain-of-command and therefore are not in a position to address work-related issues or concerns. There will be times in every employee’s career when decisions are made that they do not agree with. However, employees are expected to abide by decisions made under this process whether agreed with or not. Failure to follow this process will have a negative effect on Town organization and will therefore be considered a violation of the Town's Personnel Rules. No employee will be subject to any form of retaliation or discipline for using this process. Any employee found guilty of retaliation will be disciplined. 714. Grievances PURPOSE: To promote improved employer-employee relations by establishing grievance procedures and to afford employees a systematic means of obtaining further consideration. on matters for which appeal or hearing is not provided by other regulations. SCOPE: All Town Employees POLICY: In keeping with its policy of maintaining satisfactory working conditions, the Town will provide a means to ensure fair handling of employee complaints and grievances. This procedure may be used to review the following types of problems, which are intended as examples and not strict limitations: 1. Work Hours 2. Assigned Duties 3. Working Conditions 4. Application of Town policies, as they relate to the employee This procedure shall not be used for problems concerning: 1. Due Process related to involuntary termination 2. Compensation 3. Classification 4. Matters covered by state or federal law. 5. Performance evaluation Informal Grievance Procedure An employee who has a problem or complaint should first try to get it settled through discussion with their immediate supervisor without undue delay. If, after this discussion, the employee does not believe the problem has been satisfactorily resolved, they will have the right to discuss it with their supervisor’s immediate department director. If the employee’s supervisor does not have a department director, the employee shall discuss the matter with Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 114 Human Resources. In some circumstances, Human Resources will determine that the matter should be referred to the Town Manager, or designee, at this stage. Every effort should be made to find an acceptable solution by informal means at the lowest level of supervision. If an employee fails to follow this informal procedure, the grievance will be denied, and they will not be permitted to proceed to the formal grievance procedure outlined below. Formal Grievance Procedure Levels of review through the chain of command are listed below: 1. If the employee has properly followed the informal grievance procedure and the matter is not resolved, the employee is eligible to elevate the grievance to this level. Initially, the employee must reduce the grievance to writing citing the article and section of the Personnel Policies alleged to have been violated, if applicable, the date of the violation that forms the basis for the grievance, the nature of the grievance and the relief requested. 2. The written grievance will be presented to the employee’s immediate supervisor, within ten (10) business calendar days of the occurrence, and no later than ten (10) business days after the informal grievance procedure has been fully exhausted. The supervisor will render his/her decision and comments in writing and return them to the employee within ten (10) business days after receiving the grievance. 3. If the employee does not agree with their supervisor’s decision, or if no answer has been received within ten (10) business days, and the employee wishes to continue in the process, the employee may present the grievance in writing to their supervisor’s immediate department director, or in the absence of a department director, to Human Resources. 4. Failure of the employee to take further action within five (5) business days after receipt of the written decision of their supervisor or within a total of ten (10) business days if no decision is rendered, will constitute a withdrawal of the grievance. The second level supervisor receiving the grievance will review it, render his/her decision, and comments in writing, and return them to the employee within ten (10) business days after receiving the grievance. 1. If the employee does not agree with the decision, or if no answer has been received within ten (10) business days, and the employee wishes to continue the process, they may present the grievance in writing to the Town Manager – through Human Resources. Failure of the employee to take further action within five (5) business days after receipt of the decision, or within a total of ten (10) business days of referral to their second level supervisor if no decision is rendered, will constitute a withdrawal of the grievance. 1. Upon receiving the grievance, the Town Manager or his/her designated representative should discuss the grievance with the employee and with other appropriate persons. 2. The Town Manager or designee may, but is not required, to designate an external fact-finding committee to advise him/her concerning the grievance. 3. The Town Manager or designee will render a final decision. The Town Manager’s or designee’s decision may not be appealed. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 115 TECHNOLOGY POLICIES 800. Technology PURPOSE: This policy is intended to outline the acceptable use of computer equipment owned by the Town. This policy is enacted to reduce problems with security, equipment, software conflicts, damage to data files and introduction of viruses to the network. SCOPE: This policy applies to all employees, contractors, consultants, or third parties utilizing Town technology resources. This policy applies to all systems, software, and hardware that is owned or leased by the Town. Each individual user is responsible for complying with this and all other relevant policies when using the Town’s resources for messaging and accessing the Internet. POLICY: The Town is committed to protecting the integrity of its information systems. The enterprise network and Internet/ Intranet/ Extranet-related systems, mobile communication and data, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, internet browsing, and File Transfer Protocol (FTP), are the property of the Town. These systems are to be used for business purposes in service the interests of the town, and our customers in the course of normal operations. Any and all functions performed by the employee while utilizing Town IT resources are considered public in nature and can in no way be considered personal or private. Employees should understand that there is no expectation of privacy when using such resources. It is the responsibility of all users to know these guidelines, and to conduct their activities accordingly. Ownership Email, Internet, and IT systems are resources made available to Fountain Hills employees to communicate for the benefit of the Town. All Internet and email transmissions sent from or received by Town equipment and/or addresses are Town property. Town Administration reserves the right to examine all email, directories, files and other information stored on all Town-owned hardware and software; and to monitor all email, Internet, computer system access and activity as deemed necessary. Personnel have no right of privacy in anything they create, store, send or receive using Town technologies, either via the Internet or other means. Anything created using technologies may be reviewed by others. All data transmissions sent or received using Town technologies are Town property. The Information Technology Division purchases all software and/or computer equipment (e.g. microcomputers, printers, modems, hubs, speakers, subwoofers, keyboards, mouse, etc.). Departments should always submit a request via e-mail to purchase software and/or computer equipment to the IT Helpdesk. General Use Users should be aware that the data they create on the Town systems remains the property of the Town. Electronic transmissions or communication via the Intranet shall not be considered either private or completely secure. The following are items to consider: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 116 1. Transmission may be intercepted in transit or stored indefinitely on any number of computers, including that of the recipient. 2. Material received electronically might be forwarded to others either electronically or on paper. 3. Transmissions sent to invalid or non-existent addresses might be delivered to unintended recipients, either purposely or inadvertently. 4. Any information obtained via the Internet may not be factual or correct. Personnel shall take appropriate steps to ascertain the accuracy of information before reliance or use. 5. Any information that is received or downloaded via the Internet may contain viruses. Users are responsible for the appropriateness and content of material they transmit or publish in messages via Town provided email access. Transmission occurs between a sending party and one or more receiving parties via an intermediate telecommunications system. Business communication via email allows the sender and receiver to be flexible, decide on an appropriate time to address something, not disrupt operational workflows, and in some cases multi-task. Senders should consider the audience, the tone, grammar, and punctuation within the message, and must also consider that any email has limitations as a communication tool. For that reason, senders should use sound professional judgment when determining if email is the most appropriate form of communication for the message they are sending. Personnel should take the same care in drafting and sending email and other electronic documents as they would for any other written communication. Anything created using the Town-owned or Town- provided technologies is an extension of and directly reflects on the Town of Fountain Hills. The Internet offers numerous forums and exchange ideas for the purpose of research and information sharing. As with any form of communication, the Town shall not be intentionally misrepresented in any material posted to the Internet or Social Media platforms. Employees should not engage in personal use of Town information systems in a manner that results in a detrimental impact on the Town. Personnel are responsible for the appropriateness and content of material they transmit or publish in messages via Town-provided Internet access. Harassment, discriminatory remarks, antisocial, disrespectful or unprofessional behavior such as targeting another person or organization to cause distress, embarrassment, injury, unwanted attention or other substantial discomfort is prohibited. Personal attacks or other action to threaten or intimidate or embarrass an individual, group or organization or attacks based on a person’s race, national origin, ethnicity, disability, religion, gender, veteran status, sexual orientation or any other such characteristic or affiliation are prohibited. The Town Administration and Chief Technology Administrator shall have discretion to determine detrimental use. Rights of the Town 1. Fountain Hills owns all technologies provided at its own expense or under its authority or jurisdiction, including transmissions initiated, received or stored using its technologies. 2. The Town reserves the right to determine who is provided access to its systems, network and technologies. 3. At any time and without prior notice, the Town may remove any user account. 4. At any time, the Town may access or examine electronic mail and/or monitor messages on its equipment or networks. 5. At any time, the Town may access or examine files or any other materials stored on its equipment or networks. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 117 6. The Town may monitor, log and/or examine Internet activities, including, but not limited to, website visits, chat groups, news groups, social networking activities, blogging, downloaded or uploaded material. 7. The Town may archive or delete files or any other materials on its equipment or networks, as deemed necessary. For security and network maintenance purposes, authorized individuals within the Town may monitor content, equipment, systems and network traffic at any time, per Information Technology Division’s Audit Policy. The Town reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy. Security and Proprietary Information The assignment of user accounts and passwords to Town personnel will be made by the Chief Technology Administrator for the appropriate computer system(s) being accessed. Passwords must be kept secure and NOT be shared with other users. Authorized users are responsible for the security of their passwords and accounts. Application passwords should be changed quarterly, network passwords will expire every 75 days and must be changed. As a physical safeguard, a password-protected screen saver will engage on all computers following a set number of minutes of inactivity, requiring logged in users to re-enter a system password to regain access. This number of minutes is to be determined by the IT Division. Because information contained on portable computers is especially vulnerable, special care should be exercised. Protect laptops in accordance with the “Laptop Security Tips.” Postings by employees from a Town e-mail address to any online venue must contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of the Town, unless the posting is in the course of business duties. All hosts used by the employee that are connected to the Town Internet/Intranet/Extranet, shall be continually executing approved virus-scanning software with a current virus database. Employees must use extreme caution when opening e-mail attachments received from unknown senders; such attachments may contain malicious programs (e.g. viruses, e-mail bombs, Trojan horse code, etc.). Personnel should never respond to E-Mail requesting personal or banking information or requesting user IDs or passwords. Unacceptable Use The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services). The lists below are by no means exhaustive, but instead are an attempt to provide a framework for activities that fall into the category of unacceptable use. Under no circumstances is an employee of the Town authorized to engage in any activity that is illegal under local, state, federal or international law while utilizing the Town-owned resources. System and Network Activities Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 118 The following activities are strictly prohibited: 1. Engaging in any activity which violates state law, federal law, or Town policies and guidelines as applicable. Connecting personally owned and/or unlicensed software onto Town-owned systems. 2. The installation or distribution of “pirated” or other software products that are not appropriately licensed for use by the Town. 3. The installation of “freeware” software applications without the prior authorization of the Information Technology Division. 4. Damaging computing systems or damaging or altering the software components of Town- owned systems. 5. Engaging in any activity which adversely affects the availability, confidentiality or integrity of any Town-provided technology. 6. Using another's network, Internet, electronic mail or online service account or password without authorization. 7. Disabling or circumventing virus protection software or otherwise compromising computer and/or network security. 8. Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. Users should consult the IT Helpdesk prior to export of any material that is in question. 9. Knowingly introducing malicious programs into the network or server (e.g., viruses, worms, Trojan horses, e-mail bombs, etc.). 10. Revealing your account password to others or allowing use of your account by others. This includes family and other household members when work is being done at home. 11. Accessing or distributing indecent material, obscene material, child pornography and other illegal material, or any material that may be harassing or discriminating in nature including race, age, gender, sexual orientation, religious beliefs, political beliefs, national origin, health or disability of an individual. 12. Making fraudulent offers of products, items, or services originating from any Town account. 13. Causing security breaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a server or account that the employee is not expressly authorized to access, unless these duties are within the scope of regular duties. 14. Port scanning or security scanning is expressly prohibited unless prior notification is made to, and permission has been granted by, the Information Technology Division. 15. Executing any form of network monitoring that will intercept data not intended for the employee’s host, unless this activity is a part of the employee’s normal job/duty. 16. Circumventing user authentication or security of any host, network or account. 17. Interfering with or denying service to any user other than the employee’s host (for example, denial of service attack). 18. Using any program/script/command, or sending messages of any kind, with the intent to interfere with, or disable, a user’s terminal session, via any means, locally or via the Internet/Intranet/Extranet. E-mail and Communications Activities The following is a summarized list of prohibited uses. 1. Any form of harassment via e-mail, voicemail, telephone or paging, whether through language, frequency, or size of messages. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 119 2. Harassment, discriminatory remarks, foul language, sarcasm, antisocial, disrespectful or unprofessional behavior such as targeting another person or organization to cause disruption, distress, embarrassment, injury, unwanted attention or other substantial discomfort. 3. Engaging in activities during working hours for personal gain, solicitation or commercial purposes, including commercial advertising, unless specific to the mission or duties of the Town. 4. Accessing or distributing indecent material, obscene material, child pornography or other illegal material, or any material that may be harassing or discriminating in nature including race, age, gender, sexual orientation, religious beliefs, political beliefs, national origin, health or disability of an individual. 5. Communication of material that is offensive or derogatory, slanderous and/or defaming towards any individual, corporation, agency or organization and disparagement of any trade or product. 6. Communication that is derogatory or discriminatory in any way toward persons for reasons of their race, religion, gender, age, disability, lifestyle, political affiliations, social status or any other personal characteristic. 7. Disseminating or printing copyrighted materials (including articles and software) in violation of copyright laws. 8. Disseminating information that is known to misrepresent the Town or be false, inaccurate or misleading. 9. Sending disrespectful or unprofessional business communication that causes distress, disruption, embarrassment, injury, or unwanted attention or other substantial discomfort to the recipient. 10. Postings or subscriptions, whether on a Web site, to a news group or via e-mail, that constitutes advertising or solicitation of any type (i.e., religious, political, personal gain, or in support of illegal activities). 11. Using the Town’s e-mail or Internet resources for personal for-profit business activities or schemes to generate income or result in personal financial gain. 12. Mass mailing of e-mail “junk mail”, jokes or non-Town-business-related advertising material 13. Solicitation of e-mail for any other e-mail address, other than that of the poster’s account, with the intent to harass or to collect replies. 14. E-mail posting the same or similar non-business-related messages to large numbers of Usenet newsgroups (newsgroup spam). 15. Unauthorized use, or forging, of e-mail header information. 16. The use of aliases while using the Intranet/Internet. Anonymous messages are not to be sent. No employee shall attempt to obscure the origin of any message. 17. The misrepresentation of an employee’s job title, job description, or position in the Town. 18. The release of untrue or distorted information regarding Town business. 19. The Town’s Intranet/Internet and e-mail resources for political purposes. 20. Distribution of chain mails, “Ponzi” or other “pyramid” schemes of any type or other communication that is any way in violation of public law or Town policy. 21. Participate in the further dissemination or re-distribution of e-mail “spam” e-mails, communications with long mailing lists of other recipients, or other inappropriate e-mail communications. Upon receipt of any of these items, a user should immediately delete it from their e-mail in box and trash, and completely refrain from sending it on to other persons in or outside the Town. 22. Use of the Town’s information systems to engage in threatening, intimidating or harassing conduct including but not limited to constituting the alleged harassment that constitute Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 120 threats, intimidation or any other kind of act that interferes with the individual’s ability to function as an employee of the Town. 23. Sending an email using another person’s log-in/identity without authorization. Activities of law enforcement or Town Attorney’s office related to criminal investigations, or personal investigations by any department in general, would not constitute a prohibited or inappropriate use. The following are unacceptable uses of the Intranet/Internet and e-mail technologies. All issues raised in the Town of Fountain Hills Code of Ethics are applicable. All records have a retention period. Email is retained after it has been “deleted.” In the event of litigation, specific inquiries and/or investigations, the Town may be required to produce email records, electronic files, or other materials. All e-mail messages that are not subject to specific retention schedule are stored by Information Technology for 1461 days and may be required to be stored longer in the event of litigation. Confidential Files The Town uses and stores confidential information in various forms throughout the facilities that is used to provide services to the community. All confidential information is the property of the Town. Certain personnel and/or contract workers may be required to sign a confidentiality agreement. Unauthorized release, distribution or copying of confidential information is prohibited. The files of confidential employees will be preserved to contain confidential information and will not be accessed by IT or anyone else until permission to do so has been granted by a person having authority to do so. Personal Devices for Town Work Personal devices may be used only for Town business. Any personal device that contains access to Town materials must have an automatic lock when idle and must have a code to login to retain access. Personal devices used for Town access must not be jailbroken or rooted, or they will be denied access to the Network. Upon separation from employment, all employees with access to a personal device will work with IT Department to have all Town access removed. Personal devices are used with the understanding that the Town may wipe an employee’s device remotely if it is lost or stolen, if there is a policy breach or security threat, or if a separating employee does not voluntarily work with the IT Department to have access removed. The Town is not liable for the loss of personal data. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. If an employee violates this policy, Information Technology will inform the employee’s supervisor, or someone higher in rank, in writing and the department director or other authorized individual may Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 121 authorize the Chief Technology Administrator to remove the employee’s access to the Town’s computer network resources and/or to take appropriate remedial action. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Laptop & Personal Electronic Device Security Tips 1. Never leave your laptop or personal electronic device in open view in your vehicle; remove it or secure it in the trunk or other secure location! Do not leave the device stored in the trunk for any great length of time; exposure to either extreme cold or heat can damage the machine. Always use your laptop or personal electronic device in a cool, dry place. 2. Never leave your laptop or personal electronic device unattended in a public place. Don’t forget to secure all other products associated with your laptop: batteries, power cords, cables, external drives, LCD projectors, etc. 3. Never put your laptop or personal electronic device on the airport security x-ray machine belt before you have a clear path to the end of the belt. Check your device’s battery and make sure it’s fully charged. If you take your machine through an airport, the security checkpoint personnel may ask you to turn it on to prove it isn’t a suspicious device. 4. Back up all irreplaceable information daily. Remember, it’s not just the loss of the device, it is also the loss of the hard work and important information. 800-A. Intranet/Internet and Email PURPOSE: To establish guidelines for employee access and acceptable use of Town Intranet/Internet and Email. SCOPE: All Town employees. POLICY: Intranet/Internet Access Unauthorized access into the Intranet/Internet using Town equipment or Town Intranet/Internet accounts, or another employee’s Intranet/Internet account, or through other means, is in violation of policy. Obtaining e-mail access Unless otherwise directed by the employee’s immediate supervisor or designated representative, employees are automatically given an e-mail account upon receipt of a LAN account. Removing Internet or e-mail access The department director must submit a request to the IT HELPDESK to remove or disable an employee’s Internet and/or e-mail account. By request, the department director can be given access to the files in the disabled account for a period of 30 days after notification to disable. LAN and e-mail accounts of employees who have separated from the Town will be deleted 30 days after separation of employment to disable the account unless otherwise directed by a department director. Email will be forwarded to a designated address for a period of up to one year. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 122 Access and usage limits The Town’s Internet access method has a finite capacity and is subject to periods of heavy use. Therefore, employees may be requested to limit access when system capacity is being exceeded. Employees must abstain from personal use of Internet or e-mail services for any reason during the time when employees should otherwise be engaged in Town business and performance of their job duties. Investigative access The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator. Electronic mail messages are public information. Request for e-mail messages, calendars, or records may be treated like any other public record in the possession of the Town. E-mail contents may be subject to subpoena in legal matters and may be subject to public records request. Management reserves the right to retrieve and/or review e-mail messages to monitor or prevent misuse of the system. Procedures to request access to an employee’s e-mail files: 1. Action by department director: a. Submit a request to Human Resources for investigative access on the employee’s account. 2. Action by Human Resources: a. Consult with the Town Manger about the investigative access request. b. Coordinate with the Chief Technology Administrator. ACCEPTABLE USE OF THE INTRANET/INTERNET AND E-MAIL The definition of acceptable use of the Internet is any use that is related to Town business or the performance of work-related duties. Research and general information access on behalf of the Town Authorized employees may use Internet and e-mail technologies to conduct official Town business, gain technical or analytical advice as part of their jobs, communicate or exchange files and/or data with employees, citizens, clients, vendors and contractors as part of their jobs. Databases can be accessed for information as needed as long as they do not require some form of subscription to participate. Access to subscription-based Internet services must be initiated using existing Town policies for purchased services. Participation in News/Discussion Groups Users may participate in news/discussion groups based around a topic in which the Town has a business interest. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 123 Users may participate in news/discussion groups, listservs or web sites created by professional organizations of which the Town or the user in their professional capacity is a member. Disclaimer: Postings by employees from a Town e-mail address to newsgroups should contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of Town, unless posting is in the course of business duties. Limited Personal Use The Town’s Intranet/Internet and e-mail resources are intended for business use in performing the duties of an employee’s job. Limited personal use may be permitted, according to the following guiding principles: 1. It is incidental, occasional and of short or moderate duration. 2. It does not interfere with any employee’s job activities. 3. It does not result in incremental expense to the Town. Examples of “incremental expense” include, but are not limited to: a. If the Town were paying for a limited bandwidth connection to the Internet, and an employee’s personal use incurred additional charges; and b. Long-distance telephone, cellular phone or fax charges. i. The employee has their supervisor’s prior approval for said personal use, which approval shall only be given when consistent with the requirements of this policy. ii. It does not solicit for or promote commercial ventures, religious or political causes, outside organizations or other non-job-related solicitations. iii. It does not violate the other “unacceptable uses” or other specific limitations outlined in this policy. iv. It will not create a real or perceived conflict of interest. Performing copyright infringements and other illegal actions Any use of the Internet that violates copyright laws is prohibited. Infringing on third party copyrights or other intellectual property rights, license agreements or other contracts; for example, illegally installing or making available copyrighted software. E-mail shall not be used to send (upload) or receive (download) copyrighted materials, and any other unauthorized materials, without prior written authorization of the originator. Users will refrain from the posting of any materials that violate federal or state laws. Use of the Intranet/Internet or e-mail in support of illegal activities is prohibited. Unauthorized attempts to break into any computer whether in the Town or another organization. Causing disruption of service and performance Use of the Intranet/Internet or e-mail must not disrupt the operation of the Town network or the networks of other users. Hacking or modifications to the Intranet/Internet and e-mail software in a manner that restricts the ability of the Town to monitor its resources is prohibited. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 124 One or more files totaling 30mb or more in size should not be attached to internal e-mail messages. Users instead should utilize the network share drives to distribute the files to other users. Execute real-time utilization of Intranet/Internet resources for non-Town-business-related services Accessing, viewing, downloading, or any other method for retrieving non-Town business information or services that utilizes the Internet resource in real-time is prohibited. This includes, but is not limited to, streaming audio or video (such as Pandora, XMRadio, Hulu, or Netflix), streaming wallpaper or screen savers. INTRANET/INTERNET AND E-MAIL PRIVILEGE RESPONSIBILITY Use and compliance Access to the Intranet/Internet and e-mail is a privilege. Employees are expected to use the Intranet/Internet and e-mail in a professional manner that reflects positively upon themselves and the Town. Employees and their immediate supervisors are jointly responsible to ensure compliance with this policy. Employees are responsible for text, graphic or audio content they place, send or receive over the Intranet/Internet and e-mail. It is recognized that some unsolicited electronic mail may be received or random access to an undesirable Internet site may occur. In those instances, the individual will not be held responsible for that content or undesired site access. Account Employees shall not “loan” their access to the Intranet/Internet to other employees who have not been authorized use of the Internet and e-mail technologies. Employees will be held responsible for all actions taken using their access permissions. Employees shall not intercept or disclose messages or assist in the interception or disclosure of messages unless otherwise authorized. Information Technology, under the authorization of the Town Attorney may intercept or disclose messages when misuse of the Town system is suspected. USER’S RESPONSIBILITIES REGARDING RECEIPT OF OFFENSIVE MATERIAL Generally, the same policies of appropriate behavior apply in network usage, as apply in the workplace. If you believe that you are the victim of harassment, do not delete the message. Immediately notify your immediate supervisor or department director and Information Technology. Public Records and Privacy E-mail from an internal system and/or the Internet, is NOT private nor can the security of e-mail be guaranteed. Caution shall be used when conveying confidential or sensitive information, as part of normal business transactions, when confidentiality cannot be maintained. This includes documents such as performance reviews, disciplinary and/or corrective actions, attorney-client-privileged information, personnel information, and health or medical information. All e-mail messages (whether created or received) are the property of the Town and may be considered to be public records pursuant to the Arizona Public Records Law. If there is concern about potential public disclosure or internal disclosure, e-mail should not be used. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 125 The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator. When communicating with legal counsel or seeking legal advice, consideration should always be given to the fact that e-mail may contain information that may not be entirely confidential. It is advisable to check with the Town Attorney’s Office as to whether such request should be made by e- mail or through written communication. All requests for public records disclosure of data shall be routed to the Town Clerk. E-mail messages may be recoverable Deleting e-mail messages from a computer does not guarantee it has been erased from the system. Further, email constituting a public record must be maintained. Employees should use good judgment when creating e-mail and always assume that it is discoverable. Monitoring and auditing The Town owns the network providing access to Internet and e-mail technologies. The electronic records created by use of the system may be considered public records under Arizona Revised Statutes and the law governing retention of public records. The Town reserves the right to monitor all electronic records, at any time, to ensure compliance with state law and this policy. Retention of E-Mail All e-mail messages that are not subject to a specific retention schedule are stored by Information Technology for 1095 days and may be required to be stored longer in the event of litigation. Any messages that are permanent records are required to be copied or moved to the appropriate file location. Information Technology is not responsible for backup or restoration of any e-mail items saved outside of the e-mail system by individual users. Records retention schedules can be found on the Arizona Secretary of State’s Arizona State Library, Archives & Public Records website – www.azlibrary.gov. Virus Exposure Use of the Internet and e-mail risks exposure to viruses that can cause serious damage to Town computer resources. Material downloaded from the Internet must be virus checked before use. Inbound and outbound attachments to e-mail will be scanned for viruses. Plug-Ins and Helper Programs Plug-ins and Helper programs should be used prudently and only if its purpose is to enhance the browser to provide services that are within the “acceptable uses” and it does not violate the “unacceptable uses” or other specific limitations outlined in this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 126 801. Software/Hardware PURPOSE: It is the policy of the Town to respect all software copyrights and to adhere to the terms of all software licenses to which the Town is a party. The Town users may not duplicate any licensed software or related documentation for use either on Town premises or elsewhere unless the Town is expressly authorized in writing to do so by agreement with the licenser. Unauthorized duplication of software may subject users and/or the Town to both civil and criminal penalties under the United States Copyright Act. The purpose of this policy is to prevent copyright infringement and to protect the integrity of Town’s computer environment. SCOPE: This policy applies to all employees, contractors, consultants, or third parties utilizing Town technology resources. This policy applies to all software that is owned or leased by the Town. Each individual user is responsible for complying with this and all other relevant policies when using the Town’s resources for messaging and accessing the Internet. Contractors with the Town shall become aware of the requirements of this policy. POLICY: Budgeting for Software/Hardware Some software and hardware needs are limited to specific departments. Departments are responsible for requesting new software or hardware specific to the department’s needs through the Information Technology Division. When requesting such software or hardware, departments must work with the IT Department to ensure technology costs, compatibility, licensing, support, and integration issues are addressed. Approval for Purchase of Software/Hardware To purchase software or hardware, users must obtain the approval of their supervisors and the Information Technology Division, then submit a request to the IT Helpdesk to acquire the software/hardware. Acquisition of Software/Hardware 1. All software or hardware acquired for the Town must be purchased through the Information Technology Division. 2. Software or hardware may not be purchased through user corporate credit cards or petty cash. 3. Software and hardware acquisition channels are restricted to ensure that the Town has a complete record of all software that has been purchased for Town computers and can register, support, and upgrade such software accordingly. 4. Freeware software or mobile apps downloaded from the Internet must be authorized by the Information Technology Division. License Agreements Software may only be used in compliance with applicable license (including “shrink-wrap” agreements) and purchasing agreements. Ownership of Software Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 127 All software acquired for or on behalf of the Town or developed by Town employees or contract personnel on behalf of the Town is and shall be deemed Town Property. All such software must be used in compliance with applicable purchase and license agreements. Storage of Software Media/Licenses All software media and original license agreements are kept and stored by the Information Technology Division. Software media that must be accessed for support of an application (e.g. clip art, GIS data, etc.) will be kept with the workstation licensed for its use. Use and distribution of these types of media must be in compliance with the software licensing agreement. IT will monitor the license term length and will notify users of any necessary actions. Duplication of software Users are not authorized to produce backup or duplicate copies of any software for any purpose. Unless otherwise provided in the applicable license or contract document, any duplication of copyrighted software may be a violation of federal and state law and is strictly prohibited. The Information Technology Division creates all authorized duplicate media and retains the master copy. The software inventory registry will be updated with this information. Registration The IT Helpdesk is responsible for completing the registration documentation and returning it to the software publisher. All software that is Town Property must first be delivered to the IT Helpdesk to complete registration and inventory requirements. All software must be registered in the name of the Town. Because of personnel turnover, software will never be registered in the name of the individual user. Information Technology maintains a register of all software and will keep a library of software licenses. The register will contain: 1. The title and publisher of the software; 2. The date and source of software acquisition; 3. The location of each installation as well as the serial number of the hardware on which each copy of the software is installed; 4. The name of the authorized user(s); 5. The existence and location of the media and any back-up copies; and 6. The software product’s serial number and/or key codes. Installation of Software No software, including freeware, may be installed on any Town-owned or leased computer without prior approval by the Information Technology Division and without being registered to the Town. After the registration requirements above have been met, the software will be installed with the authorization of, assistance of, or performance by, Information Technology support personnel. Manuals, tutorials and other user materials will be provided to the user. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 128 Once installed on the hard drive, the original media (USB drives, CD-ROM, DVD, etc.) will be kept in a safe storage area maintained by the IT Helpdesk. Users may not give software to anyone, including contractors, customers and others. Town users may use software on local area networks or on multiple machines only in accordance with applicable license agreements. Town computers are Town-owned assets and must be kept both software legal and virus free. Only software purchased through the procedures outlined above may be used on Town machines. Installation of personal non-business-related software on Town computers is not authorized. The Town will remove any unauthorized software that puts the Town at risk or liability. Removable Media Drives & USB Drives To protect the Town’s network and computers, restrictions have been placed on external drives including USB hard drives and flash drives, and the following guidelines should be followed to enhance security. In addition, files written to or copied from such devices may be logged and audited to ensure compliance with policy. Software may not be executed from external and USB hard drives and flash drives. Confidential files or files with sensitive data should be encrypted when saved on removable drives to protect the contents in the event the device is lost or stolen. Any removable or USB drive should be scanned for malicious code and viruses prior to use. Support Software compatible with installed operating system, client, application and system configuration standards for workstations and/or file servers will be supported by the Information Technology Helpdesk. Uninstalling Software Unauthorized removal of software from Town computers is prohibited. Software removals should not be performed without the authorization of, assistance of, or performance by, Information Technology support personnel. IT reserves the right to uninstall or remove any software found to be causing a negative impact on the workstation, the Town’s enterprise network, or any Internet/Intranet/Extranet-related systems. User Responsibilities Each User is individually responsible for reading, understanding, and adhering to all licenses, notices, and agreements in connection with software that they cause to be acquired, copied, transmitted, or used or seeks to acquire, copy, transmit, or use. IT will provide all necessary copies of such licenses. If a computer must be reconfigured or replaced and it contains software that has been licensed specifically for that computer, the user should notify Information Technology of such installation to ensure the software is reinstalled, tested and documentation of the installation location is updated. Shareware Software Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 129 It is the policy of the Town to pay shareware authors the fee they specify for use of their products. Registration of shareware products will be handled the same way as outlined above. Software Games The installation of computer games on Town computers is prohibited unless there is a Town business or service justification. Games packaged with the operating system installation (e.g. FreeCell, Minesweeper, Pinball, and Solitaire) are included in the workstation image and are exceptions. However, IT reserves the right to remove these games. Software Games that impact network resources are strictly forbidden. Screensavers and Wallpaper Screensaver and wallpaper software are permissible only after the Software Policy procedures to purchase (commercial and/or shareware), license, register and install have been applied. Decompiling software No User shall decompile, disassemble, or reverse-engineer any software. Transfer of Software No User may sell, rent, sublicense, lend, transmit, distribute, give, or otherwise convey or make available Town-owned software or an interest therein to any unauthorized individual or entity. Audits The Information Technology Division will conduct audits of all PCs, including portables, to ensure that the Town is in compliance with all software licenses. Audits will be conducted using an auditing software product or through manual inspection. Enforcement 1. A Town user who makes, acquires, or uses unauthorized copies of software will be subject to disciplinary action up to and including termination. 2. The Town does not condone the illegal duplication of software and will not tolerate it. Any doubts concerning whether any employee may copy or use a given software program should be addressed with IT Helpdesk. 3. Any User who suspects an incident of noncompliance with the Software Policy by another User shall promptly notify the Information Technology Division. 4. The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. 5. If an employee is found violating the sections of this policy, the Department Director together with the Chief Technology Administrator may remove the employee’s access to the Town’s computer network resources. 6. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 130 802. Audit of Information Systems PURPOSE: To provide the authority for members of Town’ Information Technology team to conduct a security audit on any computer or communication system (hardware or software) at the Town. Audits may be conducted to: 1. Ensure integrity, confidentiality and availability of information and resources. 2. Investigate possible security incidents. 3. Monitor user or system activity. 4. Enforce information system policies. SCOPE: This audit policy covers any equipment owned, leased or otherwise possessed by the Town, including, but not limited to all of the following devices: 1. hand-held devices (iPhone, iPad, etc.) 2. computers (desktop and laptops) Communication devices, including but not limited to: 1. telephone and voicemail system 2. network hardware (routers, printers, firewalls, etc.) 3. other wireless devices, including pagers Employees should be aware that loading Town programs or property on their own personal devices may result in public record information being on those devices and creating a Town interest in those devices to the extent such information is present. The use of personally-owned information and communication devices for Town business is discouraged unless a department head and the Chief Technology Administrator determine there is a necessary business use for such equipment. POLICY: When requested, and for the purpose of performing an audit, any access needed will be provided to members of Town’ Information Technology team. This access may include: 1. User level and/or system level access to any computing or communications device. 2. Access to information (electronic, hardcopy, etc.) that may be produced, transmitted or stored on Town equipment or premises. 3. Access to work areas (labs, offices, cubicles, storage areas, etc.). 4. Access to interactively monitor and log traffic on Town networks. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. If an employee is found to be violating sections of this policy, the department director together with the Chief Technology Administrator, may remove the employee’s access to the Town’s computer network resources. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 131 803. Workplace Monitoring PURPOSE: To ensure quality control, employee safety, security, and customer satisfaction. SCOPE: This policy applies to employees, contractors, consultants, temporary employees, and other workers at the Town, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by the Town. POLICY: Computers furnished to employees are the property of the Town. As such, computer usage and files may be monitored or accessed. Video Monitoring The Town conducts video monitoring from time to time, which may include employee work actions, including facility security cameras, vehicle cameras, and body cameras. All employees are to be familiar with and refer to the camera-related operational procedures in the respective departments, if applicable. 804. Social Media PURPOSE: This Policy is intended to provide authorized employees with a framework for use of social media as part of an authorized employee’s job duties. This policy also provides general guidelines for the personal use of social media by all employees. SCOPE: This Policy applies to all authorized employees that contribute to any kind of social media platform. POLICY: The Town may utilize authorized social media platforms to further enhance communications with the public in support of Town operations. Personal Use of Social Media as it relates to the Town of Fountain Hills 1. Employees shall not use their Town-issued e-mail address for their primary username or login for personal social media profiles and/or platforms. 2. Use of social media for personal use should in no way interfere with job duties. Time spent on social media sites shall be limited to personal break times. 3. If an employee identifies themselves as a Fountain Hills employee during their personal use of social media, the employee shall clearly indicate they are speaking on their own behalf and not on behalf of the Town. The employee’s social media profile and any related content should be consistent with how the employee wishes to present themselves to co-workers, colleagues, supervisors, and the public. It is recommended that a disclaimer be used as follows: “The opinions expressed on this site are my own and do not reflect the opinions of the Town of Fountain Hills.” 4. Employees are discouraged from sending or accepting social media friend requests to or from their supervisors. 5. Employees are prohibited from revealing confidential information about Fountain Hills, its employees, customers/residents, or internal discussions. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 132 6. Posting any Fountain Hills photograph, digital image or video/audio recording is strictly prohibited. 7. Use of social media platforms to harass, threaten, libel or slander, malign, defame or disparage, or discriminate against the Town, its employees, patrons, vendors or suppliers, any organizations associated with or doing business with the Town, or any members of the public is prohibited. 8. The use of the Town’s logo or trademarks; or the name, logo, or trademarks of any business partner, supplier, vendor, affiliate on any personal blogs or other online sites without prior authorization is prohibited. Business Use of Social Media for Town Purposes 1. Each Town social media platform account is the sole proprietorship of Fountain Hills. Employees who are authorized to post content on behalf of the Town do not own the accounts. 2. The Community Relations Director is to be an authorized user on all Town social media accounts. 3. All Town related communication through social media platforms shall be professional in nature and conducted in accordance with Town policies and Communications Department procedures. 4. Use of all social media platforms shall adhere to applicable state, federal, local laws, and regulations, including copyright and trademark infringement laws. In addition, all social media platforms shall adhere to this Policy. 5. The Town reserves the right to restrict or remove any content that it deems in violation of this Policy or any applicable law. 6. Social media posts should be treated as an extension of the Town’s official website. Content on Town Social Media Accounts Comments must follow all Town policies and federal law and regulations. The following social media content is prohibited on Town social media platforms: 1. Content containing graphic, obscene, explicit, or racial comments or submissions, and comments that are abusive, or intended to defame any individual or organization. 2. Content containing solicitations or advertisements, including promotions or endorsements of any financial, commercial, or non-governmental agency. 3. Content that attempts to defame or defraud any financial, commercial, or non-governmental agency. 4. Content that suggests or encourages illegal activity, including comments that infringe on copyrights or trademarks. 5. Content that promotes political purposes or a political candidate/party. 6. Content that promotes or endorses a specific religious organization. 7. Content that is repetitive. 8. Content containing confidential or proprietary information about the Town or its employees. 9. Content containing information that may compromise safety and security. 10. Content containing non-topically related content outside the limited public forum established to discuss Town issues, operations and services. 11. Content that makes false statements or provides false information. 12. Content containing a picture or video without prior written consent by all those in the picture or video. 13. Care should be taken not to promote one contractor or business over another or provide preferential treatment of any kind. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 133 14. References or employment recommendations for current or former employees of the Town is prohibited. Employees found in violation of this Policy may be subject to disciplinary action, up to and including termination of employment. Employees shall report any potential violations of this Policy to Human Resources. The Town prohibits taking retaliatory action against any employee for reporting a possible deviation from this policy or for cooperating in an investigation. Any employee who retaliates against another employee shall be subject to disciplinary action, up to and including termination. 805. Cellular Devices PURPOSE: To minimize personal cell-phone usage during worktime. SCOPE: This Policy applies to all employees who have a cellular device. POLICY: While at work, employees are expected to exercise the same discretion in using cellular devices as is expected for the use of Town devices. Excessive personal calls, texting, social media, browsing during the workday, regardless of the device used, can interfere with employee productivity and be distracting to others. A reasonable standard the Town encourages is to limit personal usage during work time. Non-business-related cell usage is prohibited during vehicle operation activities. The Town will not be liable for the loss/damage of personal devices brought into the workplace. Cameras Use of Camera phones to take photographs may violate the privacy rights of co-workers, vendors, and residents/customers and may also be used to convey confidential information or undermine Town operations. To protect the privacy interests of individuals, no person may use a cell phone to capture, record, or transfer a representation of a nude or partially nude person in a rest room, locker room, or living quarters (fire department). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 134 OTHER WORKPLACE POLICIES 900. Personnel Files PURPOSE: To establish procedures for the creation and maintenance of personnel records for the Town. SCOPE: This policy applies to all employees and all personnel records. POLICY: The Town of Fountain Hills maintains a personnel file on each employee. The personnel file includes such information as the employee's job application, resume, records of training, documentation of performance appraisals and salary increases, and other employment records. Because the information in a personnel file is personal by nature, the Town keeps these files as confidential as possible. The Town does not keep medical records nor work eligibility records in the personnel file, as this information must be kept in a separate secure place. Personnel files are housed in the Human Resources office and are the property of the Town. Employees may inspect their official personnel file at reasonable times upon reasonable notice. Personnel File Access Town employees have a right to expect that their personal information will be held in strictest confidence and that only authorized persons will have access to the information. Regardless of the position for which an employee was hired, they are entrusted with the responsibility to maintain fellow worker’s rights to confidentiality. The release of any information to unauthorized individuals is a breach of this policy and will be cause for disciplinary action up to and including termination. Access to the personnel files of Town employees is controlled as follows: Employees who wish to review their own file should contact the Deputy Town Manager/Administrative Services Director with reasonable notice. 1. The immediate supervisor or Department Head may examine, in the Human Resources Office upon reasonable notice, the personnel file of any employee under their supervision or being considered for a position under their supervision. 2. The Town Manager may examine any employee’s personnel file at any time. 3. Any individual who has written authorization from the employee to review the personnel file may do so (e.g., officials of an agency to which the employee has applied). 4. An employee’s personnel file may be examined upon request by an investigator of a state or federal law enforcement agency with a valid legal reason for such examination. 5. An employee’s personnel file may be duly subpoenaed in a legal action. 6. The home addresses and telephone numbers of Town employees are not public information and will not be released without the written consent of the employee. Pursuant to A.R.S. §39-121 et. seq., any person may request to examine or be furnished copies of any public record. The Town of Fountain Hills’ policy prohibits the disclosure of confidential personal Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 135 information about an employee without the employee's written consent. Human Resources will release an employee's personnel file for viewing for production to outside sources only after a review has been performed on the file to ensure that any confidential information such as birth date, social security number, home address, home phone number, spouse/dependent and medical information is redacted to the extent legally required prior to viewing it. 901. Reference Inquiries PURPOSE: To provide guidelines on the Town’s response to reference checks and/or inquiries of current or prior employees of the Town. SCOPE: This policy applies to all Town employees. POLICY: The Town will not respond to reference checks/inquiries from other employers or financial institutions without a written authorization and release (Employee Authorization to Release Reference Information Form) signed by the individual who is the subject of the inquiry. Responses to such inquiries will be limited to factual information that can be substantiated by official Town records to include dates of employment and job title. All inquiries are to be directed to Human Resources for official response. The only exception to the above statement is that Human Resources may release salary information to credit institutions when the request for salary information is made in writing and the employee authorizes release of the information. 902. Bulletin Boards PURPOSE: To establish guidelines for use of Town bulletin boards for the purpose of employee communication. SCOPE: This policy applies to all Town employees. POLICY: To maintain an effective avenue for communicating with our employees, the Town may, from time to time, utilize bulletin boards or post notices. The bulletin boards are located in the break room in order to ensure that employees have constant access to posted information. Town bulletin boards are used to communicate mandatory workplace posters. They can also be used to communicate information regarding policies and announcements, including, but not limited to, job postings, safety rules, health items, benefit programs, and notices announcing special events. Most of the information, however, will also be communicated electronically via email. Employees may not tamper with these bulletin boards or postings in any manner. Employees may not post material on bulletin boards without the approval of Town Administration or the Fire Chief for Fire Department locations. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 136 903. Solicitation PURPOSE: To establish a policy concerning solicitation in the workplace. SCOPE: This policy applies to all Town employees. POLICY: In order to prevent disruption of operations, it is the Town of Fountain Hills policy that there shall be no solicitation during working time. All employees should accomplish their work and not interfere with other employees trying to perform their work. Therefore, the following rules shall apply: 1. No employee may engage in solicitation, nor may any employee willingly accept solicitation on behalf of any club, society, religious organization, political party, or similar association, or for any other purpose, during actual working time of either the solicitor or the person being solicited. “Actual working time” means the time during which an employee is required to be performing work duties; working time does not include the time before the employee’s scheduled workday begins, the time after the employee’s scheduled workday ends or the employee’s break or lunch period. 2. No employee, nor individuals who are not employees, may solicit or distribute materials on Town premises, company vehicles, or personal vehicles. 3. Nothing herein shall be interpreted or applied to interfere with an employee’s rights under the National Labor Relations Act. No literature shall be posted anywhere on the premises without the authorization of Town Administration. Solicitation and/or distribution of materials on Town property by persons not employed by the Town is prohibited at all times. 904. Office Decor PURPOSE: To provide guidelines on office décor to establish a positive and professional environment for all employees and visitors. SCOPE: This policy applies to all Town employees. POLICY: All employees are expected to contribute to a professional atmosphere and work environment. Our employees, customers, residents, and businesses deserve impressive public facilities. Office decor should reflect a pleasant working environment for everyone, while at the same time allowing some freedom of expression within individual work areas. Reasonable judgment shall govern the types of quantity of work-related information and personal effects which will be displayed within individual workspaces and common use areas. Employees are required to adhere to the following: 1. Secure both their department director and facilities division approval for hanging items on walls. Facilities division staff should be requested to hang items on walls. Appropriate items to display include tasteful artwork, diplomas, awards, plaques, Town related items, etc. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 137 2. All pictures or items for display must be framed or on a bulletin board. 3. All décor must meet safety standards and minimize deterioration of the furniture or buildings. Prohibitions 1. Using tape, magnets, staples, or tacks is prohibited, unless out of view, and is not unsightly or destructive to furniture. This would include any quick reference material such as phone number lists, referral lists, etc. which should be displayed in the most professional manner available. 2. Displaying any item that may cause others to be uncomfortable or may find to be offensive. 3. Hanging items from the ceiling or safety features. Nothing in this policy is intended to restrict rights under the National Labor Relations Act. TOWN OF FOUNTAIN HILLS PERSONNEL POLICY MANUAL Amended and Restated December 2023 TOWN OF FOUNTAIN HILLS 16705 E. AVENUE OF THE FOUNTAINS FOUNTAIN HILLS, AZ 85268 480-816-5100 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 2 Contents INTRODUCTION MATTERS .......................................................................................................... 6 100. General Policy Statement ......................................................................................................... 6 101. About the Organization ............................................................................................................ 7 102. Mission Statement .................................................................................................................... 7 EMPLOYMENT MATTERS ............................................................................................................ 8 200. Equal Employment Opportunity .............................................................................................. 8 201. Recruitment And Selection ...................................................................................................... 9 202. Background Checks................................................................................................................ 10 203. Loyalty Oath ........................................................................................................................... 11 204. Immigration Law Compliance ............................................................................................... 12 205. Introductory Employment Period ........................................................................................... 12 206. Nepotism and Personal Relationships .................................................................................... 15 207. Secondary Employment ......................................................................................................... 16 208. Job Descriptions ..................................................................................................................... 17 209. Temporary Work Assignments .............................................................................................. 17 210. Temporary Staffing ................................................................................................................ 19 211. Reduction In Workforce ......................................................................................................... 19 212. Separation from Employment ................................................................................................ 20 TIME AT WORK AND TIME AWAY .......................................................................................... 22 300. Work Week and Hours of Work ............................................................................................ 22 301. Breaks/Meal Period ................................................................................................................ 23 302. Breastfeeding/Lactation ......................................................................................................... 24 303. Attendance .............................................................................................................................. 25 304. Absentee Reporting ................................................................................................................ 25 305. Sick Leave .............................................................................................................................. 26 306. Vacation ................................................................................................................................. 29 307. Holidays ................................................................................................................................. 32 308. Paid Personal Leave ............................................................................................................... 34 309. Bereavement Leave ................................................................................................................ 35 310. Jury/Witness Duty .................................................................................................................. 35 311. Voting Leave .......................................................................................................................... 36 312. Federal Family and Medical Leave (FMLA) ......................................................................... 37 313. Military Leave ........................................................................................................................ 40 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 3 314. Leave of Absence Without Pay .............................................................................................. 41 315. Exempt Leave ......................................................................................................................... 42 316. Recognition Leave.................................................................................................................. 43 WAGES AND COMPENSATION .................................................................................................. 45 400. Wage And Salary Administration .......................................................................................... 45 401. Employment Categories ......................................................................................................... 48 402. Exempt/Non-Exempt FLSA Classifications .......................................................................... 49 403. Call-Back Pay ......................................................................................................................... 50 404. Stand-By Duty (On-Call) ....................................................................................................... 52 405. Job-Sharing............................................................................................................................. 53 406. Payroll and Timekeeping ....................................................................................................... 54 407. Garnishments .......................................................................................................................... 55 408. Personal Data Changes ........................................................................................................... 55 409. Direct Deposit ........................................................................................................................ 56 410. Travel Time ............................................................................................................................ 56 BENEFITS ......................................................................................................................................... 58 500. Benefits................................................................................................................................... 58 501. Medical, Pharmacy, Dental, Vision, and Cobra Continuation ............................................... 58 502. Other Benefits ........................................................................................................................ 60 503. 401A Retirement Plan ............................................................................................................ 61 504. Deferred Compensation (457) ................................................................................................ 61 505. Health Savings and Flexible Spending Accounts .................................................................. 62 506. Employee Assistance Program ............................................................................................... 62 507. Officer Craig Tiger Act .......................................................................................................... 63 508. Tuition Reimbursement .......................................................................................................... 64 509. Training Funding .................................................................................................................... 66 510. Memberships .......................................................................................................................... 67 511. Service Awards ...................................................................................................................... 67 HEALTH, SAFETY & SECURITY ................................................................................................ 68 600. Drug and Alcohol-Free Workplace ........................................................................................ 68 601. Drug and Alcohol Testing ...................................................................................................... 69 602. Smoke-Free Workplace .......................................................................................................... 75 603. Firearms/Weapons .................................................................................................................. 75 604. Violence in the Workplace ..................................................................................................... 76 605. Identification Badges and Building Access ........................................................................... 78 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 4 606. Family or Guests in Non-Public Areas .................................................................................. 78 607. Safety Equipment/Uniforms ................................................................................................... 79 608. Workplace Safety ................................................................................................................... 79 609. Reporting Accidents & Incidents ........................................................................................... 80 610. Workers Compensation .......................................................................................................... 81 611. Temporary Modified Duty ..................................................................................................... 83 612. Fitness for Duty ...................................................................................................................... 85 613. Reasonable Accommodations ................................................................................................ 86 614. Medical Examinations ............................................................................................................ 87 615. Immunizations ........................................................................................................................ 88 616. Service Animals in the Workplace ......................................................................................... 88 617. Surveillance System ............................................................................................................... 89 618. Use of Town Property ............................................................................................................ 90 619. Use of Town Premises and Office Materials ......................................................................... 92 EMPLOYEE CONDUCT ................................................................................................................ 94 700. Dress Code and Personal Appearance .................................................................................... 94 701. Performance Evaluation ......................................................................................................... 96 702. Conflict Of Interest................................................................................................................. 97 703. Outside Activities of Staff ...................................................................................................... 99 704. Gifts Policy ............................................................................................................................. 99 705. Customer Service Expectations ............................................................................................ 100 706. Code of Conduct................................................................................................................... 100 707. Harassment ........................................................................................................................... 101 708. Whistleblower Protection ..................................................................................................... 103 709. Confidentiality ...................................................................................................................... 104 710. HIPAA .................................................................................................................................. 105 711. Work Rules ........................................................................................................................... 106 712. Corrective and Disciplinary Action...................................................................................... 108 713. Problem Solving ................................................................................................................... 112 714. Grievances ............................................................................................................................ 113 TECHNOLOGY POLICIES ......................................................................................................... 115 800. Technology ........................................................................................................................... 115 800-A. Intranet/Internet and Email .............................................................................................. 121 801. Software/Hardware............................................................................................................... 126 802. Audit of Information Systems .............................................................................................. 130 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 5 803. Workplace Monitoring ......................................................................................................... 131 804. Social Media ......................................................................................................................... 131 805. Cellular Devices ................................................................................................................... 133 OTHER WORKPLACE POLICIES ............................................................................................ 134 900. Personnel Files ..................................................................................................................... 134 901. Reference Inquiries .............................................................................................................. 135 902. Bulletin Boards ..................................................................................................................... 135 903. Solicitation ........................................................................................................................... 136 904. Office Decor ......................................................................................................................... 136 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 6 INTRODUCTION MATTERS 100. General Policy Statement PURPOSE: The Personnel Policy Manual (or the “Manual”) has been developed to provide clarity to all employees of Fountain Hills. It is meant to communicate our mission, expectations, policies, and procedures. It is the responsibility of each employee to read and be familiar with the information contained in this Manual. SCOPE: These personnel policies shall apply to all Town employees unless otherwise noted. These personnel policies do not apply to elected officials; officers subject to appointment and removal by the Council; consultants hired on a contract basis; contract employees; volunteer workers who receive no regular compensation from the Town; and members of boards, committees and commissions established by the Council; however, these individuals to which the personnel policies do not apply, may be subject to separate rules. In the event of conflict between these policies and any Town ordinance, or state or federal law, the terms and conditions of those ordinances or laws shall prevail. POLICY: The Town Council enacts these policies in order to further the following goals: 1. To familiarize employees with the human resources policies of the Town. 2. To assist managers in the development of sound management practices and procedures, and to make effective and consistent use of human resources throughout the Town. 3. To promote communication between department heads, supervisory staff, and employees. 4. To ensure, protect, and clarify the rights and responsibilities of Town employees. This Policy Manual supersedes and replaces all previous personnel policies and procedures on issues that are addressed in this document. In the event of the amendment of any ordinance, rule, or law incorporated in these policies or upon which these policies rely, these policies shall be deemed amended in conformance with those changes. The Town Manager shall have the authority to make such amendments, as mandated by local, county, state or federal ordinance, regulation or law, and shall also have the authority to make non-substantive amendments. Amendments shall be reported to the Town Council. The Town of Fountain Hills specifically reserves the right to repeal, modify or amend these policies at any time, with or without notice. None of these provisions shall be deemed to create a vested or contractual right in any employee or limit the power of the Town Manager to repeal or modify these policies. These policies are not to be interpreted as promises or specific treatment. Violation of these policies will be perceived as a serious matter and may result in disciplinary or other administrative action, up to and including termination of employment. The Town may terminate an employee for any reason or no reason during the introductory period as long as the termination is not based on discrimination. In addition, the Town may terminate an employee for cause after the introductory period. Likewise, the employee may terminate employment at any time. No individual supervisor, manager or officer can make a contrary agreement. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 7 Scope of Coverage These policies apply to all employees of the Town of Fountain Hills except where specifically stated otherwise in the Town Code, in these human resources policies, or in a written employment agreement between the Town and certain management-level employees, such as the Town Manager and Town Magistrate. These policies and procedures do not apply to non- employee positions as defined in the Town Code, including elected officials; members of boards, committees, and commissions; persons engaged by the town on a contractual basis; persons appointed by Council; and other personnel whom the Council may designate. Policy Administration Administration of the Town’s personnel policies is the responsibility of the Town Manager. Disclaimer Any statement or promise made by any supervisor or other employee will not change this Manual or create a legal agreement. Final interpretation and implementation of any of the policies or rules in this Manual are vested solely with Town Administration. This Manual is subject to change and modification by the Town with or without notice. Every employee is responsible for policy compliance, including any policy revision/update that has been distributed. Language Conflicts In the event of conflict between these policies and procedures and state, local, or federal law, the terms, and conditions of the state, local, or federal law shall prevail. 101. About the Organization The Town of Fountain Hills has an unrelenting commitment to excellence and equal treatment of its employees and customers. The Town of Fountain Hills (or the “Town”) municipal government provides a variety of services such as zoning ordinances and the Town code. Major departments include Administration, Community Services, the Court, Development Services, law enforcement (contracted with the Maricopa County Sheriff’s Office), and fire and emergency medical service. The Town is operated with a seven-member Town Council handling policy decisions for Fountain Hills. The Town Manager is responsible for all personnel and administrative matters and has a broad authority to lead the organization, ensuring the policy decisions of the council are carried out, strategic planning, preparing the annual budget, serving as a key advisor to all of the elected officials, lead and supervise the department directors, and ensuring operational and administrative functions are complete. The oversite of the department operations is a function of the department directions, who are hired by the Town Manager, to be the subject matter experts in their field of expertise. The department directors are responsible for leading and engaging a highly qualified workforce to carry out the Council’s vision and mission for the organization. 102. 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 Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 8 responsive government; and maintaining the stewardship and preservation of its financial and natural resources. To serve and respect, and provide trust and stewardship. EMPLOYMENT MATTERS 200. Equal Employment Opportunity PURPOSE: To provide equal opportunity in employment to all qualified employees and applicants for employment. SCOPE: This policy applies to all applicants and employees throughout every aspect of the employment relationship including, but not limited to: recruitment, selection, placement, training, compensation, benefits, promotion, transfer, discipline, termination, and social and recreational programs. POLICY: The Town of Fountain Hills is an equal opportunity employer. The Town does not discriminate on the basis of race, color, religion, sex, age, disability, or any other legally protected status. All employees are required to have proof of identity and authorization to work. It is our policy to seek and employ the best qualified personnel in all positions, to provide equal opportunity for advancement for all employees, including promotion and training. Further, the Town is committed to providing a work environment in which employees are treated with courtesy, respect and dignity. As an employer, the Town will not tolerate any form of harassment, verbal or physical, with regard to an individual’s race, sex, national origin or any other protected characteristics. All employees are encouraged to bring any concerns to the attention of the Human Resources Administrator or direct supervisor as set forth in the Harassment Policy, contained herein. The Town also provides reasonable accommodations for qualified individuals with disabilities in accordance with the Americans with Disabilities Act and for employee’s religious observances and practices to the extent provided by law. It is the employee’s responsibility to notify the Town of the need for a reasonable accommodation and to provide medical documentation upon request. It is the responsibility of every employee to cooperate with the spirit and intent of this policy. Violations and/or complaints of this section shall be referred to any of the following: supervisor, manager, department director, or human resources department. It is the intent that issues be dealt with in a timely and appropriate manner. Employees found to be in violation of this policy will be subject to disciplinary action. Positive action is required from all employees to help ensure the Town complies with its obligations under state and federal law. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 9 201. Recruitment and Selection PURPOSE: To establish guidelines to fill vacant positions. SCOPE: This policy applies to all vacant positions. POLICY: Fountain Hills observes all equal employment opportunity laws and regulations in its recruitment and selection efforts. Selection techniques used by the Town are intended to be impartial, practical, job-related, and consistent with business necessity. The examinations used may include, but are not necessarily limited to, oral, written, performance, physical/mental fitness, and training/experience evaluations. In addition, evaluation of past work performance, work samples, personal interviews, and background investigations may be used in the selection process. Recruitment for positions shall occur in the following order: Permission shall be obtained by Department Heads from the Town Manager to initiate recruitment proceedings. 1. Recruitment shall be advertised as the Town Manager deems advisable. 2. All hiring decisions of the Town Manager shall be final. 3. All applications, resumes, interview forms, recruitment information and process information shall be retained by the Town in accordance with State of Arizona retention laws. Application Process When the Town determines that a vacancy or new position will be filled, Human Resources may advertise publicly as needed to yield the most qualified candidates. The Town will normally display a position announcement of such vacancy or new position on the Town website, other public websites, professional organization websites, and via internal email communications. Applicants are expected to submit a completed Town of Fountain Hills online application form. Failure to complete the online application form may result in disqualification. Completed applications become the property of the Town of Fountain Hills and are not returned to applicants. A Town application is required of all applicants, regardless of current employment status with Fountain Hills. If an applicant needs an accommodation in order to submit a Town application form, they should notify Human Resources. On occasion, the Town Manager may abbreviate the recruitment process up to and including direct appointment, for positions that report directly to the Town Manager, only in circumstances where both the Human Resources Head and Town Manager approve of and recommend the appointment. Minimum Qualifications Meeting the minimum qualifications does not automatically guarantee an interview. The selection process will include an evaluation of the applicant’s education, relative abilities, skills, knowledge, and experience. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 10 Internal Applications To be eligible to apply for a posted job, current employees must have performed competently for the last six (6) months in their current position. In addition, employees who have been in a disciplinary process within the last year are not eligible to apply for posted jobs. Rejection Any application may be rejected for reasons including, but not limited to: 1. The applicant appears not to possess the qualifying experience and training required for the position. 2. The applicant has made any misstatement of any material fact. 3. The applicant has practiced any deception or fraud in their application. 202. Background Checks PURPOSE: To establish a policy regarding background checks, reference checks, motor vehicle record checks, to be in compliance with the Fair Credit Reporting Act and any other screens to serve the position posted. SCOPE: This policy applies to all internal and external applicants. POLICY: The Deputy Town Manager/Administrative Services Director will administer or make the decision to delegate this process to a third-party vendor. All employees applying for any position with the Town of Fountain Hills will be subject to a background and/or reference check with current and former employers and/or managers. Unless required by law, reference checks and background checks will not be shared with the potential employee. Candidates will be notified during the hiring process which checks will be performed. The required information may include, but is not limited to education, licenses, certifications and degrees, employment history, criminal history, and driving records, if applicable. Employment will be offered pending the return and disposition of such background checks and contingent upon the results of the checks. Only individuals in Human Resources or their designee, who are authorized to do so, may initiate or receive a pre-employment criminal background check. Information gained from any of the above background checks will be held in confidence and shared with management individuals only on a need-to-know basis, unless the law otherwise requires. Fair Credit Reporting Act Any individual offered a position that has responsibility for initiating or affecting financial transactions may be required to submit to a credit check. These responsibilities could include, among other duties, collecting or handling cash or checks, writing checks or approving them, access to a direct money stream, or being a fiduciary to the organization. Any employee subject to a credit check will be provided with the proper legal notices required under the Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq. (“FCRA”). The Town will obtain the applicant or employee’s consent, in writing, to the procurement of the report. If the report is used as the basis for adverse employment action, the Town Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 11 must give the individual notice of the consumer report and a copy of A Summary of Your Rights Under the Fair Credit Reporting Act. For purposes of this section, “adverse action” means any decision that “adversely affects” the applicant, including without limitation, a denial of employment to an applicant. Motor Vehicle Record Check Any applicant who will be driving a Town vehicle or driving their personal vehicles on Town business will be subject to an inspection of their Motor Vehicle Records annually. Depending on the job requirements, some applicants may have to comply with the Department of Transportation requirements for a Commercial Driver’s License and may have additional stipulations. Pre-Employment Drug and Alcohol Testing Applicants selected for employment in certain positions must pass a pre-employment drug and alcohol test. Any potential hire who refuses to test or fails the drug and alcohol test will be ineligible for employment with the Town. Physical and Mental Examination Applicants selected for employment in certain positions shall be of sufficient mental and physical fitness to be able to perform the essential functions of the positions for which they have applied. On acceptance of an offer of employment, the physical and mental fitness of individuals entering Town employment may be evaluated by medical professionals approved by the Town in accordance with applicable law. Reasonable accommodation for a qualified individual with a disability shall be provided unless the provision of such accommodation would impose an undue hardship upon the Town. The physical and mental qualifications of employees or candidates who have been selected for hire and accepted a conditional offer of employment may be evaluated by medical professionals approved by the Town. 203. Loyalty Oath PURPOSE: The purpose of this procedure is to document and ensure compliance with the loyalty oath requirements of State law. SCOPE: This oath applies to all individuals hired. POLICY: All Town employees are required to sign a loyalty oath and this document must be submitted with new hire paperwork and filed in the employee's official personnel file. Arizona Revised Statutes §38-231 requires, in part, that an officer or employee within the meaning of the section who fails to take and subscribe the oath or affirmation provided within the time limits prescribed shall not be entitled to any compensation unless and until such officer or employee does so take and subscribe to the form of oath or affirmation set forth. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 12 204. Immigration Law Compliance PURPOSE: The Immigration Reform and Control Act (IRCA) and Legal Arizona Workers Act requires employers to verify the identity of each employee hired to perform labor or services, in return for wages or other remunerations. SCOPE: This law applies to all individuals hired. POLICY: All employees, citizens and non-citizens, are required to complete an Employment Eligibility Verification form (I-9 Form) as a condition of employment. The Town of Fountain Hills requires all new employees, upon being hired, to complete Section 1 of the I-9 Form by their first day of employment. Appropriate documentation must be provided, and the Verification of Employment Eligibility (Section 2 of the I-9 Form) must be completed by Human Resources within three (3) business days of the date employment begins. Any employee who fails to complete the I-9 Form with appropriate documentation within the 3-day time period cannot continue to work for the Town of Fountain Hills. Employment is contingent upon satisfactory completion of the verification requirement. When an offer of employment is made to an applicant, the applicant shall be informed that proof of identity and eligibility to work in the United States will be required upon hire. A list of acceptable documents will also be described to the candidate. In addition to completing the I-9 form, all new employees must also be cleared by the Department of Homeland Security (DHS) as being eligible to work in the United States through the E-Verify Program required by the Legal Arizona Workers Act (A.R.S. §23-211 et. seq.). The Town of Fountain Hills is an E-Verify employer. E-Verify is a web-based program administered by the U.S. Department of Homeland Security, USCIS Verification Division, and the Social Security Administration that supplements the current I-9 employment eligibility verification process. The program determines whether the information provided by the new hire matches government records and whether the new hire is authorized to work in the United States. It is completed by a representative from Human Resources inputting into a secure DHS web site the information provided by the new employee from the completed I-9 form and their social security number. These forms will be maintained by the Human Resources Office. 205. Introductory Employment Period PURPOSE: To establish a period of time which shall be regarded as part of the orientation period utilized for training and critiquing the new employee’s and rehires work habits, skill level, and suitability for continued employment in their assigned position with the Town. SCOPE: The Introductory period for new full-time employees and rehires is defined as the first six (6) months. The introductory period for part-time employees and rehires is defined as the first 1,040 hours worked. POLICY: The provisions contained in the Town of Fountain Hills Personnel Manual relating to notices required before demotion, suspension, or dismissal of a regular status employee shall not apply to employees in their introductory period of employment. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 13 During this time the employee will be receiving orientation, on-the- job training, and informal communication and feedback will be encouraged throughout an introductory period so that the employee will have clear expectations and an opportunity to make corrections as necessary. This is also a time for encouragement, support, and reinforcement from the immediate supervisor and Department Head; as well as a time for the employee to determine if they are satisfied with their position. At the conclusion of the introductory employment period, a formal performance evaluation will be completed which becomes a part of the employee’s personnel file in the Human Resources Department. The employing department will make a decision whether to retain the employee, extend the introductory period, or terminate the employee, based on work performance. This determination must be clearly stated in the performance evaluation. Every effort shall be made to complete formal introductory performance evaluations by the supervisor, not earlier than ten (10) working days prior to the evaluation due date, and not later than ten (10) working days after the evaluation due date. The Town reserves the right to terminate employment of any employee, both during and after the Introductory Period, as they deem appropriate. Employees within the Town will also serve the same Introductory Period as a new employee, in cases of promotions, transfers, or demotions. Any employee who, in the sole judgment of management, is not successful in their new position, can be removed from that position and be subject to discipline, up to and including termination from employment. As an alternative, the Town has the authority to place the employee in a comparable position for which the employee is qualified, depending on the availability of such positions and the Town’s needs. Introductory Periods 1. Initial Introductory Period: All full- and part-time employees, as well as rehires, will be placed in an initial introductory period following their initial date of hire. Upon successful completion of the initial introductory period and in accordance with the provisions of this Policy, the employee shall achieve regular status in Town employment. All employees hired after July 1, 2017, are eligible to begin utilizing accrued Paid Sick Time on the 90th calendar day after commencing employment with the Town, in accordance with the Arizona Fair Wages and Healthy Families Act, Proposition 206. Full- and Part-Time, regularly scheduled employees are eligible to begin utilizing accrued vacation or other leave as applicable, after satisfying their initial introductory period. During the initial introductory period, an employee may be dismissed, suspended or demoted by the Town Manager. Dismissal during the initial introductory period shall be defined as an introductory release and shall not be considered a dismissal for cause. 2. Promotional Introductory Period: A promotion is defined as the movement of an employee to a position in a higher salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly increased in nature and scope. Employees will Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 14 be placed in a promotional introductory period following the effective date of their promotion as specified in the time frame listed above. Employees shall be provided written notice of the introductory period. A promoted employee who is not successful in completing an introductory period may be eligible for demotion to a vacant position for which they meet the minimum qualifications. A determination by the Department Head that the employee’s performance was not satisfactory shall be sufficient cause for demotion. 3. Demotion Introductory Period: A demotion is defined as the movement of an employee to a position in a lower salary grade than the one presently assigned to, and one for which the new duties and responsibilities are significantly decreased in nature and scope. Employees will be placed in an introductory period following the effective date of their demotion with a time frame as defined above. Employees shall be provided written notice of the introductory period. The regular status of an employee serving a demotion introductory period shall not be affected. However, an employee demoted for disciplinary reasons, who unsuccessfully completes a demotion introductory period, shall be dismissed. The employee will be given a written notification of such dismissal. Failure to meet the requirements of the position to which the employee is demoted or to successfully complete the demotion introductory period shall constitute a sufficient factual basis for further discipline, up to and including termination. 4. Lateral Transfer Introductory Period: A lateral transfer is defined as the movement of an employee to a position in the same salary grade as the one presently assigned. Employees will be placed in an introductory period following the effective date of their transfer with a time frame in the timeframe listed above. Employees shall be provided written notice of the introductory period. A formal performance evaluation will be conducted documenting the conclusion of this introductory period and become part of the employee’s official record in the Human Resources Department. A laterally transferred employee whose performance falls below acceptable levels at the end of their introductory period may be returned to their former position or another similar position for which they qualify, if vacant. The regular status of an employee serving a lateral transfer introductory period shall not be affected. Employees are not allowed to be promoted within the initial, promotional, demotion, or lateral transfer introductory periods. Questions about this process can be directed towards the Human Resources Department. Introductory Period Extensions A Department Head may request authorization for an introductory period to be extended longer than the applicable period as defined within this Policy to further assess an employee’s work performance Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 15 and suitability for continued employment. A request to extend an introductory period must be in writing and approved by the Town Manager. Rehire An employee who is terminated from Town employment and rehired shall be required to serve an initial introductory period upon re-employment, unless otherwise waived by the Town Manager. 206. Nepotism and Personal Relationships PURPOSE: To clarify the Town’s process for restriction of hiring and retention of relatives of current employees and personal relationships between employees. Compliance with this Policy is intended to prevent potential or perceived favoritism; or perceived or actual conflict of interest among employees, and to promote a harassment-free working environment. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: It is the policy of the Town to restrict employment of immediate family members. Compliance with this Policy is intended to prevent potential or perceived favoritism; or perceived or actual conflict of interest among employees, and to promote a harassment-free working environment. No two (2) members of immediate family (spouse, child, grandchild, parent, grandparent, sibling, or in-law), and no relative of a Town Council member or the Town Manager shall be employed in, or promoted or transferred to, any department, division, shift and/or work unit when as a result they would be in a superior-subordinate relationship, unless prior written approval is received from the Town Manger. Further, the Town believes that romantic, dating, or sexual relationships between employees who are within the same chain of command has the potential to disrupt the work environment. Some of the possible adverse effects of such relationships may include the following: poor work performance or attitude; distraction from work duties; creation or suggestion of a sexually hostile or offensive work environment for the involved employees or others around them; and the possibility, appearance, and/or perception of favoritism or conflict of interest. For these reasons, and in furtherance of its policy against sexual harassment in the workplace, the Town prohibits its supervisors to have a romantic, dating, or sexual relationship with any other employee who is under them within the chain of command, regardless if it is a direct or indirect reporting relationship. Regarding non-supervisory relationships, the Town will become involved and will take appropriate action if problems resulting from such relationships manifest themselves on the job. In cases where a conflict or the potential for conflict arises because of the relationship between employees, even if there is no line of authority or reporting involved, the employees may be separated by reassignment or terminated from employment. While the definition of Nepotism identifies relationships that are likely to be perceived as a conflict of interest in an immediate superior-subordinate relationship, employees should also guard against other superior-subordinate relationships that could be perceived as creating a conflict of interest. Employees in close personal relationships in the workplace should refrain from public workplace displays of affection or excessive personal conversation. To safeguard the interests of both employees and Town, Human Resources should be alerted to any employee relationships that pose, or potentially pose, a conflict of interest. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 16 In all cases of employment with the Town, the Town reserves the right to transfer or reassign any employee at any time with/without cause or notice. 207. Secondary Employment PURPOSE: To establish guidelines for Town employees concerning secondary employment. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town of Fountain Hills does not generally prohibit employees from engaging in secondary employment. However, each full-time employee’s Town position should be considered the employee’s primary employment. The Town of Fountain Hills prohibits secondary employment when it interferes with the employee’s Town duties, negatively impacts job performance, involves a potential conflict of interest, is detrimental to the Town’s interests, involves the use of Town data or resources, or in any way compromises the integrity or credibility of the Town of Fountain Hills government in the community. Town of Fountain Hills’ employees should avoid: 1. Secondary employment with an entity that conducts business with the Town without full disclosure and satisfactory analysis by the Town Administration for any potential conflict of interest. 2. Secondary employment which cannot be accomplished outside of the employee’s normal working hours or is otherwise incompatible with the performance of the employee’s duties. 3. Secondary employment placing the employee in a position of conflict between the employee’s role with the Town and the employee’s role in outside employment. 4. Performance of work for any governmental entity within the State of Arizona without the written consent of both employers. 5. Secondary employment which exploits official position or confidential information, acquired in the performance of official duties for personal gain. 6. Secondary employment which may be viewed by the public as work on behalf of the Town. Due to the importance of the public's perception of the Town government, all employees who engage in secondary employment must disclose such work on a "Secondary Employment Declaration" form. Secondary employment is subject to review for conformance to this policy. Employees engaged in secondary employment determined not to be in conformance may be required to cease such employment. If there are any questions regarding secondary employment or volunteer positions, it is recommended these be discussed in advance with supervision. Volunteer Activities Employees are encouraged to engage in volunteer activities, especially activities to improve community life. However, employees should evaluate their volunteer activities in the same manner as outside employment, to identify any potential conflict with the employee’s Town position and discuss these potential conflicts with their supervisor on an individual basis. Employees should declare volunteer activities only if the employee believes there is some reason for concern consistent with the spirit of this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 17 208. Job Descriptions PURPOSE: To document and describe the skills, qualifications, and responsibilities of each position and thereby promote organizational effectiveness and efficiency. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town recognizes that it is essential for each staff member to be fully aware of the duties and responsibilities of his or her position. A job description is a formal document describing the nature, scope, physical requirements, and responsibilities of a specific job within the organization. However, a job description cannot capture every nuance of the position and may be generically descriptive of similar jobs. Job descriptions are used for the purposes of training and development, annual performance appraisals, promotions, recruiting, and hiring. Job descriptions are prepared by the incumbent employee, supervisor, and the department director, with final review by the Town Manager and Human Resources. Human Resources or the Town Manager’s designee is responsible for: 1. Administering the overall job description program. 2. Providing the necessary training, instructional materials, and assistance to employees, supervisors, and department directors. 3. Monitoring job descriptions for proper format. 4. Maintaining a central file of all current job descriptions. 5. Ensuring that all positions have a job description. (Supervisors and department directors are responsible for reviewing and approving job descriptions for their areas.) 6. Reviewing job descriptions on an ongoing basis to ensure their accuracy. All new jobs within the organization must be evaluated and classified in the pay plan. All new positions must be evaluated and approved before the job can be posted. All job descriptions will be reviewed annually for adjustment in duties/responsibilities and expectations of the position. If or when the duties of a job change significantly, it may be necessary to reevaluate the job’s classification. Any recommended adjustments to the job description will be submitted to Human Resources for review. Cross training and Contractor Provisions The Town Manager has the discretion to require employees to work outside their job description as deemed appropriate under certain circumstances. The Town Manager may require workgroups to cross-train and redeploy across departments, divisions, or sections in order to ensure essential functions are completed. In some cases, contractors or part-time employees will be hired on a temporary basis to fulfill essential service requirements. In these instances, provisions will be made to allow for temporary access to Town resources (door badges, access to shared physical and digital files, etc.) as necessary. 209. Temporary Work Assignments PURPOSE: To clarify the circumstances by which the Town may utilize temporary assignments or temporarily staff a position. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 18 SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: “Acting” Assignments – Town employees may be temporarily assigned to perform all the duties and assume all the responsibilities of another position. “Increased Work Duties” Assignments – From time to time, Town employees may be temporarily assigned by the Town Manager to perform some or all the duties and assume some or all the responsibilities of a position or other positions. Temporary Assignments shall be administered in the following manner: 1. “Acting” Assignments – When the Town Manager identifies or otherwise determines that a Town Department needs an “Acting” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best-suited to meet the Department’s needs. During such temporary assignments, the Town employee shall be designated as having an “Acting” position. Changes in compensation during an “Acting” assignment shall be determined by the Town Manager, except in the case of fire department fire protection employees where the base pay shall be increased by ten percent (10%) above their current pay rate for hours worked in a temporary assignment above their current job title. Fire department fire protection employees working at a position compensated below their current job title shall have no temporary pay adjustment. Temporary assignments do not become “Acting” assignments unless, and until, such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks, except in the case of fire department fire protection employees where temporary assignments have a minimum of one (1) work shift. “Acting” assignments should generally not last longer than nine (9) consecutive months, unless extended in writing by the Town Manager. The Town Council may appoint an Acting Town Manager as deemed appropriate by the circumstances. In the case of the Town Council appointing an Acting Town Manager, the Council sets the length of time of the assignment and the compensation of the Acting Town Manager. 2. “Increased Work Duties” Assignment – When the Town Manager identifies or otherwise determines that a Town Department needs an “Increased Work Duties” Assignment, the Town Manager and other Town personnel, as deemed appropriate by the circumstances, shall identify and select an individual best-suited to meet the Department’s needs. Temporary changes in compensation during an “Increased Work Duties” assignment shall be determined by the Town Manager. Temporary assignments (“Increased Work Duties”) do not become assignments for purposes of changes in compensation unless and until such assignment has lasted or is expected to last a minimum of three (3) consecutive weeks. A temporary assignment (increase in work duties) can be in place of or in addition to an employee’s regular duties. “Increased Work Duties” assignments should generally not last longer than nine (9) consecutive months, unless extended in writing by the Town Manager. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 19 210. Temporary Staffing PURPOSE: To clarify the circumstances under which the Town may temporarily staff a position. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Town Departments may need staffing to meet requirements and/or fulfill responsibilities the Department may otherwise be incapable of performing with its current staffing. Temporary staffing shall be administered in the following manner: Town Departments in need of temporary staffing (usually for periods of no greater than one (1) year), may obtain such staffing from outside agencies, temporary employees, or through the use of temporary Town employees. Town Departments in need of temporary staffing shall consult with Human Resources before initiating any temporary staffing in order to discuss the potential implications of the temporary staffing. Outside agencies may be used for temporary staffing with the approval of Human Resources and Finance. Generally, agencies on a previously approved statewide contract are to be used. 211. Reduction in Workforce PURPOSE: To establish a systematic process which the Town will follow in the event the Town Manager deems it necessary to reduce positions due to reorganization, lack of work, funds, or other budgetary limitations, and to ensure business operations remain sound and employees are treated objectively. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: It is the Town of Fountain Hills’ intent to treat all impacted employees with dignity and respect, and to assist employees through the Reduction in Workforce (RIWF) process. The Town Manager, with input from Department Heads, shall determine the number and classifications of employees to be laid off. In addition, the Town Manager and Human Resources shall determine the specific procedures to be followed and the benefits that may be offered to affected employees. Employees affected by a (RIWF) shall have the opportunity to continue their medical, dental, and vision insurance coverage (if applicable) in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit provisions. Only job-related criteria will be used to determine employees who will remain with the organization. The criteria used will be determined based on the reason for the reduction in force and the determination of the department’s needs. Job related criteria may include, but are not limited to, the employee’s performance competencies, skills, responsibilities, experience, leadership, education and training, and salary. Seniority will be used only in the case of a tie. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 20 Severance Full-time employees who are laid off may be provided with a severance package as determined by the Town Manager. Grievance Rights A Reduction in Workforce action is specifically excluded from the grievance procedure. 212. Separation from Employment PURPOSE: To establish a process for terminations of employment, whether voluntary or involuntary. SCOPE: This policy applies to all Town Employees and all Town Departments POLICY: All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be required to make proper disposition and accounting for all funds and property the employee was responsible for. Employees must repay any amounts owed to the Town before final payment will be issued. All employees leaving the Town's employ, whether voluntarily or involuntarily, shall be offered an opportunity to participate in an exit interview. However, participation is entirely voluntary on the part of the terminating employee. Voluntary Resignation If termination is the result of a voluntary resignation, the employee is to document their intent to resign their position by submitting a letter of resignation to their supervisor bearing the current date, the last day of work, and the employee’s signature. Failure to give at least ten (10) working days resignation notice, fifteen (15) working days for Department Heads, could result in immediate separation and denial of rehire. waiver of required notice may be granted by the Town Manager. The effective date of termination is the last day the employee actually works. Exception: The effective date of termination due to expiration of a leave of absence is the last day of the approved leave. Group benefits such as medical, dental, and life insurance terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed to pay for coverage (e.g., pro-rating insurance). Contact Human Resources for further details. The Town, acting through the Town Manager, reserves the discretionary right, upon receiving the ten (10) day resignation notice, to immediately accept such resignation and provide the employee with two (2) weeks of regular pay in lieu of notice. All documentation is to be promptly forwarded to Human Resources. Arizona law 23-353, “Payment of Wages of Discharged Employees” requires final payment to voluntarily terminated employees to take place no later than their next regularly scheduled pay date. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 21 Involuntary Termination An employee, regardless of employment status, may be terminated by the Town Manager at any time during their initial Introductory Period. Introductory, seasonal, non-regularly scheduled, and temporary employees may be terminated at-will. The Due Process as outlined in the Policy Manual will apply for other terminations. Group benefits such as medical, dental, and life insurance, terminate on the last day of the month in which termination occurs. Deductions will be taken, as needed to pay for coverage (e.g., pro-rating insurance). Contact Human Resources for further details. Arizona law 23-353. “Payment of Wages of Discharged Employees” requires final payment to involuntarily terminated employees to take place on the earlier of the next regular payday or within seven (7) working days. In regard to all departures with employment from the Town, amounts payable to the employee shall be paid only after offset for any advances or monies owed to the Town by the employee. This includes the cost to replace any Town equipment that the employee fails to return. The Town may also take other legal action deemed appropriate to recover or protect its property. Notice An employee is encouraged to communicate with the employer whenever the employee believes working conditions may become intolerable to the employee and may cause the employee to resign. Under section 23-1502, Arizona Revised Statutes, an employee may be required to notify an appropriate representative of the employer, in writing, that a working condition exists that the employee believes is intolerable, that will compel the employee to resign or that constitutes a constructive discharge. If the employee wants to preserve the right to bring a claim against the employer alleging that the working condition forced the employee to resign, they must bring this notification forward prior to resignation. Under the law, an employee may be required to wait for fifteen (15) calendar days after providing written notice before the employee may resign if the employee desires to preserve the right to bring a constructive discharge claim against the employer. An employee may be entitled to paid or unpaid leave of absence of up to fifteen (15) calendar days while waiting for the employer to respond to the employee's written communication about the employee's unacceptable working condition. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 22 TIME AT WORK AND TIME AWAY 300. Work Week and Hours of Work PURPOSE: To provide employees with hours of operation and a policy to assist departments in creating work schedules that ensure proper coverage for effective operations. Work schedules for employees will vary due to the position they hold. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Workweek The standard workweek shall be seven (7) consecutive days commencing on Monday at 12:00 a.m. and ending the following Sunday at midnight. Any work shift in progress at midnight Sunday shall be included as part of the work period in which that shift commenced. Work Period for Public Safety Section 207(k) of the FLSA allows employees engaged in fire suppression to be paid overtime on a work period basis. The Town has defined the work period to be a 14-day work period which requires overtime over 106 hours worked in the 14-day work period for fire protection classifications. Work Schedules The standard workweek for full-time employees is forty (40) hours. The Town reserves the right to schedule and/or change all hours and schedules of work as deemed necessary and nothing contained herein shall be construed as a guaranteed work week. The core hours of operation for Town offices are generally from 7:00 a.m. to 6:00 p.m., Monday through Thursday. However, this does not guarantee a work schedule of such, and scheduling may be adjusted according to the operational needs of a department. The Fire Departments works varied hours based on 24/7 operations. Fire protection personnel may be assigned to work rotating 48-hour shifts followed by 96-hours off, which results in 96-120 hours every 14-days, and 2912 hours per year. Supervisors will advise employees of their individual work schedules. Staffing needs and operational demands may necessitate variations in starting and ending times, as well as variations in the total hours that may be scheduled each day and week. The Town reserves the right to schedule and/or change all hours and schedules of work as deemed necessary and nothing contained herein shall be construed as a guaranteed work week. With approval of the Department Director, modifications to this provision may be arranged in any manner consistent with departmental operations and to provide essential Town services, subject to any applicable federal or state statutory or constitutional limitations relating to hours of work. The Town Manager shall approve any modifications prior to implementation. Workday and workweek lengths for exempt employees are determined primarily by their current workloads and the organization’s needs. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 23 Work Performed Outside the Typical Workplace Generally, non-exempt employees shall perform their duties only at the designated worksite. Non- exempt employees must receive advanced approval from their supervisor for any work performed outside the typical workplace. Non-exempt employees approved for work outside the workplace must document and submit their hours, including but not limited to any and all time spent accessing work related emails and other programs and files, according to payroll policy. Maximum Hours Worked Employees may be required to work additional hours in a day to meet operational demands for a department. Employees are required to have at least eight (8) hours off after 16 consecutive hours worked, with the exception of the Fire Department operations personnel, who are required to have at least 24 hours off after a maximum of 96 consecutive hours worked. Emergency Operations Exceptions Emergency operations may require employees to work longer consecutive hours. During emergency operations, employees may request rest time from their Department Director/Manager. Each Director/Manager is then required to make arrangements for such rest time on an individual basis, giving consideration to the needs of the employee as well as continued coverage for emergency services. The Director/Manager has the authority to require employees to take rest time and remove them from work at any point while providing emergency operations. Rest time shall not count as hours worked. On-site flexible work arrangements will generally be based on mutual agreement. However, the Town may require employees to be onsite, based on the Town’s business needs. Employees are not entitled to or guaranteed the opportunity to use a flexible work arrangement. All flexible work arrangements must comply with applicable federal and state laws, and all Town rules, policies, and practices. The Department Director or Human Resources may discontinue or alter the flexible schedule at any time. When discontinuing or altering an established flexible schedule, the Town will normally provide advance notice of such change whenever possible. 301. Breaks/Meal Period PURPOSE: To establish guidelines for paid and unpaid employee rest periods. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Meal Periods All Town employees who work a minimum of eight (8) hours per day will receive a minimum of a one-half (½) hour unpaid meal period. The supervisor schedules all meal periods so that work areas are covered. Unpaid meal periods may be scheduled for employees working less than eight (8) hours with approval of the supervisor and employee. An employee must be completely relieved from duty in order for the time to be a “bona fide meal period”. Skipped meal periods cannot be used to make up time or to shorten the workday without approval of the supervisor. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 24 Exceptions Due to the nature of the work and scheduling of fire suppression operation positions are granted an exception to the meal period requirement. Rest Periods Town employees who work at least eight (8) hours in a day are allowed two (2) fifteen-minute rest periods per day or shift but will not exceed fifteen minutes in any consecutive four-hour period. The supervisor schedules all rest periods so that work areas are covered. Rest periods are counted as time worked and cannot be combined or “banked” to provide an extended lunch or rest period or shorten the workday. Overtime pay is not granted for rest periods not taken or for work performed during a rest period. Employees who miss a break period may not take an extended lunch period, arrive at work later than the normal starting time, or leave work before the normal quitting time. Employees are not permitted to leave the work premises during 15-minute break periods. Any employee who needs to leave the premises for personal reasons shall clock out. Scheduling Rest periods/meal periods may not be taken in the first or last hour of the employee’s workday. Meal periods and rest periods may be combined only with advanced approval by the supervisor. Supervisors are responsible for scheduling meal periods and break periods to ensure that adequate staff coverage is provided. Eating and Drinking at Workstations For health, sanitation, and respect for the public, meals should not be consumed in view of the public. Any food items brought into the workplace should not emit strong odors. Beverages may be kept at the workstation but must be in a container with a lid. Employees are expected to clean up after themselves and use appropriate receptacles for waste. No employee shall be allowed to consume food or beverage in an area with hazardous or toxic chemicals. 302. Breastfeeding/Lactation PURPOSE: To establish guidelines for employees who are nursing mothers with reasonable rest periods and physical space to express breast milk during scheduled work hours. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town supports the decision for mothers to breastfeed and is committed to enabling employees to maintain the breast-feeding relationship. In keeping with this philosophy and in compliance with certain provisions of Section 7 of the Fair Labor Standards Act, the Town will take the following appropriate measures to facilitate breastfeeding and expression of milk by mothers of newborns less than one (1) year of age. The Town will provide reasonable rest periods for an employee to express breast milk for a nursing child for one (1) year after the child's birth each time such employee has a need to express milk. Mothers may use their paid rest periods and/or unpaid meal periods for breastfeeding or expression of milk. If the designated break periods are not adequate, or the scheduled break periods do not meet the needs of the mother, the mother should discuss scheduling options with the supervisor. If the normal Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 25 break period provided to the employee is not enough adequate time, the mother may use available vacation time. The Town will provide a place, other than a bathroom, that is shielded from view and free from intrusion from coworkers and the public, which may be used by an employee to express breast milk. When requested by the employee or supervisor, Human Resources will work with the employee and supervisor to determine individual space options, which may be the employee’s office, or another space temporarily created or converted into a space for expressing milk. Employees are expected to provide their own equipment and storage. 303. Attendance PURPOSE: To establish guidelines and expectations for employee attendance. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: In order for the Town to run effectively, the Town expects employees to make every effort to be present for work. Further, while at work, the Town has an expectation for employees to perform their assigned duties and work all scheduled hours, unless the employee has received approved leave or prior approval from the supervisor. The Town expects all employees to assume diligent responsibility for their attendance and promptness. Recognizing, however, that time off is necessary, the Town has established various paid time options for employees for certain absences. Hours of attendance shall be maintained on official Town payroll documents as specified by Human Resources. Any falsification of individual time records or payroll documents by any Town employee will result in disciplinary action up to and including termination. All scheduled time not spent working needs to be accounted for. The Town will monitor attendance and absence patterns. Habitual lateness or excessive absenteeism will not be tolerated by the Town and will be subject to disciplinary action. Any employee absent from work for two (2) consecutive days of scheduled work without notifying the supervisor will be considered to have voluntarily quit. All non-exempt employees are required to fill out time sheets daily in a complete and accurate manner. Exempt employees are required to fill out time sheets for the purpose of paying vacation days, sick days, or other leave during the pay period. Non-exempt employee time sheets shall be reviewed by each supervisor and approved through electronic workflow. Corrections or changes to the time sheet shall be made only by supervisors or their designees. 304. Absentee Reporting PURPOSE: To establish procedures for absentee reporting. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 26 SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Whenever an employee is unable to report for work for any reason, they must contact their immediate supervisor or designee telephonically or by email at least thirty (30) minutes prior to the start of their scheduled working hours or as soon as otherwise practicable. When the use of earned paid sick time is foreseeable, the employee shall make a good faith effort to provide notice of the need for such time to their supervisor or their designee in advance of the use of the earned paid sick time and shall make a reasonable effort to schedule the use of earned paid sick time in a manner that does not unduly disrupt the operations of the Town. Such notice shall be given telephonically or by email. When possible, the notice shall include the expected duration of the absence. In all cases, employees who leave a voicemail message should ensure that the recipient of the message has received it. If the employee is not able to call or email personally, another person may call the employee’s immediate supervisor or designee to relay a message on behalf of the employee prior to the start of the employee’s scheduled working hours. A brief explanation should be provided concerning the reason for the absence with an estimate of when the employee will be able to report for work. Failure to provide this notification within the time specified, except in very specific circumstances, may result in the employee being placed on leave without pay status for the duration of the absence. When an employee needs to leave work during the workday, the employee should notify their immediate supervisor or designee. In all cases, if the immediate supervisor or designee is not available, the employee should either contact their supervisor’s supervisor or the Town Human Resources Department. 305. Sick Leave PURPOSE: Sick leave is part of the integrated program of benefits for Town employees. The purpose of sick leave is to provide employees with time off from work for periods of temporary absence due to illnesses or injuries or medical appointments that cannot be scheduled outside the employee’s work schedule. Sick leave benefits are intended solely to provide income protection for qualifying absences. Such leave is intended for use only under specific conditions as set forth in this policy. SCOPE: This policy applies to all full-time Town employees, part-time regularly scheduled employees, and Part-time non-regularly scheduled, temporary, seasonal, and other employees. POLICY: Calculation 1. Full-time General Town employees will accrue sick leave at a rate of 4.0 hours biweekly, assuming they are in a paid-status. Accumulation of sick leave shall not exceed 1,040 hours at any time. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 27 2. Full-time Fire Protection Shift Operations employees working the 2,912 hour per year schedule will accrue sick leave at a rate of 6.0 hours biweekly, assuming they are in paid-status. Accumulation of sick leave shall not exceed 1,456 hours at any time. 3. Part-Time Regularly-Scheduled Town employees will accrue sick leave at a rate proportionate to the accrual rate of Full-Time General Town employees based on their paid-status hours and may carryover hours, subject to the 1,040-hour cap accumulation of sick leave. 4. Part-time non-regularly scheduled, temporary, seasonal, and other employees will accrue sick leave at a rate of one (1) hour of sick leave for every thirty (30) hours worked. The Town limits use and accrual of sick leave under this policy to forty (40) hours per calendar year. Up to forty (40) hours of accrued and unused sick leave may be carried over. Use of sick leave is permitted during the initial introductory employment period with the Town. Time off in excess of hours accrued will be deducted first from vacation or other available leave if available, and thereafter will be uncompensated. Employees who are exempt from overtime requirements under the Fair Labor Standards Act of 1938 (29 United States Code section 213(A)(1)) will be assumed to work 40 hours in each work week for purposes of earned paid sick time accrual unless their normal work week is less than 40 hours, in which case earned paid sick time accrues based upon that normal work week. Actual accrual amounts for eligible part-time employees will vary depending on the actual number of paid-status hours reported through payroll records by an eligible part-time employee. Paid status hours include actual hours worked as well as leave taken under the Town’s Vacation, Sick Leave, Holiday, and other paid leave policies. Sick leave may be used for any of the following reasons: 1. An employee’s mental or physical illness, injury or health condition; an employee’s need for medical diagnosis, care or treatment of a mental or physical illness, injury or health condition; an employee’s need for preventive medical care. 2. Care of a family member with a mental or physical illness, injury or health condition; care of a family member who needs medical diagnosis, care, or treatment of a mental or physical illness, injury or health condition; care of a family member who needs preventive care. 3. Closure of the employee’s place of business by order of a public health official or need to care for a child whose school or place of care has been closed by order of a public health official. 4. Care for oneself or family member when it has been determined by health authorities or a health care provider that the employee’s or family member’s presence in the community may jeopardize the health of others because of their exposure to a communicable disease. 5. Absence due to domestic violence, sexual violence, abuse or stalking, provided the leave is to allow the employee to obtain for the employee or the employee’s family member: a. Medical attention needed to recover from injury or disability caused by domestic violence, sexual violence, abuse or stalking b. Services from a domestic or sexual violence program or victim services organization c. Psychological or other counseling d. Relocation or taking steps to secure an existing home due to the domestic violence, sexual violence, abuse or stalking; or e. Legal services related to domestic violence, sexual violence, abuse or stalking. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 28 The term “family member” means the following for purposes of this policy: 1. Regardless of age, a biological, adopted or foster child, stepchild or legal ward, a child of domestic partner, a child to whom the employee stands in loco parentis, or an individual to whom the employee stood in loco parentis when the individual was a minor, 2. A biological, foster, stepparent or adoptive parent or legal guardian of an employee or an employee’s spouse or domestic partner or a person who stood in loco parentis when the employee or employee’s spouse or domestic partner was a minor child, 3. A person to whom the employee is legally married under the laws of any state, or a domestic partner of an employee as registered under the laws of any state or political subdivision; 4. A grandparent, grandchild or sibling (whether biological, foster, adoptive or step) of the employee or the employee’s spouse or domestic partner, or 5. Any other individual related by blood or affinity whose close association with the employee is the equivalent of a family relationship. Verification The employee may be requested to provide a physician’s verification statement for use of sick time for purposes for absences spanning less than three (3) consecutive workdays when no prior approval has been given, or for absences reflective of a pattern of time off. A physician’s verification statement may be required for the employee to return to work following a medical absence of three (3) consecutive workdays or more depending on the situation and/or if the absence is reflective of a pattern of time off. The physician’s verification statement must substantiate the need for time off and indicate the employee is fit to return to duty. In cases of domestic violence, sexual violence, abuse or stalking, documentation set out in A.R.S. § 23-373(G) shall be sufficient. Any employee who abuses sick leave will be subject to disciplinary action. Actions that may lead to disciplinary action include, but are not limited to, falsifying illness or reasons for using leave, unsubstantiated excessive use three (3) or more consecutive absences without appropriate documentation) and not complying with the authorization requirements above. Increments Employees will be permitted to use sick time in incremented units of one-half (1/2) hour or more, in any one day. Sick time shall not be advanced to an employee, nor may sick time be transferred between employees. Coordination with FMLA The Town may require that accrued and unused sick leave under this Policy be used concurrently with leave taken under other applicable leave policies, including leave taken under the Family and Medical Leave Act (FMLA). Sick leave hours will not count toward hours worked for purposes of computing overtime. In this event, Sick leave must be used before available vacation. Sick leave will not count towards hours worked for purposes of computing leave. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 29 Coordination with Worker’s Compensation The employee may use accrued sick leave to compensate for time lost that is not reimbursed by workers’ compensation. The combination of any such payments and sick time cannot exceed the employee's normal weekly earnings. The employee must use sick leave prior to vacation. Unpaid Time With the exception of qualified Federal FMLA leave, an employee may not take unpaid leave until such time that the employee’s vacation, sick, and other available leave bank has been exhausted. At no time shall an employee be authorized to carry a negative sick leave balance. In the event an employee has insufficient sick leave to cover a qualified absence, the employee will immediately revert to unpaid time. In the event an employee unilaterally uses unpaid time without prior authorization, the employee may be subject to disciplinary action. Employees on unpaid status, for any reason, shall not accrue sick leave on the unpaid time and all other benefits shall be prorated. Restrictions An employee shall not be paid for time at work and receive sick pay for the same time. Separation/Death Upon retirement, Full- and Part-Time, Regularly-Scheduled employees and Fire Operations staff with five (5) or more years of continuous service will qualify for a payout of fifty percent (50%) of their available accrued unused sick leave hours at their regular rate of pay upon separation of service. Sick leave will not be paid out under any other circumstances, except death. Upon death of a Full- and Part-Time, Regularly-Scheduled employees and Fire Operations staff, the Town shall pay to the estate of the deceased employee 50% of the available and accrued unused sick leave at the regular rate of pay at the time of his/her death. Reinstatement If an employee separates from employment with the Town and is rehired within nine (9) months, that employee’s previously accrued and unused sick leave will be reinstated and will be available for immediate use. 306. Vacation PURPOSE: Vacation leave is part of the integrated program of benefits for Town employees. Such leave is intended to provide employees time off from work to relax and enjoy personal pursuits without loss of income. SCOPE: This policy applies to all full-time Town employees and part-time regularly scheduled employees. POLICY: Calculation Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 30 1. Full-time General Town employees accrue vacation leave hours based on 40 hours of work per work week. 2. Full Time Fire Protection Shift Operations, and Part time regularly scheduled employees accrue vacation leave at a proportional rate up to the maximum accrual rate of full-time general employees. The amount of vacation time employees are eligible to receive each year increases with the length of their employment. Vacation time begins to accrue with the employee’s first full bi-weekly pay cycle, subject to the following: New employees may accrue but are not eligible to use vacation leave until completion of the Introductory Period. Employees who do not pass the Introductory Period are not eligible to receive any vacation payout. Service Credit at Hire A Department Director may submit a request to the Town Manager that a prospective applicant be granted a one-time beginning balance credit of vacation or be given credit for length of service for employment experience that is directly related to the position. The request shall be in writing before the applicant is hired and shall be based on the Director’s assessment of the candidate’s qualifications beyond the minimum requirements, recruitment considerations, or service accrual provided by the previous employer. No additional length of service credit shall be granted after initial appointment with the Town. The Town Manager shall make all determinations for length of service credit. ACCRUAL RATE MAXIMUMS & OVERALL MAXIMUMS – ELIGIBLE EMPLOYEES (Based on 40 Hours per Work Week): Length of Service Maximum Hours per Pay Period / Year Overall Maximum Start date through completion of 3rd year 4.00 / 104 314 4th year through completion of 7th year 5.00 / 130 364 8th year through completion of 10th year 6.00 / 156 437 11th year through completion of 15th year 7.00 / 182 510 16 + Years 8.00 / 208 582 Maximum vacation accruals increase with length of service as depicted in the chart and the overall maximum is limited to at least two times the yearly maximum accrual. When the employee’s length of service reaches the next higher rate of accrual, accrual at the new rate begins on the first day of the pay period following the effective date of eligibility. Actual accrual amounts for eligible part-time regularly scheduled employees and full-time fire protection shift operations employees will vary depending on the actual number of paid-status hours reported through payroll records by an eligible part-time or full-time fire protection shift operations employee. Paid-status hours include hours worked as well as leave taken under the vacation, sick leave, and other paid leave policies. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 31 The “Overall Maximum” column in the table represents a fixed amount and will not vary with the actual number of hours worked. Usage All vacation leave is to be taken at the convenience of the department and shall be approved in writing, or through automation, by the supervisor or the supervisor’s designee. It is the responsibility of the employee to schedule their vacation time in compliance with departmental workloads and needs. Requests for vacation time should be submitted to the supervisor as far in advance as possible. Employees may be recalled from vacation leave, or may have their scheduled vacation leave postponed, when deemed necessary by the department director. When an employee is recalled from vacation leave, the employee’s vacation leave will be rescheduled to the earliest convenient time. Vacation time shall not be advanced to an employee nor may vacation time be transferred between employees. Vacation time will not accrue for workweeks in which there are no hours paid by the Town of Fountain Hills. If the employee has an accrued vacation balance, the vacation time must be used before any unpaid time off is approved. Vacation hours must be used for sick leave if accrued sick leave hours have been exhausted. Vacation hours will not count toward hours worked for purposes of computing overtime. If a holiday falls within an employee’s vacation, the employee will not be charged with vacation hours for the holiday but will be paid for the holiday at the appropriate holiday rate. Coordination with FMLA The Town reserves the right to require substitution of paid leave, subject to applicable federal law. Therefore, an employee must use vacation for any federal FMLA qualifying leave including, but not limited to, intermittent leaves, after sick time is exhausted. Coordination with Worker’s Compensation The Town reserves the right to require use of vacation while an employee is on worker’s compensation. Therefore, an employee must use enough vacation hours, if available to the employee, while on worker’s compensation to recover the employee share of benefits and mandatory deductions, after sick time is exhausted. Part-Time Employee Utilization of Vacation The number of hours that a part-time employee may record when taking a “day off” from work is what they would normally have been scheduled to work. Part-time employees may only take vacation on days that they would have normally been scheduled to work. Restrictions An employee shall not be paid for time at work and receive vacation pay for the same time. Increments of Time Employees shall use vacation in increments of thirty (30) minutes. Unpaid Time With the exception of qualified Federal FMLA leave, an employee may not take unpaid leave until such time that the employee’s sick, vacation, and other available leave has been exhausted. At no time Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 32 shall an employee be authorized to carry a negative vacation balance. In the event an employee has an insufficient vacation balance to cover an absence for any reason, the employee will immediately revert to unpaid time. In the event an employee unilaterally uses unpaid time without prior authorization, the employee may be subject to disciplinary action. Employees on unpaid status, for any reason, shall not accrue vacation on the unpaid time and all other benefits shall be prorated. Payout / Buy Back Provision Employees may elect to convert up to a maximum of 56 hours of accrued vacation and unused vacation into a cash value on an annual basis if they meet specific criteria included below. Town employees must have a minimum of 300 hours accrued unused vacation leave at the time of the request. Requests can only be made once per 12-month period and will be processed through payroll and direct deposited during a normally scheduled pay day, within eight (8) weeks of the request. Vacation payouts are subject to all federal and state withholdings and are not included in the Town’s 401A retirement program. Payout/Buy back hours are paid at the employees base hourly rate and are excluded from the calculation of overtime. Separation of Employment Accrued but unused vacation leave hours will be paid at the employee’s regular hourly rate upon separation of employment. No more than the maximum allowable accrual of vacation leave is compensable upon separation of employment. Vacation leave accrued during the initial introductory employment period will not be compensated if separation occurs during the initial introductory period. Death Upon the death of an employee, the Town shall pay to the estate of the deceased employee all earned and unused vacation leave hours for which the deceased employee may have otherwise been eligible for payout at the time of his/her death. 307. Holidays PURPOSE: To provide a policy for Town employees setting forth paid holidays and to implement a system to increase the flexibility for employees to utilize their holiday compensation. SCOPE: This policy applies to all full-time Town employees and part-time regularly scheduled employees. POLICY: The annual holiday leave bank for each Full-Time employee is 80 hours; except for Full- Time Fire Protection Shift Operations employees. Part-time, regularly scheduled employees and fire protection shift operations employees are not subject to the holiday leave bank. Part-time regularly scheduled employees will receive Holiday compensation for the number of hours they were originally scheduled to work if a designated holiday falls on one of those days. Full-time fire protection shift operations employees will receive 12 hours of Holiday compensation for each of the ten designated Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 33 Town holidays. Workers’ Compensation benefits are not eligible for compensation for holidays that fall during their period of disability. Employees on any type of unpaid leave of absence on the observed holiday are not eligible for compensation for the holiday. Part-time Non-Regularly scheduled employees do not receive Holiday compensation unless they work on the designated Holiday. Designated Town Holidays The following are ten (10) paid holidays for eligible employees: Holiday Description New Year’s Day January 1 Martin Luther King Jr. Day 3rd Monday of January President’s Day 3rd Monday of February Memorial Day Last Monday of May Independence Day July 4 Labor Day First Monday of September Veteran’s Day November 11 Thanksgiving Day 4th Thursday of November Day after Thanksgiving Day following Thanksgiving Christmas Day December 25 When any of the holidays listed above falls on a Sunday, the following Monday shall be observed as a holiday; if any such holiday falls on a Saturday, the preceding Friday shall be observed as a holiday. For staff members on a seven (7) -day standard workweek schedule, including fire protection shift employees, a holiday falling on a Saturday or Sunday is observed on that day. On any other day or part of a day during which the Town shall be closed by special proclamation of the Mayor, with the approval of the Town Council, employees shall be eligible for holiday pay if they are normally scheduled to work that day. Accumulation of Holiday Leave 1. The annual holiday leave bank for each Full-Time, Regularly Scheduled employee is 80 hours. For purposes of this policy, the holiday will be defined as the 24-hour period (12:00 AM–11:59 PM) on the designated holiday. Eligible part-time employees normally scheduled to work on a day that falls on a designated holiday shall be compensated with holiday pay for the number of hours they are normally scheduled to work on such days. Temporary, seasonal and other non-regularly-scheduled employees are not eligible for holiday compensation unless they work on the designated holiday. 2. The leave banks will be populated during the first payroll in January. New hires will receive a prorated number of hours based upon their hire date. Use of Holiday Leave (excluding Fire Protection Shift Operations personnel): 1. If a designated holiday falls on a scheduled workday, holiday leave will be used to cover their scheduled work hours. Salaried/Exempt employees required to work on a designated holiday due to business need, or who are not scheduled to work on a designated holiday, will not be required to utilize their holiday leave. If an employee works a partial day, they shall utilize holiday bank hours to cover hours not worked. Any holiday leave hours not used for designated Town holidays shall be considered floating holiday leave. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 34 2. Floating holiday leave shall be approved to be used at such a time that is mutually agreeable to the employee and the employee’s supervisor. Holiday leave will not be available for use on an unplanned or call-in basis. 3. Holiday leave must be used in full day increments, unless you work a partial day on a designated holiday. A full day will be considered the number of hours scheduled for the day that the leave was taken (e.g., an employee was scheduled to work ten hours on a holiday, ten hours of holiday pay would be utilized). In the event that the employee does not have enough holiday hours in her/his bank to cover a full day’s absence, vacation hours will be used to make up the difference. 4. In the event that a non-exempt employee does not have either holiday hours or vacation hours to cover a designated holiday, they will not be paid for that holiday. 5. Holiday hours must be used by December 31 of each year or will be forfeited. There will be no “cash out” or carryover of holiday hours. 6. All holiday hours not taken prior to the last day of employment with the Town shall be forfeited. Use of Holiday Leave for Fire Protection Shift Operations Personnel: Due to the nature of 24/7 shift operations and scheduling, each employee will be paid 12.0 hours of holiday at their straight time hourly rate pay regardless of if they are scheduled on the designated holiday or on a scheduled day off. Holiday Compensation: 1. Holiday hours will count toward hours worked for purposes of overtime for hourly employees. 2. In the event an employee is on paid leave when a holiday occurs, the employee shall receive no pay in addition to holiday pay. Therefore, the employee shall not be charged with applicable paid leave time (i.e., vacation or sick leave) for that day. 3. An employee must be in an authorized paid status on the working day immediately preceding the holiday and the working day immediately following the holiday in order to receive pay for the particular holiday. 4. Non-exempt employees required to work on a scheduled holiday will be paid holiday pay plus their regular rate of pay for each hour worked (equals 2X their regular hourly rate of pay). 308. Paid Personal Leave PURPOSE: To provide personal leave for Town employees. SCOPE: This policy applies to all Full-Time, Regularly-Scheduled, Full-Time Fire Protection Shift Operations, and Part-Time Regularly Scheduled Town employees. POLICY: Full-Time, Regularly-Scheduled Town employees and Fire Protection Shift Operations employees hired before July 1st are eligible for three (3 workdays) of personal leave time during their first calendar year of employment and three (3) workdays each year thereafter. Full-Time, Regularly- Scheduled Town employees and Fire Protection Shift Operations employees hired after July 1st but before October 1st are eligible for two (2) workdays of personal leave time during their first calendar year of employment and three (3) workdays of personal leave time each year thereafter. Full-Time, Regularly-Scheduled Town employees and Fire Protection Shift Operations employees hired on or after October 1st do not receive any personal leave time within the balance of the calendar year, but Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 35 are eligible to receive three (3) workdays of personal leave time each year thereafter. Personal leave time must be scheduled in advance whenever possible and approved by the employee’s supervisor. Part-Time Regularly Scheduled Town employees are eligible for 15 hours of personal leave benefit. 309. Bereavement Leave PURPOSE: The Town of Fountain Hills recognizes the need for time away from work in instances of personal loss. SCOPE. All Full-Time Town employees, Fire Protection Shift Operation employees, and part-time regularly scheduled employees are eligible for bereavement leave. POLICY: Should a death occur in the immediate family, eligible employees will be granted a paid leave of absence, not to exceed three (3) consecutive working days, as determined by their regular work schedule. If employees need time in excess of three (3) days, they may use accrued vacation or personal leave time with the approval of their supervisor and Human Resources. Immediate family for the purpose of such leave is defined as spouses, children, grandchildren, parents, grandparents, siblings, and in-laws and all “step” relationships in these categories. Payment for bereavement leave is at the employee’s straight time rate of pay. Vacation or personal days may be granted to attend the funerals of other close relatives or friends upon approval by the employee’s supervisor. Time off without pay will only be considered if the employee does not have vacation or personal days available. To be eligible for the excused absence and pay provisions of this policy, employees are to request bereavement leave through their supervisor no later than the first scheduled workday following the death of an immediate family member. The Town of Fountain Hills reserves the right to request all pertinent information including the deceased relative’s name, the name and address of the funeral home, and the date of the funeral. All time taken under the Bereavement leave policy will be paid at regular straight time pay for the workday the leave is taken. 310. Jury/Witness Duty PURPOSE: Employees are encouraged to appear before a court, public body, or commission for witness duty when subpoenaed to do so. Employees are excused from work to fulfill their civic responsibilities when required. SCOPE: This policy applies to all Town Employees and all Town Departments. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 36 Jury Duty The employee who is summoned for jury duty is required to provide a copy of the jury duty summons to the employee’s supervisor as soon as is reasonably possible. Employees are expected to report for work whenever the court schedule permits them to finish out their scheduled shift. An employee who is excused for jury duty on a scheduled workday will be granted a maximum of ten (10) hours of paid Jury Duty Pay to serve for jury duty per summons, less any jury fees provided by the Courts. Full-time Fire Protection Shift Operation employees shall report to shift upon completion of their jury duty each day to complete their remaining shift. Jury Duty Pay will be calculated on the employee’s base pay rate. If jury duty falls on a scheduled workday, the employee is to report to duty immediately following release from jury duty (unless paid leave is taken for the balance of the shift). Court Appearance/Witness Duty In the event an employee is subpoenaed to provide deposition testimony, or to testify as a witness in court proceedings or before an administrative body, commission or hearing officer in a matter that is not connected with Town business, said employee shall be excused and will be granted up to ten (10) hours of paid time off, less any witness fees provided by the Courts. The employee is to report to duty immediately following release from Court/Appearance/Witness Duty (unless paid leave is taken for the balance of the shift). In the event an employee is subpoenaed to provide deposition testimony, or to testify as a witness in court proceedings or before an administrative body, commission or hearing officer in a matter that is connected with Town business, said employee shall be considered working to appear in any such preceding. The subpoena should be shown to the employee's supervisor immediately after it is received so operating requirements can be adjusted, where necessary, to accommodate the employee's absence. The employee is expected to report for work whenever the court schedule permits. 311. Voting Leave PURPOSE: The Town of Fountain Hills encourages its employees to participate in the election of government leaders SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Generally, employees are able to find time to vote either before or after their regular work schedule. If employees are unable to vote in an election during their nonworking hours due to their work schedule, the Town will grant up to two (2) hours of paid time off to vote. The Town may specify the time during the day the employee may vote which shall not include any time during the regular lunch period. Employees should make their requests at least forty-eight (48) hours in advance of Election Day. Advance notice is required so the necessary time off can be scheduled at the beginning or end of the work shift, or whichever provides the least disruption to the normal work schedule. The employee may wish to inquire of their Registrar of Voters about the possibility of voting by absentee ballot. Every effort should be made to vote either before or after the employee’s normal workday. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 37 312. Federal Family and Medical Leave (FMLA) PURPOSE: The Town shall provide Family and Medical Leave in accordance with the federal Family and Medical Leave Act ("FMLA"), as summarized below. This policy is intended to summarize the material terms of the FMLA, and not to create an independent policy in addition to the FMLA. Any conflict between this policy and procedure and the terms of the FMLA is inadvertent and the terms of the FMLA shall govern. SCOPE: FMLA is available to employees with at least twelve (12) months of service and who have worked at least 1,250 hours within the preceding 12-month period. If eligible, an employee may be able to take up to twelve (12) weeks of unpaid leave during the calendar year (based on a 12-month rolling calendar) for the following reasons: 1. The birth of a child or to care for a child within the first 12 months after birth; 2. The placement of a child with the employee for adoption or foster care within the first 12 months of placement; 3. To care for an immediate family member who has a serious health condition; 4. For a serious health condition that makes the employee unable to perform the functions of their position; 5. Military Call to Duty Leave; or 6. Injured/Ill Service Member Caregiver Leave. POLICY: Notification of Need for Leave Employees shall provide 30 days’ advance notice of the need to take FMLA leave when the need is foreseeable. When 30 days’ notice is not possible, or the approximate timing of the need for leave is not foreseeable, the employees shall provide the Town with notice of the need for leave as soon as practicable under the facts and circumstances of the particular case. Failure of the employee to give 30 days’ notice for foreseeable leave, without a reasonable excuse for the delay, or to otherwise satisfy FMLA notice obligations, may result in FMLA leave being delayed or denied. The employee shall inform Human Resources of the need for FMLA qualifying leave and the anticipated timing and duration of the leave, if known. The employee may do this by either requesting FMLA leave specifically, or explaining the reasons for leave so as to allow the Town to determine that the leave is FMLA qualifying. Calling in without providing the reasons for the needed leave, shall not be considered sufficient notice for FMLA. The employee shall respond to the Town's questions to determine if absences may qualify as FMLA. If the employee fails to explain the reasons for FMLA leave, the leave and time off may be denied. When the employee seeks leave due to FMLA-qualifying reasons for which the Town has previously provided FMLA-protected leave, he or she shall specifically reference the qualifying reason for the leave or the need for FMLA leave. Documentation Medical certification will be required if the leave request is for the employee’s own serious health condition, to care for a family member’s serious health condition, or to care for a covered service member. Medical certification shall be submitted prior to the leave beginning if the employee is able to provide a 30-day notice or more of leave. If notice for leave is not feasible, due to the circumstance Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 38 of the leave, the employee shall provide a medical certification within 15 calendar days of the date of the notice of leave to Human Resources. Depending on the circumstances and duration of FMLA leave, the Town may require an employee to provide a medical recertification of the medical condition giving rise to the need for leave. The Town shall notify the employee if recertification is required and shall give the employee at least 15 calendar days to provide medical recertification. Leaves covered under FMLA must be designated as FMLA-protected and the Town must inform the employee within 5 business days of having sufficient information to determine whether the leave is for an FMLA-qualifying reason. The designation shall state if the leave request is approved, not approved or additional information is necessary. The designation shall also include the amount of leave that will be counted against the employee’s FMLA leave entitlement and if some, all, or none of the leave will be paid or unpaid. The Town may retroactively designate leave as FMLA leave with appropriate written notice to the employee, provided the Town's failure to designate leave as FMLA qualifying at an earlier date does not cause harm or injury to the employee. In all cases where the leave qualifies for FMLA protection, the Town and employee may mutually agree that leave shall be retroactively designated as FMLA leave. Return to Work Because the Town wishes to ensure the well-being of all employees, any employees returning from FMLA for their own serious health condition will need to provide a Fitness for Duty statement signed by their treating provider. An employee failing to provide a Fitness for Duty statement will not be permitted to resume work until it is provided. Qualifying FMLA leave will not be counted as an absence under the organization’s attendance policy. If an employee fails to return at the end of the FMLA leave, the employee will be considered to have voluntarily resigned their position with the Town of Fountain Hills. Certifications Supporting Need for Military Family Leave Upon request, the first time an employee seeks leave due to a qualifying exigency arising out of the active duty or call to active duty status of a covered military member, the Town may require the employee to provide: (1) a copy of the covered military member's active duty orders or other documentation issued by the military indicating the covered military member is on active duty or called to active duty status and the dates of the covered military member's active duty service; and (2) a certification from the employee setting forth information concerning the nature of the qualifying exigency for which leave is requested. An employee shall provide a copy of new active-duty orders or other documentation issued by the military for qualifying exigency leaves arising out of a different active duty or call to active-duty status of the same or a different covered military member. When leave is taken to care for a covered service member with a serious injury or illness, the Town may require the employee to obtain certifications completed by an authorized health care provider of the covered service member. In addition, the Town may request that the certification submitted by the employee set forth additional information provided by the employee and/or the covered service member confirming entitlement to such leave. Continuation of Benefits The Town of Fountain Hills will maintain health, dental, and vision benefits for the employee while on FMLA leave, but the employee is responsible for paying the normal monthly contribution. Arrangements will need to be made for employees to pay the employee portion of health, dental and/or vision insurance premiums while on leave. Employees shall be required to pay the employee portion Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 39 of all other benefits including life insurance, supplemental insurance, disability insurance, etc. during FMLA leave. Failure to make the required payments shall result in termination of the employee’s insurance coverage. Employees may elect to continue or terminate Flexible Spending Account deductions during FMLA leave. If an employee terminates the deductions, the employee shall be allowed to resume election upon return from the FMLA leave. While on FMLA leave, it is still the responsibility of the employee to ensure that all insurance and benefit changes, elections, and updates occur in accordance with the Town imposed deadlines. If the employee elects not to return to work at the end of the leave period, the employee will be required to reimburse the Town for the cost of premiums paid for maintaining coverage during the leave period if not previously paid by the employee. All other benefits cease to accrue during the unpaid portion of the leave. Termination of Benefits If the employee fails to make any required payments while on leave after appropriate waiting periods and time periods as specified by law, the Town’s obligation to maintain health care, dental and/or vision coverage ceases if an employee's premium payment is more than 30 days late. If an employee's payment is more than 15 days late, the Town shall send a letter notifying the employee that coverage shall be dropped on a specified date unless the payment is received before that date. Health, dental and/or vision insurance coverage shall then be dropped retroactively to the first of the month for the month of coverage that premium payments were not received. Recovery of Premium Payments The Town has the right to collect from an employee the Town’s portion of the health, dental and/or vision insurance premiums during a period of unpaid leave if the employee chooses not to return to work after the leave entitlement for reasons other than the FMLA leave request or for circumstances outside of the employee’s control. Such premium amounts may be deducted from any compensation owed to the employee upon termination of employment. An employee shall return to work for at least thirty (30) calendar days in order to be considered to have "returned" to work. Paid Time Substitution Employees must use any accumulated sick, vacation, or personal time to the extent available during this leave period, unless such leave is covered under Workers’ Compensation, in which case the employee may only use accumulated leave time for the purpose of satisfying any waiting period. Absences in excess of these accumulated days will be treated as leave without pay. Upon return from leave, the employee will be restored to their original or an equivalent position. Spousal Employees If the employee and their spouse both work for the Town of Fountain Hills, they are both eligible for leave. In cases other than the employee’s own serious health condition, the total leave period for the employee and the employee spouse may be limited to 12 weeks total (combined). Intermittent Leave When employees seek intermittent leave or a reduced leave schedule for reasons unrelated to the planning of medical treatment, employees shall, upon request, advise the Town of the reason why such leave is medically necessary. In such instances, the Town and employee shall attempt to work out a leave schedule that meets the employee's needs without unduly disrupting the Town’s operations, subject to the approval of the health care provider. Leave because of the birth or adoption of a child Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 40 must be completed within the 12-month period beginning on the date of birth or placement of the child. Other Provisions An employee returning from family and/or medical leave can return to his or her old position, if available, at the time the employee returns to work. If the position no longer exists, the employee may be offered an equivalent position with equivalent benefits, pay, and other terms and conditions of employment. All but "key" employees will be reinstated to their job, or a substantially equivalent position, at the expiration of leave and upon the presentation of a fitness for duty certificate (unless they would have lost their job in any event for any other reason, such as layoff). "Key" employees, who may be reinstated to their job, are salaried employees who are among the highest paid 10 percent (10%) of all the employees employed by the Town. Outside Employment Employees are prohibited from working for another employer while on federal FMLA leave. 313. Military Leave PURPOSE: To provide for military duty in accordance with the Uniformed Services Employment and Reemployment Rights Act (USERRA) and Arizona law. SCOPE: This policy applies to all Town employees performing duty on a voluntary or involuntary basis in a uniformed service under competent authority and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, an examination to determine the fitness of the person to any such duty, or performing funeral honors duty as authorized by section 12503 of title 10 or section 115 of title 32. POLICY: Employees will be granted a military leave of absence for the period of military service outlined in the military orders, in accordance with applicable laws. Employees must give their supervisors advance notice of upcoming military service, unless military necessity prevents advance notice, or it is otherwise impossible or unreasonable. Paid Leave Paid Leave not to exceed 288 hours for Fire Protection Shift Operations employees or 160 hours if Full-Time, Regularly-Scheduled Town employees, and prorated for Part-Time Regularly Scheduled may be granted in a calendar year. Employees are expected to return to shift after utilizing military leave if military training allows Thereafter, an employee may use any available accrued paid time off, such as vacation or sick leave, to help pay for the leave. Dependent Health Insurance Under USERRA, federal law requires that health plans must offer to continue coverage for employees who are absent due to service in the uniformed services and/or their dependents. The period of coverage available under USERRA shall run concurrently with the COBRA period available to an employee and/or eligible dependents for up to 24 months. The Town will allow the employee to continue to maintain current medical, vision and dental coverage pursuant to COBRA regulations. The employee will be responsible to pay the premium that the member would have paid, absent the Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 41 military leave of absence, for a maximum of 12 months. Thereafter, the employee/dependents shall be allowed the opportunity to continue to participate in Town’s group health insurance plan by utilizing their Federal COBRA rights. All other benefits shall be determined based on plan requirements. Benefited Time Vacation and Sick Leave shall accrue during periods of paid military leave. Employees on unpaid military leave are not eligible for paid holidays. Return to Work Town employees must return to work within the following time limits depending on length of service: 1. Fewer than 31 days; report on the next regularly scheduled workday after receiving adequate travel and rest. 2. 31-180 days; return within 14 days after completion of service. 3. More than 180 days; return within 90 days after completion of service. Upon return, provide the employer with a copy of your leave and earnings statement or DD-214 showing the date of entry and discharge. If an employee is on military leave for more than 30 days, they must apply for reinstatement in accordance with USERRA and applicable state laws. Employees returning from military leave (depending on the length of military service in accordance with USERRA) will be placed either in the position they would have attained if they had stayed continuously employed or in a comparable position. For the purpose of determining benefits that are based on length of service, employees will be treated as if they had been continuously employed. Questions about military leave should be directed to Human Resources. 314. Leave of Absence Without Pay PURPOSE: To establish the conditions under which Town employees may be granted leaves of absence without pay when other leave options have been exhausted. SCOPE: This policy applies to full-time Town employees and Fire Protection employees in regular status. POLICY: Length of Leave Generally, a leave without pay shall not normally exceed two (2) calendar weeks. A longer leave of absence may be granted by the Town Manager for legal reasons, such as disability accommodations or other circumstances. The approval of personal leave of absence is discretionary, with consideration given to the staffing needs of the department and determining the best interests of the Town. If the purpose of the personal leave without pay request is for time off due to a serious health condition or other reasons covered under FMLA, the employee shall exhaust FMLA before a personal leave of absence without pay may be requested or approved. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 42 Request Process Requests for such leave must be made in writing to the employee’s Department Director. Requests for leave without pay will not be granted until the employee has exhausted available leave with pay to include vacation, sick leave, personal leave, FMLA leave, and any other available leave. Leave Requests that are medical in nature must be submitted to the Department Director, but the review and approval process shall include Human Resources. Benefits Employees on approved leave without pay may elect to continue group insurance coverage while on such leave The period of coverage available shall run concurrently with the COBRA period available to an employee and/or eligible dependents. All other benefits shall be determined based on plan requirements. The employee shall be responsible for the entire cost of benefit. Leave Accruals There shall be no accrual of vacation, sick, or holiday benefits while on unpaid leave. Outside Employment An employee who is utilizing an approved Personal Leave of absence without pay is prohibited from working for another employer while on a Personal leave of absence without pay. Reinstatement The Town is not obligated to hold the employee’s position open while the employee is on leave without pay and the employee’s right to return to a position from such leave shall be conditioned on the availability of an appropriate position and sufficient funding. The position may be filled on a temporary or regular basis at the discretion of the Town. 315. Exempt Leave PURPOSE: To establish a leave benefit for exempt salaried employees SCOPE: FLSA Exempt Town employees. POLICY: While hours may fluctuate, Exempt employees are expected to normally work a minimum of forty (40) hours per week. The job requirements of most exempt employees mean that they regularly work considerably more than 40 hours, and that the time worked frequently occurs during hours outside of the normal work schedule. It is not the Town’s intent to replace time on an hour-for-hour basis, but to provide “Exempt Leave” to acknowledge these realities. Exempt Leave is scheduled, paid time taken off the job that is available to FLSA exempt employees who work beyond the normal workweek. Exempt Leave is a benefit provided in recognition of the many hours in excess of forty (40) hours per week, which may be required but are not directly compensated on an hourly basis. Exempt leave is in addition to other leave provided by the Town as a benefit to employees. Exempt Leave is awarded as time off, up to a maximum of forty (40) hours per payroll calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 43 of the last pay period of the year. Exempt Leave does not carry over into a new payroll calendar year nor shall this benefit be paid out for any accrued and unused Exempt Leave when the employee’s employment with the Town ends. Exempt Leave is a “use it or lose it” benefit based on the payroll calendar year. The full forty (40) hours are available to an eligible exempt employee as soon as they are appointed to an FLSA exempt position on a pro rata basis, depending on the time of the payroll calendar year the employee starts in said position. Exempt Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in advance, in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the exempt employee to request to use their Exempt Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. Exempt Leave Table Following are suggested guidelines for approving the use of Exempt leave during the first year of hire into a position eligible for Exempt Leave: Start Date on the Job Number of Hours of Exempt Leave Jan 1 – February 28 40 March 1 – April 30 30 May 1 – June 30 25 July 1 – August 30 20 September 1 – October 30 10 316. Recognition Leave PURPOSE: To establish a Recognition Leave benefit that can be awarded occasionally by the Town Manager for commendable or outstanding employee performance. SCOPE: All Town employees. POLICY: Recognition Leave is scheduled, paid time taken off. The Town Manager may approve Recognition Leave for Town employees (both exempt and non-exempt) for commendable or outstanding performance. Award of Recognition Leave is generally limited to instances when the employee has demonstrated exceptional effort or achievement on a special project. No more than forty (40) hours of Recognition Leave may be awarded to any individual employee in a payroll calendar year. The payroll calendar year begins the first day of the first pay period of the year and ends the last day of the last pay period of the year. Recognition Leave must be used within twelve (12) months from when it was awarded, and Recognition Leave is not accruable beyond the payroll calendar year. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 44 Recognition Leave is a “use it or lose it” benefit and may not be carried over beyond twelve months after awarded. An employee shall not be paid any accrued and unused Recognition Leave when the employee’s employment with the Town ends. Recognition Leave is scheduled by the employee in the same manner as vacation leave, is to be taken at the convenience of the department to which the employee is assigned, and shall be approved in writing, or through automation, by the employee’s supervisor or the supervisor’s designee. It is the responsibility of the employee to request to use their Recognition Leave in compliance with departmental workloads and needs. Requests for usage should be submitted to the supervisor as far in advance as possible. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 45 WAGES AND COMPENSATION 400. Wage and Salary Administration PURPOSE: To establish a policy governing the creation and maintenance of a wage and salary plan for Town positions. SCOPE: The wage and salary plan applies to all Town positions that have been approved and budgeted by the Town Council, with the exception of Elected Officials. POLICY: Human Resources, with approval from the Town Manager, develops, maintains, and modifies, as necessary, a non-discriminatory, uniform, and equitable wage and salary plan. Classifications Town positions are allocated to a classification, based on the position descriptions developed within each department. Department Heads shall be responsible for informing Human Resources in writing of changes in a position’s duties/responsibilities in their office or department that might possibly affect the classification of such a position. Human Resources may initiate a classification review to update and modify classification specifications or any component of the classification as is deemed necessary. Reclassifications A reclassification may occur when a position or group of positions and/or classification has undergone a significant change in the type, difficulty, or degree of responsibility entailed in the work performed within that position. Such a situation may result in the assignment of classification to a higher, lower, or similar classification based on the type of changes which have occurred. A reclassification is only appropriate on a Town or department-wide basis. The concept of reclassification will not be used to circumvent promotions into a higher job classification. If any Department Head desires that a position be reviewed for a possible reclassification, they will forward a request to Human Resources, including the following information: A memo stating what factors or duties of the position have changed, the reason for change, and the potential impact of the reclassification, if any, on other positions. Upon receipt of the above documentation, Human Resources shall review the information provided. Additional information and/or a position audit may also be required. Following the position review, Human Resources shall evaluate the position and determine the proper class allocation. A reclassification may result in one of four actions: (1) no change; (2) a change in classification with no change made to pay grade; (3) change in pay grade upward; (4) change in pay grade downward. If a classification action results in a change in pay grade, the corresponding change in the incumbent’s salary will be to the new grade at their current pay rate or at entry level of the new grade, whichever Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 46 is higher. If a classification results in a change of range upward, the requesting department will be responsible for funding the increase to include additional funds that are necessary in the budget request for subsequent increases. Requests for any additional funding in the current or future budget years must be transmitted to the Finance Department for review and forwarding to the Town Manager for action by the Town Council as may be required. Effective dates for classification changes will follow conclusion of a classification review/study and shall not be made on a retroactive basis. Development of New Job Positions and/or Classifications The Town’s position/classification system strives to be responsive to organizational and environmental changes. The Human Resources Department will assist with the revision of position/classification specifications and the development of new position/classification specifications within the broad class concept as necessary to meet the on-going operational requirements of the Town. Job Evaluation Job evaluation is a system used to determine the relationship of each job relative to all other jobs in the Town without regard to the incumbent in the position. The Town Manager is responsible for selecting the method of job evaluation. Pay Structure Human Resources is responsible for establishing a pay structure, as approved by the Town Council, based upon job evaluation results. Each position is assigned a pay range and advancement within the pay range shall be contingent upon the available funds and budget requirements of the Town and based upon the employee's performance. Starting Pay Initial appointment to a position shall be made at the minimum salary level for the position unless the Town Manager determines that entry at a higher level is desirable for a particular applicant. This decision shall be based on the outstanding and unusual character of the applicant's experience, education, and ability over and above the normal minimum qualifications specified for the position. Promotions Employees may be promoted up to the starting salary range of the applicable position. If the employee is already being paid more than the starting salary range of the new position a promotional increase may be given at the discretion of the Town. All promotional appointments require written Town Manager approval. Transfers/Demotions A transfer is defined as a change in the assignment of an employee from one position to another position in the same range of pay. An employee who is transferred will be compensated at the same rate as for their previous position. A demotion is defined as a move to a job in a lower salary grade. An employee who is demoted either voluntarily or as a disciplinary measure will be compensated at the equivalent rate on the new pay range. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 47 Equity Adjustments An equity adjustment is a discretionary adjustment to an employee’s pay outside of the Town’s normal salary programs (e.g., reclassifications, promotions, merits, COLAs, etc.) to remedy pay issues such as external pressure in high demand areas, internal salary compression, retention considerations, and other, similar issues. Equity adjustments are not granted to reward performance. Procedure A request for an equity review may be initiated by a Department Director by: 1. Submitting an Equity Review Request to Human Resources. The request shall include reasons why the request fits this adjustment category as opposed to other categories such as reclassification, promotion, COLA, and why the equity review is warranted. If a previous request was submitted within the past two years, the request shall identify specific conditions that have changed since the previous request. 2. After receiving a request for an equity review, Human Resources will identify other positions performing similar work and compare the qualifications, experience and education of incumbents and evaluate the compensation to assure equity in pay and compliance with this policy. Such review shall be completed as soon as practicable. 3. As part of the equity review, Human Resources will also take into consideration the employee’s pay factors including, but not limited to: a. Merit and Cost of Living Increases for the position(s) being considered; b. Comparison of positions within the employee’s Department; c. Relative value to the organization; d. Unique job responsibilities e. Pay for similar duties and responsibilities at comparable public entities within the State of Arizona. 4. Human Resources shall make a recommendation as to whether an equity adjustment is appropriate based upon the information gathered. Any recommendation for an equity adjustment shall not go outside of the salary range for the position. 5. An equity review that results in a pay increase may be retroactively applied, depending on factors including the Town’s Annual Budget and fiscal year, but in no case shall such retroactive application extend beyond the beginning of the current fiscal year during which the equity review was completed. Any request for review that results in a decrease in pay shall be effective upon completion of the equity review. 6. The Human Resources Department will submit a recommendation for equity adjustments to the Town Manager. 7. The Town Manager shall be responsible for making a final determination as to whether the equity adjustment will be made. This decision by the Town Manager is final and not appealable. 8. The Department Director requesting such a review and any employees impacted by the review shall be notified in writing of the determination. Merit Increases Such an increase is an award for employee performance that meets or exceeds standards set by the Department and evaluated on the Town performance appraisal form. Merit increases shall not be granted if the increase would cause the individual to exceed the maximum pay established in the Pay Plan (refer to annual budget). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 48 It shall be the responsibility of the Town Manager or Department Head to ensure that employees receive performance evaluations at the appropriate intervals for the purpose of merit increases. The evaluation is required regardless of a change in supervisory personnel. 1. The first merit increase eligibility date shall follow successful completion of an employee's original introductory period. 2. The date that an employee attains regular status in the class by successful completion of the introductory period becomes the employee's annual evaluation date, which shall be the date the employee shall be eligible for future annual merit consideration. 3. On the date that an employee successfully completes a promotional introductory period in a new class, the employee may be eligible for merit consideration and that date becomes the employee's new evaluation date. 4. Evaluation date and merit eligibility may also be affected by terms of demotion or reduction in classification due to layoff. 5. Absence of an employee on authorized leave without pay for more than 30 calendar days during a promotional introductory period shall result in extension of the promotional introductory period by an equivalent amount. 6. If the necessary documentation has not been completed in a timely fashion to allow for the granting of a merit increase on the first pay period falling on or after the evaluation date, the employee will receive the increase retroactive to the date upon which they were eligible. 7. Merit increases are dependent on the availability of funds as determined by the Town’s Annual Budget. Cost of Living Adjustments Cost of living adjustments may be given with the approval of the Town Council. Cost of living adjustments are not automatic and are based upon the Town's ability to fund such increases. An employee whose job classification is in the Pay Plan is to be eligible for a cost of living adjustment for the fiscal year authorized by the Town Council. Cost of living adjustments shall not be granted if the increase would cause the individual to exceed the maximum pay established for their class. 401. Employment Categories PURPOSE: To provide a systematic and organized approach for the administration of wages and benefits to employees in a fair and consistent manner. SCOPE: All Town Employees POLICY: All Town employees fall into one of four categories: 1. FULL-TIME – An employee who is normally scheduled to work forty (40) hours per week for fifty-two (52) weeks per year. 2. FULL-TIME FIRE PROTECTION SHIFT OPERATIONS – An employee who is engaged in fire suppression/fire protection activities, normally scheduled to work 48-hour shifts followed Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 49 by 96 hours off within a 14-day work period. This category is scheduled for 2,912 hours per year. 3. PART-TIME REGULARLY SCHEDULED – An employee who is consistently scheduled, for less than forty (40) hours per week, is expected to establish a continuity of service, and whose weekly scheduled work hours do not normally vary. A regularly-scheduled part-time employee is expected to work more than twenty-six (26) weeks per year. 4. PART-TIME NON-REGULARLY SCHEDULED, TEMPORARY (or SEASONAL) – An employee whose work schedule is intermittent, variable, or seasonal in nature. It is expected that an employee should not remain in temporary job status longer than six (6) months. 402. Exempt/Non-Exempt FLSA Classifications PURPOSE: To establish guidelines that ensure that all Town employees are classified in compliance with the Fair Labor Standards Act (FLSA) and state law. SCOPE: All Town employees. POLICY: Definition. Each position is designated as either “Non-exempt” or “Exempt” from the federal Fair Labor Standards Act and state wage and hour laws. EXEMPT – Employee positions with the Town that are not eligible for overtime pay. Exempt employees must be paid on a salary basis. This means exempt employees will regularly receive a predetermined amount of compensation each pay period on a weekly basis that shall ordinarily not be subject to reduction because of variations in the quality or quantity of work performed. The Town is committed to complying with salary basis requirements which allows properly authorized deductions. Exempt Town employees generally need not use accrued leave for absences of four (4) consecutive hours or less in a workday. However, in order to promote public accountability, and notwithstanding any other provisions of these Personnel Policies or any other Town policy, all exempt (i.e., salaried) Town employees are required to use available accrued leave during absences of more than four (4) consecutive hours unless approval is given by the Town Manager, or from a designated Acting Town Manager. Safe Harbor. If an exempt Town employee believes an improper deduction has been made to their salary or that their salary has been improperly deducted, they should immediately report this information to Human Resources. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, the employee shall be promptly reimbursed. NON-EXEMPT – Employee positions with the Town that are eligible for overtime pay for hours worked in excess of 40 hours per workweek, excluding premium overtime pay (29 C.F.R. §778.201). Overtime compensation for non-exempt employees is paid at the rate of one and one- half the regular hourly wage. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 50 Fire Operations: The Town has defined the work period to be a 14-day work period which requires overtime to be paid when over 106 hours are worked in the 14-day work period for fire protection classifications. Positions within the Town may be changed from one category to another as the requirements of the law change or as the nature and scope of duties and responsibilities of a particular job change. Existing and newly established positions will be evaluated and assigned to the appropriate category by Human Resources. Overtime Overtime must be scheduled and approved in advance, by an employee’s immediate supervisor. No overtime may be worked without such advance approval, and failure to obtain approval before working overtime may result in discipline, up to and including dismissal. Employees who believe an assigned task requires overtime hours for timely completion, it is the employee’s responsibility affirmatively to bring this to the attention of the supervisor. The supervisor has the sole right to approve or deny overtime requests. Holiday time will be included as time worked in the computation of overtime. Sick time, vacation time, personal time, standby time, jury duty, military leave, bereavement leave, etc., are not counted toward hours worked during a week. Thus, for example, the circumstance may arise where an employee may be paid for more than (40) forty hours during any given workweek and not be entitled to receive overtime compensation. Requests to trade shifts cannot result in creating overtime for either party. 403. Call-Back Pay PURPOSE: To establish conditions under which Town employees are eligible to receive compensation for providing emergency type services during nonscheduled work hours. SCOPE: All non-exempt Town employees whose specialized skills and abilities qualify them to perform emergency type services to protect public safety and property outside of non-scheduled work hours. POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may receive compensation in the form of Call-Back Pay for hours worked outside of normally scheduled work hours. Procedure 1. Eligibility: a. Call Back Pay applies to FLSA non-exempt Town employees who are called back to work outside of their regularly scheduled hours for emergency type work. b. Scheduled attendance to perform tasks during weekend and/or holiday hours is not eligible for Call-Back Pay. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 51 2. Assignment: Call Back Pay does not apply when: a. The employee is still on the clock and additional work is assigned that will extend their regular workday, in which case normal overtime may apply. b. The employee works overtime hours that were planned in advance (i.e. scheduled overtime). c. The employee requests the opportunity to work additional hours outside of their normal scheduled shift, in which case normal overtime may apply. d. The employee’s call-back hours overlap their regular work schedule as a result of the employee’s request to leave work early, thereby substituting the time worked for the irregularly scheduled shift. These hours are not considered call-back but are compensated as regular hours worked. 3. Compensation: a. An employee who is called back to work to perform services will be compensated for a minimum of two (2) hours or for the amount of time worked, whichever is greater at 1.5 times their hourly rate. Overtime hours worked under this section is considered premium overtime pay and shall not be calculated in the regular rate of pay for the purposes of calculating FLSA overtime (29 C.F.R §778.203 and §778.204 or as amended). b. Travel time to and from the work site is not compensable under Call Back Pay status; only hours actually worked. c. An employee shall not be considered on more than one (1) Call-Back Pay status at any given time. d. Subsequent calls received to perform services within two (2) hours of the start time of the initial call will be compensated for as an extension of the initial call; not as a new call with another two (2) hour minimum. Example 1: First call received at 9:00 am First call completed at 9:30 am Second call received at 9:50 am Second call completed at 10:30 am In Example 1, the employee will be compensated for two (2) hours. The second call was received within the two (2) hour window of the first call. Therefore, the second call will be compensated as an extension of the first call received. Example 2: First call received at 9:00 am First call completed at 9:30 am Second call received at 11:15am Second call completed at 12:00 pm In Example 2, the employee will be compensated for four (4) hours. The second call was received two (2) hours and fifteen (15) minutes after the initial first call. Therefore, the second call will be compensated as a separate additional call with the two (2) hours minimum applicable to both calls. Example 3: First call received at 9:00 am First call completed at 9:30 am Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 52 Second call received at 10:00 am Second call completed at 12:30 pm Third call received at 1:00 pm Third call completed at 2:00 pm In Example 3, the employee will be compensated for five (5) hours and thirty (30) minutes. The second call was received within the two (2) hour window of the first call. The second call will be compensated as an extension of the first call received. However, the third call was four (4) hours after the initial first call. The third call will be compensated as a separate additional call with the two (2) hours minimum applicable. Payment for call-back hours will be made on regularly scheduled pay days and will not be paid in advance. 404. Stand-By Duty (On-Call) PURPOSE: To ensure specific employees are available at any time to respond to after normal business hours emergency situations as they arise. SCOPE: Any Non-Fire Protection Shift Operation Town employee whose specialized skills and abilities qualify them to perform or coordinate emergency type services to protect public safety and property during non-scheduled work hours. POLICY: Under specific circumstances and controlled conditions, employees in the interest of public safety or protection of property may be required to be placed on stand-by for duty. Procedure 1. Eligibility: a. Stand-by Duty is restricted to those employees qualified to perform specialized emergency services. b. Scheduled attendance to perform tasks during weekend and/or holiday hours are not eligible for Stand-by Duty Pay. c. In cases of Town emergency or need, employees may be contacted to work during their off hours. Employees who are called in, and are not on Stand-by Duty status, are not eligible for Stand-by Duty Pay. These hours will be calculated under Call-back Pay status. 2. Assignment: a. The responsible Department Supervisor shall maintain a stand-by roster of qualified personnel (capable of performing specialized emergency services that may be required) to serve on Stand-by Duty. b. Stand-by duty shall be allocated fairly amongst qualified employees as follows: i. First, on a rotational basis, qualified employees who volunteer to be put on Stand-By Duty. ii. Second, if there is an insufficient number of qualified employees to volunteer, qualified staff members will be assigned to cover required hours on a rotational basis. c. Stand-By Duty shall be scheduled and assigned in advance. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 53 d. While assigned to Stand-By Duty employees shall maintain a physical readiness to respond to emergency call situations and be capable of performing safety-sensitive functions. e. While assigned to Stand-By Duty employees shall maintain a physical proximity to the applicable Department building that allows for no more than a thirty (30) minute response time for call to duty. f. Employees while assigned to Stand-By Duty shall remain accessible at all times by pager and/or by telephone. g. Exchanging Stand-By Duty assignments–Employees may exchange stand-by weeks/days assignments with supervisory approval. h. Subject to meeting the above obligations, employees on stand-by are free to go about their normal day-to-day activities but are prohibited from consuming alcohol. 3. Compensation: a. Stand-by Duty employees will be paid one (1) hour of pay for each regularly scheduled workday and two (2) hours of pay for each non-scheduled workday while on-call. These hours begin after the completion of the workday and continue until resuming work the following workday. Employees are not eligible for on-call pay during hours that they are scheduled to work (including weekends and holidays). Employees are not eligible for on-call pay unless they have been formally scheduled for coverage. Typically, no more than one employee per service area should be scheduled for an on- call assignment. b. An employee on Stand-By Duty, who is called to perform services, will be compensated for a minimum of two (2) hours at 1.5 times their hourly rate. Overtime hours worked under this section is considered premium overtime pay and shall not be calculated in the regular rate of pay for the purposes of calculating FLSA overtime (29 C.F.R §778.203 and §778.204 or as amended). 405. Job-Sharing PURPOSE: To establish conditions under which Town employees are eligible to work in a job-shared position. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: In order to accommodate the needs of our employees, the Town of Fountain Hills may permit employees in specific positions to job share. The supervisor and Human Resources will determine whether a specific job may be effectively performed by two individuals and whether both individuals can effectively work in a job-sharing arrangement. PROCEDURE: If the supervisor identifies a position deemed conducive to job sharing, the supervisor should meet with the department director, then Human Resources in order to be aware of job share logistics and benefit eligibility consequences. Human Resources, the department director, supervisor and employees should be clear on: 1. The hours and days each employee must be present in the workplace; 2. The work equipment that will be necessary for the employees to job-share; 3. The performance expectations; Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 54 4. The reporting requirements for each job under the job-sharing arrangement; 5. Holiday compensation; and 6. Usage of leave. The Town of Fountain Hills reserves the right to revise or rescind this arrangement at its sole discretion. 406. Payroll and Timekeeping PURPOSE: To provide standardization of time reporting and provide each department the information needed to accurately record and submit their timesheets in accordance with applicable State and Federal guidelines. Accurately reporting time worked is the responsibility of each employee. SCOPE: This Policy applies to all Town employees. POLICY: Workweek The Town’s Workweek covers seven consecutive days for the purpose of compliance with the Fair Labor Standards Act and shall consist of seven (7) consecutive calendar days which begins on Monday at 12:00 AM and ends on Sunday at 11:59 PM. Section 207(k) of the FLSA allows employees engaged in fire suppression to be paid overtime on a work period basis. The Town has defined the work period to be a 14-day work period. Pay Period A pay period shall be the two (2) consecutive workweeks, on the conclusion of which payroll is completed. Pay Schedule Employees are paid bi-weekly, typically on Thursdays. New employees should be advised by their supervisor when they can expect to receive their first payroll check. Pay Deductions It is the Town’s policy to comply with applicable wage and hour laws and regulations. If you have any questions or concerns about your employment category or FLSA classifications or you believe that any deduction has been made from your pay that is inconsistent with your status, you should raise the matter with Human Resources who can assist you in understanding the information that is required in order to investigate the matter. The Town is committed to investigating and resolving all complaints as promptly, but also as accurately, as possible. Consistent with the U.S. Department of Labor’s policy, any complaint shall be resolved within a reasonable time given all the facts and circumstances. If an investigation reveals that you were subjected to an improper deduction from pay, you shall be reimbursed, and the Town shall take whatever action it deems necessary to ensure compliance in the future. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 55 Payroll Reporting Procedures Hours of attendance shall be maintained on official Town payroll documents, or electronic records as specified by the Human Resources office. Any falsification of individual time records or payroll documents by any Town employee will result in disciplinary action up to and including termination. In the event of an error in reporting time, the employee should immediately report the problem to their supervisor. Non-Exempt employees shall accurately record the following on a daily basis: 1. Time beginning/ending work each day; 2. Time beginning/ending of each meal period; 3. Absence from work with appropriate pay codes; and 4. Total number of hours per day and week. It is the employee’s responsibility to sign his/her timesheet to verify accuracy. Exempt employees are required to record their time off for the purpose of paying vacation days, sick days, personal days, or any types of leave during the pay period. Non-exempt employee time records shall be reviewed and approved by each supervisor. Corrections Corrections or changes to the time sheet shall be made by contacting the supervisor. The supervisor must approve any corrections on the time sheet. If a payroll error occurs, it is the employee’s responsibility to immediately notify Human Resources. Corrections must be submitted for adjustment on the next payroll within fourteen (14) calendar days from the pay date. Penalties Altering, falsifying the time record, tampering with time records, recording time on another employee’s time record (authorized personnel excluded) or any other infraction of this policy may result in disciplinary action, up to and including termination of employment. Pay Advances The Town does not provide pay advances on unearned wages to employees. 407. Garnishments PURPOSE: To ensure accurate and lawful deductions from employee wages as required by the garnishment or wage order. SCOPE: This policy applies to all Town Employees. POLICY: The Town is required to comply with all valid claims against the wages of employees. If a wage garnishment, child support order, or some other legally valid claim is received by the Town, the employee will be notified about the amount and details of the garnishment or wage order. The Town will be required to comply with the provisions of the garnishment notice or order, as soon as practicable after it is received, to ensure its compliance with applicable law. 408. Personal Data Changes PURPOSE: To ensure that all employee information is up to date and accurate. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 56 SCOPE: All Town employees. POLICY: Each employee shall promptly notify Human Resources of any changes in personal data. Personal mailing addresses, telephone numbers, number and names of dependents, individuals to be contacted in the event of emergency, educational accomplishments, and marital status. This information is necessary as it may affect your dependents’ eligibility for benefit coverage, and other important matters. 409. Direct Deposit PURPOSE: To provide Town employees information regarding the Direct Deposit of payroll checks. SCOPE: All Town employees. POLICY: All Town employees shall have payroll wage payments and reimbursements disbursed through direct deposit to the financial institution(s) of the employee’s choice. This convenience provides the employee with funds available in their bank account each payday. Employees will receive a payroll earnings statement on payday that details the pay and deduction information. All Town employees shall adhere to the following: 1. Each employee shall complete a Direct Deposit Authorization Agreement upon hire and submit to Administration by timeframes specified by Human Resources. 2. It is the employee’s responsibility to immediately notify Human Resources if the employee’s bank account changes by completing and submitting the new Direct Deposit Authorization Agreement. 3. Any overpayments, underpayments, or failure to timely submit timesheets will be adjusted on the following payroll. Each bank will post deposits at different times. The Town is not responsible for bank policies. 410. Travel Time PURPOSE: To establish a set of uniform guidelines for the compensation of employees during periods of business-related travel. SCOPE: All Town employees. POLICY: It shall be the policy of the Town of Fountain Hills to comply with applicable provisions of the Fair Labor Standards Act as it relates to the compensation of employees during periods of business-related travel. Travel Time Any work which an employee is required to perform while traveling shall be counted as hours worked. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 57 Home to Work Travel An employee who travels from home before the regular workday and returns home at the end of the workday is engaged in ordinary home to work travel, which is not time worked, even if the work site is different each day. Commute Time An employee who travels from home before the regular workday and returns to their home at the end of the workday is engaged in ordinary home to work travel, which is not work time. Home to Work on a Special One Day Assignment in Another Town If an employee who regularly works at a fixed location in one town is given a special one-day assignment in another town or city and returns home the same day, the time spent in traveling to and returning from the other town or city is work time, except that the Town will deduct the time the employee would normally spend commuting to the regular work site. Travel That is All in a Day’s Work Time spent by an employee in travel as part of their principal activity, such as travel from job site to job site during the workday, is work time and will be counted as hours worked. However, ordinary home to the first work site and the final work site of the day to home is not considered time worked. The Town allows employees to attend conferences and general educational activities for personal growth and as a fringe benefit. Travel to and from professional conferences for career advancement, where the employee does not engage in an activity directly related to the employee's "principal activity" and where attendance is voluntary, is not compensable. (29 CFR §785.31) Travel Away from Home Community Travel away from home that involves an overnight stay will be work time when it cuts across the employee’s workday. The time will be hours worked on regular workdays during normal working hours and during corresponding hours on nonworking days. Passengers A passenger on an airplane, train, boat, bus, or automobile will not be considered work time outside regular working hours unless the employee is actively working. Approval Department Directors will be responsible for ensuring that employees plan their travel with the principles of fiscal austerity in mind. All travel plans are subject to approval by the Department Director. Carpooling should be a consideration whenever more than one staff person is attending the same training/meeting. If employees request to drive separately, there should be a business reason to do so. Flexible Scheduling Whenever possible, Department Directors should consider the use of flex time during the workweek for employees who must travel to reduce additional hours worked in the same workweek. The Department Director may alter an employee’s work schedule for travel time purposes considering staffing needs and the best interests of the department. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 58 BENEFITS FULL-TIME REGULARLY-SCHEDULED employees are eligible for all benefits currently offered by the Town. 500. Benefits PURPOSE: To offer employment benefits to those employees who qualify for coverage. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town provides group benefits coverage for Full-Time Regularly-Scheduled employees, inclusive of fire operations. Eligible Employees The Town shall determine the design and selection of all benefits and retains the right to change these benefits. Employees shall be notified of any changes. The Human Resources Department is responsible for implementation and administration of all group benefits and insurance plans. More detailed information about each plan can be found in the plan documents maintained in Human Resources and the summary plan descriptions (SPDs). SPDs are the official documents regarding employee benefit plans and supersede all references to employee benefits in this Manual. These benefits may change from time to time and are governed by master contracts or benefit plan documents that may also change from time to time. For this reason, if there is any conflict between the benefit descriptions contained here, and the summary plan descriptions and provider policies, the summary plan descriptions and provider policies shall govern in all cases. The Human Resources Departments shall maintain an Annual Enrollment Benefits Guide for all employees to summarize the benefits, plan design, effective date, and employee cost for each benefit offered by the Town. 501. Medical, Pharmacy, Dental, Vision, and Cobra Continuation PURPOSE: To offer medical, pharmacy, vision, and dental insurance to those employees who qualify for coverage. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: Coverage The design and selection, including all levels of benefits provided to Town sponsored medical, pharmacy, vision, and dental insurance plans and insurance carriers are determined by the Town. Participation for employee groups is also determined by the Town and applicable state and federal regulations; and is governed by the contract of insurance in place between the Town and the chosen Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 59 insurance provider. Employees shall receive notification of any carrier changes, as adopted by the Town. Employee Premium Contribution Employee premium contributions are established by the Town. Any employee required to pay any portion of the health insurance premium shall make such payment by payroll deduction on a pre-tax basis. Health insurance premiums are paid each paycheck and shall be deducted 24 times per year. If an employee is on an approved leave and a payroll deduction is not possible, unless other arrangements have been approved by Human Resources, the employee shall be responsible to pay the monthly premium to the Town of Fountain Hills within five (5) business days following the applicable payroll deduction date. Failure to make premium payments may result in termination of coverage. Eligibility All full-time status employees are eligible for the Town sponsored Medical, Pharmacy, Vision, and Dental Insurance. Enrollment Those employees who do not enroll in the group benefits plans during their initial new employee eligibility period shall not be eligible again to enroll until one (1) of the following events occur: 1. Open Enrollment Event: The Town holds an open enrollment period in the second quarter of each year. Employees are eligible to make any change(s) to cancel or add insurance coverage during the open enrollment period. All elections during open enrollment shall be effective on July 1st of each year. 2. Section 125 Qualifying Event: IRS Section 125 defines the circumstances under which a plan may permit an employee to change elections with respect to group benefit coverage. A qualifying event occurs when an employee or dependent that is covered becomes (or ceases to be) eligible under the Plan. A qualifying event allows employees to adjust insurance coverage without waiting until the open enrollment period. The qualifying event shall be reported within 30 days of the event to Human Resources along with along with written proof of the event. The effective date of the change shall be determined by the insurance carrier but shall be no later than the first day of the month following the qualifying event date. Common qualifying events include, but are not limited to: a. Marriage b. Divorce or legal separation c. Birth, adoption or placement for adoption of a child d. Spouse’s loss of employment/coverage e. Death f. Reduction in hours to less than full time status g. Dependent turns 26 (effective date of the change for this event only is the last day of the month that the dependent turns 26) Waiver or Cancellation of Coverage If an employee declines, waives or cancels any insurance coverage, the employee shall complete an insurance waiver form provided by Human Resources. The effective date of any change due to waiver shall be dependent on the reason and timing of the waiver and shall be determined by the insurance carrier consistent with the reason or timing of the waiver and any regulatory requirements (such as COBRA or Section 125 qualifying event changes). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 60 Dual Coverage Not Permitted The Town provides health insurance coverage under either one (1) family plan or two (2) single plans. No Town employee may be on two Town sponsored health plans. Insurance Continuation Under the Federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and subsequent amendments to the Act, employees covered under an employer’s group insurance plan are eligible for continuation of certain insurance coverage under the group plan. COBRA contains provisions giving certain employees, former employees, spouses, former spouses, and dependent children the right to temporary continuation of insurance coverage at group rates plus a 2% administration fee. This coverage, however, is only available when coverage is lost due to COBRA qualifying events. COBRA qualifying events are events that would cause an individual to lose insurance coverage. The type of COBRA qualifying event shall determine who the qualified beneficiaries are and the amount of time that a plan shall offer the insurance coverage to them under COBRA. COBRA qualifying events include: 1. Employee or spouse’s voluntary or involuntary separation of employment for reasons other than gross misconduct. 2. Employee or spouse’s reduction in the number of hours of employment. 3. Spouse becomes eligible for Medicare. 4. Divorce or legal separation from employee. 5. Death of employee. 6. Dependent child loss of dependent child status under the plan rules. The employee (or qualified dependent) shall report the COBRA qualifying event within 30 days of the event to Human Resources and provide written proof of the event. The effective date of the change shall be the qualifying event date. All employees, as well as their qualified dependents, shall receive notice of mandated insurance continuation benefits when the plan coverage for the employee begins. 502. Other Benefits PURPOSE: To provide additional fringe benefits to employees. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: Short Term Disability Benefit eligible employees will receive Town paid Short-Term Disability Insurance (STD). The STD plan provides income replacement for employees when they have an extended illness or injury. The benefit has a 30-day elimination period. Long Term Disability Benefit eligible employees will receive Town paid Long-Term Disability Insurance (LTD). The LTD benefits begin on the later of 90 calendar days after the onset of your disabling injury or illness or the date your short-term disability ends. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 61 Life Insurance The Town sponsors a guaranteed issue life-insurance policy for Full-Time Regularly Scheduled employees. Additional life insurance may be purchased for both the employee and qualified dependents. 503. 401A Retirement Plan PURPOSE: To provide employees a plan for saving and investing in financial security for retirement. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town of Fountain Hills does not deduct Social Security taxes from full-time benefited employees’ paychecks. Instead, the Town has a mandatory 401A Retirement Plan. This plan is administered by a registered third-party administrator. Eligible employees will contribute 11% of their gross pay to their retirement account. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. The Town of Fountain Hills will also contribute 11% of the eligible employee’s gross pay. The Town’s contributions are subject to a vesting schedule as follows: Years of Vesting Service % Vested 1 YR 20% 2 YR 40% 3 YR 60% 4 YR 80% 5 YR 100% Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 504. Deferred Compensation (457) PURPOSE: To offer employees a plan for saving and investing in financial security for retirement. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town of Fountain Hills provides an optional deferred compensation plan for all employees. Employees become eligible on their first day of employment. This plan is administered by a registered third-party administrator. Employee contributions are not subject to federal and state taxes and may grow tax deferred until paid out, when they will be taxable as ordinary income. All employee contributions are 100% vested. There is no employer match of contributions. Enrollment Eligible employees may enroll in a Deferred Compensation plan at any time. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 62 Cancellation Employees are permitted to cancel or change their payroll deduction(s) into the Deferred Compensation Plan at any time by sending a written request to Human Resources. The cancellation shall be processed during the first pay period following the date the form was received by the Human Resources Department, whenever reasonably possible given payroll processing deadlines. Detailed information concerning the plan is available from Human Resources. The Town of Fountain Hills will provide periodic briefings with a representative of the third-party administrator. 505. Health Savings and Flexible Spending Accounts PURPOSE: To offer employees flexibility and financial incentives for personal health and wellness. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Town offers two types of optional healthcare-related accounts. Eligibility for the type of account is dependent on the medical plan selected. In both cases the plans allow the employee to set aside pretax dollars each pay period to pay for certain eligible health expenses. Flexible Spending Account (FSA) Eligible employees indicate the amount they wish to defer from their pay up to the maximum allowable amount regulated by law each year for medical expenses and/or dependent care expenses during the open enrollment period for this optional FSA. This amount is set and cannot generally be changed during the year unless the employee has a qualifying life event. The Town deducts this amount in equal amounts over 24 pay periods. If the money is not spent by the end of the fiscal year, it is subject to forfeiture (use-or-lose). Health Savings Account (HSA) Employees must be in a qualified High Deductible Health Plan (HDHP) to be eligible for the optional Health Savings Account (HSA). Eligible employees indicate the amount they wish to allocate from their pay up to the maximum allowable amount regulated by law each year. Employees can change this amount throughout the year by sending a written request to Human Resources. The HSA does not have a use-or-lose provision. The funds are yours to keep whether you change plans or retire. More information can be found in the employee Open Enrollment Guide. 506. Employee Assistance Program PURPOSE: To provide employees confidential and accessible support resources to assist with personal and professional challenges. SCOPE: This policy applies to all Full-Time Regularly-Scheduled Employees. POLICY: The Employee Assistance Program (EAP) is a voluntary, no cost service that provides professional, confidential assistance for many types of personal problems. The program is designed to encourage early intervention and awareness of such problems and to offer help at the earliest Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 63 opportunity. Employees are responsible for their performance and for taking constructive action to resolve any personal problems that affect or threaten to affect their on-the-job behavior. Supervisors are responsible for remaining alert to all instances of substandard work performance and bringing these instances to the attention of the employee, along with an offer of assistance, at the earliest indication of a recurrent problem. Utilization of the EAP is most times on a voluntary basis. If an employee is referred by a member of management as a condition of continued employment, utilization is mandatory. In the case of mandatory utilization, the only information the Town of Fountain Hills will receive is that the employee is in the program, cooperating, and making their appointments. The decision to seek or accept assistance through the EAP will not adversely affect an employee’s job security or advancement opportunities. However, participation in the EAP in no way relieves the employee of the responsibility to meet acceptable work performance and attendance standards. All full-time employees and benefit-eligible dependents are eligible to receive assistance through the EAP. The EAP will not reveal any information that the individual discloses to the EAP except in the following circumstances: 1. The employee consents in writing; 2. The law requires disclosure; or 3. It is believed that life or safety is threatened by nondisclosure. EAP is strictly confidential and is designed to safeguard your privacy and rights. All counselors are guided by a Professional Code of Ethics. 507. Officer Craig Tiger Act PURPOSE: To provide care for eligible employees exposed to traumatic events in the line of duty. SCOPE: This policy applies to all Public Safety Employees. POLICY: This Act provides up to twelve (12) visits of licensed counseling to eligible Public Safety Employees who are exposed to certain events while in the course of duty. Under certain conditions, the Act provides for an additional twenty-four (24) visits after the initial counseling visits. The Act allows a Public Safety Employee to choose a licensed mental health professional for their counseling services. The Town shall pay the licensed mental health professional pursuant to the schedule of fees established by the Industrial Commission of Arizona pursuant to section 23-908. A Public Safety Employee and may seek counseling services if they were exposed to any one of the following events: 1. Visually or audibly witnessing the death or maiming or visually or audibly witnessing the immediate aftermath of such a death or maiming of one or more human beings. 2. Responding to or being directly involved in a criminal investigation of an offense involving a dangerous crime against children as defined in section 13-705. 3. Requiring rescue in the line of duty where one's life was endangered. 4. Using deadly force or being subjected to deadly force in the line of duty, regardless of whether the Peace Officer or Firefighter was physically injured. 5. Witnessing the death of another Peace Officer of Firefighter while engaged in the line of duty. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 64 6. Responding to or being directly involved in an investigation regarding the drowning or near drowning of a child. In compliance with provisions set forth by this amended Act, Human Resources shall track and provide annual reporting to the State of Arizona by September of each year. 508. Tuition Reimbursement PURPOSE: To provide a means of assistance for Town of Fountain Hills employees to obtain job- related education. SCOPE: All Full-Time, Regularly-Scheduled Employees who have completed a minimum of twelve (12) months of paid continuous service. POLICY: The Town of Fountain Hills encourages employees to further their development and skills through continuing education. Employees who meet the eligibility requirements stated herein shall be reimbursed for approved courses, in an approved course of study by an accredited school, college, or university. For purposes of this policy, accredited refers to accreditation provided by a body recognized by the US Department of Education. Limits: The maximum reimbursement limit is $5,250 per calendar year and is excluded as taxable wages. This benefit is subject to availability of Town funds on a fiscal year basis. Town employees should contact Human Resources to obtain information regarding the maximum annual reimbursement amount they may be eligible to receive. The Town reserves the right to limit or expand reimbursements if this limit fluctuates. Reimbursable expenditures include tuition only. Administrative fees, laboratory, technical fees, required textbooks, incidental fees such as parking permits, supplies, and recreation fees/activity fees are not covered under this reimbursement plan. Tuition reimbursement is available to eligible employees pursuing advanced education in a field which is directly related to their duties performed for the Town. Definitions: “Allowable amount” is approved by the Finance Division based upon budgeted funding and the criteria set forth within this policy. The determination of the allowable amount is made prior to the beginning of each fiscal year. Funds in excess of those approved in the Town’s budget cannot be expended without prior Town Manager approval. “Fiscal Year” is defined as July 1st through June 30th. Eligibility Requirements Individual courses as well as degree programs (undergraduate and graduate) may be considered for assistance under this program if they meet the following requirements: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 65 1. The course must be related to the employee's current job or future career growth with the organization. If a degree program is approved, all courses necessary to obtain the degree are eligible for reimbursement even if the course is not directly related to the employee's job. However, a Tuition Reimbursement Application must be submitted and approved prior to the beginning of each course under the degree program (see Reimbursement below). 2. Courses must be taken from an accredited school, college, or university. Accredited refers to accreditation provided by a body recognized by the US Department of Education. 3. Work schedules are not reduced for participating employees. Courses must be taken outside of the employee's normal work hours. 4. All course homework must be completed during non-scheduled work hours. Reimbursement To be eligible to receive reimbursement, the following must be satisfied: 1. A completed Tuition Reimbursement Application, including the Department Head’s signature of approval, must be provided to Human Resources no less than thirty (30) days prior to the first session of class. 2. The employee must be actively employed by the Town of Fountain Hills in a full-time, regularly-scheduled status at the time the course is completed and when the employee receives the final grade. 3. The actual amount of reimbursement is dependent on funding availability and total dollar amount requested for reimbursement. Reimbursement will be made upon successful completion of the course (a letter or point value equivalent to a grade of “C” or better or a “pass” for a pass/fail course). 4. Proof of satisfactory completion and detailed invoices must be submitted to Human Resources. 5. Employees who receive financial assistance for their education from grants, scholarships, or other sources must disclose the source on the request for tuition reimbursement. If employees are receiving funding other than student loans for their education from another source, the Town will not provide reimbursement for that portion of the cost. The amount of reimbursement shall be reduced by any financial assistance the employee receives from any outside source. Approvals Required All requests for Tuition Reimbursement require the approval of the employee’s Department Head. 1. All required approvals must be satisfied prior to registering for or enrolling in requested course(s). Requests received after registration or enrollment may not be eligible for reimbursement. Note: A new Tuition Reimbursement Application must be submitted and approved prior to taking courses for which the employee requests tuition reimbursement, including those that are taken as part of a previously approved degree program. 2. The Town Manager will review the request and approve or disapprove the reimbursement request based on the job-relevance of the request, potential benefit to the Town, and funds available. Note: A set funding amount is allocated to this program on a fiscal year basis. For that reason, funds are distributed on a “First Come – First Serve” basis at time of application. Procedure 1. All requests for tuition reimbursement must be submitted on a Tuition Reimbursement Application Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 66 2. All requests must include identification of the agency accrediting the college and a description of the course(s). Both of these may be photocopied from the school catalog or website. For degree programs, a copy of the requirements for the degree must be submitted, including a list of all required courses. As above, a photocopy from the school catalog or website will generally suffice. 3. Upon final approval or disapproval, a copy of the Application is returned to the requesting employee and Department Head. 4. Upon successful completion of the course, the employee shall re-submit their copy of the Application to Human Resources, along with proof of successful completion (grade report/transcript) and detailed invoices for reimbursement within thirty (30) days of completion of the class(s). Separation from Employment - It is anticipated that the employee and the Town of Fountain Hills will both benefit from employee development activities and the organization's financial investment in such activities. In order to remain eligible for tuition reimbursement, an employee must remain employed by the Town at the time the course(s) completes, and a final grade is issued. If an employee’s employment with the Town is terminated for any reason prior to such time, the employee will no longer be eligible for tuition reimbursement. Tuition reimbursement may be paid prior to completion of requested courses, but only on an exception basis. The employee must furnish an explanation of need that would justify payment in advance, and an affirmative endorsement by the individual’s Department Head prior to consideration. Each request for exception will stand on its own merits. 509. Training Funding PURPOSE: To maximize the return on investment for Town funded, job-related training outside the scope of the Tuition Reimbursement Policy. SCOPE: This guideline applies to all Town employees. Town employees who attend job-related training may, at the discretion of the Town Manager, have some or all of their expenses paid for through Town funds, including travel, accommodations, auto rental, attendance and required material fees, up to a maximum of $1,500 per fiscal year. POLICY: The Town seeks to assist employees in obtaining job-related training to enhance the personal skills of the employee in areas that are beneficial to Town operations. Procedure Employees who attend a training event that costs $1,000 or more (minus wages, but inclusive of expenses incurred from travel, per diem, lodging, auto rental, attendance and material fees) will be required to sign an agreement stating that if they separate voluntarily from Town employment within one year following the conclusion of the training, an amount based upon the total will be withheld from the final paycheck according to the following schedule: Date of Separation Percentage Withheld Up to 90 days following conclusion 100% 91 to 180 days following conclusion 50% Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 67 181 to 365 days following conclusion 25% The original signed agreement will be forwarded to the Human Resources Office for inclusion in the employee's personnel file. Under special circumstances, the repayment requirement provision of this guideline may be waived at the discretion of the Town Manager. Nothing in this policy implies any type of contract with respect to continued employment or limits the rights of the Town to terminate any individual in accordance with Town policy. 510. Memberships PURPOSE: To encourage active community engagement among current employees. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Membership in a professional organization is valuable to our employees as well as to our organization. The Town of Fountain Hills will pay the annual membership fee required for an employee to belong to job-related professional organizations that are approved in the annual budget. The Town of Fountain Hills will also pay the fees required for employees to maintain and/or obtain professional designations that are directly related to their jobs and that are approved in the annual budget. A department director must approve in writing any exceptions to these limits. The Town of Fountain Hills cannot pay for student memberships in professional organizations. If membership in a professional or civic organization or a professional designation is not job related but is beneficial to an employee and our organization, the employee may request that their dues be paid by the Town of Fountain Hills. The employee should make a written request to their department director. The employee will be advised in writing whether any, or all of the dues, will be paid by the Town of Fountain Hills. The Town of Fountain Hills will also pay expenses associated with attending periodic job-related meetings, conferences, and seminars sponsored by professional organizations that are approved in the annual budget. 511. Service Awards PURPOSE: To recognize and celebrate employees’ years of service to the Town. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: The Town of Fountain Hills has established a Service Award Program to honor employees at certain times during their years of service to the Town. All part-time and full-time employees are eligible. Awards will be issued to employees completing five (5) years of service. Additional service awards will be issued at five-year intervals. Employees will be recognized for their years of service at a staff meeting. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 68 HEALTH, SAFETY & SECURITY 600. Drug and Alcohol-Free Workplace PURPOSE: To maintain a workplace free from the effects of drugs and alcohol. All employees have a right to work in a drug-free environment and to work with individuals free from the effects of prohibited substances. SCOPE: This policy applies to all employees. POLICY: Consistent with the Drug-Free Workplace Act, and to ensure a safe and productive work environment the Town prohibits the use, sale, dispensation, manufacture, distribution or possession of alcohol, drugs, controlled substances, medical marijuana, or drug paraphernalia on any Town premises or work sites. This prohibition includes Town-owned vehicles, or personal vehicles being used for Town business and/or parked on Town property. Additionally, the Town may take disciplinary action, including discharge, for the illegal (under federal or state law) off-duty use, sale, dispensation, manufacture, distribution, or possession of drugs and controlled substances and the illegal use or distribution of alcohol. Restrictions 1. Employees shall not report for duty or remain on duty under the influence of or impaired by any drugs or alcohol, including prescriptions, over-the-counter (OTC) medicines, marijuana or other intoxicants that could impair work performance, alertness, coordination, or response time. 2. Employees must not unlawfully use, possess, distribute, dispense or manufacture any alcohol, drugs or other controlled substances while working for the Town, while on Town property, operating a Town vehicle, operating a personal vehicle while on Town business or representing the Town at any location. 3. Employees shall not consume alcohol, drugs or other intoxicants during lunch periods or breaks or while on-call or stand-by when the individual is expected to return to work. If an on- call employee is requested to work and has consumed drugs and/or alcohol, the employee must disclose the use of such substances at the time the individual is called to report for duty. 4. Employees shall not consume alcohol within 4 hours before reporting to work. Employees must not consume alcohol for eight hours following involvement in an accident until the employees submit to any required post-accident drug and/or alcohol testing. 5. Employees shall not refuse to take or fail to cooperate in any way with a required drug and/or alcohol test. Employees shall not interfere with, alter, substitute, adulterate, dilute or in any way attempt to affect the outcome of the testing procedure. Prescription Medication This Policy does not prohibit an employee from using a legally obtained prescription drug that was legally issued to said employee. When an employee must take prescription or over-the-counter drugs, the employee must ask the medical professional or pharmacist if the drug has any side effects which may impair the employee’s ability to safely or productively perform the employee’s job duties. If there is potential impairment of the employee’s ability to work safely or productively, the employee Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 69 must report this information to the supervisor. An employee may be required to provide the Town with a copy of the prescription and/or other medical verification. If an employee is unable to perform his or her job duties safely and effectively while taking a prescribed medication, the employee may be re-assigned, or, if no suitable position is available, may be placed on a leave of absence. Furthermore, if the Town has designated a position as safety-sensitive and the Town has a good faith belief that the employee is using any drug, whether legal, decriminalized, or prescribed by a physician, that could cause an impairment while working, or otherwise impact the employee’s job performance or ability to perform job duties, then the Town may take appropriate action to exclude the employee from the safety-sensitive position. For instance, the Town may assign the employee to another job or place the employee off work. Drug-Related Convictions Any employee convicted of violating an Arizona or Federal Criminal Drug Statute must inform the Town of such conviction (including a plea of guilty and no contest) within five (5) days of the conviction occurring. When the federal government requires a Town to notify the federal contracting office of an employee’s drug conviction in a workplace, the Town will provide such notification to the federal contracting office within ten (10) days of receiving such notice of conviction from an employee or otherwise receiving notice of such conviction. Any employee who violates this policy shall be subject to disciplinary action up to and including discharge from employment. Nothing in this policy implies employees of the Town are employed for an indefinite period. Such employment may be terminated with or without cause or notice at the will of either the employee or the Town. This policy and any related policies, practices, or guidelines are not employment contracts or parts of any employment contract. 601. Drug and Alcohol Testing PURPOSE: The Town is committed to maintaining a Drug Free Workplace that is a safe, healthy and productive work environment for all employees free from the effects of substance abuse. Employees are prohibited from possessing, distributing, selling, or working under the influence of drugs or alcohol, which can be a serious safety risk to themselves, to other employees, or to the general public. SCOPE: This policy applies to all Town employees and all applicants who have received conditional offers of employment holding a “safety sensitive” position as defined by A.R.S. §23-493. POLICY: In order to further the Town’s goal of maintaining a drug and alcohol-free workplace, the Town has implemented a drug and alcohol testing policy. Town positions that are classified as a safety- sensitive position require specific forms of drug and alcohol testing. All Town employees may be subject to testing based on a reasonable suspicion of use. Employee and Applicant Drug and Alcohol Testing To promote a safe and productive workplace, the Town will conduct the following types of Drug and Alcohol testing as described below: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 70 1. Post-Offer/Pre-Employment 2. Reasonable Suspicion 3. Post-accident 4. Return-to-Duty/Follow-up Testing Categories of Employee Substance Testing Post-Offer/Pre-Employment Testing: All persons seeking employment with the Town in a position designated as “safety-sensitive” shall undergo post-offer drug testing on or around the time employment commences. Applicants will be informed that as a condition of employment they must pass a drug screening test. Applicants who test positive will be notified that they have not met the standards for employment and will be informed they can have the confirmed positive test re-tested by a government certified lab selected by the applicant. Current employees who are transferring or are promoted into a Safety Sensitive position will also be subject to pre-employment testing. Reasonable Suspicion Testing: An employee will be asked to submit to drug and alcohol testing when the Town reasonably suspects the employee is impaired or has used illegal drugs. The decision to require a test for reasonable suspicion will be based upon objective observations by one or more supervisors and those observations shall be recorded. If a supervisor has reason to believe that an employee is impaired while on duty, he or she should immediately ensure the safety of the employee and others by removing the employee from the worksite., Travel arrangements shall be made by the employee’s supervisor or Human Resources for the employee for testing purposes and then home. The employee will be placed on administrative leave pending notification of the test results. If a supervisor has reason to believe that an employee is impaired while on duty, he or she should immediately ensure the safety of the employee and others by removing the employee from the worksite. Travel arrangements shall be made by the employee’s supervisor or Human Resources for the employee for testing purposes and then home. The Town will place the employee on leave pending the receipt of drug testing. If the results of the testing are negative, upon return to work, the employee shall be paid for the leave. However, if the results of the testing are positive, employees will not receive pay for the leave. Post-accident Testing: An employee must submit to a drug and alcohol test after an on-the-job accident, including workplace injuries. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 71 1. An accident for purposes of this policy is defined as an incident or occurrence in which any of the following conditions are met: a. A person dies or requires medical treatment. b. The employee receives a citation for a moving traffic violation arising from the accident. c. Property damage is estimated at greater than $250. d. The accident involves use of a Town vehicle. e. The accident involves an employee in a personal vehicle accident while on the job. This section does not require the delay of necessary medical attention for the injured employee following the accident or prohibit a driver from leaving the scene of an accident in order to obtain necessary medical attention. A post-accident alcohol test should be performed within two hours of the accident and not to exceed eight hours. A post-accident drug test should be performed at the same time, but no more than 12 hours after the accident occurred. If an alcohol test is not administered within eight hours or a drug test is not administered within 32 hours following the accident, all attempts to administer testing should cease and the supervisor will prepare a written report stating the reasons a test was not administered. 2. An employee who is involved in an accident must immediately report the accident to their supervisor/manager. 3. When a supervisor/manager observes or is notified of an accident as defined in #1 above, the supervisor/manager will initiate drug and alcohol testing. The supervisor/manager will order the employee to submit to a urine and/or breath test. The supervisor/manager will arrange to transport the employee to the collection site and will arrange for the employee’s transport home. 4. The Town will place the employee on leave pending the receipt of drug testing. The employee shall be paid for the leave if the testing results are negative. The employee will not be paid for the leave if the results are positive. Return to Duty/Follow-up Testing If the Town elects to allow an employee to return to work following a positive test result, the employee must first pass a drug and alcohol test and subsequently submit to a program of unannounced testing for a period of not more than 12 months from the date of return to duty. Substance Testing As permitted by applicable law, the Town may test for any of the following substances: alcohol, marijuana/THC/CBD, cocaine, opiates, amphetamines (including methamphetamines), phencyclidine (PCP), barbiturates, or any other substance considered unlawful under the schedules of the controlled substances section of the comprehensive drug abuse prevention and control act of 1970, as amended, (P.L. 91-513; 84 Stat. 1247; 21 United States Code section 812), or the metabolite of these substances. Prohibited Conduct Employees testing positive for drugs and/or alcohol, attempting to alter the outcome of a mandatory test, refusing to participate in a required test, or in any way violating the Town’s drug and alcohol policy may be removed from their position and be subject to discipline, up to and including dismissal. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 72 If a candidate tests positive for drugs or controlled substances, his or her offer of employment will may be rescinded. Medical Marijuana Pursuant to Arizona’s Medical Marijuana Law, and except as provided herein and permitted by applicable law, the Town will not refuse to hire an applicant and will not discipline or fire an employee who is a Qualifying Patient with a Registry Identification Card solely because the individual possesses a Registry Identification Card or because that individual tests positive for a presence of marijuana in his or her system. “Qualifying Patient” means an employee or a prospective employee who has been diagnosed by a physician as having a debilitating medical condition as provided for in A.R.S. § 36- 2801, et seq. “Registry Identification Card” means a document issued by the Arizona Department of Health Services or its successor agency that identifies a person as a registered Qualifying Patient as provided for in A.R.S. § 36-2801, et seq. The Town will withdraw an offer of employment or terminate an employee based on its good faith belief that the applicant or employee was impaired by marijuana while in the work environment or during hours of employment. Employees also will be terminated if they use or possess marijuana during work hours or in the work environment. In the case of a Qualifying Patient who possesses a Registry Identification Card and is not employed in or applying for a safety-sensitive position, if initial and confirmatory drug testing reveals the presence of marijuana in an employee’s or prospective employee’s system and there is other evidence or indicators of impairment, and the employee or prospective employee does not provide an explanation that satisfies the Town, the Town will take disciplinary action, up to and including termination. In the case of a Qualifying Patient who possesses a Registry Identification Card and who is employed in a safety-sensitive position (or is a prospective employee who has applied for a safety-sensitive position), if initial and confirmatory drug testing reveals the presence of marijuana in an employee’s or prospective employee’s system and the employee or prospective employee does not provide an explanation that satisfies the Town, the Town may take disciplinary action, up to and including termination (or, in the case of a prospective employee, the Town will withdraw a conditional offer of employment). Any positive test result for which the employee cannot provide a satisfactory explanation may constitute willful misconduct. Human Resources, in consultation with the Town Attorney, will determine whether or not an explanation is satisfactory. Inspection and Searches The Town may conduct unannounced inspection for violations of this policy in the workplace, work sites, or Town premises. Employees are expected to cooperate during any inspection. Voluntary Treatment The Town supports sound treatment efforts. Whenever practical, the Town will assist employees in overcoming drug and/or alcohol problems as long as this policy has not already been violated. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 73 If an employee seeks treatment for drug and/or alcohol use, the employee may be eligible to go into a drug and/or alcohol treatment program either through The Town medical insurance program or at their own expense. If the employee enters an appropriate treatment program, The Town may place the employee on unpaid status, but the employee will be required to use any accrued vacation time and sick leave while participating in the program, so long as the employee is complying with the conditions of treatment. The Town can require a release to work and/or verification that the employee has successfully completed the entire rehabilitation, treatment, and/or counseling program treatment from the health care provider. More information regarding availability of treatment resources and possible insurance coverage for treatment services is available from the Human Resources Department. The employee may also be required to pass a retest, at the employee's expense, before returning to work upon completion of such rehabilitation, treatment, and/or counseling. The employee may also be subject to periodic retesting after returning from leave. Safeguards/Confidentiality All drug tests are performed by a government-certified outside laboratory. All government-certified outside laboratories strictly follow chain of custody guidelines to ensure the integrity of the testing process. If the results of the initial test are positive, that is, if the results exceed the permitted levels for any of the drugs tested or for alcohol, a second confirmatory test shall be performed. Only specimens that are confirmed positive on the second (confirmatory) test are reported as positive for review and analysis. Human Resources will contact the employee in the case of a positive test result. An applicant or employee who does not pass a drug test may request that the original sample be analyzed again at the individual’s expense by a government certified laboratory. All requests for an independent analysis must be made in writing within 72 hours of notification of a confirmed positive test result. Each applicant or employee will have an opportunity to discuss the test results in a confidential setting. The Town will keep the test results confidential and will share the results only within the Town on a business need-to-know basis, in administrative law proceedings, and/or when required by law. Each applicant or employee upon their written request may be provided with a written copy of the positive test result. Upon written request within seven days of taking the test, an employee may access records relating to his drug and/or alcohol test. Disciplinary Action 1. Testing Positive Employees who test positive for drugs and/or alcohol are in violation of this policy. 2. Refusal to Comply Employees who refuse required testing are in violation of this policy. 3. Interference with Testing Employees who adulterate, tamper with, or otherwise interfere with accurate testing are in violation of this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 74 4. Any employee who has been observed using or possessing illegal drugs, medical marijuana, or alcohol during work time, including lunch breaks, or on Town premises is in violation of this policy. Assistance The Town recognizes that alcohol and drug abuse and addiction are treatable illnesses. The Town also realizes that early intervention and support improves the success of rehabilitation. To support its employees, the Town drug-free workplace policy: 1. Encourages employees to seek help if they are concerned that they or their family members may have a drug and/or alcohol problem. 2. Offers all eligible employees and their family members assistance with alcohol and drug problems through the Employee Assistance Program (EAP). If you have a problem with drugs and/or alcohol and wish to undertake rehabilitation, you may request an unpaid leave of absence for this purpose, which may be covered leave under the Family and Medical Leave Act under certain circumstances. It is your responsibility to seek help before the problem adversely affects your work performance or results in a violation of this policy. If you need assistance in seeking this help, you may contact the Employee Assistance Program (EAP). There is no adverse treatment against an employee for voluntarily undertaking rehabilitation (as opposed to being impaired in the workplace or failing a drug test which do have adverse consequences). Treatment for alcoholism and/or other drug use disorders may be covered by the employee benefit plan. However, the ultimate financial responsibility for recommended treatment belongs to the employee. For an employee who is permitted to seek treatment after a failed drug test, the employee shall not be permitted to return to work until they have successfully completed the entire rehabilitation, treatment, and/or counselling program and only for so long as the employee successfully remains in any aftercare program recommended by the rehabilitation, treatment, and/or counselling program. The employee shall also be required to pass a retest, at the employee's expense, before returning to work upon completion of such rehabilitation, treatment, and/or counselling. The employee may also be subject to periodic retesting after returning from leave. Shared Responsibility A safe and productive drug-free workplace is achieved through cooperation and shared responsibility. Both employees and management have important roles to play. All employees are required to report to work unimpaired in a drug free state. In addition, employees are encouraged to: 1. Be concerned about working in a safe environment. 2. Support fellow workers in seeking help. 3. Use the Employee Assistance Program. 4. Report dangerous behavior to their supervisor. It is the supervisor's responsibility to: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 75 1. Inform employees of the drug-free workplace policy. 2. Observe employee performance. 3. Investigate reports of dangerous practices. 4. Document negative changes and problems in performance. 5. Counsel employees as to expected performance improvement. 6. Refer employees to the Employee Assistance Program. 7. Clearly state consequences of policy violations. Communication Communicating the drug-free workplace policy to both supervisors and employees is critical to its success. To ensure all employees are aware of their role in supporting our drug-free workplace program: 1. All employees will receive a written copy of the policy. 2. The policy will be reviewed in orientation sessions with new employees. 602. Smoke-Free Workplace PURPOSE: To provide a healthy environment for employees and customers, the Town prohibits smoking and use of smokeless tobacco products in Town facilities and vehicles. SCOPE: This policy applies to all employees and visitors. POLICY: The Town of Fountain Hills strives to maintain a healthy environment for its employees and customers. No smoking or use of smokeless tobacco, or use of e-cigarettes or vaping devices is permitted anywhere inside or outside (within a 10-foot radius of any doorway, open window, or air intake) of Town facilities or vehicles. No smoking is permitted at any location that signage prohibits smoking. All employees are responsible to l ensure that there is no smoking in Town buildings and vehicles. 603. Firearms/Weapons PURPOSE: To establish a policy concerning weapons in the workplace. SCOPE: This policy applies to all employees and visitors. POLICY: Except as provided below, the Town of Fountain Hills prohibits anyone from possessing or carrying weapons of any kind on Town property, in Town owned or leased vehicles, or during working hours. This includes: 1. Any form of weapon or explosive 2. All firearms; and 3. All illegal knives or knives with blades that are more than six (6) inches in length. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 76 If an employee is unsure whether an item is covered by this policy, please contact Human Resources. Employees are responsible for making sure that any item they possess is not prohibited by this policy. Police officers, security guards, and other individuals who have been given consent by the organization to carry a weapon on the property will be allowed to do so. Pursuant to Arizona law, employees may have a firearm that is lawfully possessed stored in a locked personal vehicle so long as such firearm is not visible from outside of the vehicle. This policy does not apply to Town vehicles. No firearms or weapons of any kind may be transported or stored in Town vehicles. Exceptions This policy does not apply to individuals who, within the normal scope of the individual’s employment, are required to use a device that is, or would be considered, a weapon and who is authorized to use such a device by the individual’s Department Director. 604. Violence in the Workplace PURPOSE: The Town is committed to providing a work environment that is free from violence. Any acts or threatened acts of violence shall not be tolerated. Anyone engaging in violent behavior shall be subject to discipline, up to and including discharge, and may also be personally subject to other civil or criminal liabilities. SCOPE: This policy applies to all Town employees and visitors. POLICY: Threats, threatening and abusive behavior, or acts of violence against employees, visitors, citizens, or other individuals by anyone on Town property will not be tolerated. This is a zero-tolerance policy. Anyone engaging in violent behavior shall be subject to discipline, up to and including discharge, and may also be personally subject to other civil or criminal liabilities. The Town of Fountain Hills reserves the right to take any necessary legal action to protect its employees. Enforcement of this Policy requires the combined efforts of all employees. Employees shall report any act of violence or any threat of violence to their supervisor. All such reports shall be fully investigated. The Town’s prohibition against threats and acts of violence applies to all employees, visitors, and citizens on Town property. Workplace violence is any act or threat (either verbal or implied) of physical violence, including intimidation, and/or coercion that involves or affects employees (on or off duty) or occurs on Town property. Specific examples of conduct that may be considered threats, or acts of violence include, but are not limited to, the following: 1. Hitting or shoving an individual. 2. Threatening an individual. 3. The intentional destruction or threat of destruction of Town property. 4. Threatening phone calls. 5. Surveillance or stalking. 6. The suggestion or intimation that violence in the workplace is appropriate. 7. Threats of, or use of firearms or weapons. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 77 Department Directors Supervisors will provide a working environment as safe as possible by having preventative measures in place and by dealing immediately with disruptive, threatening or potentially violent situations. No employee will engage in threatening, violent, intimidating or other abusive conduct or behaviors. In addition, employees are expected to refrain from verbal references of violence, or other conduct that may be dangerous to others. Employees shall notify their supervisor whenever they witness, experience or become aware of an act or threat of workplace violence. All suspicious individuals or activities shall be reported as soon as possible to the employee’s supervisor. When reporting a threat of violence, you should be as specific and detailed as possible. Employees who feel that they or their co-workers are in immediate or imminent danger should dial 911 to attain assistance from law enforcement. Even without a specific threat, all employees should report any behavior they have witnessed that they regard potentially threatening or violent or which could endanger the health or safety of an employee when the behavior has been carried out on a Town-controlled site or is connected to Town employment or Town business. Employees are responsible for making this report regardless of the relationship between the individual who initiated the threatening behavior and the person or persons being threatened. The organization understands the sensitivity of the information requested and has developed confidentiality procedures that recognize and respect the privacy of the reporting employee. Supervisors shall take workplace violence concerns seriously. Any person who makes threats, exhibits threatening behavior, or engages in violent acts on Town premises shall be removed from the premises as quickly as safety permits and shall remain off Town premises pending the outcome of an investigation initiated by the Town Manager or designee. Supervisors shall receive, evaluate, interview and respond to reports of workplace violence with the assistance of appropriate parties, including the Department Director and Human Resources. To maintain workplace safety, the Town Manager may place an employee on administrative leave pending an investigation. Employees are expected to cooperate with the investigation of any incidents. Employees who fail to cooperate with an investigation or who give false information shall be subject to disciplinary action, up to and including discharge. The Town of Fountain Hills will initiate an immediate and appropriate response. This response may include, but is not limited to, suspension and/or termination of any business relationship, reassignment of job duties, suspension or termination of employment, and/or criminal prosecution of the person or persons involved. Privacy rights will be observed in the investigation as much as possible. Only those individuals with a clear need to know of the potential risk will be notified in cases where a person is, or is perceived to be, a threat to others. Anonymity of employees reporting violence, threats of violence, intimidation or other abusive conduct will be maintained during the investigation to the greatest extent possible by those investigating and resolving the complaint. However, there is no right to or guarantee of anonymity since it is often necessary to make the employee or member of the public against whom the allegation has been made aware of the complaint in order to ascertain the facts. Retaliation and/or reprisal against an employee who genuinely reports threats of workplace violence in good faith are in violation of this Policy. Anyone who engages in or assists in such retaliatory actions shall be subject to disciplinary action up to and including discharge. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 78 Employees found to be in violation of this Policy shall be subject to disciplinary action, up to and including discharge, as well as arrest and prosecution. Restraining Orders Employees who are seeking or have obtained restraining orders or injunctions against other individuals should notify their supervisor so that appropriate measures can be taken. When an injunction or restraining order lists Town facilities as being protected areas, employees must provide their supervisor with a copy of any injunction or restraining order which is granted, and a copy of any injunction or restraining order which is made permanent. 605. Identification Badges and Building Access PURPOSE: To protect the safety and maintain the security of all employees and Town assets. SCOPE: This policy applies to all civilian Town employees. POLICY: Every employee is required to wear a picture identification badge at all times while on Town premises. Failure to do so will subject the employee to corrective action. Human Resources will arrange for all new employees to receive an ID badge during orientation on their first day of employment. Loss or damage of the ID badge should be reported to Information Technology immediately in order for the badge to be deactivated in the system. The badge is the property of the Town of Fountain Hills and must be returned upon termination of employment. Because employee ID badges are also the means by which employees enter and leave the premises, employees must not loan their badges to anyone, including other employees, nor should employees allow anyone to enter the premises that the employee does not know to be an employee of the Town of Fountain Hills without first signing the Visitor Log and obtaining a Visitors Pass. Failure to observe these safety regulations could endanger the safety and security of all other employees and could subject the employee to corrective action up to and including termination. 606. Family or Guests in Non-Public Areas PURPOSE: To protect the safety and maintain the security of all employees and Town assets. SCOPE: This policy applies to all Town employees. POLICY: Employees will make every effort to limit personal visitation by family or friends while on duty. Family and guests of staff will avoid interrupting other staff from their work activities and will enter another staff person’s work area only if specifically invited. Under no circumstances will family members or other guests be in non-public areas when the staff member is not present. Interruption or disturbance caused by family members or guests may be the basis for disciplinary action against the employee, including dismissal. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 79 607. Safety Equipment/Uniforms PURPOSE: To ensure that employees wear safety equipment that shall provide the necessary support and protection required for the job they are assigned. SCOPE: This policy applies to all Town employees. POLICY: The Town will provide, at no cost to employees, a sufficient amount of uniform clothing and safety apparel for all employees who are required to wear uniform clothing and safety apparel as part of their Town duties and responsibilities. All employees who are required to wear uniform clothing as part of their duties and responsibilities will adhere to the following: 1. Town employees are required to wear issued safety and identifying clothing as set forth in individual Departmental polices. 2. A Town uniform, or any part of a Town uniform, is not to be worn for personal/private use. 3. All uniforms and safety apparel will be clean and neat in appearance at the start of each work shift. 4. All employees are prohibited from wearing a Town uniform or any part of the uniform after established work hours and may not enter into any adult entertainment establishment or business that would bring possible discredit to the Town or the employee while in an authorized Town uniform. 5. All employees are prohibited from possessing or consuming alcoholic beverages at any time while wearing a Town uniform or any portion of a Town uniform. 6. Employees are responsible for the proper maintenance, laundering and care of these items. This includes laundering the uniform regularly. 7. If the uniform needs to be replaced due to normal wear and tear, the Town will replace it at no expense to the employee. 8. If anything outside of normal wear and tear results in the need for a replacement, the replacement may be at the employee’s expense depending on the frequency and severity of each occurrence. Additionally, excessive damage to or loss of company uniforms may result in disciplinary action. Payroll deductions may be arranged to cover replacement cost. 9. During the course of employment, all uniforms will remain the property of the Town. 10. Upon termination of employment, or upon management request, uniforms are expected to be returned in a reasonable state and in their entirety. Fire Department. Additional Uniform and Safety Equipment provisions for active fire suppression positions will be found in the Department’s Standard Operating Guidelines. 608. Workplace Safety PURPOSE: To provide safe working conditions. SCOPE: This policy applies to all Town employees. POLICY: The Town prioritizes the well-being and safety of its employees and strives to ensure optimal working conditions for them. Employees must make a conscientious effort to be aware of security, safety, and health procedures as well as potential hazards to staff and customers. The goal is Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 80 to avoid accidents and not to create them. To accomplish this objective, all employees are expected to work diligently to maintain safe and healthy working conditions and to adhere to proper operating practices and procedures designed to prevent injuries and illnesses. The Town provides information to employees about workplace safety and health issues through regular internal communication channels such as supervisor-employee meetings, bulletin board postings, policies and procedures. Each employee is expected to understand and obey safety rules, and to exercise caution in all work activities. Employees must conduct themselves in a safe manner at all times, adhere strictly to all safety requirements, and immediately report any accidents, hazards or potentially unsafe conditions. If the unsafe condition can be corrected immediately to avoid any additional hazard, then the employee should implement the corrective action. Employees must immediately report any unsafe condition to the appropriate supervisor. Employees who violate safety standards, who cause hazardous or dangerous situations, or who fail to report or, where appropriate, remedy such situations, may be subject to disciplinary action, up to and including termination of employment. The responsibilities of all employees in this regard include, but are not limited to: 1. Exercise maximum care and good judgment at all times to prevent accidents and injuries; 2. Report injuries to supervisors and seek first aid; 3. Report unsafe conditions, equipment, or practices to supervisory personnel; 4. Use safety equipment provided by the Town when applicable; 5. Conscientiously observe safety rules and regulations at all times; 6. Notify supervisory staff, before the beginning of the workday, of any medication they are taking that may cause drowsiness or other side effects that could lead to injury; 7. Know the locations of fire and safety exits; 8. Never attempt to catch falling objects; 9. Non-slip shoes must be worn when applicable; 10. Make certain emergency equipment, such as fire extinguishers, alarms, and exit doors, is accessible at all times; 11. Maintain all equipment in good repair. 12. Know and be familiar with all Health and Safety Plans including, but not limited to, Bloodborne Pathogen Exposure Control Plan, TB Control, Respiratory Protection Plan for TB, Hazard Communication, Workplace Violence Prevention, and Emergency Plan and Fire Safety. Department Directors are to provide safe working conditions. It is the duty of Management to establish safety regulations and to instruct employees in accident prevention. Suggestions regarding safety will be welcomed by all employees who are expected to immediately report unsafe conditions to their immediate supervisor. 609. Reporting Accidents & Incidents PURPOSE: To establish procedures to be followed when an accident or incident occurs. SCOPE: This policy applies to all Town employees. POLICY: All accidents and incidents are to be reported immediately to the supervisor. This is to ensure correct treatment and the proper handling of the situation. Employees will be required to report Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 81 accidents/incidents occurring on or with Town property or during the course of work. Employees involved in an accident may be required to submit to a test for drugs or alcohol, including possible urine or blood screening. Such tests would be conducted in accordance with the Town’s regulations as outlined in Town Policy. Any eyewitness to an accident should document what happened, how it happened, and any other information that would be helpful in the treatment of the injured individual. Refer to your supervisor to report work related accidents or injuries. Questions regarding accident reporting should be directed to the supervisor or Human Resources. 610. Workers Compensation PURPOSE: To establish procedures to be followed for job-related injury or illness. SCOPE: This policy applies to all Town employees. POLICY: Under Arizona law, it is mandatory for employers to secure workers’ compensation insurance for their employees. Workers’ compensation is a “no fault” system in which an injured or ill employee may be entitled to receive benefits for a job-related injury or illness, no matter who caused the injury or illness. If an illness or injury is job-related, then the injured employee is eligible to receive medical benefits and may receive temporary compensation and/or other workers’ compensation benefits, if eligibility requirements are met. The provisions of this policy are not intended to conflict with or supersede state law, nor should they be interpreted or construed to do so. If any provision of this policy conflicts with state law, state law shall control. Reporting Requirements Employees shall immediately report any job-related accident, illness, or injury, to their immediate supervisor. If the employee’s immediate supervisor is not available, or if the employee’s immediate supervisor is the employee’s Department Director, the employee shall report the accident, injury or illness to the employee’s Department Director. 1. Work-related injury or illness shall be reported in writing within 24 hours to the employee’s supervisor. 2. The employee’s supervisor or Department Director shall ensure that the accident, injury, or illness is reported to the Human Resources Department no later than the next business day. 3. Employees shall follow the reporting procedures established by the Human Resources Department, to include completing and submitting any required forms. The employee is responsible to provide physicians’ statements, including releases to return to work and modifications required, to Human Resources. An employee who fails to return to work after being released by an approved physician will be considered to have resigned and will be terminated. A Return-to-Work Form indicating required accommodations and/or temporary work restrictions should also be obtained and returned to Human Resources prior to returning to work. 4. A physician approved by Human Resources, or designee must treat the injured employee on a first visit. Medical attention should be sought from a medical facility providing occupational health services for the Town and the employee, or another person on behalf of the employee, Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 82 should inform the medical facility that the employee is employed by the Town. Use of Leave 1. On the day of the accident, injury or illness, the employee will not be required to use General Leave for an absence that is a direct result of the accident, injury or illness. Time spent during the workday addressing the accident, injury or illness, such as seeking medical attention, shall be treated as time worked. The employee will not be paid wages for any time spent addressing the accident, injury or illness outside the employee’s scheduled workday. 2. Beginning with the first workday following the day of the accident, injury or onset of illness, an employee who is receiving workers' compensation benefits may use sick leave to make up the difference between the workers' compensation payments and current hourly rate of pay. If the employee has exhausted sick leave, then they may use vacation time to make up the difference between the workers' compensation payments and current hourly rate of pay. Employees shall not be permitted to utilize sick or vacation time in such a way that would compensate the employee with an amount greater than their current hourly rate of pay. If an employee uses sick or vacation time to make up the difference between compensation received through workers' compensation and the employee’s current hourly rate, it shall be the responsibility of the supervisor to record the appropriate time on the biweekly time sheet. 3. If the employee used leave balances for time lost and the workers’ compensation carrier then provides retroactive compensation benefits for lost wages, the Town shall reimburse the employee’s leave balances in the appropriate amount and type of leave for the time lost that is retroactively paid through compensation benefits. The Town will correct the overpayment to the employee in the next regular pay cycle or cycles by reducing the employee’s hours paid by the Town. The employee’s pay shall not exceed the employee’s normal weekly earnings through any combination of workers’ compensation benefits, paid leave and other payments received by the employee. If the combination of payments results in the employee being paid more than the employee’s normal weekly earnings, the Town shall require the employee to reimburse the Town for the overpayment. When an employee with a job-related injury or illness returns to work, the employee must use approved leave for absences due to medical appointments, including physical therapy, for the job- related injury or illness. Any request to use paid leave balances will be considered in accordance with the leave policies set forth in this chapter. Benefits An employee who uses paid leave balances to supplement compensation benefits for lost wages due to a job-related injury or illness shall continue to pay his or her share of any group health plan and other insurance premiums through payroll deductions. An employee who does not use paid leave balances to supplement compensation benefits for lost wages due to a job-related injury or illness shall make arrangements with the Human Resources Department to make payments for his or her share of any group health plan and other insurance premiums. If payment is more than 30 days overdue, the Town shall provide written notice to the employee that payment has not been received and that coverage will be dropped. The notice shall be mailed to the employee at least 15 days before coverage is to be dropped. If the Town pays any of the employee’s share of group health plan or other premiums in order to maintain coverage, the Town may require the employee to reimburse the Town. If coverage is dropped, it shall be dropped Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 83 retroactively to the date the unpaid premium payment was due and the provisions of the federal COBRA law shall apply. Coordination with Family Medical Leave Act A job-related injury or illness may also be considered a “serious health condition” under the Family and Medical Leave Act (FMLA). In such cases, the Town will designate the employee’s absence as FMLA-qualifying, will give notice of the designation to the employee and the FMLA provisions described in these Human Resources Policies will apply. Return to Work No employee who seeks medical attention for a work-related injury will be allowed to return to duty without clearance from the health care provider. Worker’s Compensation Determination Medical expenses and wage loss are covered by provisions of the State Worker’s Compensation Act. The Town’s worker’s compensation insurance carrier (insurance carrier) makes all determination for worker’s compensation claims. 611. Temporary Modified Duty PURPOSE: To offer a program which provides safe work, when possible, for employees who have been temporarily restricted by a health care provider. SCOPE: This policy applies to all Town employees. POLICY: Alternative work or light duty assignments are intended for employees with medically documented, temporary mental or physical illnesses or injuries sustained on or off the job who have work restrictions and who are expected to eventually return to unrestricted work. This program promotes the safe return of injured employees back into the work environment and enhances the mental and physical healing of the employee, thereby shortening the period of time an injured employee is off the job. A Temporary Modified Duty (TMD) program that modifies an employee’s job duties within work recommendations of the treating health care provider(s) may be administered by, and at the discretion of the Town Manager for pregnancy or any work injury/illness that affects the employee’s ability to perform some or all of their normal work duties. Modified job assignments are temporary, and the TMD program does not create positions to permanently accommodate a person with qualified disabilities. Such work will be provided subject to availability. Work will be assigned due to the nature of the injury or illness and the limitations set forth by the treating physician. Every effort will be made to place employees in positions within their own departments, but, if necessary, employees will be placed wherever an appropriate position is available. The goal and expectation of the TMD program is that the employee shall progressively return to full work capacity. The employee should be able to perform their prior job at 100% without limitations. The primary objectives of the TMD program are as follows: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 84 1. Safely return employees to work as soon as possible. 2. Avoid deterioration in work skills due to prolonged absences from work. 3. Reduce the number of lost time incidents and total number of lost workdays. 4. Reduce disability and medical treatment costs. 5. Maintain productivity without hiring temporary employees. 6. Rapid and efficient return of employees to their original jobs. 7. Maintain a high level of communication with employees. Modified or light duty work, including transfer to another division, may be provided when: 1. The work is productive. 2. The work is within the employee’s medical restrictions as provided by a physician. 3. The work is within the employee’s skill level. 4. There is adequate capacity within the department or division to organize and supervise the work being performed. There is no guarantee that modified or light duty assignments are available. Temporary modified or light duty work shall be specific to the injured employee’s limitations, and the availability of work so as not to cause upheaval or restrict day-to-day operations. While on temporary modified duty, employees will continue to receive their regular rate of pay. Employees who are placed outside their department will continue to have their salary charged to their regular department. Employees on TMD must furnish a written update of their medical condition to their supervisor and Human Resources from the treating physician after each visit in order to remain in the reassigned job. Temporary modified duty assignments are limited to a period of 90 days, subject to review. It is not intended to accommodate employees with non-temporary disabilities. An employee in an alternative work assignment is subject to all rules, regulations, standards, policies and procedures of the Town and of the department to which the employee is assigned. The Town specifically reserves all rights to administer this policy. This policy does not have permanent modified or light duty positions, nor shall it create positions to permanently accommodate a person with a disability. If an employee reports to modified or light duty work, the employee has an obligation to work within the restrictions provided by the physician. If a supervisor or designee unknowingly asks the employee to do a task outside of the restrictions, the employee is responsible for informing the supervisor of the restrictions and shall decline the task. Employees who do not improve while participating in the TMD program may be removed from the program. Employees who have reached “end of healing” as established by a physician shall be removed from the TMD program. Interaction with Other Laws and Policies 1. An employee on FMLA leave is not required to accept an available alternative work assignment. The employee may continue on FMLA leave either until the employee is able to return to his/her job or an equivalent job, or until the 12-week FMLA leave entitlement is exhausted. 2. An employee receiving workers’ compensation benefits may forfeit the right to those benefits by refusing to accept an alternative work assignment, as determined by the Town’s workers’ compensation carrier. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 85 3. The Town will comply with the Americans with Disabilities Act (ADA) and applicable state law governing employees with disabilities. No Right to Alternative Work Assignment If granted, alternative work assignments are a privilege and shall not be considered a right or entitlement. An employee in an alternative work assignment has no rights to that assignment or any tasks associated with that assignment no matter the duration of the alternative work assignment. Compensation 1. Employees serving in alternative work assignments shall receive a formal performance appraisal in accordance with the Town’s normal performance management process. The appraisal shall address the employee’s job duties and performance for the relevant time period, including the employee’s job duties and performance in the alternative work assignment. 2. Employees serving in an alternative work assignment within the same classification as their regular position are eligible for across the board pay increases based on availability of funding. 3. Employees serving an alternative work assignment outside the classification of their regular position will be eligible for across the board pay based on availability of funding. 612. Fitness for Duty PURPOSE: To provide a consistent means of evaluating employees in determining that the physical and mental health of an individual allows them to complete assigned duties in a safe and reliable manner. SCOPE: This policy applies to all employees. POLICY: For employees, fitness for duty (FFD) means being able to perform the essential duties of their job in a safe, appropriate, and effective manner. It is the Town’s policy to provide a consistent means of evaluating employees in determining that the physical and mental health of an individual allows them to complete assigned duties in a safe and reliable manner. Primary responsibility for FFD rests with the employee. Being fit for duty means reporting to work mentally and physically fit to work safely, responsibly, productively, and reliably. Supervisors shall ensure that employees under their supervision are aware of and held responsible for FFD. If an employee fails to take personal responsibility for FFD, the supervisor shall contact Human Resources to discuss an FFD evaluation. A management request for FFD evaluation may be appropriate when: 1. The employee identifies a medical condition as a cause of a performance problem. 2. Unsafe behavior is observed that is not typical of the employee. 3. There is a documented concern about whether the employee can work in a safe and reliable manner. 4. There is reasonable suspicion of substance abuse. 5. There is a management concern about excessive use of absences that are medical in nature. 6. The employee experienced or witnessed a traumatic event in the course of employment. A FFD exam may also be required for an employee who is returning from a medical leave of absence or work-related injury prior to their return to work. The FFD process is not a substitute for using Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 86 performance guidance and counseling or the disciplinary process. Supervisors should address performance problems through the performance review process or by implementing corrective or disciplinary action despite the existence or possibility of medical issues but should first consult with Human Resources. Supervisors should consult with Human Resources if a supervisor determines that an FFD evaluation may be necessary. 613. Reasonable Accommodations PURPOSE: To define the Town’s position on reasonable accommodations for qualified individuals with disabilities and for employees whose work requirements interfere with a religious belief. SCOPE: This policy covers all Town employees. POLICY: It is the policy of the Town to comply with all federal and state laws concerning the employment of persons with disabilities and to act in accordance with regulations and guidance issued by the Equal Employment Opportunity Commission (EEOC) and the Americans with Disabilities Act, as amended (ADAAA). Furthermore, it is the Town’s policy not to discriminate against qualified individuals with disabilities in regard to application procedures, hiring, advancement, discharge, compensation, training or other terms, conditions, and privileges of employment. The Town will make reasonable accommodations for the known physical or mental disabilities of qualified applicants or employees unless doing so would result in an undue hardship to the Town or cause a direct threat to health or safety. The Town will also provide reasonable accommodations for employees whose work requirements interfere with a religious belief, unless doing so poses an undue hardship on the Town or causes a direct threat to health or safety. This Policy is neither exhaustive nor exclusive. Procedures Qualified individuals with disabilities who are otherwise able to perform the essential functions of their job may make requests for reasonable accommodation through a ‘Request for Accommodation Form’ to Human Resources. On receipt of an accommodation request, Human Resources will meet with the requesting individual to discuss and identify the precise limitations resulting from the disability and the potential accommodation(s) the Town might make to help overcome those limitations. The applicant or employee may be required to provide medical documentation of their disability and of the effectiveness of the accommodation sought. The Town may also require a medical examination to assist in assessing the existence of a disability and the effectiveness of accommodations. Reasonable accommodations may include any action which enables a qualified individual with a disability to perform the essential functions of their position, but which does not result in an undue hardship to the Town or pose a threat to the health and safety of the employee or coworkers. Any employee or applicant who fails to provide requested information or otherwise fails to engage in the interactive process of assessing the existence of a disability and the necessity, availability, and effectiveness of an accommodation will be deemed to have withdrawn any request for accommodation. Any employee who is not satisfied with the response to an accommodation request should inform Human Resources. All employees are required to comply with Town safety standards. Current employees who pose a direct threat to the health or safety of themselves or other individuals in the workplace shall be placed Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 87 on leave until an organizational decision has been made in regard to the employee’s immediate employment situation. Individuals who are currently using illegal drugs are excluded from coverage under this Policy. The ADA Coordinator and appropriate management representatives identified as having a need to know, including legal consultation, is responsible for implementing this policy, including the resolution of reasonable accommodation, safety/direct threat and undue hardship issues. Implementation The Human Resources Administrator is the ADA Coordinator and is responsible for implementing this policy. Specific responsibilities may be delegated to other management, administration, or supervisors. Medical Records The Town will maintain any employee health information in a confidential file separate from the personnel file. The health file will be accessible only on a need-to-know basis. Supervisory employees and employees with any first aid or safety duties may be informed of any medical conditions that may require emergency treatment, and all such information shall be kept confidential by those informed. Medical Exams Post-offer, fitness for duty, and other medical exams that serve a legitimate business interest may be required. In evaluating whether an employee or applicant is able to perform the essential functions of the job, an individualized analysis will be conducted based upon information reasonably available, including information from the employee or applicant, health care providers (if any were consulted), the employee’s or applicant’s personal physician or health care provider, if the employee or applicant provides such information to the Town, and any other pertinent information. Similarly, an individualized analysis will be conducted based on the same types of information to determine whether an employee or applicant would pose a direct threat in the job. 614. Medical Examinations PURPOSE: To ensure applicant capability to perform essential functions of the job, some applicants are required to undergo a post-offer, pre-employment medical examination, physical test, and alcohol and drug screening. SCOPE: The Town of Fountain Hills applicants and current employees. POLICY: Any offer of employment from the Town is contingent upon, among other things, an applicant’s satisfactory completion of this examination and screening and a determination by the Town and its examining physician that the applicant is capable of performing the essential functions of the position that has been offered, with or without a reasonable accommodation. As a condition of continued employment, employees in certain positions are also required to undergo periodic medical examinations, physical tests, and alcohol and drug screening at times specified by the Town. The Town receives only pass/fail information regarding the applicant’s or employee’s state of health. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 88 The Town of Fountain Hills pays for all business required medical examinations in full. Questions about medical examinations should be directed to Human Resources. 615. Immunizations PURPOSE: To protect the health and wellness of all Fountain Hills employees. SCOPE: All Fountain Hills employees who may come in contact with bodily fluids and/or contaminated materials. POLICY: The Town of Fountain Hills is committed to keeping its emergency response personnel healthy and safe. First Responders may come into contact with bodily fluids and/or be exposed to contaminated materials that could lead to transmission of vaccine preventable diseases. As a result, a Tetanus booster, tuberculosis screening, and Hepatitis B vaccination is recommended; in addition, talking with your personal health care provider to discuss other vaccines you may need is highly recommended. 616. Service Animals in the Workplace PURPOSE: To maintain a safe environment for all employees and visitors while providing accommodation to individuals in need of service animals. SCOPE: All Fountain Hill employees and visitors. POLICY: Service Animals for Employees A service animal may accompany an employee with a disability at work if it is deemed to be an acceptable and reasonable accommodation under the ADAAA, after consultation and approval of Human Resources. An emotional support animal and comfort animal that is not trained to work or perform a task in support of a disability does not qualify as a service animal under this policy and is therefore prohibited. If the service animal is approved by Human Resources or designee, the employee will be permitted to bring a service animal to the workplace, provided that the animal’s presence does not create any health concerns and is not a danger to others. The care of the service animal is solely the responsibility of the employee. Employees are responsible for the following: 1. Keeping service animals under control at all times. 2. Any clean-up or damage to Town property by their service animal. 3. Providing documentation proving the animal is up to date on vaccinations. 4. Having comprehensive liability insurance covering potential injuries. 5. Having a way to transport the animal in the event it creates a health concern or is a danger to others at work. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 89 Pets and other animals are prohibited from entering the workplace, except for approved service animals. 617. Surveillance System PURPOSE: To maintain a safe and secure environment through the use of surveillance technology, with respect to privacy, and ensuring the protection of employees, visitors, residents and assets. SCOPE: All Town employees and visitors. POLICY: The Town of Fountain Hills operates a system of surveillance cameras for the purpose of creating a safer environment for all those who live, work, and visit the Town. Cameras may be placed in strategic locations throughout Town owned facilities and property. These cameras may be used for detecting and deterring crime, to safeguard against potential threats, to manage emergency response situations, and to monitor the use of publicly owned buildings and facilities. Only authorized employees are allowed to access recorded images. When activity warranting further investigation or review is reported or warranted at any camera location, the authorized employee may selectively view the appropriate camera and relay any available information to law enforcement or other employees as necessary to appropriately respond to the situation. Recorded images may be used for a variety of purposes, including but not limited to: 1. Assist in criminal investigations. 2. Monitor activity around high-value or high-threat areas. 3. Assist in identifying, apprehending, and prosecuting offenders. 4. Assist in gathering evidence for criminal and civil court actions. 5. Assist emergency services personnel. 6. Assist in providing effective public services. 7. Review suspicious behavior. Surveillance monitoring shall be conducted in a professional, ethical, and legal manner at all times. The surveillance system shall not be used to invade the privacy of individuals or look into private areas or areas where the reasonable expectation of privacy exists. Efforts shall be taken to protect these rights. Surveillance monitoring shall not be used to harass, intimidate, or discriminate against any individual or group. Human Resources shall approve all authorized users before access to the system is granted. The Human Resources Department shall maintain a list of all employees authorized to access the camera system and shall provide that information to the IT Department. The IT Department shall maintain a record of the location of all active cameras in the system and all recorded images. All recorded images shall be retained per the records retention requirements. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 90 618. Use of Town Property PURPOSE: To establish guidelines for the appropriate use of Town property, materials, equipment and vehicles. Each Town Department shall adopt this regulation and may adopt more stringent guidelines with written permission of the Town Manager. See specific Departmental regulations for more detail related to that department. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Properly functioning equipment and vehicles are essential to accomplishing job duties. When using Town property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines. Employees are to notify the supervisor if any equipment, machines, tools, or vehicles appear to be damaged, defective, or in need of repair. Prompt reporting of damage, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment or vehicles used on the job. Licensing All personnel driving Town vehicles shall have a valid State of Arizona Driver’s License with the appropriate license classification for the type of vehicle they are operating, acquire a complete knowledge and understanding of vehicular operations, and obtain all necessary approvals from Risk Management required to operate the vehicle. If a Town employee loses their driver’s license for any reason, that employee shall notify their supervisor no later than the beginning of the next working shift. The responsibility for ensuring complete compliance with the provisions of this regulation rests with the Department Head, supervisors at all levels, and the individual employees involved. Failure to notify your supervisor of loss of license could result in disciplinary action up to and including termination. Use of Town Vehicles Only authorized Town employees are allowed to operate Town vehicles. Independent contractors and volunteers are specifically prohibited from operating Town vehicles. Use of Town vehicles shall be restricted to official business, subject to the following guidelines: 1. Transporting of passengers shall be limited to Town employees, persons in an advisory capacity to the Town, persons participating in approved Town programs, and other agency representatives on Town business. 2. Employees assigned a Town vehicle for use during their normal workday schedule may use the vehicle during normal work hours to either go home or to a restaurant for lunch if their personal vehicle is not readily available. Employees assigned a vehicle for use during their normal workday schedule are to exercise discretion in its use. Town vehicles may not be used for personal business. 3. Alcoholic beverages shall not be consumed or transported in Town vehicles, nor shall Town employees have consumed any alcohol or any substance (as defined by Town Policy) before or while operating the vehicle. Under no circumstances shall any Town employee who Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 91 registers a positive blood alcohol level be permitted to operate any Town vehicle or heavy equipment. 4. It is inappropriate for a Town vehicle to be parked in front of certain types of businesses, such as a liquor store or bar unless the vehicle is being used to conduct official Town business, such as an inspection. Department Heads may assign Town vehicles for overnight use under the following circumstances: 1. To employees who are frequently required to use a Town vehicle at night, during the weekend, or if they have substantial emergency responsibilities. This does not include employees whose homes are outside Fountain Hills unless the Town’s emergency response or other important Town business would be greatly facilitated. 2. In situations where the conduct of Town business can be facilitated by overnight use of a Town vehicle by an employee who normally does not keep a Town vehicle overnight. 3. To any number of employees rotating a specific assignment and vehicle at night or on weekends. 4. All employees making overnight trips with a Town vehicle must have prior approval of their Department Head as denoted on a Travel Authorization form. Town vehicles shall be operated in a responsible, safe manner, as outlined below: 1. Seat belts shall be worn by all employees and passengers using a Town vehicle and the vehicle shall not be operated until all vehicle occupants have buckled their seat belt. 2. Town vehicles shall be driven in compliance with motor vehicle laws. 3. No employee under the age of eighteen (18) shall be allowed to operate a Town vehicle. 4. Smoking/smokeless tobacco/e-cigarettes is not allowed in any Town vehicles. 5. Pets or animals of any kind are not allowed in Town fleet vehicles. 6. Employees operating a Town vehicle shall exhibit appropriate and courteous driving habits to members of the public at all times. 7. Employees are personally responsible for the prompt and proper reporting to their supervisor, and payment of fines for any citations received while using a Town vehicle. Under no circumstances are these citations to be paid for by the use of Town funds. All moving traffic citations shall be reported within three (3) working days to the appropriate Department Head. 8. All employees who operate a Town vehicle shall become familiar with policies and procedures relating to the reporting of accidents. Employees involved in an accident may be required to submit to a test for drugs or alcohol, including possible urine or blood screening. Such tests would be conducted in accordance with Town regulations as outlined Town Policy. 9. Employees operating Town vehicles are responsible for keeping them clean and litter free. Employees assigned to a specific Town vehicle on a regular basis are also responsible for ensuring the vehicle is in good working order at all times. Any known defects or malfunctions of a Town vehicle are to be reported promptly to the Fleet Mechanic. 10. Routine maintenance and repair of Town vehicles will be supervised through the Public Works department. 11. Fuel cards shall remain in Town vehicles at all times. 12. Operators shall manage their driving environment to minimize distractions that could have an impact on their ability to safely operate the vehicle (i.e., consuming food or beverages). Use of cell phones or texting while operating a Town vehicle is strictly prohibited. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 92 Use of Other Town Tools/Equipment Personal use of town owned tools and other work equipment is prohibited. Personal tools and other work equipment should not be utilized on the job and the Town will not take liability for lost or stolen personal tools and equipment used on the job. The improper, careless, negligent, destructive, or unsafe use or operation of equipment or vehicles, as well as excessive or avoidable traffic and parking violations, can result in disciplinary action, up to and including termination of employment. 619. Use of Town Premises and Office Materials PURPOSE: To establish guidelines for use of Town facilities and property. SCOPE: This policy applies to all Town Employees and all Town Departments. POLICY: Meetings held on the Town of Fountain Hills’ premises must be for the purpose of conducting Town business. Meetings for other purposes are strictly forbidden. The use of business stationery and/or the Town’s postage meter for personal correspondence is strictly prohibited. The personal use of its facsimile or copying machines is also forbidden without first receiving management approval and reimbursing the Town of Fountain Hills at the current prevailing rates. Sending or receiving personal mail at the Town of Fountain Hills’ address is prohibited. No product or materials, including those put in any trash container, is to be removed from the buildings except by authorized personnel. Anyone who removes products or materials without proper authority will be subject to discipline up to termination. Town Property It is the Town’s intent to provide its employees, during the course of their employment, with access to the use of various properties for the employee’s purpose of conducting business for the Town. Employees should have no reasonable expectation of privacy in the use of the Town’s and the public's property. The Town may access its property with or without the prior consent or knowledge of the employee to the extent permitted by law. Town property is to be used judiciously by employees at all times and only in the manner for which the Town and public intend the property to be used. Employee Responsibility. Employees are encouraged to exercise care and attention in safeguarding personal property brought to the workplace. The Town does not assume liability for the loss, theft or damage of personal property brought to the workplace. Right to Access The Town reserves the right to access, replace or utilize any of its property (including office, desk, files, locker, or any other area or article on town premises issued for the use of employees during their employment with the Town) without prior permission of the employee to whom it was provided to the extent permitted by law. Circumstances warranting a need to access property include, but are not limited to, the following: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 93 1. The Town has a need to search for business items or information that is needed in a timely manner. 2. The Town is complying with applicable laws regarding review and disclosure of records and information. 3. The Town has reasonable suspicion to believe that the employee is engaging in illegal or improper activities, in conjunction with committing a violation of policy, rules or general expectations of conduct, or in a way that may jeopardize the health and wellbeing of others. 4. For any other lawful reason. 5. Under these circumstances, employees may be required, upon the request of the Town, to submit to a search of any personal property brought onto the Town's premises to the extent permitted by law. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 94 EMPLOYEE CONDUCT 700. Dress Code and Personal Appearance PURPOSE: To provide guidelines for the appearance of Town employees when performing duties and conducting business for the Town. SCOPE: All Town employees. POLICY: All Town employees are expected to present a positive, professional, and appropriate image consistent with the duties and assignments of each employee. This policy represents the minimum standards which will be applied to all departments. Departments may have more restrictive standards if such standards are approved in writing by the Town Manager. Employees are expected to maintain an appearance that is appropriate to the work situation. Department Heads and supervisors are responsible for determining and enforcing this policy. The professional image of the Town is maintained, in part, by certain expected norms of professional appearance, of personal neatness, cleanliness, and grooming which are applicable to all employees. All employees are expected to use good judgement and maintain appropriate standards of dress, grooming and hygiene. Employees are to wear appropriate attire for their workday and anticipated interactions with the public. Extravagance and extremes of style and attire are not in good taste in a public service environment. The Town reserves the right to advise any employee at any time that their grooming, attire, or appearance is unacceptable. If a supervisor feels that an employee’s apparel or grooming does not meet the Town’s expectations, the matter will be discussed with the employee. The employee may be asked to leave the workplace until the issue has been resolved. Under such circumstances, employees will not be compensated for the time away from work. If an employee has a health or safety reason that will not allow them to meet these expectations, they are expected to discuss this with their supervisor. Human Resources has final authority in determining any dress or appearance issue not defined in this Policy. If a pattern of non- compliance develops, progressive discipline will be administered as appropriate, up to and including termination. Personal Appearance Guidelines 1. Be groomed in such a way that their dress, hairstyle, piercing, or tattoos do not disrupt the operations or cause a health or safety hazard. 2. Hair and facial hair must be clean, well-trimmed, and neat. a. Hairstyles are expected to be in good taste and present a professional appearance. b. For respirator fit-test requirements for personnel governed by respiratory protection guidelines, facial hair must not interfere with the sealing surface of the facepiece, nor interfere with valve function. 3. Jewelry may not be functionally restrictive, dangerous to job performance, or excessive. a. Facial jewelry of any type does not present an appropriate professional appearance and is not permitted. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 95 b. Field personnel are discouraged from wearing large rings while on duty. Rings have the potential to cut through gloves, creating an environment of possible exposures. c. Torso body piercings with visible jewelry or jewelry that can be seen through or under clothing is not permitted. 4. Visibly offensive tattoos and similar body art must be covered while on duty or anytime in uniform. 5. Employees should not wear fragrant lotion, cologne, perfume, or related products while on duty. One employee’s taste may not be that of another, and others in the work environment may be allergic or made uncomfortable by these products. Dress Code Guidelines Moderation and good taste in dress is expected of employees. Office personnel adhere to a business or business casual dress code. 1. All clothing which is worn on duty shall be neat, clean, properly pressed and well maintained. 2. Shoes must provide safe, secure footing, and offer protection against hazards relative to your position. 3. Shoes and/or boots must be clean. 4. Clothing supporting any political candidate, or displaying inappropriate words or images is not allowed. 5. Tight or revealing apparel without appropriate undergarments is not allowed. 6. Visible undergarments are not permitted. 7. Athletic clothing (ex. Shorts, T-shirts, sweatpants, spandex, jogging suits, tank tops, halter tops, hoodies, sweatshirts, and baseball caps/hats) is not allowed unless consistent with uniform policy or for physical fitness in the Fire Department. 8. Clothing must be free of stains, rips, tears, and/or fraying. 9. Tank tops, tube tops, or halter tops may not be worn unless consistent with uniform policy. Field Work Individuals employed in areas where safety equipment, or other uniform or dress considerations are in place due to occupational health and safety or other business-related reasons, must adhere to those safety standards deemed appropriate by the department head. Uniforms The Town will provide, at no cost to employees, a sufficient amount of uniform clothing and safety apparel for all employees who are required to wear uniform clothing and safety apparel as part of their Town duties and responsibilities. All field personnel will wear proper and complete uniforms while on duty. All personnel are to wear their uniforms properly at all times when on duty. All employees must be in uniform for any training conducted unless otherwise authorized by management. Uniform Guidelines 1. Uniforms must remain clean, unwrinkled, neat, and in good repair. 2. Uniform items that are faded, torn, or worn are not acceptable. If the uniform endures damage from anything other than natural wear and tear or lack of care, please contact a supervisor for direction of uniform piece replacement. This includes material or functional defects, fading or shrinkage. 3. A Town uniform, or any part of the Town uniform, is not to be worn for personal/private use. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 96 4. All uniforms and safety apparel will be clean and neat in appearance at the start of each work shift. 5. All employees are prohibited from wearing a Town uniform or any part of that uniform after established work hours and may not enter into an adult entertainment establishment or business that would bring possible discredit to the Town or the employee while in an authorized Town uniform. 6. All employees are prohibited from possessing or consuming alcoholic beverages at any time while wearing a Town uniform or any portion of the Town uniform. 7. All uniform items will be clearly marked with the Town logo and the name of the Town department. 8. All Town uniforms and safety equipment must be left at the employee’s work location daily unless otherwise agreed and approved by the Department Director. The issuance of uniforms will conform to individual departmental policies and depend upon available Town funds within the annual budget allocation. The Fire Department may have additional uniform requirements for maternity, special duty/assignments, and Mourning and Remembrance. Casual/Dress Down Thursday Thursdays of each week will be considered a dress down day. Attire for dress down days will be “relaxed casual” but must still adhere to the Town’s dress code guidelines. There are times when traditional business attire is to be worn on casual days. The Town requests that you take your day’s schedule into account when you are dressing. If you have a meeting scheduled with visitors, or if you are advised that others in the department will have visitors with whom you will come in contact, you will want to dress in professional/business casual attire. Professional attire is always acceptable. Work-Study Students Students (Interns) frequently work in support of regular department employees in return for educational credit and/or financial aid subsidies. The dress for these students may be casual to accommodate financial limitations and school schedules but shall be consistent with all other policy guidelines. Employees may discuss reasonable accommodations to this policy with their supervisor and/or Human Resources. 701. Performance Evaluation PURPOSE: To establish a system of periodic evaluation of the work performance of Town employees. SCOPE: This policy applies to all Town employees. POLICY: The performance evaluation is an essential and effective communication tool in the management of the Town’s workforce. Performance management, of which the evaluation process is Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 97 an integral part, is at the core of productivity and the quality of service provided for the citizens of the Town of Fountain Hills. The performance evaluation provides direction for individual and group staff development. An employee may be reviewed at any time, but a formal performance evaluation will be completed at least once annually, in most cases. Introductory employees are reviewed prior to the end of their designated introductory period with a recommendation for regular status, or an extension of the introductory period. Every full-time Town employee will receive a formal written evaluation of work performance for the twelve (12) month period preceding the designated evaluation date of their current employment with the Town. Part-time employees will receive a formal written evaluation of work performance once they have completed a minimum of 1040 hours. Performance evaluations will be completed on the forms or online software provided by the Human Resources office and will be completed no later than ten (10) working days after the evaluation due date. New employees will receive a performance evaluation prior to the completion of their designated introductory employment period. These reviews will take place regardless of whether the employee is eligible for a pay increase. A performance evaluation is not linked with a salary increase. Employee self-evaluations may be completed but are not required. Performance evaluations are completed by the employee’s supervisor. All performance reviews will be reviewed and signed by the Supervisor, Department Head, and Human Resources prior to the performance review conference taking place with the employee. These signatures signify agreement with the contents of the performance evaluation, as well as format and thoroughness. After discussion, the employee signs the evaluation to confirm that an opportunity for review was provided. Refusal of the employee to sign does not invalidate the evaluation. The employee will be given a copy of, or provided online access to, the evaluation and all original performance review forms are maintained in the employee’s personnel file location in the Human Resources office. Supervisors should provide ongoing performance feedback throughout the year. The performance evaluation summarizes t the employee’s performance and development needs and desires. 702. Conflict of Interest PURPOSE: To establish guidelines for Town employees to identify, disclose, avoid, and manage conflicts of interest as required by law. SCOPE: This policy applies to all officials, officers, and employees of the Town. POLICY: All employees must manage their personal and business affairs so as to avoid situations that might lead to conflict, or the appearance of conflict, between self-interest and our duty to the Town, to the people served by the Town and to the general public. Every employee has an obligation to diligently identify, disclose, avoid and/or manage conflicts of interest. A potential conflict of interest exists when an employee’s or an employee’s relative’s financial or proprietary interests may be directly or indirectly impacted, whether favorably or detrimentally, by a decision made by the Town in which the employee participates. Even if no abuse of position actually occurs, a conflict of interest or its appearance can seriously undermine the public’s confidence and trust in the Town’s Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 98 governmental system. Employees are subject to the provisions of A.R.S. Section 38-501 et. Seq. (Conflict of Interest of Officers and Employees) through 38-532 regarding conflict of interest. An employee is responsible for notifying their supervisor of any potential conflict of interest. It is the duty of the employee and/or supervisor, if there is any concern regarding a possible conflict of interest, to contact the Town Attorney and request a written opinion, who is responsible to assist any employee or official who has any questions regarding conflict of interest. The following guidelines help ensure conflicts of interest do not occur. These are not intended to be all-inclusive, or to substitute for good judgment on the part of all employees. 1. No employee may use his or her position to obtain financial gain or anything of value for the private benefit of himself or herself or his or her immediate family, or for an organization with which he or she is associated. 2. No person may offer or give to an employee, directly or indirectly, and no employee may solicit or accept from any person, directly or indirectly, anything of value if it could reasonably be expected to influence the employee’s vote, official action or judgment, or could reasonably be considered as a reward for any official action or inaction on the part of the employee. 3. No employee may take any official action substantially affecting a matter in which the employee, a member of his or her immediate family, or an organization with which the employee is associated, has a financial interest. 4. No employee may use his or her position in a way that produces or assists in the production of a benefit, direct or indirect, for the employee, one or more members of the employee’s immediate family either separately or together, or an organization with which the employee is associated. 5. An employee shall not grant any special consideration, treatment or advantage to any member of the public beyond that which is available to any other, including preferential treatment for employment. 6. An employee shall not use, or knowingly permit the use, of Town resources, vehicles, equipment, materials for unauthorized purposes or for unauthorized personal convenience or for profit. 7. An employee shall not disclose or permit the disclosure of privileged information to any person not lawfully authorized to receive such privileged information. An employee shall not use privileged information to advance his or her personal financial interest or that of his or her immediate family. 8. An employee shall not accept from any person or organization directly or indirectly, anything of value without full payment, if it could reasonably be expected to influence his or her actions or judgments or is provided to such employee because of their position could reasonably be considered as a reward for any action or inaction. Disclosure of Interest An employee who has a financial or other private interest shall disclose conflict of interest in writing on the records of the Town or other appropriate authority, the nature and extent of such interest. Any employee who has, or who’s relative has, a substantial interest in any contract, sale, purchase, or service to such public agency shall make known that interest in the official records of such public agency and shall refrain from voting upon or otherwise participating in any manner as an officer or employee in such contract, sale, purchase, or service. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 99 Any employee who has, or who’s relative has, a substantial interest in any decision of a public agency shall make known such interest in the official records of such public agency and shall refrain from participating in any manner as an employee in such decision. 703. Outside Activities of Staff PURPOSE: To provide guidelines for employee activities outside of work that may impact the Town. SCOPE: This policy applies to all Town employees. POLICY: Employees are to avoid situations in which their personal interests, activities, and associations may conflict with the interests of the Town. If such situations threaten any employee’s effectiveness, the Town reserves the right to evaluate the impact of such interest, activity or association upon an employee’s responsibilities. So that staff members may avoid situations in which their personal interests, activities, and associations may conflict with the interests of the Town, the following guidelines are provided: 1. Refrain from making public statements about private associations if such remarks are likely to violate community standards of propriety. 2. Avoid conduct and associations outside of work, which, if known, could have an adverse or harmful effect upon the Town. 3. Do not use Town property or work time to solicit or accept customers for private enterprises. 4. Refrain from expressions that would disrupt harmony among co-workers or interfere with the maintenance of discipline. 5. Do not engage in political activities during assigned hours of employment. 6. Do not conduct unapproved solicitations on Town property. 7. Do not reveal privileged/confidential information. 704. Gifts Policy PURPOSE: To establish a policy so that the Town of Fountain Hills employees understand what type of gifts are and are not acceptable. SCOPE: This policy applies to all employees. POLICY: Employees of the Town are in regular contact with citizens and many others vital to successful operations and mission achievement. Accordingly, relationships with such individuals, and other third parties require clear commitments to fair dealing and sound business decisions. The exchange of gifts may have an impact on the ability to make decisions free of any conflict of interests. Gifts of a nominal nature should not create a conflict or create the appearance of impropriety. Extravagant gifts and entertainment are never acceptable. It is possible that customary business practice and common sense may permit acceptance of a gift of significant value for the common good of the Town as a whole (For example, financial or real property is bestowed via a Will or Grant), in which the Town Manager and/or Council would be involved. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 100 Appropriate Gifts and Entertainment Acceptable gifts and entertainment must be nominal in value and are not likely to influence the judgment of individuals covered by this Policy, such as: Modest expressions of goodwill such as an inexpensive promotional item, “logo” pens, calendars, caps and the like, flowers, a fruit basket, a book or comparable items, a small collection of product samples. These items should be shared with the entire office whenever possible so that no single individual gains from the gift. Inappropriate Gifts and Entertainment Town employees should never accept or approve items such as: 1. Cash or cash convertible or cash equivalent, for instance, any kind of money transfer, bank check, loan, promise of future employment etc. 2. Any gift or entertainment that is illegal. 3. Acceptance of a gift or of entertainment that would be or perceived as “quid pro quo”. Procedure Upon Receiving an Inappropriate Gift Any gift that you receive that would be wrong or inappropriate according to the principles described above must be returned immediately, and your immediate supervisor should be informed accordingly. Where appropriate and in order to prevent further impropriety, a letter to the donor may be issued regarding this Policy. 705. Customer Service Expectations PURPOSE: To establish Town expectations of employee interactions with the public. SCOPE: This policy applies to all Town employees. POLICY: Residents and visitors to the Town of Fountain Hills are among our organization's most valuable assets. Every employee represents the Town to the public. The way we do our jobs presents an image of our entire organization. The public judges all of us by how they are treated with each personal contact. Therefore, one of our first business priorities is to assist any customer. Employees should be courteous, friendly, helpful, and prompt in the attention provided to our customers. 706. Code of Conduct PURPOSE: To establish a code of conduct for the basic guidance of Town employees concerning matters affecting their work. SCOPE: All Town employees. POLICY: A Town government that upholds high standards of integrity and impartiality is a cornerstone of the democratic way of governing ourselves. As an integral member of the Town, employees are expected to accept certain responsibilities, adhere to high standards of personal conduct, and always exhibit a high degree of personal integrity and mutual respect toward others. To ensure orderly operations and provide the best possible work environment, The Town expects employees to Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 101 follow rules of conduct that shall protect the interests and safety of all employees and the Town. Employees shall conduct themselves at all times to reflect favorably upon themselves and the Town. Whether working or not, employees shall avoid any conduct which brings the Town into disrepute. Any type of behavior and/or conduct that the Town considers inappropriate could lead to disciplinary action up to and including termination of employment. Listed below are expectations of behaviors and/or conduct, to include, but are not limited to, the following: PERFORMANCE OF DUTIES: 1. Employees should perform official duties diligently during working hours. 2. Employees should always perform their duties with courtesy and respect for the public and for co-workers. They should execute these duties without bias or prejudice, manifest by words or conduct, based upon race, color, religion, national origin, gender, age, sexual orientation, disability, or political affiliation. 3. Employees should perform their work satisfactorily and seek to maintain and improve their personal and professional growth and development, and that of their co-workers, through cooperation and participation in educational programs relevant to their duties and through any licensing or certification required for their position. 4. Employees should perform their assigned duties impartially in a manner consistent with law and the public interest, un-swayed by kinship, position, partisan interests, public clamor or fear of criticism or reprisal. 5. All duties shall be performed with honesty and truthfulness without falsification in any manner. 6. All duties shall be performed in a healthy and safe manner without causing disorderly or undue interference to other employees. 7. Employees should observe and obey all Town and department policies, procedures, and rules, and all state and federal laws, regulations, and administrative rules. 8. Employees should ensure the proper use of resources and equipment. 9. Employees should ensure the security of confidential information and similarly maintain the security of Town resources. 707. Harassment PURPOSE: To establish a policy prohibiting harassment in the workplace and provide a method by which claims of harassment may be investigated and resolved. SCOPE: All Town Employees. POLICY: It is the policy of the Town to promote a productive work environment and not tolerate verbal or physical conduct by any employee that harasses, disrupts, or interferes with another employee’s work performance or that creates an intimidating, offensive or hostile environment. It is anticipated that Town employees will treat each other with courtesy and civility at all times, and harassment or intimidation of any form will not be tolerated. Accordingly, the Town is committed to Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 102 enforcing its Harassment Policy at all levels of the organization. It is specifically unlawful, and therefore strictly forbidden, for any person to harass an employee based on race, color, religion, sex, sexual orientation, gender identity or expression, national origin, age, disability, marital or domestic status, citizenship, genetic information, or any other characteristic protected by law. The Town forbids retaliation against anyone for reporting harassment of any kind or otherwise assisting in the investigation of a harassment complaint or filing a charge of discrimination with a government agency. The purpose of this Policy is to encourage early reporting and early intervention before conduct rises to the level of harassment in violation of this Policy. It is the policy of the Town to investigate all complaints of harassment. Harassment that interferes with the ability of Town employees to perform their expected job duties will not be tolerated and will be met with appropriate disciplinary action, up to and including termination. This Harassment Policy applies to all employees and makes no exceptions. If, following a complaint and investigation, the Town finds credible evidence that any employee has violated the Harassment Policy, the offending individual will be subject to discipline, up to and including termination. Sexual harassment: Sexual harassment consists of unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Examples of sexual harassment may include explicit sexual propositions, sexual innuendo, suggestive comments, sexually oriented "kidding" or "teasing," "practical jokes," jokes about gender-specific traits, foul or obscene language or gestures, display of foul or obscene printed or visual material, and physical contact such as patting, pinching, or brushing against another person. Sexual harassment may be subtle or not and may occur between members of the same or opposite gender. Other harassment: Harassment on the basis of any other protected characteristic is also prohibited. Under this Policy, harassment may be verbal, written or physical conduct that denigrates or shows hostility toward an individual because of any characteristic protected by law; and that: a) has the purpose or effect of creating an intimidating, hostile or offensive work environment, b) has the purpose or effect of unreasonably interfering with an individual’s work performance, or c) otherwise adversely affects an individual’s employment opportunities. Harassment can take many forms including but not limited to the following: 1. Offensive Personal Behavior Engaging in any type of conduct that would reasonably interfere with another employee’s work performance or time available to work assigned tasks by creating a work environment that is intimidating, hostile or offensive because of unwelcome or unwanted conversations, suggestions, requests, physical demands, physical contacts or unwelcome attentions. 2. Offensive Comments Offensive comments, jokes, innuendoes, or any other such statements including verbal abuse or kidding about an individual’s body or appearance where such comments are derogatory, involve the telling of “off color” or “dirty jokes”, or any other tasteless comments, innuendoes or actions that offend others. 3. Offensive Actions Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 103 Wearing insignia on clothes, hats, or other articles of clothing, defacing surfaces located in the Company with graffiti, or placing pictures, objects, or other symbols within the workplace that are objectionable to another employee. The Town is opposed to any form of retaliation, including retaliatory harassment by managers, supervisors, co-workers, or any other persons employed by the Town, for the good faith and reasonable reporting of any harassment or otherwise assisting or participating in the investigation of a harassment complaint, or filing a charge of discrimination with a governmental agency. Complaint Procedure Every employee of the Town has an affirmative duty to maintain a workplace free of harassment and intimidation. Individuals who believe they have been the victims of conduct prohibited by this policy or believe they have witnessed such conduct should discuss their concerns with their supervisor, or, if their supervisor is the subject of the complaint, or if there is some other reason for doing so, to their supervisor's supervisor or Human Resources Department heads or supervisors who receive complaints or reports of harassment must immediately inform Human Resources of such complaints. Human Resources will expedite an investigation into the allegations. Investigations will be prompt and thorough. After an investigation, the Town will normally meet with the parties involved to report the results of the investigation and, where appropriate, to inform the parties of the steps the Town will take or has taken to correct the situation. Retaliation against an individual for reporting harassment or discrimination or for participating in an investigation of a claim of harassment or discrimination is a serious violation of this Policy and, like harassment or discrimination itself, will be subject to disciplinary action, up to and including discharge. Acts of retaliation should be reported immediately and shall be promptly investigated and addressed. Misconduct constituting harassment, discrimination or retaliation shall be dealt with appropriately. Responsive action may include, for example, training, referral to counseling or disciplinary action up to and including discharge. False and malicious complaints of harassment, discrimination, or retaliation may be subject to disciplinary action, up to and including discharge. Confidentiality of all parties involved in a harassment charge shall be respected; except to the extent that it interferes with the Town’s obligation to investigate allegations of misconduct and to take appropriate action. 708. Whistleblower Protection PURPOSE: This policy identifies protections for employees to make good faith reports of suspected fraud, corruption, or other improper governmental activity, or health and safety concerns within the Town to appropriate Town officials. SCOPE: This policy covers all Town of Fountain Hills employees. POLICY: A whistleblower as defined by this policy is an employee of the Town of Fountain Hills who reports an activity that the employee considers to be illegal or dishonest to one or more of the parties specified in this policy, cooperates with an investigation, and/or testifies in legal proceedings Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 104 arising out of improper government action. The whistleblower is not responsible for investigating the activity or for determining fault or corrective measures; appropriate management officials are charged with these responsibilities. Examples of illegal or dishonest activities include but are not limited to violations of federal, state or local laws or fraudulent financial reporting. If an employee has knowledge of or a concern of illegal or dishonest fraudulent activity, the employee is to contact his/her immediate supervisor and/or human resources. The employee must exercise sound judgment to avoid baseless allegations. An employee who intentionally files a false report of wrongdoing will be subject to discipline up to and including termination. Whistleblower protections are provided to employees in both maintenance of confidentiality and against retaliation. Confidentiality of the whistleblower will be maintained to the extent possible under the law. However, identity may have to be disclosed to conduct a thorough investigation, to comply with the law and to provide accused individuals their legal rights of defense. The Town of Fountain Hills will not retaliate against a whistleblower. This includes, but is not limited to, protection from retaliation in the form of an adverse employment action such as termination, compensation decreases, poor work assignments, and threats of physical harm. Any whistleblower who believes they are being retaliated against should contact human resources immediately. The right of a whistleblower for protection against retaliation does not include immunity for any personal wrongdoing that is alleged and investigated. All reports of illegal and dishonest activities should be promptly submitted to human resources who is responsible for ensuring an investigation occurs and any appropriate corrective action is taken. 709. Confidentiality PURPOSE: To establish guidelines and safeguards for employees who come into contact or use confidential information for work matters. SCOPE: All Town Employees POLICY: Employees may come into the possession of confidential information. It is the policy of the Town that the information will not be disclosed to others who do not have a need to know it. Anyone who intentionally causes a breach of confidentiality will be held accountable and disciplinary action may result in up to and including termination. All employees are expected to understand and abide by the following practices: 1. Confidential information will not be disclosed to others, including friends or family, who do not have a need to know it. 2. Personal access codes, user ID(s), and passwords used to access computer systems are to be considered confidential information. 3. Confidential information will not be discussed where others can overhear the conversation. This includes, but is not limited to, hallways, elevators, break rooms, restaurants, and social events. 4. Employees will not make inquiries about confidential information for other personnel who do not have proper authorization to access such confidential information. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 105 5. Employees will not willingly inform another person of their computer password or knowingly use another person’s computer password instead of their own for any reason except maintenance or technical support. 6. Employees will not make any unauthorized transmissions, inquiries, modifications, or purging of confidential information in Town computer systems. Such unauthorized transmissions include but are not limited to removing and/or transferring confidential information from Town computer systems to unauthorized locations (for instance, home). 7. Employees will password-protect any computer prior to leaving it unattended. 8. Employees will comply with any security, privacy, HIPAA policy, and/or procedure promulgated by the Town to protect the security and privacy of confidential information. 9. Upon cessation of employment, all employees will immediately return any documents or other media containing confidential information to the Town. Reporting a Breach of Confidentiality A breach of confidentiality could occur through a variety of means, some unintended and others with intent to steal or do harm. These include but are not limited to: 1. Unintended mistakes that cause accidental disclosures. 2. Abuse of access privileges. 3. Knowingly accessing information for non-work-related purposes. 4. Unauthorized physical intruders. Employees will immediately report any activity by any person, including themselves, that is in violation of this Policy or of any Town security or privacy policy to their direct supervisor. This will allow the process of mitigating the effect of the breach and preventing any additional loss of data. The Town shall provide each applicable Fire Department employee with HIPAA (Health Insurance Portability and Accountability Act) training and HIPAA Policy separate from this Policy. 710. HIPAA PURPOSE: This policy addresses responsibilities and rights under HIPAA. SCOPE: All Town Employees. POLICY: The Town is required to comply with the Health Insurance Portability and Accountability Act (“HIPAA”) due to its operation as both a health care provider for emergency medical services (EMS) and as a sponsor of a self-insured health plan. Accordingly, the Town has adopted HIPAA Privacy and Security Policies and Procedures to protect the privacy of both patient information and employee information related to the provision of health care benefits, known under HIPAA as protected health information (“PHI”). These HIPAA Privacy and Security Policies and Procedures are maintained by the Fire Department as an EMS provider and by the Human Resources Department for the Town’s self-insured health plan. To summarize, Town employees who, as part of their job functions, are authorized to access, use, or disclose PHI pertaining to individuals seen by the Town’s EMS providers or employee health information obtained by the Town through its function as a self- insured health plan, are required to protect this information from unauthorized use and disclosure and Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 106 adhere to the HIPAA Privacy and Security Policies and Procedures. These policies and procedures apply to: 1. The Fire Department as a health care provider because it provides emergency medical services. 2. The Human Resources Department because of its access to employee health benefits information through its role as the sponsor of the self-insured health plan. 3. Departments which support the Fire and Human Resources Departments and who have access to PHI, including the Information Services Department. Access, use and disclosure of PHI without authorization is prohibited. Failure to comply with the HIPAA Privacy and Security Policies and Procedures may result in disciplinary action, up to and including termination of your employment. If you have questions about access, use, or disclosure of protected health information contact the Human Resources Department before you act. HIPAA does not apply to health information the Town has for some other reason, such as because the Town is an employer or because of Worker’s Compensation. Other rules and regulations address the privacy of health information in other contexts, such as under the Family Medical Leave Act, the Americans with Disabilities Act, or the Industrial Insurance Act. If you have questions about any of the other privacy laws or rules, please contact the Human Resources Department. 711. Work Rules PURPOSE: This policy addresses employee conduct and expectations not previously established. SCOPE: All Town Employees. POLICY: Whenever and wherever people work together, standards of reasonable conduct need to be established in order to maintain an orderly and efficient work atmosphere. The following types of conduct are unacceptable in our workplace. Because it is impossible to list every conceivable infraction, the list of examples below is not all-inclusive. 1. Insubordination, which is defined as an unwillingness, refusal or disregard to carry out a directive from a supervisor. Insubordination is also defined as disrespectful behavior toward a supervisor/superior. 2. Circumventing or undermining the direction of a supervisor of the authority of a supervisor/superior. 3. Incompetence or inefficiency in the performance of duties, substandard quality or quantity of work, including deliberate reduction of output, or failure to complete assignments promptly and accurately. 4. Fighting, disturbing or violent behavior, threatening, humiliating, intimidation or harassment of others. 5. Retaliation and/or reprisal against an employee who genuinely, and in good faith, reports threats of bullying or workplace violence. 6. Use of offensive, profane or abusive language, disrespectful discourteous, insulting, abusive or inflammatory conduct toward others. 7. Unauthorized or inappropriate use of identification cards or keys, or unauthorized access to data, e-mails, or restricted areas. 8. Falsification of timekeeping, reports or any other Town records. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 107 9. Falsification of information to secure employment with the Town. 10. Leaving the job without permission, or job abandonment. 11. Excessive tardiness, absenteeism or absence without notice. 12. Frequent absences from an employee’s work area due to personal conversations, personal visitors, or long breaks. 13. Falsifying or refusing to give testimony when accidents are being investigated. 14. Dishonesty in the performance of duties. 15. Making false or malicious statements with the intent to harm or destroy the reputation, authority or official standing of an individual or organization. 16. Theft or misappropriation of Town property or the property of others, including theft of work time, excessive time at break periods, misuse of sick leave or other designated leave, misrepresenting work time, or failing to accurately record work time. 17. Unauthorized possession or removal of the Town or another employee’s private property. 18. Unauthorized use of Town‐owned or leased equipment or property. 19. Damage or defacing of Town or employee property. 20. Dissemination or disclosure of confidential material or information, except to persons specifically authorized by law or policy to receive the same. 21. Disregarded or repeated violations of safety rules and regulations. 22. Failure to report injuries or unsafe conditions. 23. Fighting, immoral conduct, threats, or acts of assault or other physical violence, intimidation or harassment of customers or employees. 24. Illegal, immoral, disruptive or otherwise improper conduct that adversely and substantially injures or brings the Town into disrepute. 25. Being arrested or convicted of a crime that is substantially related to the circumstances of the job or licensed activity that the person was hired to perform, or unavailability for work due to incarceration. 26. Performing an act that the employee knows is in excess of his/her lawful authority or that he/she knows is forbidden by law to perform in his/her official capacity. 27. Engaging in unauthorized personal business such as excessive personal telephone calls and/or email/internet use during regularly scheduled work hours. 28. Soliciting, accepting or offering bribes. 29. Failure to obtain and maintain a current license or certification as required by law or the Town. 30. Conviction of a felony or misdemeanor directly related to the employee’s duties. 31. Unauthorized access to records, file cabinets, desks, offices, facilities, or computers. 32. Inappropriate dress, grooming, and/or appearance inconsistent with Policy. 33. Smoking in prohibited areas. 34. Manufacturing, possession, distribution, dispensing, sale, transfer, or use of alcohol, a controlled substance or other illegal drugs, while in the workplace, while on duty, or while operating Town‐owned vehicles or equipment. This does not prohibit an employee from ingesting a legally obtained prescription drug that was legally issued to the employee. 35. Consumption of alcohol or illegal drugs when on duty. 36. Reporting to work or remaining on duty when the employee is under the influence or using alcohol, illegal drugs, or any controlled substance, including prescription medications, except when the use is pursuant to the instructions of a licensed health care provider who has advised the employee that the substance does not adversely affect the employee’s ability to safely and competently perform his/her job. 37. Engaging in illegal conduct. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 108 The Town reserves the right to modify this list at any time or determine whether any other conduct is contrary to the interests of the Town and warranting of disciplinary action up to and including discharge. 712. Corrective and Disciplinary Action PURPOSE: To establish the employee corrective action and disciplinary process. SCOPE: All Town employees. POLICY: Each employee shall generally be supervised by the individual to whom they are responsible in the organization. Each employee shall customarily be responsible to one immediate supervisor; however, when an employee divides responsibilities among two or more programs, the responsibilities for supervision and evaluation shall be furnished in writing to the employee. The Town Manager has authority to take disciplinary action against any employee. The Town Manager may delegate this authority to any management employee for subordinate employees. Disciplinary actions shall be issued for violations of standards of employee conduct, violations of policies and procedures, or for unsatisfactory work performance. Progressive discipline is a disciplinary system that provides a graduated range of responses. The Town’s discipline system includes a series of increasingly severe disciplinary actions, ranging from a corrective action to termination. However, this does not mean that every step in the graduated range of disciplinary actions will occur in an ordered sequence in every case. Progressive discipline is a general guideline for supervisors. However, there is no right to progressive discipline. The totality of the circumstances will dictate the appropriate level of discipline for each incident. Review of the particular facts and circumstances, such as the severity of the offense and an employee’s disciplinary history, whether for the same type of offense or not, may indicate that more severe disciplinary measures, up to and including termination, are appropriate. A combination of disciplinary actions may also be used. Corrective Action Coaching Coaching is an employment measure initiated by the supervisors to the employee prior to disciplinary action and may be presented to the employee in any format the supervisor finds appropriate. Coaching is a non-disciplinary action to encourage employees and clarify expectations. Another term used for coaching may be counseling or informal corrective action. These measures are not required to be used before disciplinary action occurs or in any specific order. The supervisor may repeat coaching at their discretion. The supervisor maintains documentation of the discussion, and the employee should be informed that a record of the counseling session shall become part of the employee’s personnel record. Counseling is not a form of discipline and is not subject to the appeal/grievance procedure. Special Performance Review Period When performance or behavior warrant, a special performance review period may be established. The special performance review period may not exceed ninety (90) calendar days. The supervisor Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 109 or Department Director shall prepare a written performance evaluation and memorandum outlining the improvement required, the time established for the period, and possible consequences if performance does not improve. Ten (10) days before the end of the period, the supervisor or Department Director shall submit a written performance evaluation and recommendation for the employee’s future status to Human Resources, which shall become a part of the employee’s personnel record. Disciplinary Action The level of discipline imposed is at the sole discretion of the Town. The level of discipline imposed shall take into consideration the seriousness of the infraction, a review of the facts and circumstances of the infraction, the employee’s performance record, and history of prior disciplinary actions. Disciplinary action is an employment action initiated by the Town to an employee that results in one of the following forms: Verbal Warning A disciplinary verbal warning is an oral statement made to an employee indicating the employee’s conduct or performance fails to meet an acceptable level and expected improvement. Verbal warnings are documented and filed in the employee's personnel file. Written Warning A disciplinary written warning is a written statement made to an employee indicating the employee’s conduct or performance fails to meet an acceptable level and expected improvement. The employee shall sign the statement and receive a copy. If the employee refuses to sign the statement, the supervisor or Department Director shall sign the statement and indicate the employee’s refusal to sign. The written warning shall become part of the employee’s personnel file. Disciplinary Demotion An employee whose ability to perform the required duties falls below standard or who merits disciplinary action may be demoted upon approval of the Town Manager. Written notice shall be given to the employee within three (3) days before the effective date of the demotion. Upon demotion, an employee will have his or her pay reduced commensurate with Towns compensation policy. Disciplinary Suspension Without Pay The Town Manager may suspend an employee from any position at any time without pay for disciplinary reasons. A supervisor or Department Director may recommend suspension of a subordinate employee to the Town Manager for his/her approval. No supervisor or Department Director may suspend a subordinate for any period of time without the approval of the Town Manager. A suspended employee receives written notification listing the specific charge(s), period of suspension, and administrative review and appeal rights, if any. The employee is given a copy of the written notification, and the original is immediately forwarded to the Human Resources Office for inclusion in the personnel record. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 110 Suspension of Exempt Employees An exempt employee (those exempt from the provisions of the Fair Labor Standards Act) may not be suspended without pay for disciplinary sanctions for a period of less than one (1) or more full days except for infractions of safety rules “of major significance.”. Safety rules of major significance are those (rules) and supervisory directives relating to the prevention of serious hazard, damage or danger to the Town, its facilities, employees, or the public. Dismissal Employees may be dismissed with cause by the Town Manager by written notice which shall state the cause for dismissal if the employee has completed the introductory period, the effective date, and the employee's appeal rights, if any. Only employees who have successfully completed the introductory period have appeal rights. Administrative Process Administrative Leave With Pay The Town Manager may place an employee on Administrative Leave With Pay at any time as a non- disciplinary measure to permit an investigation into matters that may result in disciplinary action. No supervisor or Department Director may place a subordinate on administrative leave with pay for any period of time without the approval of the Town Manager. During this period, the employee is considered to be on full duty and available to participate and aid in the investigation. In making the determination to place an employee on administrative leave with pay, the following factors are considered: 4. Whether or not the employee’s presence on the job or at the work site would hinder the investigation, OR 5. If the employee’s presence would be detrimental to the public interest or the continued efficient operation of the Town. The Town Manager must approve administrative leave. An employee placed on Administrative Leave with Pay receives written notification listing the nature of the investigation, period of leave, and administrative review and appeal rights, if any. The employee is provided a copy of the written notification, and the original is immediately forwarded to the Human Resources Department for inclusion in the personnel record. Notice to Employee Except for cases of gross misconduct, prior to an involuntary termination, or a suspension without pay an employee who has successfully completed their Introductory Period will be provided with a written notice from their supervisor and/or Department Director of the intent to suspend or terminate with the supporting reasons. The employee shall be given the opportunity for a pre-action meeting date which is no less than 24 hours after notice has been given, which is the employees opportunity to respond to the charge, orally or in writing with their supervisor and/or Department Director to contest the proposed action. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 111 The department’s explanation in the notice shall be sufficient to apprise the employee of the basis for the proposed action. This shall not limit the employer at subsequent proceedings from presenting more detailed and complete information as to the reason for the adverse action. Pre-action Meeting The pre-action meeting is a meeting between the employee, the supervisor proposing the discipline, any others in the chain of command, and the Department Director. The Director of Human Resources/designee may also attend the meeting. The purpose of the meeting is to give the employee the opportunity to respond, verbally or in writing within ten business (10) days, to the written notice of intended disciplinary action. Any relevant information presented by the employee during the pre- action meeting regarding the proposed disciplinary action shall be considered by the supervisor, any others in the chain of command, and the Department Director. Failure by the employee either to attend the pre-action meeting or to submit a written response, within ten (10) business days, to the notice of intended disciplinary action shall be deemed a waiver of the employee’s right to do so and the proposed disciplinary action shall be implemented as written. Disciplinary Decision After the pre-action meeting, the Department Director shall advise the employee in writing of the decision regarding the imposition of discipline. This decision will normally occur within ten (10) business days of the pre-action meeting or receipt of the employee written response. A copy of the written disciplinary decision shall be included in the employee’s official human resources file. Employee Appeal Process If, after considering the employee’s response, the Town proceeds with termination, the employee may appeal in writing within ten (10) business days of the decision. Human Resources will then set an administrative hearing to adjudicate the appeal. The employee may have legal counsel present at the hearing. Employees who are not directly supervised by the Town Manager shall generally have the Town Manager as their hearing officer. The hearing officer will make the final decision as to whether or not the termination stands or is overturned. In cases involving an employee working with the Town Manager as their direct supervisor, the hearing officer shall be the Presiding Judge of the Fountain Hills Municipal Court. The Town Manager or the Presiding Judge may appoint the town of Fountain Hills Human Resources head, another manager, or Judge from another Arizona city or town to serve as an appeal administrator to administer the hearing and complete the written opinion if they so choose. The hearing officer or appeal administrator shall, no later than five (5) business days after the conclusion of the hearing, complete a written opinion which shall contain three (3) basic elements: 1. A statement of relevant facts 2. A statement of applicable rules 3. Conclusions/recommendations The written opinion shall be provided to the affected employee, their supervisor and/or department director, and the hearing officer (Town manager or Presiding Judge). A copy of the opinion shall also be placed in the employee’s personnel file. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 112 Within five (5) business days after receipt of the written opinion, the hearing officer (either the Presiding Judge or the Town manager) shall either affirm or reject the employee’s termination. The decision of the hearing officer (either the Presiding Judge or the Town Manager) shall be final and binding upon both the employee and the Town, and therefore, not appealable to any office or body of the Town or to any other administrative or judicial forum. 713. Problem Solving PURPOSE: To effectively and professionally address work-related issues or concerns. SCOPE: All Town Employees. POLICY: This policy establishes the policies and procedures for the administration of the Town’s Problem-Solving process. This process does not replace the Grievance Policy or any other complaint or reporting procedures established in policy. Rather, this process has been established to advise employees of the proper avenues to use in communicating work-related issues or concerns. Examples of issues or concerns include, but are not limited to, any issues that impact an employee’s work unit or impact an employee’s ability to do their job. Employees are advised they may not take work-related employment issues and concerns to the Mayor and Town Council. Taking employment issues and concerns to the Mayor and Town Council disrupts chain-of-command of employees under the jurisdiction of the Town Manager (Ord. 230-97); and any such issues or concerns will be referred back to staff. This process does not prohibit staff from discussing Town projects and/or business with Council that would normally be brought to their attention. Town of Fountain Hills employees who have work-related issues or concerns should address them within a timely manner. Matters raised within five working days will be considered timely. Employees are to use the following process to resolve such matters. For matters involving harassment, discrimination, or legal violations, the Harassment Policy is to be followed. PROCEDURE: 1. Employees are to go to their first-line supervisor in a timely manner with any work-related issue or concern unless it involves harassment or discrimination, in which case they should follow the procedures set forth in the Harassment Policy. For legal violations involving their supervisor, employees should go to their supervisor’s superior, Human Resources, or the Town Manager. Employees may have a regular employee of the Town as a silent witness at meetings in which work issues or concerns are discussed. 2. If the work-related issue or concern has not been resolved at the first-line supervisor level within five (5) working days after the meeting in step 1 (above), employees should go to the next higher level of management. Both the employee and supervisor should document the reasons as to why the concern or issue was not resolved at the first-line level. 3. Only after employees have worked their way through their respective Department Head should they take their work-related issue or concern to Human Resources or Town Manager. 4. Employees are required to exhaust all internal avenues before taking their work-related issue or concern outside this procedure. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 113 5. The Mayor and Town Council, as well as those outside of the organization, are not in an employee’s chain-of-command and therefore are not in a position to address work-related issues or concerns. There will be times in every employee’s career when decisions are made that they do not agree with. However, employees are expected to abide by decisions made under this process whether agreed with or not. Failure to follow this process will have a negative effect on Town organization and will therefore be considered a violation of the Town's Personnel Rules. No employee will be subject to any form of retaliation or discipline for using this process. Any employee found guilty of retaliation will be disciplined. 714. Grievances PURPOSE: To promote improved employer-employee relations by establishing grievance procedures and to afford employees a systematic means of obtaining further consideration. on matters for which appeal or hearing is not provided by other regulations. SCOPE: All Town Employees POLICY: In keeping with its policy of maintaining satisfactory working conditions, the Town will provide a means to ensure fair handling of employee complaints and grievances. This procedure may be used to review the following types of problems, which are intended as examples and not strict limitations: 1. Work Hours 2. Assigned Duties 3. Working Conditions 4. Application of Town policies, as they relate to the employee This procedure shall not be used for problems concerning: 1. Due Process related to involuntary termination 2. Compensation 3. Classification 4. Matters covered by state or federal law. 5. Performance evaluation Informal Grievance Procedure An employee who has a problem or complaint should first try to get it settled through discussion with their immediate supervisor without undue delay. If, after this discussion, the employee does not believe the problem has been satisfactorily resolved, they will have the right to discuss it with their supervisor’s immediate department director. If the employee’s supervisor does not have a department director, the employee shall discuss the matter with Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 114 Human Resources. In some circumstances, Human Resources will determine that the matter should be referred to the Town Manager, or designee, at this stage. Every effort should be made to find an acceptable solution by informal means at the lowest level of supervision. If an employee fails to follow this informal procedure, the grievance will be denied, and they will not be permitted to proceed to the formal grievance procedure outlined below. Formal Grievance Procedure Levels of review through the chain of command are listed below: 1. If the employee has properly followed the informal grievance procedure and the matter is not resolved, the employee is eligible to elevate the grievance to this level. Initially, the employee must reduce the grievance to writing citing the article and section of the Personnel Policies alleged to have been violated, if applicable, the date of the violation that forms the basis for the grievance, the nature of the grievance and the relief requested. 2. The written grievance will be presented to the employee’s immediate supervisor, within ten (10) business calendar days of the occurrence, and no later than ten (10) business days after the informal grievance procedure has been fully exhausted. The supervisor will render his/her decision and comments in writing and return them to the employee within ten (10) business days after receiving the grievance. 3. If the employee does not agree with their supervisor’s decision, or if no answer has been received within ten (10) business days, and the employee wishes to continue in the process, the employee may present the grievance in writing to their supervisor’s immediate department director, or in the absence of a department director, to Human Resources. 4. Failure of the employee to take further action within five (5) business days after receipt of the written decision of their supervisor or within a total of ten (10) business days if no decision is rendered, will constitute a withdrawal of the grievance. The second level supervisor receiving the grievance will review it, render his/her decision, and comments in writing, and return them to the employee within ten (10) business days after receiving the grievance. 1. If the employee does not agree with the decision, or if no answer has been received within ten (10) business days, and the employee wishes to continue the process, they may present the grievance in writing to the Town Manager – through Human Resources. Failure of the employee to take further action within five (5) business days after receipt of the decision, or within a total of ten (10) business days of referral to their second level supervisor if no decision is rendered, will constitute a withdrawal of the grievance. 1. Upon receiving the grievance, the Town Manager or his/her designated representative should discuss the grievance with the employee and with other appropriate persons. 2. The Town Manager or designee may, but is not required, to designate an external fact-finding committee to advise him/her concerning the grievance. 3. The Town Manager or designee will render a final decision. The Town Manager’s or designee’s decision may not be appealed. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 115 TECHNOLOGY POLICIES 800. Technology PURPOSE: This policy is intended to outline the acceptable use of computer equipment owned by the Town. This policy is enacted to reduce problems with security, equipment, software conflicts, damage to data files and introduction of viruses to the network. SCOPE: This policy applies to all employees, contractors, consultants, or third parties utilizing Town technology resources. This policy applies to all systems, software, and hardware that is owned or leased by the Town. Each individual user is responsible for complying with this and all other relevant policies when using the Town’s resources for messaging and accessing the Internet. POLICY: The Town is committed to protecting the integrity of its information systems. The enterprise network and Internet/ Intranet/ Extranet-related systems, mobile communication and data, including but not limited to computer equipment, software, operating systems, storage media, network accounts providing electronic mail, internet browsing, and File Transfer Protocol (FTP), are the property of the Town. These systems are to be used for business purposes in service the interests of the town, and our customers in the course of normal operations. Any and all functions performed by the employee while utilizing Town IT resources are considered public in nature and can in no way be considered personal or private. Employees should understand that there is no expectation of privacy when using such resources. It is the responsibility of all users to know these guidelines, and to conduct their activities accordingly. Ownership Email, Internet, and IT systems are resources made available to Fountain Hills employees to communicate for the benefit of the Town. All Internet and email transmissions sent from or received by Town equipment and/or addresses are Town property. Town Administration reserves the right to examine all email, directories, files and other information stored on all Town-owned hardware and software; and to monitor all email, Internet, computer system access and activity as deemed necessary. Personnel have no right of privacy in anything they create, store, send or receive using Town technologies, either via the Internet or other means. Anything created using technologies may be reviewed by others. All data transmissions sent or received using Town technologies are Town property. The Information Technology Division purchases all software and/or computer equipment (e.g. microcomputers, printers, modems, hubs, speakers, subwoofers, keyboards, mouse, etc.). Departments should always submit a request via e-mail to purchase software and/or computer equipment to the IT Helpdesk. General Use Users should be aware that the data they create on the Town systems remains the property of the Town. Electronic transmissions or communication via the Intranet shall not be considered either private or completely secure. The following are items to consider: 1. Transmission may be intercepted in transit or stored indefinitely on any number of computers, including that of the recipient. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 116 2. Material received electronically might be forwarded to others either electronically or on paper. 3. Transmissions sent to invalid or non-existent addresses might be delivered to unintended recipients, either purposely or inadvertently. 4. Any information obtained via the Internet may not be factual or correct. Personnel shall take appropriate steps to ascertain the accuracy of information before reliance or use. 5. Any information that is received or downloaded via the Internet may contain viruses. Users are responsible for the appropriateness and content of material they transmit or publish in messages via Town provided email access. Transmission occurs between a sending party and one or more receiving parties via an intermediate telecommunications system. Business communication via email allows the sender and receiver to be flexible, decide on an appropriate time to address something, not disrupt operational workflows, and in some cases multi-task. Senders should consider the audience, the tone, grammar, and punctuation within the message, and must also consider that any email has limitations as a communication tool. For that reason, senders should use sound professional judgment when determining if email is the most appropriate form of communication for the message they are sending. Personnel should take the same care in drafting and sending email and other electronic documents as they would for any other written communication. Anything created using the Town-owned or Town- provided technologies is an extension of and directly reflects on the Town of Fountain Hills. The Internet offers numerous forums and exchange ideas for the purpose of research and information sharing. As with any form of communication, the Town shall not be intentionally misrepresented in any material posted to the Internet or Social Media platforms. Employees should not engage in personal use of Town information systems in a manner that results in a detrimental impact on the Town. Personnel are responsible for the appropriateness and content of material they transmit or publish in messages via Town-provided Internet access. Harassment, discriminatory remarks, antisocial, disrespectful or unprofessional behavior such as targeting another person or organization to cause distress, embarrassment, injury, unwanted attention or other substantial discomfort is prohibited. Personal attacks or other action to threaten or intimidate or embarrass an individual, group or organization or attacks based on a person’s race, national origin, ethnicity, disability, religion, gender, veteran status, sexual orientation or any other such characteristic or affiliation are prohibited. The Town Administration and Chief Technology Administrator shall have discretion to determine detrimental use. Rights of the Town 1. Fountain Hills owns all technologies provided at its own expense or under its authority or jurisdiction, including transmissions initiated, received or stored using its technologies. 2. The Town reserves the right to determine who is provided access to its systems, network and technologies. 3. At any time and without prior notice, the Town may remove any user account. 4. At any time, the Town may access or examine electronic mail and/or monitor messages on its equipment or networks. 5. At any time, the Town may access or examine files or any other materials stored on its equipment or networks. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 117 6. The Town may monitor, log and/or examine Internet activities, including, but not limited to, website visits, chat groups, news groups, social networking activities, blogging, downloaded or uploaded material. 7. The Town may archive or delete files or any other materials on its equipment or networks, as deemed necessary. For security and network maintenance purposes, authorized individuals within the Town may monitor content, equipment, systems and network traffic at any time, per Information Technology Division’s Audit Policy. The Town reserves the right to audit networks and systems on a periodic basis to ensure compliance with this policy. Security and Proprietary Information The assignment of user accounts and passwords to Town personnel will be made by the Chief Technology Administrator for the appropriate computer system(s) being accessed. Passwords must be kept secure and NOT be shared with other users. Authorized users are responsible for the security of their passwords and accounts. Application passwords should be changed quarterly, network passwords will expire every 75 days and must be changed. As a physical safeguard, a password-protected screen saver will engage on all computers following a set number of minutes of inactivity, requiring logged in users to re-enter a system password to regain access. This number of minutes is to be determined by the IT Division. Because information contained on portable computers is especially vulnerable, special care should be exercised. Protect laptops in accordance with the “Laptop Security Tips.” Postings by employees from a Town e-mail address to any online venue must contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of the Town, unless the posting is in the course of business duties. All hosts used by the employee that are connected to the Town Internet/Intranet/Extranet, shall be continually executing approved virus-scanning software with a current virus database. Employees must use extreme caution when opening e-mail attachments received from unknown senders; such attachments may contain malicious programs (e.g. viruses, e-mail bombs, Trojan horse code, etc.). Personnel should never respond to E-Mail requesting personal or banking information or requesting user IDs or passwords. Unacceptable Use The following activities are, in general, prohibited. Employees may be exempted from these restrictions during the course of their legitimate job responsibilities (e.g., systems administration staff may have a need to disable the network access of a host if that host is disrupting production services). The lists below are by no means exhaustive, but instead are an attempt to provide a framework for activities that fall into the category of unacceptable use. Under no circumstances is an employee of the Town authorized to engage in any activity that is illegal under local, state, federal or international law while utilizing the Town-owned resources. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 118 System and Network Activities The following activities are strictly prohibited: 1. Engaging in any activity which violates state law, federal law, or Town policies and guidelines as applicable. Connecting personally owned and/or unlicensed software onto Town-owned systems. 2. The installation or distribution of “pirated” or other software products that are not appropriately licensed for use by the Town. 3. The installation of “freeware” software applications without the prior authorization of the Information Technology Division. 4. Damaging computing systems or damaging or altering the software components of Town- owned systems. 5. Engaging in any activity which adversely affects the availability, confidentiality or integrity of any Town-provided technology. 6. Using another's network, Internet, electronic mail or online service account or password without authorization. 7. Disabling or circumventing virus protection software or otherwise compromising computer and/or network security. 8. Exporting software, technical information, encryption software or technology, in violation of international or regional export control laws, is illegal. Users should consult the IT Helpdesk prior to export of any material that is in question. 9. Knowingly introducing malicious programs into the network or server (e.g., viruses, worms, Trojan horses, e-mail bombs, etc.). 10. Revealing your account password to others or allowing use of your account by others. This includes family and other household members when work is being done at home. 11. Accessing or distributing indecent material, obscene material, child pornography and other illegal material, or any material that may be harassing or discriminating in nature including race, age, gender, sexual orientation, religious beliefs, political beliefs, national origin, health or disability of an individual. 12. Making fraudulent offers of products, items, or services originating from any Town account. 13. Causing security breaches or disruptions of network communication. Security breaches include, but are not limited to, accessing data of which the employee is not an intended recipient or logging into a server or account that the employee is not expressly authorized to access, unless these duties are within the scope of regular duties. 14. Port scanning or security scanning is expressly prohibited unless prior notification is made to, and permission has been granted by, the Information Technology Division. 15. Executing any form of network monitoring that will intercept data not intended for the employee’s host, unless this activity is a part of the employee’s normal job/duty. 16. Circumventing user authentication or security of any host, network or account. 17. Interfering with or denying service to any user other than the employee’s host (for example, denial of service attack). 18. Using any program/script/command, or sending messages of any kind, with the intent to interfere with, or disable, a user’s terminal session, via any means, locally or via the Internet/Intranet/Extranet. E-mail and Communications Activities The following is a summarized list of prohibited uses. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 119 1. Any form of harassment via e-mail, voicemail, telephone or paging, whether through language, frequency, or size of messages. 2. Harassment, discriminatory remarks, foul language, sarcasm, antisocial, disrespectful or unprofessional behavior such as targeting another person or organization to cause disruption, distress, embarrassment, injury, unwanted attention or other substantial discomfort. 3. Engaging in activities during working hours for personal gain, solicitation or commercial purposes, including commercial advertising, unless specific to the mission or duties of the Town. 4. Accessing or distributing indecent material, obscene material, child pornography or other illegal material, or any material that may be harassing or discriminating in nature including race, age, gender, sexual orientation, religious beliefs, political beliefs, national origin, health or disability of an individual. 5. Communication of material that is offensive or derogatory, slanderous and/or defaming towards any individual, corporation, agency or organization and disparagement of any trade or product. 6. Communication that is derogatory or discriminatory in any way toward persons for reasons of their race, religion, gender, age, disability, lifestyle, political affiliations, social status or any other personal characteristic. 7. Disseminating or printing copyrighted materials (including articles and software) in violation of copyright laws. 8. Disseminating information that is known to misrepresent the Town or be false, inaccurate or misleading. 9. Sending disrespectful or unprofessional business communication that causes distress, disruption, embarrassment, injury, or unwanted attention or other substantial discomfort to the recipient. 10. Postings or subscriptions, whether on a Web site, to a news group or via e-mail, that constitutes advertising or solicitation of any type (i.e., religious, political, personal gain, or in support of illegal activities). 11. Using the Town’s e-mail or Internet resources for personal for-profit business activities or schemes to generate income or result in personal financial gain. 12. Mass mailing of e-mail “junk mail”, jokes or non-Town-business-related advertising material 13. Solicitation of e-mail for any other e-mail address, other than that of the poster’s account, with the intent to harass or to collect replies. 14. E-mail posting the same or similar non-business-related messages to large numbers of Usenet newsgroups (newsgroup spam). 15. Unauthorized use, or forging, of e-mail header information. 16. The use of aliases while using the Intranet/Internet. Anonymous messages are not to be sent. No employee shall attempt to obscure the origin of any message. 17. The misrepresentation of an employee’s job title, job description, or position in the Town. 18. The release of untrue or distorted information regarding Town business. 19. The Town’s Intranet/Internet and e-mail resources for political purposes. 20. Distribution of chain mails, “Ponzi” or other “pyramid” schemes of any type or other communication that is any way in violation of public law or Town policy. 21. Participate in the further dissemination or re-distribution of e-mail “spam” e-mails, communications with long mailing lists of other recipients, or other inappropriate e-mail communications. Upon receipt of any of these items, a user should immediately delete it from their e-mail in box and trash, and completely refrain from sending it on to other persons in or outside the Town. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 120 22. Use of the Town’s information systems to engage in threatening, intimidating or harassing conduct including but not limited to constituting the alleged harassment that constitute threats, intimidation or any other kind of act that interferes with the individual’s ability to function as an employee of the Town. 23. Sending an email using another person’s log-in/identity without authorization. Activities of law enforcement or Town Attorney’s office related to criminal investigations, or personal investigations by any department in general, would not constitute a prohibited or inappropriate use. The following are unacceptable uses of the Intranet/Internet and e-mail technologies. All issues raised in the Town of Fountain Hills Code of Ethics are applicable. All records have a retention period. Email is retained after it has been “deleted.” In the event of litigation, specific inquiries and/or investigations, the Town may be required to produce email records, electronic files, or other materials. All e-mail messages that are not subject to specific retention schedule are stored by Information Technology for 1461 days and may be required to be stored longer in the event of litigation. Confidential Files The Town uses and stores confidential information in various forms throughout the facilities that is used to provide services to the community. All confidential information is the property of the Town. Certain personnel and/or contract workers may be required to sign a confidentiality agreement. Unauthorized release, distribution or copying of confidential information is prohibited. The files of confidential employees will be preserved to contain confidential information and will not be accessed by IT or anyone else until permission to do so has been granted by a person having authority to do so. Personal Devices for Town Work Personal devices may be used only for Town business. Any personal device that contains access to Town materials must have an automatic lock when idle and must have a code to login to retain access. Personal devices used for Town access must not be jailbroken or rooted, or they will be denied access to the Network. Upon separation from employment, all employees with access to a personal device will work with IT Department to have all Town access removed. Personal devices are used with the understanding that the Town may wipe an employee’s device remotely if it is lost or stolen, if there is a policy breach or security threat, or if a separating employee does not voluntarily work with the IT Department to have access removed. The Town is not liable for the loss of personal data. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 121 If an employee violates this policy, Information Technology will inform the employee’s supervisor, or someone higher in rank, in writing and the department director or other authorized individual may authorize the Chief Technology Administrator to remove the employee’s access to the Town’s computer network resources and/or to take appropriate remedial action. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Laptop & Personal Electronic Device Security Tips 1. Never leave your laptop or personal electronic device in open view in your vehicle; remove it or secure it in the trunk or other secure location! Do not leave the device stored in the trunk for any great length of time; exposure to either extreme cold or heat can damage the machine. Always use your laptop or personal electronic device in a cool, dry place. 2. Never leave your laptop or personal electronic device unattended in a public place. Don’t forget to secure all other products associated with your laptop: batteries, power cords, cables, external drives, LCD projectors, etc. 3. Never put your laptop or personal electronic device on the airport security x-ray machine belt before you have a clear path to the end of the belt. Check your device’s battery and make sure it’s fully charged. If you take your machine through an airport, the security checkpoint personnel may ask you to turn it on to prove it isn’t a suspicious device. 4. Back up all irreplaceable information daily. Remember, it’s not just the loss of the device, it is also the loss of the hard work and important information. 800-A. Intranet/Internet and Email PURPOSE: To establish guidelines for employee access and acceptable use of Town Intranet/Internet and Email. SCOPE: All Town employees. POLICY: Intranet/Internet Access Unauthorized access into the Intranet/Internet using Town equipment or Town Intranet/Internet accounts, or another employee’s Intranet/Internet account, or through other means, is in violation of policy. Obtaining e-mail access Unless otherwise directed by the employee’s immediate supervisor or designated representative, employees are automatically given an e-mail account upon receipt of a LAN account. Removing Internet or e-mail access The department director must submit a request to the IT HELPDESK to remove or disable an employee’s Internet and/or e-mail account. By request, the department director can be given access to the files in the disabled account for a period of 30 days after notification to disable. LAN and e-mail accounts of employees who have separated from the Town will be deleted 30 days after separation of Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 122 employment to disable the account unless otherwise directed by a department director. Email will be forwarded to a designated address for a period of up to one year. Access and usage limits The Town’s Internet access method has a finite capacity and is subject to periods of heavy use. Therefore, employees may be requested to limit access when system capacity is being exceeded. Employees must abstain from personal use of Internet or e-mail services for any reason during the time when employees should otherwise be engaged in Town business and performance of their job duties. Investigative access The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator. Electronic mail messages are public information. Request for e-mail messages, calendars, or records may be treated like any other public record in the possession of the Town. E-mail contents may be subject to subpoena in legal matters and may be subject to public records request. Management reserves the right to retrieve and/or review e-mail messages to monitor or prevent misuse of the system. Procedures to request access to an employee’s e-mail files: 1. Action by department director: a. Submit a request to Human Resources for investigative access on the employee’s account. 2. Action by Human Resources: a. Consult with the Town Manger about the investigative access request. b. Coordinate with the Chief Technology Administrator. ACCEPTABLE USE OF THE INTRANET/INTERNET AND E-MAIL The definition of acceptable use of the Internet is any use that is related to Town business or the performance of work-related duties. Research and general information access on behalf of the Town Authorized employees may use Internet and e-mail technologies to conduct official Town business, gain technical or analytical advice as part of their jobs, communicate or exchange files and/or data with employees, citizens, clients, vendors and contractors as part of their jobs. Databases can be accessed for information as needed as long as they do not require some form of subscription to participate. Access to subscription-based Internet services must be initiated using existing Town policies for purchased services. Participation in News/Discussion Groups Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 123 Users may participate in news/discussion groups based around a topic in which the Town has a business interest. Users may participate in news/discussion groups, listservs or web sites created by professional organizations of which the Town or the user in their professional capacity is a member. Disclaimer: Postings by employees from a Town e-mail address to newsgroups should contain a disclaimer stating that the opinions expressed are strictly their own and not necessarily those of Town, unless posting is in the course of business duties. Limited Personal Use The Town’s Intranet/Internet and e-mail resources are intended for business use in performing the duties of an employee’s job. Limited personal use may be permitted, according to the following guiding principles: 1. It is incidental, occasional and of short or moderate duration. 2. It does not interfere with any employee’s job activities. 3. It does not result in incremental expense to the Town. Examples of “incremental expense” include, but are not limited to: a. If the Town were paying for a limited bandwidth connection to the Internet, and an employee’s personal use incurred additional charges; and b. Long-distance telephone, cellular phone or fax charges. i. The employee has their supervisor’s prior approval for said personal use, which approval shall only be given when consistent with the requirements of this policy. ii. It does not solicit for or promote commercial ventures, religious or political causes, outside organizations or other non-job-related solicitations. iii. It does not violate the other “unacceptable uses” or other specific limitations outlined in this policy. iv. It will not create a real or perceived conflict of interest. Performing copyright infringements and other illegal actions Any use of the Internet that violates copyright laws is prohibited. Infringing on third party copyrights or other intellectual property rights, license agreements or other contracts; for example, illegally installing or making available copyrighted software. E-mail shall not be used to send (upload) or receive (download) copyrighted materials, and any other unauthorized materials, without prior written authorization of the originator. Users will refrain from the posting of any materials that violate federal or state laws. Use of the Intranet/Internet or e-mail in support of illegal activities is prohibited. Unauthorized attempts to break into any computer whether in the Town or another organization. Causing disruption of service and performance Use of the Intranet/Internet or e-mail must not disrupt the operation of the Town network or the networks of other users. Hacking or modifications to the Intranet/Internet and e-mail software in a manner that restricts the ability of the Town to monitor its resources is prohibited. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 124 One or more files totaling 30mb or more in size should not be attached to internal e-mail messages. Users instead should utilize the network share drives to distribute the files to other users. Execute real-time utilization of Intranet/Internet resources for non-Town-business-related services Accessing, viewing, downloading, or any other method for retrieving non-Town business information or services that utilizes the Internet resource in real-time is prohibited. This includes, but is not limited to, streaming audio or video (such as Pandora, XMRadio, Hulu, or Netflix), streaming wallpaper or screen savers. INTRANET/INTERNET AND E-MAIL PRIVILEGE RESPONSIBILITY Use and compliance Access to the Intranet/Internet and e-mail is a privilege. Employees are expected to use the Intranet/Internet and e-mail in a professional manner that reflects positively upon themselves and the Town. Employees and their immediate supervisors are jointly responsible to ensure compliance with this policy. Employees are responsible for text, graphic or audio content they place, send or receive over the Intranet/Internet and e-mail. It is recognized that some unsolicited electronic mail may be received or random access to an undesirable Internet site may occur. In those instances, the individual will not be held responsible for that content or undesired site access. Account Employees shall not “loan” their access to the Intranet/Internet to other employees who have not been authorized use of the Internet and e-mail technologies. Employees will be held responsible for all actions taken using their access permissions. Employees shall not intercept or disclose messages or assist in the interception or disclosure of messages unless otherwise authorized. Information Technology, under the authorization of the Town Attorney may intercept or disclose messages when misuse of the Town system is suspected. USER’S RESPONSIBILITIES REGARDING RECEIPT OF OFFENSIVE MATERIAL Generally, the same policies of appropriate behavior apply in network usage, as apply in the workplace. If you believe that you are the victim of harassment, do not delete the message. Immediately notify your immediate supervisor or department director and Information Technology. Public Records and Privacy E-mail from an internal system and/or the Internet, is NOT private nor can the security of e-mail be guaranteed. Caution shall be used when conveying confidential or sensitive information, as part of normal business transactions, when confidentiality cannot be maintained. This includes documents such as performance reviews, disciplinary and/or corrective actions, attorney-client-privileged information, personnel information, and health or medical information. All e-mail messages (whether created or received) are the property of the Town and may be considered to be public records pursuant to the Arizona Public Records Law. If there is concern about potential public disclosure or internal disclosure, e-mail should not be used. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 125 The Town reserves the right to review, audit, intercept, access and disclose all messages created, received or sent over the e-mail system for any purpose. The contents of electronic mail may be received and disclosed without the consent of the originator. When communicating with legal counsel or seeking legal advice, consideration should always be given to the fact that e-mail may contain information that may not be entirely confidential. It is advisable to check with the Town Attorney’s Office as to whether such request should be made by e- mail or through written communication. All requests for public records disclosure of data shall be routed to the Town Clerk. E-mail messages may be recoverable Deleting e-mail messages from a computer does not guarantee it has been erased from the system. Further, email constituting a public record must be maintained. Employees should use good judgment when creating e-mail and always assume that it is discoverable. Monitoring and auditing The Town owns the network providing access to Internet and e-mail technologies. The electronic records created by use of the system may be considered public records under Arizona Revised Statutes and the law governing retention of public records. The Town reserves the right to monitor all electronic records, at any time, to ensure compliance with state law and this policy. Retention of E-Mail All e-mail messages that are not subject to a specific retention schedule are stored by Information Technology for 1095 days and may be required to be stored longer in the event of litigation. Any messages that are permanent records are required to be copied or moved to the appropriate file location. Information Technology is not responsible for backup or restoration of any e-mail items saved outside of the e-mail system by individual users. Records retention schedules can be found on the Arizona Secretary of State’s Arizona State Library, Archives & Public Records website – www.azlibrary.gov. Virus Exposure Use of the Internet and e-mail risks exposure to viruses that can cause serious damage to Town computer resources. Material downloaded from the Internet must be virus checked before use. Inbound and outbound attachments to e-mail will be scanned for viruses. Plug-Ins and Helper Programs Plug-ins and Helper programs should be used prudently and only if its purpose is to enhance the browser to provide services that are within the “acceptable uses” and it does not violate the “unacceptable uses” or other specific limitations outlined in this policy. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 126 801. Software/Hardware PURPOSE: It is the policy of the Town to respect all software copyrights and to adhere to the terms of all software licenses to which the Town is a party. The Town users may not duplicate any licensed software or related documentation for use either on Town premises or elsewhere unless the Town is expressly authorized in writing to do so by agreement with the licenser. Unauthorized duplication of software may subject users and/or the Town to both civil and criminal penalties under the United States Copyright Act. The purpose of this policy is to prevent copyright infringement and to protect the integrity of Town’s computer environment. SCOPE: This policy applies to all employees, contractors, consultants, or third parties utilizing Town technology resources. This policy applies to all software that is owned or leased by the Town. Each individual user is responsible for complying with this and all other relevant policies when using the Town’s resources for messaging and accessing the Internet. Contractors with the Town shall become aware of the requirements of this policy. POLICY: Budgeting for Software/Hardware Some software and hardware needs are limited to specific departments. Departments are responsible for requesting new software or hardware specific to the department’s needs through the Information Technology Division. When requesting such software or hardware, departments must work with the IT Department to ensure technology costs, compatibility, licensing, support, and integration issues are addressed. Approval for Purchase of Software/Hardware To purchase software or hardware, users must obtain the approval of their supervisors and the Information Technology Division, then submit a request to the IT Helpdesk to acquire the software/hardware. Acquisition of Software/Hardware 1. All software or hardware acquired for the Town must be purchased through the Information Technology Division. 2. Software or hardware may not be purchased through user corporate credit cards or petty cash. 3. Software and hardware acquisition channels are restricted to ensure that the Town has a complete record of all software that has been purchased for Town computers and can register, support, and upgrade such software accordingly. 4. Freeware software or mobile apps downloaded from the Internet must be authorized by the Information Technology Division. License Agreements Software may only be used in compliance with applicable license (including “shrink-wrap” agreements) and purchasing agreements. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 127 Ownership of Software All software acquired for or on behalf of the Town or developed by Town employees or contract personnel on behalf of the Town is and shall be deemed Town Property. All such software must be used in compliance with applicable purchase and license agreements. Storage of Software Media/Licenses All software media and original license agreements are kept and stored by the Information Technology Division. Software media that must be accessed for support of an application (e.g. clip art, GIS data, etc.) will be kept with the workstation licensed for its use. Use and distribution of these types of media must be in compliance with the software licensing agreement. IT will monitor the license term length and will notify users of any necessary actions. Duplication of software Users are not authorized to produce backup or duplicate copies of any software for any purpose. Unless otherwise provided in the applicable license or contract document, any duplication of copyrighted software may be a violation of federal and state law and is strictly prohibited. The Information Technology Division creates all authorized duplicate media and retains the master copy. The software inventory registry will be updated with this information. Registration The IT Helpdesk is responsible for completing the registration documentation and returning it to the software publisher. All software that is Town Property must first be delivered to the IT Helpdesk to complete registration and inventory requirements. All software must be registered in the name of the Town. Because of personnel turnover, software will never be registered in the name of the individual user. Information Technology maintains a register of all software and will keep a library of software licenses. The register will contain: 1. The title and publisher of the software; 2. The date and source of software acquisition; 3. The location of each installation as well as the serial number of the hardware on which each copy of the software is installed; 4. The name of the authorized user(s); 5. The existence and location of the media and any back-up copies; and 6. The software product’s serial number and/or key codes. Installation of Software No software, including freeware, may be installed on any Town-owned or leased computer without prior approval by the Information Technology Division and without being registered to the Town. After the registration requirements above have been met, the software will be installed with the authorization of, assistance of, or performance by, Information Technology support personnel. Manuals, tutorials and other user materials will be provided to the user. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 128 Once installed on the hard drive, the original media (USB drives, CD-ROM, DVD, etc.) will be kept in a safe storage area maintained by the IT Helpdesk. Users may not give software to anyone, including contractors, customers and others. Town users may use software on local area networks or on multiple machines only in accordance with applicable license agreements. Town computers are Town-owned assets and must be kept both software legal and virus free. Only software purchased through the procedures outlined above may be used on Town machines. Installation of personal non-business-related software on Town computers is not authorized. The Town will remove any unauthorized software that puts the Town at risk or liability. Removable Media Drives & USB Drives To protect the Town’s network and computers, restrictions have been placed on external drives including USB hard drives and flash drives, and the following guidelines should be followed to enhance security. In addition, files written to or copied from such devices may be logged and audited to ensure compliance with policy. Software may not be executed from external and USB hard drives and flash drives. Confidential files or files with sensitive data should be encrypted when saved on removable drives to protect the contents in the event the device is lost or stolen. Any removable or USB drive should be scanned for malicious code and viruses prior to use. Support Software compatible with installed operating system, client, application and system configuration standards for workstations and/or file servers will be supported by the Information Technology Helpdesk. Uninstalling Software Unauthorized removal of software from Town computers is prohibited. Software removals should not be performed without the authorization of, assistance of, or performance by, Information Technology support personnel. IT reserves the right to uninstall or remove any software found to be causing a negative impact on the workstation, the Town’s enterprise network, or any Internet/Intranet/Extranet-related systems. User Responsibilities Each User is individually responsible for reading, understanding, and adhering to all licenses, notices, and agreements in connection with software that they cause to be acquired, copied, transmitted, or used or seeks to acquire, copy, transmit, or use. IT will provide all necessary copies of such licenses. If a computer must be reconfigured or replaced and it contains software that has been licensed specifically for that computer, the user should notify Information Technology of such installation to ensure the software is reinstalled, tested and documentation of the installation location is updated. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 129 Shareware Software It is the policy of the Town to pay shareware authors the fee they specify for use of their products. Registration of shareware products will be handled the same way as outlined above. Software Games The installation of computer games on Town computers is prohibited unless there is a Town business or service justification. Games packaged with the operating system installation (e.g. FreeCell, Minesweeper, Pinball, and Solitaire) are included in the workstation image and are exceptions. However, IT reserves the right to remove these games. Software Games that impact network resources are strictly forbidden. Screensavers and Wallpaper Screensaver and wallpaper software are permissible only after the Software Policy procedures to purchase (commercial and/or shareware), license, register and install have been applied. Decompiling software No User shall decompile, disassemble, or reverse-engineer any software. Transfer of Software No User may sell, rent, sublicense, lend, transmit, distribute, give, or otherwise convey or make available Town-owned software or an interest therein to any unauthorized individual or entity. Audits The Information Technology Division will conduct audits of all PCs, including portables, to ensure that the Town is in compliance with all software licenses. Audits will be conducted using an auditing software product or through manual inspection. Enforcement 1. A Town user who makes, acquires, or uses unauthorized copies of software will be subject to disciplinary action up to and including termination. 2. The Town does not condone the illegal duplication of software and will not tolerate it. Any doubts concerning whether any employee may copy or use a given software program should be addressed with IT Helpdesk. 3. Any User who suspects an incident of noncompliance with the Software Policy by another User shall promptly notify the Information Technology Division. 4. The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. 5. If an employee is found violating the sections of this policy, the Department Director together with the Chief Technology Administrator may remove the employee’s access to the Town’s computer network resources. 6. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 130 802. Audit of Information Systems PURPOSE: To provide the authority for members of Town’ Information Technology team to conduct a security audit on any computer or communication system (hardware or software) at the Town. Audits may be conducted to: 1. Ensure integrity, confidentiality and availability of information and resources. 2. Investigate possible security incidents. 3. Monitor user or system activity. 4. Enforce information system policies. SCOPE: This audit policy covers any equipment owned, leased or otherwise possessed by the Town, including, but not limited to all of the following devices: 1. hand-held devices (iPhone, iPad, etc.) 2. computers (desktop and laptops) Communication devices, including but not limited to: 1. telephone and voicemail system 2. network hardware (routers, printers, firewalls, etc.) 3. other wireless devices, including pagers Employees should be aware that loading Town programs or property on their own personal devices may result in public record information being on those devices and creating a Town interest in those devices to the extent such information is present. The use of personally-owned information and communication devices for Town business is discouraged unless a department head and the Chief Technology Administrator determine there is a necessary business use for such equipment. POLICY: When requested, and for the purpose of performing an audit, any access needed will be provided to members of Town’ Information Technology team. This access may include: 1. User level and/or system level access to any computing or communications device. 2. Access to information (electronic, hardcopy, etc.) that may be produced, transmitted or stored on Town equipment or premises. 3. Access to work areas (labs, offices, cubicles, storage areas, etc.). 4. Access to interactively monitor and log traffic on Town networks. Enforcement The Town, through its department directors and Information Technology Division, reserves the right to review an employee’s use of Town-provided information technology services, such as but not limited to, Internet, LAN, on-line services, telephone and e-mail use to determine whether the system’s use is appropriate and conforms to this policy. If an employee is found to be violating sections of this policy, the department director together with the Chief Technology Administrator, may remove the employee’s access to the Town’s computer network resources. Any employee who fails to abide by this policy may be subject to disciplinary action up to and including termination. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 131 803. Workplace Monitoring PURPOSE: To ensure quality control, employee safety, security, and customer satisfaction. SCOPE: This policy applies to employees, contractors, consultants, temporary employees, and other workers at the Town, including all personnel affiliated with third parties. This policy applies to all equipment that is owned or leased by the Town. POLICY: Computers furnished to employees are the property of the Town. As such, computer usage and files may be monitored or accessed. Video Monitoring The Town conducts video monitoring from time to time, which may include employee work actions, including facility security cameras, vehicle cameras, and body cameras. All employees are to be familiar with and refer to the camera-related operational procedures in the respective departments, if applicable. 804. Social Media PURPOSE: This Policy is intended to provide authorized employees with a framework for use of social media as part of an authorized employee’s job duties. This policy also provides general guidelines for the personal use of social media by all employees. SCOPE: This Policy applies to all authorized employees that contribute to any kind of social media platform. POLICY: The Town may utilize authorized social media platforms to further enhance communications with the public in support of Town operations. Personal Use of Social Media as it relates to the Town of Fountain Hills 1. Employees shall not use their Town-issued e-mail address for their primary username or login for personal social media profiles and/or platforms. 2. Use of social media for personal use should in no way interfere with job duties. Time spent on social media sites shall be limited to personal break times. 3. If an employee identifies themselves as a Fountain Hills employee during their personal use of social media, the employee shall clearly indicate they are speaking on their own behalf and not on behalf of the Town. The employee’s social media profile and any related content should be consistent with how the employee wishes to present themselves to co-workers, colleagues, supervisors, and the public. It is recommended that a disclaimer be used as follows: “The opinions expressed on this site are my own and do not reflect the opinions of the Town of Fountain Hills.” 4. Employees are discouraged from sending or accepting social media friend requests to or from their supervisors. 5. Employees are prohibited from revealing confidential information about Fountain Hills, its employees, customers/residents, or internal discussions. 6. Posting any Fountain Hills photograph, digital image or video/audio recording is strictly prohibited. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 132 7. Use of social media platforms to harass, threaten, libel or slander, malign, defame or disparage, or discriminate against the Town, its employees, patrons, vendors or suppliers, any organizations associated with or doing business with the Town, or any members of the public is prohibited. 8. The use of the Town’s logo or trademarks; or the name, logo, or trademarks of any business partner, supplier, vendor, affiliate on any personal blogs or other online sites without prior authorization is prohibited. Business Use of Social Media for Town Purposes 1. Each Town social media platform account is the sole proprietorship of Fountain Hills. Employees who are authorized to post content on behalf of the Town do not own the accounts. 2. The Community Relations Director is to be an authorized user on all Town social media accounts. 3. All Town related communication through social media platforms shall be professional in nature and conducted in accordance with Town policies and Communications Department procedures. 4. Use of all social media platforms shall adhere to applicable state, federal, local laws, and regulations, including copyright and trademark infringement laws. In addition, all social media platforms shall adhere to this Policy. 5. The Town reserves the right to restrict or remove any content that it deems in violation of this Policy or any applicable law. 6. Social media posts should be treated as an extension of the Town’s official website. Content on Town Social Media Accounts Comments must follow all Town policies and federal law and regulations. The following social media content is prohibited on Town social media platforms: 1. Content containing graphic, obscene, explicit, or racial comments or submissions, and comments that are abusive, or intended to defame any individual or organization. 2. Content containing solicitations or advertisements, including promotions or endorsements of any financial, commercial, or non-governmental agency. 3. Content that attempts to defame or defraud any financial, commercial, or non-governmental agency. 4. Content that suggests or encourages illegal activity, including comments that infringe on copyrights or trademarks. 5. Content that promotes political purposes or a political candidate/party. 6. Content that promotes or endorses a specific religious organization. 7. Content that is repetitive. 8. Content containing confidential or proprietary information about the Town or its employees. 9. Content containing information that may compromise safety and security. 10. Content containing non-topically related content outside the limited public forum established to discuss Town issues, operations and services. 11. Content that makes false statements or provides false information. 12. Content containing a picture or video without prior written consent by all those in the picture or video. 13. Care should be taken not to promote one contractor or business over another or provide preferential treatment of any kind. 14. References or employment recommendations for current or former employees of the Town is prohibited. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 133 Employees found in violation of this Policy may be subject to disciplinary action, up to and including termination of employment. Employees shall report any potential violations of this Policy to Human Resources. The Town prohibits taking retaliatory action against any employee for reporting a possible deviation from this policy or for cooperating in an investigation. Any employee who retaliates against another employee shall be subject to disciplinary action, up to and including termination. 805. Cellular Devices PURPOSE: To minimize personal cell-phone usage during worktime. SCOPE: This Policy applies to all employees who have a cellular device. POLICY: While at work, employees are expected to exercise the same discretion in using cellular devices as is expected for the use of Town devices. Excessive personal calls, texting, social media, browsing during the workday, regardless of the device used, can interfere with employee productivity and be distracting to others. A reasonable standard the Town encourages is to limit personal usage during work time. Non-business-related cell usage is prohibited during vehicle operation activities. The Town will not be liable for the loss/damage of personal devices brought into the workplace. Cameras Use of Camera phones to take photographs may violate the privacy rights of co-workers, vendors, and residents/customers and may also be used to convey confidential information or undermine Town operations. To protect the privacy interests of individuals, no person may use a cell phone to capture, record, or transfer a representation of a nude or partially nude person in a rest room, locker room, or living quarters (fire department). Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 134 OTHER WORKPLACE POLICIES 900. Personnel Files PURPOSE: To establish procedures for the creation and maintenance of personnel records for the Town. SCOPE: This policy applies to all employees and all personnel records. POLICY: The Town of Fountain Hills maintains a personnel file on each employee. The personnel file includes such information as the employee's job application, resume, records of training, documentation of performance appraisals and salary increases, and other employment records. Because the information in a personnel file is personal by nature, the Town keeps these files as confidential as possible. The Town does not keep medical records nor work eligibility records in the personnel file, as this information must be kept in a separate secure place. Personnel files are housed in the Human Resources office and are the property of the Town. Employees may inspect their official personnel file at reasonable times upon reasonable notice. Personnel File Access Town employees have a right to expect that their personal information will be held in strictest confidence and that only authorized persons will have access to the information. Regardless of the position for which an employee was hired, they are entrusted with the responsibility to maintain fellow worker’s rights to confidentiality. The release of any information to unauthorized individuals is a breach of this policy and will be cause for disciplinary action up to and including termination. Access to the personnel files of Town employees is controlled as follows: Employees who wish to review their own file should contact the Deputy Town Manager/Administrative Services Director with reasonable notice. 1. The immediate supervisor or Department Head may examine, in the Human Resources Office upon reasonable notice, the personnel file of any employee under their supervision or being considered for a position under their supervision. 2. The Town Manager may examine any employee’s personnel file at any time. 3. Any individual who has written authorization from the employee to review the personnel file may do so (e.g., officials of an agency to which the employee has applied). 4. An employee’s personnel file may be examined upon request by an investigator of a state or federal law enforcement agency with a valid legal reason for such examination. 5. An employee’s personnel file may be duly subpoenaed in a legal action. 6. The home addresses and telephone numbers of Town employees are not public information and will not be released without the written consent of the employee. Pursuant to A.R.S. §39-121 et. seq., any person may request to examine or be furnished copies of any public record. The Town of Fountain Hills’ policy prohibits the disclosure of confidential personal information about an employee without the employee's written consent. Human Resources will release an employee's personnel file for viewing for production to outside sources only after a review has been Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 135 performed on the file to ensure that any confidential information such as birth date, social security number, home address, home phone number, spouse/dependent and medical information is redacted to the extent legally required prior to viewing it. 901. Reference Inquiries PURPOSE: To provide guidelines on the Town’s response to reference checks and/or inquiries of current or prior employees of the Town. SCOPE: This policy applies to all Town employees. POLICY: The Town will not respond to reference checks/inquiries from other employers or financial institutions without a written authorization and release (Employee Authorization to Release Reference Information Form) signed by the individual who is the subject of the inquiry. Responses to such inquiries will be limited to factual information that can be substantiated by official Town records to include dates of employment and job title. All inquiries are to be directed to Human Resources for official response. The only exception to the above statement is that Human Resources may release salary information to credit institutions when the request for salary information is made in writing and the employee authorizes release of the information. 902. Bulletin Boards PURPOSE: To establish guidelines for use of Town bulletin boards for the purpose of employee communication. SCOPE: This policy applies to all Town employees. POLICY: To maintain an effective avenue for communicating with our employees, the Town may, from time to time, utilize bulletin boards or post notices. The bulletin boards are located in the break room in order to ensure that employees have constant access to posted information. Town bulletin boards are used to communicate mandatory workplace posters. They can also be used to communicate information regarding policies and announcements, including, but not limited to, job postings, safety rules, health items, benefit programs, and notices announcing special events. Most of the information, however, will also be communicated electronically via email. Employees may not tamper with these bulletin boards or postings in any manner. Employees may not post material on bulletin boards without the approval of Town Administration or the Fire Chief for Fire Department locations. Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 136 903. Solicitation PURPOSE: To establish a policy concerning solicitation in the workplace. SCOPE: This policy applies to all Town employees. POLICY: In order to prevent disruption of operations, it is the Town of Fountain Hills policy that there shall be no solicitation during working time. All employees should accomplish their work and not interfere with other employees trying to perform their work. Therefore, the following rules shall apply: 1. No employee may engage in solicitation, nor may any employee willingly accept solicitation on behalf of any club, society, religious organization, political party, or similar association, or for any other purpose, during actual working time of either the solicitor or the person being solicited. “Actual working time” means the time during which an employee is required to be performing work duties; working time does not include the time before the employee’s scheduled workday begins, the time after the employee’s scheduled workday ends or the employee’s break or lunch period. 2. No employee, nor individuals who are not employees, may solicit or distribute materials on Town premises, company vehicles, or personal vehicles. 3. Nothing herein shall be interpreted or applied to interfere with an employee’s rights under the National Labor Relations Act. No literature shall be posted anywhere on the premises without the authorization of Town Administration. Solicitation and/or distribution of materials on Town property by persons not employed by the Town is prohibited at all times. 904. Office Decor PURPOSE: To provide guidelines on office décor to establish a positive and professional environment for all employees and visitors. SCOPE: This policy applies to all Town employees. POLICY: All employees are expected to contribute to a professional atmosphere and work environment. Our employees, customers, residents, and businesses deserve impressive public facilities. Office decor should reflect a pleasant working environment for everyone, while at the same time allowing some freedom of expression within individual work areas. Reasonable judgment shall govern the types of quantity of work-related information and personal effects which will be displayed within individual workspaces and common use areas. Employees are required to adhere to the following: Town of Fountain Hills Personnel Policy Manual – Amended and Restated December 2023 137 1. Secure both their department director and facilities division approval for hanging items on walls. Facilities division staff should be requested to hang items on walls. Appropriate items to display include tasteful artwork, diplomas, awards, plaques, Town related items, etc. 2. All pictures or items for display must be framed or on a bulletin board. 3. All décor must meet safety standards and minimize deterioration of the furniture or buildings. Prohibitions 1. Using tape, magnets, staples, or tacks is prohibited, unless out of view, and is not unsightly or destructive to furniture. This would include any quick reference material such as phone number lists, referral lists, etc. which should be displayed in the most professional manner available. 2. Displaying any item that may cause others to be uncomfortable or may find to be offensive. 3. Hanging items from the ceiling or safety features. Nothing in this policy is intended to restrict rights under the National Labor Relations Act. ITEM 9. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Staff Contact Information: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  HOLD PUBLIC HEARING, CONSIDERATION AND POSSIBLE ACTION: Ordinance 23-15 amending Zoning Ordinance Section 1.12, Definitions and Section 2.01, Amendments or Zone Changes. Staff Summary (Background) Staff is conducting a complete update to Chapter 2, Procedures, of the Zoning Ordinance. This update is being done one section at a time. Staff started with, and Council has approved, updates to Section 2.02, Special Use Permits, and Section 2.04, Site Plan Review Regulations.  This report reviews the changes staff has identified to improve the functioning and usability of Section 2.01 of the Zoning Ordinance.  This section provides the procedures for amending the zoning ordinance and for processing requests to amend the zoning designation on a piece of land. This section has been organized to follow the pattern being set up in each of the sections of this chapter.  This organization starts with the Purpose statement, then moves through Application requirements, Review procedures, Notice requirements, Hearings, and actions by the review and approving bodies.  Several of the proposed modifications are simply re-arranging the content to meet the standard format. A. Purpose. The proposed amendment further clarifies the purpose of this section of the code for the processing of applications to amend the ordinance or to change the designation on a tract of land.  Language that seems to authorize owners within a larger area to apply for a zoning change. B. Application. The language used in the code from "petition" to "application" reflects the current terminology used for processing requests.  This section has been amended to follow the language used in other sections regarding electronic applications.  The main change being proposed to this section is that it will no longer allow citizens to submit applications to amend the zoning ordinance.  It is unusual to have this provision, amendments to the code are typically left to the staff, Planning and Zoning Commission, or the Council. Subsection 2 - 6 list the items to be submitted as part of the application.  The requirements for the Subsection 2 - 6 list the items to be submitted as part of the application.  The requirements for the Project Narrative is similar to what is required for other types of applications.  The need for a Tentative Development Plan is clarified, and a preliminary landscape plan has been added to what would be submitted on the plan.  The requirement to provide the Citizen Participation Plan has been added and the requirements for the submission of names has been relocated from another section of the ordinance. C. Review. This section is new for this section of the ordinance, but is the same as what has been included in the changes to the other sections of Chapter 2.  This section provides an overview of review process from submittal to approval by Council. D. Notice. The current ordinance does not have a section titled Notice, the notice requirements are currently included with the information on the hearings.  Consistent with the other revisions in Chapter 2, a separate section titled Notice is provided.  This section is divided into the requirements for changes to zone boundaries and amendments to the zoning ordinance. The basic notice requirements for the newspaper, site posting, and mailed notice are the same.  A change, however, is to require the applicant to provide the posting of the property.  Because of this, there is some added description of the minimum requirements for the sign.  The existing ordinance describes some situations where lesser notice can be provided.  In practice, staff has always required all three types of notice.  The proposal is to continue with the practice and remove the exceptions listed in the code. Another minor change is to state that staff can notice both the Planning and Zoning Commission hearing and the Town Council hearing with one notice.  This is the current practice in most cases.  The code also adds language that clarifies that when a case is continued to a date certain new notice is not required. E. Hearings. The language of this section has been changed to be the same as was used for describing the hearing process in Section 2.02 for Special Use Permits. F. Effect of Written Protest. This section sets for the conditions under which a protest petition received from surrounding property owners can effect the need for a super majority vote for approval by the Town Council.  The current ordinance includes this language in subsection E 2.  To make it more prominent, staff has moved it to its own section.  Several years ago the state statute language for what is required for the super majority vote was changed.  Our ordinance was not amended to be consistent with the state statute.  The language included in the revised ordinance is consistent with the state requirements. G. Actions. This section describes the options available to the Planning and Zoning Commission and to the Town Council to act on a request.  The main change included in this section is to allow a continuance for up to 90 days rather than limit it to 60 days.  The other main change is to add language under the section on Council Action (G 2 D) to describe the process that will be followed to rezone a property if it is not developed following an established schedule. An additional change included in this ordinance is to amend Section 1.12, Definitions, to change the existing definition of  Community Development Director to Development Services Director.  This organizational change was made several years ago, but the code was not changed.  In addition, the "or Director" was added because that is the term used in several places in the Procedures chapter of the zoning ordinance. H. Reconsideration of Denied Amendments. The only change to this section is to change the word "petition" to "application." Former section G which addressed the signature and signage posting requirements for ordinance text amendments was addressed by other changes made in the revised ordinance. I.  Rezone to Open Space. Other than changing the heading, no changes are proposed for this section.  The Town does not receive many requests for this type of rezoning.  This additional language is included because of the restrictive nature of the open space districts.  The Town wants to verify the property owner understood these restrictions prior to approving such a rezoning. Amendment to Section 1.12 Definitions. Section 1.12 of the Zoning Ordinance contains definitions of terms used in the Zoning Ordinance.  The current list of definitions includes "Comunity Development Director."  Several years ago the Town changed the organization and renamed the position to "Development Services Director."  This part of the text amendment makes this change in the ordinance to reflect the current organizational structure and position titles.  Because the body of the ordinance sometimes  uses the term "Director", this has been added in the definition. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Chapter 2. Procedures Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Planning and Zoning Commission considered this text amendment at their November 12, 2023, meeting.  No citizens spoke at the public hearing. The Planning and Zoning Commission made one minor modification to the draft ordinance.  In Section C. 2. the Commission added language at the start referencing the standard staff review process as part of the review process.  The Commission recommend adoption of this ordinance.   Staff Recommendation(s) The proposed changes have been reviewed by the Town Attorney.  Staff recommends approval as submitted. SUGGESTED MOTION MOVE to adopt Ordinance 23-15. Attachments Existing Section 2.01  Ordinance 23-15  New Sec. 2.01, no strikethrough  Form Review Inbox Reviewed By Date Finance Director David Pock 12/06/2023 04:06 PM Town Attorney Aaron D. Arnson 12/07/2023 02:14 PM Town Manager Rachael Goodwin 12/12/2023 05:38 PM Development Services Director (Originator)John Wesley 12/12/2023 05:44 PM Form Started By: John Wesley Started On: 12/04/2023 01:27 PM Final Approval Date: 12/12/2023  Section 2.01 Amendments or Zone Changes A. Purpose: The Council may, from time to time as public necessity, convenience, general welfare, and/or good zoning practice requires, change the district boundaries or amend, change, repeal or supplement the regulations herein established. Such change or amendment may be initiated by the Council or the Planning and Zoning Commission or by petition of one or more owners of real property within the area proposed to be affected by the change. B. Petitions for Amendments: 1. Petitions for change of district boundaries or amendments of regulations shall be filed with the Community Development Office by an owner of real property within the area proposed to be changed, or by the Council or Planning and Zoning Commission. In the case of the petition filed by a party other than the Council or Commission requesting a zoning district change, which includes other property in addition to that, owned by the petitioner, the petition shall include the signatures of the real property owners representing at least seventy-five (75) percent of the land in the area proposed to be changed. All such petitions shall be filed on a form provided for the purpose and shall include: a. A map showing the particular property or properties for which the change of zone is requested and substantially the adjoining properties and the public streets and ways within a radius of three hundred (300) feet of the exterior boundaries thereof. b. A tentative development plan, which shall show the following: (1). Topographical description showing existing and proposed grades and drainage systems, and natural and manmade features with indication as to which are to be retained and which are to be removed or altered. (2). Proposed street system. (3). Proposed block layouts. (4). Proposed reservation for parks, parkways, playgrounds, recreation areas and other open space. (5). Off-street parking space. (6). Types and uses of structures. (7). Location of structures, garages and/or parking spaces. (8). A tabulation of the total number of acres in the proposed project and a percentage thereof designated for the proposed structures. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 1 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. (9). Preliminary plans and elevations of the structure types. Single-family residential subdivisions are exempt from this requirement. c. Reasons justifying the petition. d. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property if rezoned as requested and the date or dates (if any) of expiration thereof. e. Such photographs, drawings, and other supporting documents (if any) as the applicant may desire to present. f. Payment of a filing fee in an amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be returnable. Payment of filing fee shall be waived when the change or amendment is initiated by the Council or the Commission or when the petitioner is the Town, school district, special purpose district, county, state or federal government. 2. Under certain circumstances where the Community Development Director finds that the nature of the permitted or special use is such that it would be unnecessary or economically unfeasible for the applicant to prepare a plan in accordance with above stated requirements, the Community Development Director may waive certain of the above requirements, but in all cases the applicant will be required to prepare and submit some type of site plan drawn to scale. 3. Upon receipt of a complete application for amendment, the Community Development Director shall forward the application to the Planning and Zoning Commission. 4. Any plan approved by the Community Development Director under the provisions of Section 2.04, which requires a zoning change, must substantially conform to the tentative plan submitted as part of the petition for a change of district boundaries. C. Hearings: When the Planning and Zoning Commission holds a public hearing concerning the zoning ordinance, notice of the time and place of the hearing including a general explanation of the matter to be considered and including a general description of the area affected shall be given at least fifteen (15) days before the hearing in the following manner: 1. The notice shall be published at least once in a newspaper of general circulation published or circulated in Fountain Hills. A posted notice shall be printed so that the following are visible from a distance of one hundred (100) feet: the word "ZONING", the present zoning district classification, the proposed zoning district classification and the date and time of the hearing. 2. In proceedings involving rezoning of land, which abuts other municipalities or unincorporated areas of the county or a combination thereof, copies of the notice of public hearing shall be transmitted to the planning agency of such governmental unit abutting such land. In addition to notice by publication, a municipality may give notice of the hearing in such other manner, as it may deem necessary or desirable. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 2 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. 3. In proceedings that are not initiated by the property owner involving rezoning of land which may change the zoning classification, notice by first class mail shall be sent to each real property owner, as shown on the last assessment of the property, of the area to be rezoned and all property owners, as shown on the last assessment of the property, within three hundred feet of the property, to be rezoned. 4. In proceedings involving one or more of the following proposed changes or related series of changes in the standards governing land uses, notice shall be provided in the manner prescribed by Subsection (C)(5) of this Section: a. A ten percent or more increase or decrease in the number of square feet or units that may be developed. b. A ten percent or more increase or reduction in the allowable height of buildings. c. An increase or reduction in the allowable number of stories of buildings. d. A ten percent or more increase or decrease in setback or open space requirements. e. An increase or reduction in permitted uses. 5. In proceedings governed by Subsection (C)(4) of this Section, the municipality shall provide notice to real property owners pursuant to at least one of the following notification procedures: a. Notice shall be sent by first class mail to each real property owner, as shown on the last assessment, whose real property is directly governed by changes. b. If the Town issues utility bills or other mass mailings that periodically include notices or other informational or advertising materials, the municipality shall include notice of such changes with such utility bills or other mailings. c. The Town shall publish such changes prior to the first hearing on such changes in a newspaper of general circulation in the Town. The changes shall be published in a "display ad" covering not less than one-eighth of a full page. 6. If notice is provided pursuant to Subdivisions (b) or (c) of Paragraph (5), the municipality shall also send notice by first class mail to persons who register their names and addresses with the municipality as being interested in receiving such notice. The municipality may charge a fee not to exceed five dollars per year for providing this service and may adopt procedures to implement this provision. 7. Not withstanding the notice requirements set forth in Subsection (C)(4) of this Section, the failure of any person or entity to receive notice shall not constitute grounds for any court to invalidate the actions of a municipality for which the notice was given. D. Commission Action: 1. Upon receipt of any complete application for amendment, the Community Development Director shall fix a reasonable time for the hearing of the proposed zone change, amendment, or addition and shall give Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 3 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. notice in accordance with the Public Notice Requirements Deadline in Section 2.01(C) of this ordinance. The Commission may for any reason, when it deems such action necessary or desirable, continue such hearing to a time and certain place. Within sixty – (60) days after the date of the original hearing, the Commission shall render its decision in the form of a written recommendation to the Council. The recommendation shall include the rationale for the recommendation. However, if the Commission is not able to make a recommendation to the Council at the continued meeting and the applicant does not consent to a further continuance, the matter shall be automatically forwarded to the Council with a recommendation for denial. 2. Prior to publishing a petitioned zoning map change, the Commission may, on its own motion, delimit or extend the boundaries of such area, so as to constitute a more reasonable zone district boundary. 3. In the case of proposed amendments which are initiated by the Commission, the Commission shall hold a public hearing as required by this section and shall either: a. Transmit such proposal to the Council which shall thereupon proceed as set forth herein for any other amendment; or b. Vote to quash the Commission initiated proposal, in which case no further action need be taken by the Commission or Council. 4. The Commission may recommend to the Council that a time limit be established for the development of the proposal for which a rezoning is conditionally approved. E. Council Action: 1. Once the Commission has held a public hearing, the Council may adopt the recommendations of the Commission without holding a public hearing if there is no objection, request for public hearing, or other protest. The Council shall hold a public hearing if requested by the party aggrieved or any member of the public or of the Council. Notice of the time and place of the hearing shall be given in the time and manner provided for the giving of notice of the hearing by the Commission as specified in Subsection C). In addition, the Town may give notice of the hearing in such other manner, as it may deem necessary or desirable. 2. If the owners of twenty (20) percent or more either of the area of the lots included in a proposed change, or of those immediately adjacent in the rear or any side thereof extending one hundred and fifty (150) feet therefrom, or of those directly opposite thereto extending one hundred and fifty (150) feet from the street frontage of the opposite lots, file a protest in writing against a proposed amendment, it shall not become effective except by the favorable vote of three-fourths (3/4) of all members of the Council. If any members of the Council are unable to vote on such a question because of a conflict of interest, then the required number of votes for passage of the question shall be three-fourths (3/4) of the remaining membership of the Council, providing that such required number of votes shall in no event be less than a majority of the full membership of the Town Council. 3. If the Council's recommendation is to overrule the recommendation of the Commission, such decision shall only require the vote of the majority of the members of the Council voting on the question. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 4 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. 4. The Council shall not make any changes in any proposed zoning district boundaries or zoning district classification recommended by the Commission until such proposed changes have been referred back to the Commission for a report. Failure of the Commission to file a report back to the Council within a specified time response period shall be deemed to be approval of the proposed changes. The specified time period for a Commission response shall be fifteen (15) days from the date of receipt of the recommended change(s), unless the Commission requests and the Council grants an extension of an additional fifteen (15) days. 5. At the time of rezoning, the Council may establish a schedule for development of the specific use or uses for which rezoning is requested. F. Reconsideration of Denied Amendments: In the event that a petition for an amendment is denied by the Council, or is withdrawn after the Commission hearing, the Commission shall not consider the petition or any other petition for the same amendment of this ordinance as it applies to the same property described in the original petition, or any part thereof, within a period of one (1) year from the date of such denial action, or withdrawal unless the conditions, upon which the original denial or withdrawal was based, have changed. G. Exceptions: In the event that a request for amendment concerns only the amendment of general requirements of this ordinance, no signature of affected property owners or posting of property shall be required; however, there shall be compliance with all other provisions of this section. H. Exceptional Procedures for Rezoning Land to the Open Space Recreational (OSR) or Open Space Conservation (OSC) or Open Space Preservation OSP Zoning Districts: In addition to the procedural regulations contained in this Chapter, all of the following procedures are required to be met prior to rezoning land to the OSR or OSC or OSP Zoning Districts: 1. The property owner(s) and any lienholders of record shall specifically request, in writing, that the zoning district designation be applied to their property. 2. The property owner(s) and any lienholders of record shall sign a forbearance agreement that would be recorded in the office of the Maricopa County Recorder, stating that: a. If the property is to be rezoned to the Open Space Recreational Zoning District, that the owner has voluntarily requested a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. b. If the property is to be rezoned to the Open Space Conservation Zoning District, that the owner has voluntarily requested a zoning district designation that provides for no viable economic use of the property and that the owner is fully informed and aware of this fact. c. If the property is to be rezoned to the Open Space Preservation Zoning District, that the owner has either voluntarily requested, or has agreed to, a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 5 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. Disclaimer: The town clerk’s office has the official version of the Fountain Hills Zoning Ordinance. Users should contact the town clerk’s office for ordinances passed subsequent to the ordinance cited above. Town Website: www.fh.az.gov Hosted by Code Publishing Company, A General Code Company. Chapter 2 Procedures | Fountain Hills Zoning Ordinance Page 6 of 6 The Fountain Hills Zoning Ordinance is current through Ordinance 23-06, passed May 16, 2023. ORDINANCE NO. 23-15 AN ORDINANCE OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, AMENDING THE FOUNTAIN HILLS ZONING ORDINANCE SECTION 1.12, DEFINITIONS CHANGING COMMUNITY DEVELOPMENT DIRECTOR TO DEVELOPMENT SERVICES DIRECTOR AND SECTION 2.01, AMENDMENTS OR ZONE CHANGES ENACTMENTS: NOW THEREFORE BE IT ORDAINED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. That Section 1.12, Definitions, of the Fountain Hills Zoning Ordinance is amended as follows: . . . Community Development SERVICES Director (OR DIRECTOR): The person appointed by the Town Manager to be the Community Development SERVICES Director. If there is no such person designated by the Town Manager, the Town Manager is the Community SERVICES Development Director. . . . SECTION 2. That Section 2.01, AMENDMENTS OR ZONE CHANGES, of the Fountain Hills Zoning Ordinance is amended as provided in Exhibit A attached hereto. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 19th day of December, 2023. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Rachael, Town Manager Aaron D. Arnson, Town Attorney ORDINANCE 23-15 PAGE 2 Exhibit A Section 2.01 Amendments or Zone Changes A. Purpose:. The Council may, from time to time as public necessity, convenience, general welfare, and/or good zoning practice requires, change the district boundaries or amend, change, repeal or supplement the regulations herein established. Such change or amendment may be initiated by the Council or the Planning and Zoning Commission. OWNERS OF REAL PROPERTY, EITHER DIRECTLY OR THROUGH AN AUTHORIZED REPRESENTATIVE, MAY APPLY TO CHANGE THE ZONING DISTRICT DESIGNATION OF THEIR PROPERTY. ALL REQUESTS TO AMEND THESE REGULATIONS OR CHANGE ZONING BOUNDARIES SHALL BE PROCESSED AS PROVIDED IN THIS SECTION. or by petition of one or more owners of real property within the area proposed to be affected by the change. B. APPLICATION. Petitions for Amendments: 1. COMPLETE APPLICATION. APPLICATIONS Petition for change of district boundaries or amendments of regulations shall be filed ELECTRONICALLY ON THE TOWN’S WEBSITE BY AN OWNER OF THE REAL PROPERTY PROPOSED TO BE CHANGED USING THE PROCESS ESTABLISHED BY THE DIRECTOR FOR SUCH APPLICATIONS. ALL SUCH APPLICATIONS SHALL INCLUDE THE INFORMATION SET FORTH IN THIS SUBSECTION. with the Community Development Office by an owner of real property within the area proposed to be changed, or by the Council or Planning and Zoning Commission. In the case of the petition filed by a party other than the Council or Commission requesting a zoning district change, which includes other property in addition to that, owned by the petitioner, the petition shall include the signatures of the real property owners representing at least seventy-five (75) percent of the land in the area proposed to be changed. All such petitions shall be filed on a form provided for the purpose and shall include: 2. PROJECT NARRATIVE. A WRITTEN STATEMENT WHICH INCLUDES: a. A NARRATIVE DESCRIBING THE EXISTING ZONING, PROPOSED ZONING, DESIRED USE OF THE PROPERTY, AND REASONS JUSTIFYING THE PROPOSED CHANGE IN ZONING AND ITS CONSISTENCY WITH THE GENERAL PLAN. B. A map showing the particular property or properties for which the change of zone is requested and substantially the adjoining properties and the public streets and ways within a radius of three hundred (300) feet of the exterior boundaries thereof. C. A TRUE STATEMENT REVEALING ANY CONDITIONS OR RESTRICTIONS OF RECORD (IF ANY) WHICH WOULD AFFECT THE PERMITTED USES OF THE PROPERTY IF REZONED AS REQUESTED AND THE DATE OR DATES (IF ANY) OF EXPIRATION THEREOF. ORDINANCE 23-15 PAGE 3 D. SUCH PHOTOGRAPHS, DRAWINGS, AND OTHER SUPPORTING DOCUMENTS (IF ANY) AS THE APPLICANT MAY DESIRE TO PRESENT. 3b. A Ttentative Ddevelopment Pplan,. FOR PROJECTS THAT WILL RESULT IN DEVELOPMENT OR REDEVELOPMENT OF A TRACT, PARCEL, OR LOT, THE REZONING REQUEST SHALL INCLUDE A TENTATIVE DEVELOPMENT PLAN. SUBSEQUENT SITE PLANS MUST SUBSTANTIALLY CONFORM TO THE TENTATIVE PLAN SUBMITTED AS PART OF THE APPLICATION FOR A CHANGE OF DISTRICT BOUNDARIES. THE TENTATIVE DEVELOPMENT PLAN which shall show, AS APPLICABLE, the following: A(1). Topographical description showing existing and proposed grades and drainage systems, and natural and manmade features with indication as to which are to be retained and which are to be removed or altered. B(2). Proposed street system. C(3). Proposed block layouts. D(4). Proposed reservation for parks, parkways, playgrounds, recreation areas and other open space. (5). Off-street parking space. E(6). Types and uses of structures. F(7). Location of structures, garages and/or parking spaces. G(8). A tabulation of the total number of acres in the proposed project and a percentage thereof designated for the proposed structures. H(9). Preliminary plans and elevations of the structure types. Single-family residential subdivisions are exempt from this requirement. I. A PRELIMINARY LANDSCAPE PLAN. c. Reasons justifying the petition. d. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property if rezoned as requested and the date or dates (if any) of expiration thereof. ORDINANCE 23-15 PAGE 4 e. Such photographs, drawings, and other supporting documents (if any) as the applicant may desire to present. 4. CITIZEN PARTICIPATION PLAN. A COPY OF THE CITIZEN PARTICIPATION PLAN AS REQUIRED BY SECTION 2.08. 5. A LIST OF NAMES AND ADDRESSES FOR ALL PROPERTY OWNERS WITHIN THREE HUNDRED (300) FEET OF THE EXTERIOR BOUNDARIES OF THE PROPERTY FOR WHICH AN APPLICATION IS MADE. 6f. FILING FEE. Payment of a filing fee in an amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be returnable. Payment of filing fee shall be waived when the change or amendment is initiated by the Council or the Commission or when the applicant is the Town, school district, special purpose district, county, state or federal government. 2. Under certain circumstances where the Community Development Director finds that the nature of the permitted or special use is such that it would be unnecessary or economically unfeasible for the applicant to prepare a plan in accordance with above stated requirements, the Community Development Director may waive certain of the above requirements, but in all cases the applicant will be required to prepare and submit some type of site plan drawn to scale. 3. Upon receipt of a complete application for amendment, the Community Development Director shall forward the application to the Planning and Zoning Commission. 4. Any plan approved by the Community Development Director under the provisions of Section 2.04, which requires a zoning change, must substantially conform to the tentative plan submitted as part of the petition for a change of district boundaries. C. REVIEW. 1. DETERMINATION OF COMPLETE APPLICATION. BEFORE INITIATING REVIEW, THE DEVELOPMENT SERVICES DIRECTOR, OR DESIGNEE, SHALL REVIEW THE SUBMITTAL TO DETERMINE IF IT IS COMPLETE AND MEETS THE REQUIREMENTS OF THIS SECTION. APPLICANTS WILL BE NOTIFIED OF MISSING OR INCOMPLETE APPLICATION ITEMS. ONCE AN APPLICATION HAS BEEN DETERMINED TO BE COMPLETE THE APPLICANT WILL BE NOTIFIED TO PAY THE APPLICATION FEE. WHEN THE FEE HAS BEEN RECEIVED, STAFF WILL BEGIN REVIEW OF THE APPLICATION. 2. REVIEW. UTILIZING STANDARD REVIEW TIMELINES AND PROCEDURES, STAFF WILL CONDUCT REVIEW AND ANALYSIS OF THE PROPOSED REZONING AND DEVELOPMENT AND WILL SEEK ADDITIONAL INFORMATION AND CLARIFICATION FROM THE APPLICANT AS ORDINANCE 23-15 PAGE 5 NECESSARY TO PREPARE A REPORT AND RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION. 3. PLANNING AND ZONING COMMISSION AND TOWN COUNCIL REVIEW AFTER STAFF REVIEW AND PROPER NOTICING, THE REZONING OR ZONING TEXT AMENDMENT WILL BE SCHEDULED FOR PUBLIC HEARINGS BY THE PLANNING AND ZONING COMMISSION AND TOWN COUNCIL. FOR REZONE CHANGES, UNLESS THE APPLICANT REQUESTS A DELAY IN WRITING, STAFF SHALL PLACE THE REQUESTS ON A PLANNING AND ZONING COMMISSION MEETING WITHIN THREE (3) MONTHS OF RECEIVING A COMPLETE APPLICATION. AFTER PUBLIC HEARING, THE PLANNING AND ZONING COMMISSION WILL MAKE A WRITTEN RECOMMENDATION TO THE TOWN COUNCIL. THE REQUEST WILL BE PLACED ON THE NEXT AVAILABLE COUNCIL AGENDA AT LEAST TWENTY-EIGHT (28) DAYS AFTER THE PLANNING AND ZONING COMMISSION ACTION. D. NOTICE. Hearings: NOTICE OF HEARINGS BY THE PLANNING AND ZONING COMMISSION AND THE TOWN COUNCIL UNDER THIS SECTION MAY BE PROVIDED SEPARATELY OR CONCURRENTLY IN THE SAME NOTICE. When the Planning and Zoning Commission holds a public hearing concerning the zoning ordinance, notice of the time and place of the hearing including a general explanation of the matter to be considered and including a general description of the area affected HEARING NOTICES shall be given at least fifteen (15) days before the hearing in the following manner: 1. FOR CHANGES TO ZONING DISTRICT BOUNDARIES: A. The nNotice OF THE TIME AND PLACE OF THE HEARING(S) INCLUDING A GENERAL EXPLANATION OF THE MATTER TO BE CONSIDERED AND A GENERAL DESCRIPTION OF THE AREA AFFECTED shall be published at least once in a newspaper of general circulation published or circulated in Fountain Hills. B. ONE OR MORE NOTICES, AS REQUIRED BY THE DIRECTOR, SHALL BE A posted ON THE PROPERTY REQUESTING THE ZONING AMENDMENT. THE SIGN notice shall be A MINIMUM TWO (2) FEET WIDE BY THREE (3) FEET TALL AND printed so that the following are visible from a distance of one hundred (100) feet with the word "ZONING" IN A MINIMUM THREE AND ONE-HALF (3 ½) INCH LETTERS AT THE TOP., THE NOTICE SHALL ALSO INCLUDE: the present zoning district classification, the proposed zoning district classification, THE PROPOSED USE OF THE PROPERTY, and the LOCATION, date and time of the hearing(S). IT SHALL BE THE RESPONSIBILITY OF THE APPLICANT TO ERECT AND MAINTAIN THE POSTING. C. NOTICE OF THE TIME AND PLACE OF THE HEARING(S) INCLUDING A GENERAL EXPLANATION OF THE MATTER TO BE CONSIDERED AND A GENERAL DESCRIPTION OF THE AREA AFFECTED SHALL BE SENT BY FIRST CLASS MAIL TO EACH REAL PROPERTY OWNER, AS ORDINANCE 23-15 PAGE 6 SHOWN ON THE CURRENT RECORDS OF THE COUNTY ASSESSOR, WITHIN THREE HUNDRED (300) FEET OF THE PROPERTY REQUESTING THE ZONING AMENDMENT. 2. FOR AMENDMENTS TO THE ZONING ORDINANCE: A. NOTICE OF THE TIME AND PLACE OF THE HEARING(S) AND THE CHANGES TO THE ZONING ORDINANCE SHALL BE PUBLISHED AT LEAST ONCE IN A NEWSPAPER OF GENERAL CIRCULATION PUBLISHED OR CIRCULATED IN FOUNTAIN HILLS. THE CHANGES SHALL BE PUBLISHED IN A "DISPLAY AD" COVERING NOT LESS THAN ONE-EIGHTH OF A FULL PAGE. THE TOWN SHALL ALSO SEND NOTICE BY FIRST CLASS MAIL TO PERSONS WHO REGISTER THEIR NAMES AND ADDRESSES WITH THE TOWN AS BEING INTERESTED IN RECEIVING SUCH NOTICE. THE TOWN MAY CHARGE A FEE NOT TO EXCEED FIVE DOLLARS PER YEAR FOR PROVIDING THIS SERVICE. In proceedings involving rezoning of land, which abuts other municipalities or unincorporated areas of the county or a combination thereof, copies of the notice of public hearing shall be transmitted to the planning agency of such governmental unit abutting such land. In addition to notice by publication, a municipality may give notice of the hearing in such other manner, as it may deem necessary or desirable. 3. In proceedings that are not initiated by the property owner involving rezoning of land which may change the zoning classification, notice by first class mail shall be sent to each real property owner, as shown on the last assessment of the property, of the area to be rezoned and all property owners, as shown on the last assessment of the property, within three hundred feet of the property, to be rezoned. 4. In proceedings involving one or more of the following proposed changes or related series of changes in the standards governing land uses, notice shall be provided in the manner prescribed by Subsection (C)(5) of this Section: a. A ten percent or more increase or decrease in the number of square feet or units that may be developed. b. A ten percent or more increase or reduction in the allowable height of buildings. c. An increase or reduction in the allowable number of stories of buildings. d. A ten percent or more increase or decrease in setback or open space requirements. e. An increase or reduction in permitted uses. 5. In proceedings governed by Subsection (C)(4) of this Section, the municipality shall provide notice to real property owners pursuant to at least one of the following notification procedures: ORDINANCE 23-15 PAGE 7 a. Notice shall be sent by first class mail to each real property owner, as shown on the last assessment, whose real property is directly governed by changes. b. If the Town issues utility bills or other mass mailings that periodically include notices or other informational or advertising materials, the municipality shall include notice of such changes with such utility bills or other mailings. c. The Town shall publish such changes prior to the first hearing on such changes in a newspaper of general circulation in the Town. The changes shall be published in a "display ad" covering not less than one-eighth of a full page. 6. If notice is provided pursuant to Subdivisions (b) or (c) of Paragraph (5), the municipality shall also send notice by first class mail to persons who register their names and addresses with the municipality as being interested in receiving such notice. The municipality may charge a fee not to exceed five dollars per year for providing this service and may adopt procedures to implement this provision. 37. IF A PROPERLY NOTICED HEARING IS HELD AND CONTINUED TO A DATE CERTAIN, THE NOTICE PROCEDURES SET FORTH IN THIS SUBSECTION DO NOT APPLY TO THE CONTINUED HEARING OR ANY FUTURE CONTINUATIONS OF THE SAME HEARING THAT ARE CONTINUED IN THE SAME FASHION. 4. NOTWITHSTANDING Not withstanding the notice requirements set forth in Subsection (C) (4) of this Section this Subsection, the failure of any person or entity to receive notice shall not constitute grounds for any court to invalidate the actions of a municipality for which the notice was given. ED. HEARINGS. Commission Actions: 1. Upon receipt of any complete application for amendment, tThe Community Development Director shall fix a reasonable time for the hearing of the proposed zone change, amendment, or addition and shall give notice in accordance with the Public Notice Requirements Deadline NOTICE REQUIREMENTS in Section 2.01 D (C) of this ordinance. 2. ANY PERSON MAY APPEAR AT A PUBLIC HEARING AND SUBMIT ORAL OR WRITTEN EVIDENCE, EITHER INDIVIDUALLY OR AS A REPRESENTATIVE OF A PERSON OR AN ORGANIZATION. EACH PERSON WHO APPEARS AT A PUBLIC HEARING SHALL BE IDENTIFIED, STATE THEIR NAME AND TOWN, AND, IF APPEARING ON BEHALF OF A PERSON OR ORGANIZATION, STATE THE NAME AND TOWN OF THE PERSON OR ORGANIZATION BEING REPRESENTED. THE PRESIDING OFFICER MAY ESTABLISH TIME LIMITS FOR INDIVIDUAL TESTIMONY AND MAY REQUIRE THAT INDIVIDUALS ORDINANCE 23-15 PAGE 8 WITH SHARED CONCERNS SELECT ONE OR MORE SPOKESPERSONS TO PRESENT TESTIMONY ON BEHALF OF THOSE INDIVIDUALS. 3. THE BODY CONDUCTING THE HEARING MAY CAUSE SUCH INVESTIGATIONS TO BE MADE AS IT DEEMS NECESSARY AND IN THE PUBLIC INTEREST ON ANY MATTER TO BE HEARD BY IT. SUCH INVESTIGATION MAY BE MADE BY A COMMITTEE OF ONE OR MORE MEMBERS OF THE BODY CONDUCTING THE HEARING OR BY MEMBERS OF ITS STAFF OR ITS AGENTS OR EMPLOYEES. THE FACTS ESTABLISHED BY SUCH INVESTIGATION SHALL BE SUBMITTED TO THE BODY CONDUCTING THE HEARING EITHER IN WRITING, TO BE FILED WITH THE RECORDS OF THE MATTER, OR IN TESTIMONY BEFORE THE BODY, AND MAY BE CONSIDERED BY THE BODY IN MAKING ITS DECISION. 4. THE BODY CONDUCTING THE HEARING SHALL CAUSE A WRITTEN SUMMARY OF ALL PERTINENT TESTIMONY HEARD AT SUCH PUBLIC HEARING, TOGETHER WITH A RECORD OF THE NAMES AND ADDRESSES OF ALL PERSONS TESTIFYING, TO BE PREPARED AND FILED WITH THE PAPERS RELATING TO SUCH MATTER. F. EFFECT OF WRITTEN PROTEST. 1. IF THE OWNERS OF TWENTY PERCENT (20%) OR MORE OF THE PROPERTY BY AREA AND NUMBER OF LOTS, TRACTS AND CONDOMINIUM UNITS WITHIN THE ZONING AREA OF THE AFFECTED PROPERTY FILE A PROTEST IN WRITING AGAINST A PROPOSED AMENDMENT, THE CHANGE SHALL NOT BECOME EFFECTIVE EXCEPT BY THE FAVORABLE VOTE OF THREE-FOURTHS (3/4) OF ALL MEMBERS OF THE TOWN COUNCIL. IF ANY MEMBERS OF THE TOWN COUNCIL ARE UNABLE TO VOTE ON SUCH A QUESTION BECAUSE OF A CONFLICT OF INTEREST, THEN THE REQUIRED NUMBER OF VOTES FOR PASSAGE OF THE QUESTION SHALL BE THREE-FOURTHS (3/4) OF THE REMAINING MEMBERSHIP OF THE COUNCIL, PROVIDED THAT SUCH REQUIRED NUMBER OF VOTES SHALL NOT BE LESS THAN A MAJORITY OF THE FULL MEMBERSHIP OF THE LEGALLY ESTABLISHED COUNCIL. FOR THE PURPOSES OF THIS SUBSECTION, THE VOTE SHALL BE ROUNDED TO THE NEAREST WHOLE NUMBER. A PROTEST FILED PURSUANT TO THIS SUBSECTION SHALL BE SIGNED BY THE PROPERTY OWNERS OPPOSING THE PROPOSED AMENDMENT AND FILED IN THE OFFICE OF THE TOWN CLERK NOT LATER THAN 12:00 NOON ONE BUSINESS DAY BEFORE THE DATE ON WHICH THE COUNCIL WILL VOTE ON THE PROPOSED AMENDMENT OR ON AN EARLIER TIME AND DATE ESTABLISHED BY THE COUNCIL. 2. FOR THE PURPOSES OF THIS SECTION, “ZONING AREA” MEANS BOTH OF THE FOLLOWING: A. THE AREA WITHIN ONE HUNDRED FIFTY (150) FEET, INCLUDING ALL RIGHTS-OF-WAY, OF THE AFFECTED PROPERTY SUBJECT TO THE PROPOSED AMENDMENT OR CHANGE; AND, ORDINANCE 23-15 PAGE 9 B. THE AREA OF THE PROPOSED AMENDMENT OR CHANGE. G. ACTIONS. 1. PLANNING AND ZONING COMMISSION. THE PLANNING AND ZONING COMMISSION: A. MAY RECOMMEND APPROVAL, APPROVAL WITH CONDITIONS, OR DENIAL, OR MAY CONTINUE A PROPOSED AMENDMENT. B. The Commission mMay for any reason, when it deems such action necessary or desirable, continue such hearing to a time and certain place. Within sixty – (60) days after the date of the original hearing, the Commission shall render its decision in the form of a written recommendation to the Council. The recommendation shall include the rationale for the recommendation. However, if the Commission is not able to make a recommendation to the Council at the continued meeting and the applicant does not consent to a further continuance, the matter shall be automatically forwarded to the Council with a recommendation for denial. C. SHALL, UNLESS WAIVED BY THE APPLICANT, WITHIN NINETY (90) DAYS AFTER THE DATE OF THE ORIGINAL HEARING, RENDER ITS DECISION IN THE FORM OF A WRITTEN RECOMMENDATION TO THE COUNCIL. D. SHALL INCLUDE THE RATIONALE FOR ITS RECOMMENDATION. 2. Prior to publishing a petitioned zoning map change, the Commission may, on its own motion, delimit or extend the boundaries of such area, so as to constitute a more reasonable zone district boundary. 3. In the case of proposed amendments which are initiated by the Commission, the Commission shall hold a public hearing as required by this section and shall either: a. Transmit such proposal to the Council which shall thereupon proceed as set forth herein for any other amendment; or b. Vote to quash the Commission initiated proposal, in which case no further action need be taken by the Commission or Council. 4. The Commission may recommend to the Council that a time limit be established for the development of the proposal for which a rezoning is conditionally approved. 2E. TOWN Council. Action: THE TOWN COUNCIL: ORDINANCE 23-15 PAGE 10 a. MAY APPROVE, APPROVE WITH CONDITIONS, DENY, CONTINUE, OR REMAND BACK TO THE PLANNING COMMISSION FOR FURTHER STUDY A PROPOSED AMENDMENT. B1. MAY, OOnce the Commission has held a public hearing, the Council may adopt the recommendations of the Commission without holding a public hearing if there is no objection, request for public hearing, or other protest. FOLLOWING PROPER NOTICE AS REQUIRED IN SECTION 2.01 D, TThe Council shall hold a public hearing if requested by the party aggrieved or any member of the public or of the Council. Notice of the time and place of the hearing shall be given in the time and manner provided for the giving of notice of the hearing by the Commission as specified in Subsection DC). In addition, the Town may give notice of the hearing in such other manner, as it may deem necessary or desirable. 2. If the owners of twenty (20) percent or more either of the area of the lots included in a proposed change, or of those immediately adjacent in the rear or any side thereof extending one hundred and fifty (150) feet therefrom, or of those directly opposite thereto extending one hundred and fifty (150) feet from the street frontage of the opposite lots, file a protest in writing against a proposed amendment, it shall not become effective except by the favorable vote of three- fourths (3/4) of all members of the Council. If any members of the Council are unable to vote on such a question because of a conflict of interest, then the required number of votes for passage of the question shall be three-fourths (3/4) of the remaining membership of the Council, providing that such required number of votes shall in no event be less than a majority of the full membership of the Town Council. 3. If the Council's recommendation is to overrule the recommendation of the Commission, such decision shall only require the vote of the majority of the members of the Council voting on the question. C4. The Council sShall not make any changes in any proposed zoning district boundaries or zoning district classification recommended by the Commission until such proposed changes have been referred back to the Commission for a report. Failure of the Commission to file a report back to the Council within a specified time response period shall be deemed to be approval of the proposed changes. The specified time period for a Commission response shall be THIRTY (30) fifteen (15) days from the date of receipt of the recommended change(s), unless the Commission requests and the Council grants an extension of an additional THIRTY (30) fifteen (15) days. D5. MAY AAt the time of rezoning, establish a schedule for development of the specific use or uses for which rezoning is requested. IF, AT THE EXPIRATION OF THIS PERIOD, THE PROPERTY HAS NOT BEEN IMPROVED FOR THE USE FOR WHICH IT WAS CONDITIONALLY APPROVED, THE TOWN, AFTER NOTIFICATION BY CERTIFIED MAIL TO THE OWNER AND APPLICANT WHO REQUESTED THE ORDINANCE 23-15 PAGE 11 REZONING, MAY SCHEDULE A PUBLIC HEARING TO TAKE ADMINISTRATIVE ACTION TO EXTEND, REMOVE OR DETERMINE COMPLIANCE WITH THE SCHEDULE FOR DEVELOPMENT OR TAKE LEGISLATIVE ACTION TO CAUSE THE PROPERTY TO REVERT TO ITS FORMER ZONING CLASSIFICATION. HF. Reconsideration of Denied Amendments: In the event that aN APPLICATION petition for an amendment is denied by the Council, or is withdrawn after the Commission hearing, the Commission shall not consider the APPLICATION petition or any other APPLICATION petition for the same amendment of this ordinance as it applies to the same property described in the original APPLICATION petition, or any part thereof, within a period of one (1) year from the date of such denial action, or withdrawal unless the conditions, upon which the original denial or withdrawal was based, have changed. G. Exceptions: In the event that a request for amendment concerns only the amendment of general requirements of this ordinance, no signature of affected property owners or posting of property shall be required; however, there shall be compliance with all other provisions of this section. IH. REZONE TO OPEN SPACE. Exceptional Procedures for Rezoning Land to the Open Space Recreational (OSR) or Open Space Conservation (OSC) or Open Space Preservation OSP Zoning Districts:In addition to the procedural regulations contained in this Chapter, all of the following procedures are required to be met prior to rezoning land to the OSR or OSC or OSP Zoning Districts: 1. The property owner(s) and any lienholders of record shall specifically request, in writing, that the zoning district designation be applied to their property. 2. The property owner(s) and any lienholders of record shall sign a forbearance agreement that would be recorded in the office of the Maricopa County Recorder, stating that: a. If the property is to be rezoned to the Open Space Recreational Zoning District, that the owner has voluntarily requested a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. b. If the property is to be rezoned to the Open Space Conservation Zoning District, that the owner has voluntarily requested a zoning district designation that provides for no viable economic use of the property and that the owner is fully informed and aware of this fact. c. If the property is to be rezoned to the Open Space Preservation Zoning District, that the owner has either voluntarily requested, or has agreed to, a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. ORDINANCE 23-15 PAGE 12 2.01, Amendments or Zone Changes Page 1 of 7 Section 2.01 Amendments or Zone Changes A. Purpose. The Council may, from time to time as public necessity, convenience, general welfare, and/or good zoning practice requires, change the district boundaries or amend, change, repeal or supplement the regulations herein established. Such change or amendment may be initiated by the Council or the Planning and Zoning Commission. Owners of real property, either directly or through an authorized representative, may apply to change the zoning district designation of their property. All requests to amend these regulations or change zoning boundaries shall be processed as provided in this Section. B. Application. 1. Complete Application. Applications for change of district boundaries shall be filed electronically on the Town’s website by an owner of real property within the area proposed to be changed using the process established by the Director for such applications. All such applications shall include the information required in this subsection. 2. Project Narrative. A written statement which includes: a. A narrative describing the existing zoning, proposed zoning, desired use of the property, and reasons justifying the proposed change in zoning and its consistency with the General Plan. b. A map showing the particular property or properties for which the change of zone is requested and substantially the adjoining properties and the public streets and ways within a radius of three hundred (300) feet of the exterior boundaries thereof. c. A true statement revealing any conditions or restrictions of record (if any) which would affect the permitted uses of the property if rezoned as requested and the date or dates (if any) of expiration thereof. d. Such photographs, drawings, and other supporting documents (if any) as the applicant may desire to present. 3. A Tentative Development Plan. For projects that will result in development or redevelopment of a tract, parcel, or lot, the rezoning request shall include a tentative development plan. Subsequent site plans must substantially conform to the tentative plan submitted as part of the application for a change of district boundaries. The tentative development plan shall show, as applicable, the following: a. Topographical description showing existing and proposed grades and drainage systems, and natural and manmade features with indication as to which are to be retained and which are to be removed or altered. 2.01, Amendments or Zone Changes Page 2 of 7 b. Proposed street system. c. Proposed block layouts. d. Proposed reservation for parks, parkways, playgrounds, recreation areas and other open space. e. Types and uses of structures. f. Location of structures, garages and/or parking spaces. g. A tabulation of the total number of acres in the proposed project and a percentage thereof designated for the proposed structures. h. Preliminary plans and elevations of the structure types. Single-family residential subdivisions are exempt from this requirement. i. A preliminary landscape plan. 4. Citizen Participation Plan. A copy of the Citizen Participation Plan as required by Section 2.08. 5. A list of names and addresses for all property owners within three hundred (300) feet of the exterior boundaries of the property for which an application is made. 6. Filing Fee. Payment of a filing fee in an amount established by a schedule adopted by resolution of the Council and filed in the offices of the Town Clerk. No part of the filing fee shall be returnable. Payment of filing fee shall be waived when the change or amendment is initiated by the Council or the Commission or when the petitioner is the Town, school district, special purpose district, county, state or federal government. C. Review. 1. Determination of Complete Application. Before initiating review, the Development Services Director, or designee, shall review the submittal to determine if it is complete and meets the requirements of this Section. Applicants will be notified of missing or incomplete application items. Once an application has been determined to be complete the applicant will be notified to pay the application fee. When the fee has been received staff will begin review of the application. 2. Review. Utilizing standard review timelines and procedures, staff will conduct review and analysis of the proposed rezoning and development and will seek additional information and clarification from the applicant as necessary to prepare a report and recommendation to the Planning and Zoning Commission. 3. Planning and Zoning Commission and Town Council Review. After staff review and proper noticing, the rezoning or zoning text amendment will be scheduled for public hearings by the 2.01, Amendments or Zone Changes Page 3 of 7 Planning and Zoning Commission and Town Council. For rezone changes, unless the applicant requests a delay in writing, staff shall place the requests on a Planning and Zoning Commission meeting within three (3) months of receiving a complete application. After public hearing, the planning and zoning commission will make a written recommendation to the Town Council. The request will be placed on the next available Council agenda at least twenty-eight (28) days after the Planning and Zoning Commission action. D. Notice. Notice of hearings by the Planning and Zoning Commission and the Town Council under this section may be provided separately or concurrently in the same notice. Hearing notices shall be given at least fifteen (15) days before the hearing in the following manner: 1. For changes to zoning district boundaries: a. Notice of the time and place of the hearing(s) including a general explanation of the matter to be considered and a general description of the area affected shall be published at least once in a newspaper of general circulation published or circulated in Fountain Hills. b. One or more notices, as required by the Development Services Director, shall be posted on the property. The sign shall be a minimum two (2) feet wide by three (3) feet tall and printed with the word "ZONING" in a minimum three and one-half (3 ½) inch letters at the top. The notice shall also include: the present zoning district classification, the proposed zoning district classification, the proposed use of the property, and the location, date and time of the hearing(s). It shall be the responsibility of the applicant to erect and maintain the posting. c. Notice shall be sent by first class mail to each real property owner, as shown on the current records of the County Assessor, within three hundred (300) feet of the property which is requesting the zoning amendment. 2. For amendments to the zoning ordinance: a. Notice of the time and place of the hearing(s) and the changes to the zoning ordinance shall be published at least once in a newspaper of general circulation published or circulated in Fountain Hills. The changes shall be published in a "display ad" covering not less than one- eighth of a full page. The Town shall also send notice by first class mail to persons who register their names and addresses with the Town as being interested in receiving such notice. The Town may charge a fee not to exceed five dollars per year for providing this service. 3. if a properly noticed hearing is held and continued to a date certain, the notice procedures set forth in this subsection do not apply to the continued hearing or any future continuations of the same hearing that are continued in the same fashion. 2.01, Amendments or Zone Changes Page 4 of 7 4. Notwithstanding the notice requirements set forth in Subsection C of this Section, the failure of any person or entity to receive notice shall not constitute grounds for any court to invalidate the actions of a municipality for which the notice was given. E. Hearings. 1. The Development Services Director shall fix a reasonable time for the hearing of the proposed zone change, amendment, or addition and shall give notice in accordance with the notice requirements in Section 2.01 D of this ordinance. 2. Any person may appear at a public hearing and submit oral or written evidence, either individually or as a representative of a person or an organization. Each person who appears at a public hearing shall be identified, state their name and town, and, if appearing on behalf of a person or organization, state the name and town of the person or organization being represented. The presiding officer may establish time limits for individual testimony and may require that individuals with shared concerns select one or more spokespersons to present testimony on behalf of those individuals. 3. The body conducting the hearing may cause such investigations to be made as it deems necessary and in the public interest on any matter to be heard by it. Such investigation may be made by a committee of one or more members of the body conducting the hearing or by members of its staff or its agents or employees. The facts established by such investigation shall be submitted to the body conducting the hearing either in writing, to be filed with the records of the matter, or in testimony before the body, and may be considered by the body in making its decision. 4. The body conducting the hearing shall cause a written summary of all pertinent testimony heard at such public hearing, together with a record of the names and addresses of all persons testifying, to be prepared and filed with the papers relating to such matter F. Effect of Written Protest. 1. If the owners of twenty percent (20%) or more of the property by area and number of lots, tracts and condominium units within the zoning area of the affected property file a protest in writing against a proposed amendment, the change shall not become effective except by the favorable vote of three-fourths (3/4) of all members of the Town Council. If any members of the Town Council are unable to vote on such a question because of a conflict of interest, then the required number of votes for passage of the question shall be three-fourths (3/4) of the remaining membership of the Council, provided that such required number of votes shall not be less than a majority of the full membership of the legally established Council. For the purposes of this subsection, the vote shall 2.01, Amendments or Zone Changes Page 5 of 7 be rounded to the nearest whole number. A protest filed pursuant to this subsection shall be signed by the property owners opposing the proposed amendment and filed in the office of the Town Clerk not later than 12:00 noon one business day before the date on which the Council will vote on the proposed amendment or on an earlier time and date established by the Council. 2. For the purposes of this section, “zoning area” means both of the following: a. The area within one hundred fifty (150) feet, including all rights-of-way, of the affected property subject to the proposed amendment or change; and, b. The area of the proposed amendment or change. G. Actions. 1. Planning and Zoning Commission. The Planning and Zoning Commission: a. May recommend approval, approval with conditions, or denial, or may continue a proposed amendment. b. May for any reason, when it deems such action necessary or desirable, continue such hearing to a time and certain place. However, if the Commission is not able to make a recommendation to the Council at the continued meeting and the applicant does not consent to a further continuance, the matter shall be automatically forwarded to the Council with a recommendation for denial. c. Shall, unless waived by the applicant, within ninety (90) days after the date of the original hearing, the Commission shall render its decision in the form of a written recommendation to the Council. d. Shall include the rationale for its recommendation. 2. Town Council. The Town Council: a. May approve, approve with conditions, deny, continue, or remand back to the Planning Commission for further study a proposed amendment. b. May, once the Commission has held a public hearing, the Council may adopt the recommendations of the Commission without holding a public hearing if there is no objection, request for public hearing, or other protest. Following proper notice as required in Section 2.01 D, the Council shall hold a public hearing if requested by the party aggrieved or any member of the public or of the Council. Notice of the time and place of the hearing shall be given in the 2.01, Amendments or Zone Changes Page 6 of 7 time and manner provided for the giving of notice of the hearing by the Commission as specified in Subsection D. In addition, the Town may give notice of the hearing in such other manner, as it may deem necessary or desirable. d. Shall not make any changes in any proposed zoning district boundaries or zoning district classification recommended by the Commission until such proposed changes have been referred back to the Commission for a report. Failure of the Commission to file a report back to the Council within a specified time response period shall be deemed to be approval of the proposed changes. The specified time period for a Commission response shall be thirty (30) days from the date of receipt of the recommended change(s), unless the Commission requests and the Council grants an extension of an additional thirty (30) days. e. May at the time of rezoning, the Council may establish a schedule for development of the specific use or uses for which rezoning is requested. If, at the expiration of this period, the property has not been improved for the use for which it was conditionally approved, the town, after notification by certified mail to the owner and applicant who requested the rezoning, may schedule a public hearing to take administrative action to extend, remove or determine compliance with the schedule for development or take legislative action to cause the property to revert to its former zoning classification. H. Reconsideration of Denied Amendments: In the event that an application for an amendment is denied by the Council, or is withdrawn after the Commission hearing, the Commission shall not consider the petition or any other application for the same amendment of this ordinance as it applies to the same property described in the original application, or any part thereof, within a period of one (1) year from the date of such denial action, or withdrawal unless the conditions, upon which the original denial or withdrawal was based, have changed. I. Rezone to Open Space. In addition to the procedural regulations contained in this Chapter, all of the following procedures are required to be met prior to rezoning land to the OSR or OSC or OSP Zoning Districts: 1. The property owner(s) and any lienholders of record shall specifically request, in writing, that the zoning district designation be applied to their property. 2. The property owner(s) and any lienholders of record shall sign a forbearance agreement that would be recorded in the office of the Maricopa County Recorder, stating that: 2.01, Amendments or Zone Changes Page 7 of 7 a. If the property is to be rezoned to the Open Space Recreational Zoning District, that the owner has voluntarily requested a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. b. If the property is to be rezoned to the Open Space Conservation Zoning District, that the owner has voluntarily requested a zoning district designation that provides for no viable economic use of the property and that the owner is fully informed and aware of this fact. c. If the property is to be rezoned to the Open Space Preservation Zoning District, that the owner has either voluntarily requested, or has agreed to, a zoning district designation that provides for little economic use of the property and that the owner is fully informed and aware of this fact. ITEM 9. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Community Services Prepared by: Kevin Snipes, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Public Art Committee Pumphouse Project Pilot Program Update and Change Request Staff Summary (Background) The Fountain Hills Public Art Committee received Town Council approval on June 7, 2022, for an outdoor art installation along the wall adjacent to the Pump House at Fountain Park (formerly known as the mural wall). This installation, "The Pumphouse Pilot Art Project", was an outdoor exhibition with a call for artists to create work around a central theme: “Legends and Lore of the Valley of the Sun.” The Town of Fountain Hills Public Art Committee is accepting applications for an outdoor 2D- exhibition themed “Expressions,” with the artists' interpretation of a facial expression that portrays an emotion. The origin of the face can be human, animal or plant.  Any artists or photographers are encouraged to apply.   Seven finalists will have their art digitally transposed onto vinyl sheets and then wrapped over 4’h x 8’w (horizontal) Dibond panels to be installed on a 100’ stucco wall located at our iconic Fountain Hills Fountain Park.  This is a change from the original panels that were printed onto metal instead of vinyl.  It will be significantly less expensive for the public art committee to reproduce each year.     All submissions must have a written paragraph describing the inspiration and explanation of the piece. High-resolution images, 7200 x 14400 pixel minimum, will be requested from the finalists. All mediums will be considered with the correct proportioned dimensions (4’h x 8’w).   The park attracts thousands of visitors each year and the stucco wall is located on the main sidewalk with high visibility both from pedestrians and motor vehicles.   All costs associated with the fabrication and installation of the vinyl panels will be the responsibility of the Public Art Committee. Artists chosen for this project will receive a $200 honorarium and the artwork will be featured on the Public Art Committee website. The proposal intends to make all pieces available for sponsorship and auction and the budget for costs and revenue are outlined below: Photo Metal Expenses: Café                                     $1000.00      Panels & brackets                $6278.21 Artist Stipend                        $2100.00 Signage                                $500.00  Insurance                             $130.00 Small Metal photos              $700.00 to give to sponsors Auction platform                     $300.00 Total                                     $10,708.21 Income: Sponsors                              $7000.00  Potential sales                      $3500.00 (We will be offering to sell the panels at a price of $1000 each that we will split with the artist.) Balance: ($508.21) Timeline: Call to Artists – Jan 1st, 2024  Deadline – February 15th, 2024 Judging & Winner Notification– February 14th – 20th Installation – March 2024 Display – March 2024 – March 2025 This project would be for a one-year period. The benefits of this project will allow for professional art to be on display, changing every year, offering a fresh, new visual perspective and theme. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) The Public Art Committee recommends the approval of the revised art theme "Expressions" and the use of vinyl wrapped panels instead of metal printing for the Pumphouse Art Project 2024   Staff Recommendation(s) There are concerns from staff as to how the vinyl wrap will hold up to the elements at Fountain Park however as a pilot program staff supports the usage on a trial basis. Staff recommend this project, and all projects where revenue is generated by use of Town property for the benefit of an outside group, be financially neutral or 'break even'.  SUGGESTED MOTION MOVE to approve 2nd year Public Art Committee Pumphouse Wall Project Pilot Program Attachments Mounting Bracket 2024 Pumphouse Project  Pumphouse Pilot Program 2024  Form Review Inbox Reviewed By Date Finance Director David Pock 12/07/2023 03:39 PM Town Attorney Aaron D. Arnson 12/08/2023 03:27 PM Town Manager Rachael Goodwin 12/13/2023 08:34 AM Form Started By: Patti Lopuszanski Started On: 11/08/2023 04:59 PM Final Approval Date: 12/13/2023  CURRENT PROJECT VINYL YEAR 1 VINYL YEAR 2 Café $900.00 Café $525.00 Café $525.00 Panels & brackets               $6,278.21 Panels & brackets               $5,000.00 Panels & brackets               $2,500.00 Artist Stipend                     $2,100.00 Artist Stipend                     $1,400.00 Artist Stipend                     $1,400.00 Signage                                $500.00 Signage                                $500.00 Signage                                $500.00 Insurance                         $130.00 Insurance                         $130.00 Insurance                         $130.00 Small Metal photos             $700.00 Small Metal photos             $700.00 Small Metal photos             $700.00 Total Expenses $10,608.21 Total                                     $8,255.00 Total                                     $5,755.00 Income:Income:Income: Sponsors                           $7,000.00 Sponsors                           $7,000.00 Sponsors                           $7,000.00 Potential sales                     $3,500.00 Potential sales                     $1,400.00 Potential sales                     $1,400.00 Total Income $10,500.00 $8,400.00 $8,400.00 Balance -$108.21 $145.00 $2,645.00 Pump House Pilot Program 2024 The Public Art Committee would like to use vinyl dibond boards for 2023. Benefits:1. The material is less expensive that metal.2. The dibond boards can be used over and over whereas the metal cannot.3. The manufacturer has indicated that the vinyl product can withstand the Arizona climate for up to four years, therefore more than adequate for our one-year program.4. The appearnace is the same. The committee also recommends that a framing system be utilized for the boards to be easily slipped into and out of instead of the current permanent bracing system attached to the back of the metal panels. The current bracing system cannot be removed without damaging the art piece and would need to be fabricated every year. The new framing system would be utilized continually. ITEM 9. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Community Services Prepared by: Kevin Snipes, Community Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2023-37 approving Community Services Department Strategic Plan 2024-2027. Staff Summary (Background) The Community Services Department has worked as a team to develop the 2023-2027 Strategic Plan.  This is the updated version of the original 2020-2023 Strategic Plan. The document helps to offer direction for the department by providing forward vision and opportunities for divisional growth over the next three years. The department achieved significant goals during the initial Strategic Plan developed for 2020-2023. Through the collaboration of the departmental leadership team, a unified vision and set of goals have been developed to help guide the Community Services Department’s decision making, priorities and focus. This new plan provides direction and goals within each division of the Department, including Parks, Recreation, Community Center, Senior programs, Volunteers, Events, Trails, etc. The Strategic Plan also helps with public transparency and deliverables for our community. It is intended to assist the public in recognizing and understanding the purpose and objectives of the department.  As part of this effort, the team has solicited and integrated input from the entire Community Services staff, Community Services Advisory Commission, and the McDowell Preservation Commission. All identified goals and visions were designed with feedback from stakeholders, as well as staff input, and layered with the existing Town Strategic Plan in order to create alignment and cohesion. Each of these stakeholders have reviewed the final plan and unanimously recommend Town Council adoption and endorsement.  This plan will be a working document and is intended to be updated periodically with progress and completion details. Related Ordinance, Policy or Guiding Principle Resolution 2023-37 Risk Analysis N/A   Recommendation(s) by Board(s) or Commission(s) The Community Services Advisory Commission and McDowell Mountain Preservation Commission unanimously approved the recommendation for Council approval. Staff Recommendation(s) Staff recommends adoption of Resolution 2023-37 SUGGESTED MOTION MOVE to adopt Resolution 2023-37 approving the Community Services Department 2024-2027 Strategic Plan Attachments Resolution 2023-37 Approving Community Services Strategic Plan 2024-2027  Community Services Strategic Plan 2024-2027  Form Review Inbox Reviewed By Date Finance Director David Pock 12/07/2023 03:39 PM Town Attorney Aaron D. Arnson 12/08/2023 03:26 PM Town Manager Rachael Goodwin 12/12/2023 05:50 PM Form Started By: Patti Lopuszanski Started On: 11/06/2023 02:59 PM Final Approval Date: 12/12/2023  RESOLUTION NO. 2023-37 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING THE 2024-27 COMMUNITY SERVICES STRATEGIC PLAN RECITALS: WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), has determined it is in the best interests of the Town of Fountain Hills (the “Town”) to create and maintain a long-term strategic plan to provide guidance on a number of activities related to the Community Services Department; and WHEREAS, the Community Services Department has prepared a Community Services Strategic Plan for 2024-2027, for Town Council consideration. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The 2024-2027 Community Services Strategic Plan is hereby adopted in substantially the form and substance of Exhibit A, attached hereto and incorporated herein by reference. SECTION 3. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Fountain Hills, Maricopa County, Arizona, this 19th day of December 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 RESOLUTION 2023-37 PAGE 2 EXHIBIT A TO RESOLUTION NO. 2023-37 [2024-2027 Community Services Strategic Plan] See following pages. Town of Fountain Hills Community Services Department 2024 – 2027 Strategic Plan Community Services Strategic Plan 2024-2027 2 | Page Town Council 12.19.23 Town of Fountain Hills Community Services Department Strategic Plan Mission Statement To enrich and provide an active quality of life for all residents and visitors through pro-active community engagement, resolute stewardship of amenities and open spaces, and enhancement of the overall health and well-being of our town. Visions and Themes 1. Provide recreation that inspires personal growth, healthy lifestyles, and a sense of community 2. Expand and strengthen outdoor experiences and opportunities to contribute to the region’s attractiveness as a place to live, work, and play 3. Optimize safe utilization of facilities, amenities, and open space 4. Actively seek progressive, future-oriented options for funding, operations, and programs 5. Embrace a collaborative spirit and support teamwork within the department and the community Community Services Strategic Plan 2024-2027 3 | Page Town Council 12.19.23 Vision 1: Provide community services that inspire personal growth, healthy lifestyles, and a sense of community 1. Support and facilitate programs that appeal to and are appropriate for all ages, demographics, and abilities a. Support more opportunities for free or low-cost events i. Pop up events ii. Event-type consolidation to increase variety b. Expand Community Center Membership by providing additional evening programming c. Develop and grow youth, tot, and teen programs i. Non-competitive sports programs ii. Youth-based hiking and nature program 2. Involve the community to guide future programming a. Develop a needs assessment to guide our department’s programming efforts b. Revitalize current participant surveys and utilize more methods to receive feedback c. Utilize technology to create more ways to offer feedback and suggestions 3. Enhance health and wellness programs and facility offerings to improve quality of life a. Design, develop, and improve park space to encourage more active areas b. Implement creative programs leveraging park features c. Encourage a broad range of fitness programs 4. Develop volunteer program engagement vision and values a. Create Volunteer Engagement and Onboarding Resource Guide b. Develop and Distribute an Online Volunteer Engagement & Best Practices Survey c. Provide quarterly Educational Resources on Volunteerism and Service to all Volunteer groups d. Grow the Essential Volunteer Service Programs Community Services Strategic Plan 2024-2027 4 | Page Town Council 12.19.23 Vision 2: Expand and strengthen experiences that contribute to the region’s attractiveness as a destination to live, work, and play 1. Preserve, protect, maintain, and enhance natural resources, parkland, and recreational opportunities a. Planning - Acquire appropriate land to expand existing park facilities and services b. Environment Design and program activities to be sensitive to the Parks’ environmental sustainability i. Utilize adaptive and native plants in landscape projects that are feasible and plant in the correct location ii. Develop planting and shade standards c. Maintaining parks, recreation, and open space as a vital element in the quality of life for residents i. Design walking path mapping and associated signage 2. Implement unique marketing strategies that highlight activities and inspire increased participation in Town offerings a. Create itineraries for parks, arts, and other programs b. Provide visitor resources in high-traffic locations, including parks c. Utilize social images to promote activities and programs d. Encourage awareness of Community Center convention space availability e. Create a Comprehensive Marketing Plan 3. Expand external organization use of parks and facilities a. Reach out to youth and adult sports organizations i. Explore expansion into skate, lacrosse, football, and soccer b. Continue to monitor market trends to stay competitive with those similar in the valley c. Increase Community Center multi-day conventions d. Continue to improve and maintain park amenities to accommodate growing and changing needs Community Services Strategic Plan 2024-2027 5 | Page Town Council 12.19.23 Vision 3: Optimize public awareness and safe, sustainable utilization of facilities, amenities, and open space 1. Provide a system of safety inspections and maintenance of all equipment and facilities and maintain safe/reliable facilities in an efficient/effective manner a. Parks i. Conduct annual amenity assessment in conjunction with Master Plan benchmarks ii. Perform bi-monthly playground safety inspections using Certified Playground Safety Inspector (CPSI) Standards iii. Develop a bi-annual facility inspection process to promote safety and efficiency b. Community Center i. Analyze and update policies and procedures ii. Work towards an updated maintenance request system with Facilities iii. Develop and train staff on evacuation and safety protocols 2. Foster advocates that share and promote the extensive offerings within Community Services a. Integrate social messaging to expand outreach b. Develop and assign website monitoring for systematic and timely updates c. Create educational events to inspire park ambassadors d. Maintain monthly Community Center art displays and increase public awareness of art exhibits 3. Review and update rules and policies a. Align all rules within parks and facilities to be consistent on all platforms b. Track market trends for changing and modernizing policies and initiatives c. Diversify staff training opportunities to maintain industry-leading level expertise Community Services Strategic Plan 2024-2027 6 | Page Town Council 12.19.23 Vision 4: Actively seek progressive, future-oriented options for funding, operations, and programs 1. Create and advocate for additional open space and recreational areas a. Identify potential pocket park locations within town properties b. Integrate NRPA standards for land use criteria c. Utilize financial resources efficiently and equitably d. Review and adjust expenditures quarterly 2. Refine revenue-producing options throughout the department a. Review cost recovery pricing model to maximize revenue potential b. Maximize staff-run programs and consider options for expansion c. Research local organizations for program and instructor policies d. Expand revenue-generating options within the Community Center i. Evening hours: room availability, MOD model ii. Rental pricing models 3. Work towards alternative revenue sources a. Research and apply for appropriate grant opportunities b. Pursue sponsorships from local and large-scale businesses to expand programming and events c. Support the Finance Department in re-evaluating the Facility Replacement Fund Schedule d. Explore funding options to support essential services e. Evaluate the potential for Friends group – 501 (c)(3) f. Research the benefits of an in-house/freelance grant writer Community Services Strategic Plan 2024-2027 7 | Page Town Council 12.19.23 Vision 5: Lead with a collaborative spirit of teamwork within the industry, department, and community 1. Support department standing as a recognized leader in the community, state, and nation for park and recreation management a. Collaborate with State and Regional Representatives through government outlets, associations, and civic groups b. Participate with the NRPA, APRA, IFEA, Dark Skies, Dementia Friendly c. Develop and publish annual report standards d. Establish a committee to review CAPRA Accreditation 2. Continue to expand the level of public information and involvement in Community Services a. Enhance the public knowledge and appreciation of our natural beauty, open spaces, and historical surroundings b. Continue to showcase Community Services as an essential element of the Town 3. Encourage effective/efficient working relationships within the department and among community organizations a. Offer educational classes for residents highlighting best-known maintenance practices for landscaping b. Conduct local meetings at neighborhood parks to discuss projects c. Update/implement IGA’s and partnerships with community organizations d. Seek internal collaborations to enhance all aspects of the department 4. Provide opportunities for customer feedback a. Deliver positive customer experiences c. Host Community Services public outreach night twice a year d. Analyze program and event data that drive and guide planning efforts 5. Embrace education opportunities, cross-training of staff, and team building a. Create and participate in internal training; leverage digital training b. Develop internal “how-to” guides for Community Services procedures c. Improve operational and strategic communications d. Lead and engage in improving the industry through association participation (present, speak, board, commission) ITEM 9. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION OF CONSIDERATION AND POSSIBLE ACTION: Approving the Capital Improvement Project D6057- Golden Eagle Park Impoundment Drainage improvements. Staff Summary (Background) The Design for the Golden Eagle Impoundment Project is 95% complete for Phase 1 of this drainage improvement project throughout Golden Eagle Park. The Golden Eagle impoundment area receives storm runoff from three washes, Ashbrook wash, Bristol wash and Cloudburst wash, and over time, the storm water runoff volumes have increased (due to increased development upstream). This additional flow through the park requires major modifications to the drainage channels through the Park to minimize the risk of damage to the fields and park amenities during major storm flows. Pending approval of the JE Fuller Contract amendment and completion of final plans, Phase 1 work will include channel improvements, construction of floodwalls, drop basins, grouted rip-rap, irrigation and electrical utility relocation.  Work will begin immediately following league use in the park. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement. Risk Analysis Without this Capital Improvement Project, Golden Eagle Park is susceptible to the major flood damages experienced in past years. Mitigation of these flood hazards is the purpose of this project. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Based on the revenue report from Chief Financial Officer David Pock on November 21, 2023, staff recommend's proceeding with the capital project. SUGGESTED MOTION MOVE to approve Capital Improvement Project D6057- Golden Eagle Park Impoundment Drainage improvements. Fiscal Impact Fiscal Impact:$500,000 Budget Reference:N/A Funding Source:Capital Projects If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Project photo  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 12/06/2023 08:51 AM Finance Director David Pock 12/06/2023 04:09 PM Town Attorney Aaron D. Arnson 12/07/2023 02:02 PM Town Manager Rachael Goodwin 12/13/2023 08:34 AM Form Started By: Justin Weldy Started On: 11/22/2023 08:39 AM Final Approval Date: 12/13/2023  WWW.FH.AZ.GOV D6057 –Golden Eagle Impoundment Area Improvements ITEM 9. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approving Capital Improvement Project D6060 - Town Wide Storm Water Infrastructure Rehabilitation. Staff Summary (Background) On November 21, 2023, the Town Council requested that capital projects which appear in the list of FY24 Delayed Start Projects, be brought back for final authorization prior to starting or continuing to expend funds on those projects. Public Works Staff is seeking Council authorization to proceed with several of these Capital Projects. This project will construct Town-wide stormwater infrastructure maintenance and repair, including pipe cleaning, inspecting, maintenance and treatments, and installation of pipe linings.  One of the projects identified for FY24 and FY25 is at Love Court in the Courtside Villas development.  This project will involve the design and installation of a new catch basin on Love Court with a new connecting storm pipe through an existing easement, and will tie into an existing storm pipe.  The existing storm pipe will be replaced and upgraded, and this will ultimately tie into the same system that Deuce Court drains into (the Deuce Court project was completed in FY23).  Town staff will be applying for a Small Project Assistance Program (SPAP) grant from the Flood Control District of Maricopa County to offset the project cost. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement and Capital Improvement Project Policy.    Risk Analysis Not Approving the project will create prolonged neighborhood flooding and have a negative impact when applying for grants.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Based on the revenue report from Chief Financial Officer David Pock on November 21, 2023, staff recommends proceeding with the capital project. SUGGESTED MOTION MOVE to approve Capital Improvement Project D6060 - Town Wide Storm Water Infrastructure Rehabilitation. Fiscal Impact Fiscal Impact:$150,000 Budget Reference:N/A Funding Source:Capital Projects If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Site Plan  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 12/06/2023 04:23 PM Finance Director David Pock 12/06/2023 04:38 PM Town Attorney Aaron D. Arnson 12/07/2023 02:13 PM Town Manager Rachael Goodwin 12/12/2023 05:41 PM Form Started By: Justin Weldy Started On: 11/22/2023 08:42 AM Final Approval Date: 12/12/2023  ITEM 9. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 12/19/2023 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Public Works Prepared by: Justin Weldy, Public Works Director Staff Contact Information: Justin Weldy, Public Works Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approving Amendment No. 4 to Professional Services Agreement 2019-079 with JE Fuller Hydrology & Geomorphology, Inc. Staff Summary (Background) At the Town Council meeting on January 21, 2020, representatives of J.E. Fuller/Hydrology & Geomorphology presented their recommendations contained in the "Golden Eagle Park Drainage Improvements Study" to minimize future Golden Eagle Park site flooding with a design to accommodate the 10-year design storm, including minimizing the type of damages sustained at Golden Eagle Park during past storms. Based on the Council's direction, J.E. Fuller submitted its proposal for the initial grading and drainage design of those facilities, the "Golden Eagle Park Drainage Improvement - Phase 1.”   As part of the design, due diligence, and discussions with Arizona Department of Water Resources, Maricopa County Flood Control District, Fountain Hills Sanitary District and the Community Services Department, several issues have come to light, requiring an expansion of the project scope, including:  The relocation of shallow irrigation and electrical lines within and across drainage channels and light  pole relocation to increase the channel capacity.  The addition of a floodwall on Cloudburst Wash that contains the design flow without impacting the ball field  Providing a sidewalk extension along Cloudburst Wash that requires a retaining wall and structural calculations.  Evaluation of a pedestrian bridge crossing Bristol Wash as an alternative to the currently proposed sidewalk relocation (initial analysis will define a concept location, design, and cost estimate); and  Replacement of existing 5-foot sidewalks with 8-foot multi-use fitness path (MUP) sidewalks, connecting the north and south side of the park and fitness loop around the back of Golden Eagle Park. These MUPs need to meet ADA-accessible route guidelines and will serve as vehicle maintenance.  All the items listed above, and the necessary time required for State, County, and local Governments to review and comment on the changes related to each of the proposed changes have impacted the Town Staff’s and J.E. Fuller’s ability to complete the design in a timely manner.  Incorporating the expanded scope items described above, including securing a Landscape Architect and Structural Engineer, has resulted in several delays and amendments. The plans are currently 90% complete. In order to complete the final design of Phases I & II  an additional allocation of $111,862 is needed.  Related Ordinance, Policy or Guiding Principle This project is currently allocated in the Capital Improvement Project fund. Risk Analysis Not approving this contract amendment leaves Golden Eagle Park susceptible to the major flood damages experienced in past years. Mitigation of these flood hazards is the purpose of this project. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the Fourth Amendment to Professional Services Agreement 2019-079 with JE Fuller Hydrology & Geomorphology, INC. SUGGESTED MOTION MOVE to approve Amendment No.4 to Professional Services Agreement 2019-079 with JE Fuller Hydrology & Geomorphology, INC. in the amount of $111,862. Fiscal Impact Fiscal Impact:$111,862 Budget Reference:N/A Funding Source:Capital Projects If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Professional Services Agreement  Scope and Fee  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 12/06/2023 08:51 AM Finance Director David Pock 12/06/2023 04:08 PM Town Attorney Aaron D. Arnson 12/07/2023 02:15 PM Town Manager Rachael Goodwin 12/12/2023 05:38 PM Form Started By: Justin Weldy Started On: 12/05/2023 02:27 PM Final Approval Date: 12/12/2023  1 Contract No. 2019-079.4 FOURT AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND JE FULLER/HYDROLOGY AND GEOMORPHOLOGY, INC. THIS THIRD AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT (this “Third Amendment”) is entered into upon execution between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”) and JE Fuller/Hydrology and Geomorphology, Inc., a(n) Arizona corporation (the “Consultant”). RECITALS A. The Town and the Consultant entered into a Professional Services Agreement (the “Agreement”), dated April 24, 2019, for the Consultant to provide concept design and related services (the “Services”). B. The Town and the Consultant entered into a First Amendment dated March 1, 2020 to amend the Agreement to (i) add to the scope of work and (ii) provide for compensation to the Consultant for the Services, and (iii) extend the term of the Agreement. C. The Town and the Consultant entered into a Second Amendment dated January 4, 2022 to amend the Agreement to (i) add to the scope of work (Exhibit B) and (ii) provide for compensation to the Consultant for the Services. D. The Town and the Consultant entered into a Third Amendment to amend the Agreement to extend the term of the Agreement. E. The Town and the Consultant desire to enter into this Fourth Amendment to amend the Agreement to (i) add to the scope (Exhibit C), and (ii) extend the term of the Agreement, and (iii) increase the authorized “not to exceed” amount for additional services. All capitalized terms not otherwise defined in this Fourth Amendment have the same meanings as contained in the Agreement. 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: 2 1. Term of Agreement. The term of this Agreement is hereby extended until June 30, 2024, unless terminated as otherwise provided pursuant to the terms and conditions of the Agreement. 2. Compensation The Town shall pay the Consultant an aggregate amount not to exceed $437,294.90. 3. EXHIBIT C. Exhibit C is hereby incorporated by this reference. 4. 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. 5. Non-Default. By executing this Third 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 Third 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 Third Amendment are forever waived. 6. Conflict of Interest. This Third Amendment and the Agreement may be cancelled by the Town pursuant to Ariz. Rev. Stat. § 38-511. [SIGNATURES ON FOLLOWING PAGES] EXHIBIT C TO PROFESSIONAL SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND JE FULLER/HYDROLOGY AND GEOMORPHOLOGY, INC. [Scope/Fees] See following pages. www. jefuller.com Tempe, AZ Tucson, AZ Flagstaff, AZ Prescott, AZ Silver City, NM October 10, 2023 Justin Weldy Public Works Director Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, AZ 85268 RE: Golden Eagle Park Drainage Improvement – Phase 2 Post-Design Services for Phase 1 and Golden Eagle Park Dam Outlet Rehabilitation Design Scope of Work and Fee Estimate Dear Mr. Weldy: Thank you for requesting professional services from JE Fuller/Hydrology and Geomorphology, Inc. (JE Fuller). We are very interested in the opportunity to continue working with the Town on the Golden Eagle Park Drainage Improvement (GEPDI) project and associated work on Golden Eagle Park Dam (GEPD) facilities. This document summarizes our understanding of the work and outlines the proposed scope of services to be completed. BACKGROUND JE Fuller and our subconsultants, Ethos Engineering and Dig Studio, have recently completed and submitted a 100% design package for the Phase 1 improvements to the Town for review and comment. This work will include addressing those comments and preparing the final GEPDI Phase 1 bid package (report, plans, specifications, and unit item bid schedule) in cooperation with the Town. Our team will provide post-design services to support the construction of GEPDI Phase 1. JE Fuller and our sub-consultant Ethos Engineering will also provide engineering design and dam safety permitting support for the rehabilitation of the trash racks on two GEPD outlet structures, plus an analysis of downstream grading and scour conditions for the same outlet structures to address ADWR comments. It is also understood that the Town will likely cooperate with the Fountain Hills Sanitary District (FHSD) to jointly construct the FHSD manhole protection improvements and the GEPDI Phase 2 improvements, since both will require special provisions for ADWR permitting, inspections and QA/QC, and project close-out documentation. This scope of work (SOW) outlines the Phase 2 services that are requested by the Town. P a g e | 2 www. jefuller.com SCOPE OF WORK TASK 1 – Project Management/Coordination JE Fuller will provide regular project management and schedule maintenance for the post-design and Phase 2 work to include contract management, regular coordination with Town officials and other stakeholder agencies, and up to six regular progress meetings via Zoom Conference calls or in-person at Town Hall. TASK 2 – GEPDI Phase 1 Bid Package The JE Fuller team will address any final comments from the Town regarding the Phase 1 design package and assist the Town with preparing a bid package for the selection of a qualified contractor. JE Fuller will participate in a pre-bid conference at Town Hall and assist with contractor selection as needed and requested by the Town. TASK 3 – GEPDI Phase 1 Post-Design Services JE Fuller and our subconsultants Ethos Engineering and Dig Studio, will provide regular post-design services as the Engineer of Record, to respond to material submittals, shop drawings, and requests for information (RFIs) for the Phase 1 construction. This scope also includes site inspections when necessary and requested by the Town. JE Fuller will also review as-builts and record drawings provided by the Contractor. QA materials or field testing, construction management, or other construction related tasks not specifically stated above are not included in the work. TASK 4A – GEPDI Phase 2 Preliminary Design JE Fuller and our subconsultant Ethos Engineering will research and evaluate alternatives for trash racks and downstream vegetation, sedimentation, and scour conditions for the two GEPD outlet structures. The work tasks will include: • Literature research on trash rack alternatives suitable for use on GEPD structures that account for matting debris that nearly failed the existing trash racks that have been removed. • Field reconnaissance to document conditions at the inlet and outlet of the outlet structures. • Hydrologic, hydraulic, sediment transport, and scour (HHSTS) analyses to document existing and post-design conditions as appropriate. • Preparation of a brief technical memorandum and concept design plans to document the findings and analysis. • Coordination of findings with the Town, FCDMC, Stantec, and ADWR to gain input and concurrence on proposed solutions. TASK 4B – GEPDI Phase 2 Final Design JE Fuller and our subconsultant Ethos Engineering will prepare final design plans , specifications, quantity and engineer opinion of probable cost (EOPC) for the proposed Phase 2 designs agreed upon from Task 4A. Plans will be submitted at 60%, 95% and Final as they are not expected to be overly complicated or lengthy. Each submittal will be distributed to the Town, FCDMC, Stantec (if required), and ADWR for review and comment. Included with the construction documents will be a Construction P a g e | 3 www. jefuller.com Quality Assurance (CQA) Plan with all elements required by ADWR as appropriate for the proposed improvements. Implementation of the CQA Plan will rest jointly with the Town and FHSD if the two projects are constructed jointly. JE Fuller will also work with the Town to determine if the GEPDI Phase 1 Contractor is suitable for amending the Phase 2 contract to their work. This will likely require an interview with the contractor and follow-on discussions with the Town. Should it be necessary to procure a separate contractor, JE Fuller will work with the Town to prepare a bid package and secure a contractor. JE Fuller will also assist the Town with selecting an appropriate CQA testing firm to meet ADWR requirements, but the firm must be retained by the Town. TASK 4C – GEPDI Phase 2 ADWR Application Prior to starting on Task 4B, JE Fuller will coordinate and schedule a pre-application meeting with ADWR to ensure that there is a full understanding by ADWR of the proposed Phase 2 elements and by the project team on ADWR requirements related to applying for the dam safety permit. JE Fuller will prepare all the requisite dam safety application documents required by ADWR and submit them with each plan stage submittal. ADWR comments will be addressed with each submittal. ADWR requires paper copies to be submitted so NTE costs will include reproduction and plotting costs. TASK 5 – GEPDI Phase 2 Post Design Scoping Once the Phase 2 project scope design is known, JE Fuller will develop a scope and fee proposal to provide the EOR support for the Phase 2 construction and in particular, coordination with ADWR on inspections and post application material submittals. FEE AND SCHEDULE JE Fuller will initiate work on the base tasks within one week of notice to proceed (NTP) and a signed contract. JE Fuller will bill these services on a time and materials basis not to exceed the amount of $93,197 as outlined in Fee Table 1. TERMS AND CONDITIONS The following terms and conditions apply: 1. Data Provided by the Clients: The following will be provided by Client at no cost to JE Fuller: a. Topographic data, property boundaries, utility locations, pertinent grading and drainage plans, etc., if available. 2. Services not included in this scope of work. The following services are not included in this scope of work but can be added for additional fee: a. Tasks not specifically identified in the scope of work above. b. Landscaping Design c. Environmental Permitting P a g e | 4 www. jefuller.com d. Agency review fees e. CLOMR/LOMR Applications f. Geotechnical Services g. Survey/Construction Staking h. Hard Copy Full Size Plans, Blueprints, or Mylars unless otherwise specified. Table 1. Fee Estimate Thank you again for requesting our services. We are looking forward to continuing our work with you on this project. Sincerely, JE Fuller/Hydrology & Geomorphology, Inc. W. Scott Ogden, P.E, CFM President/CEO Project Manager Senior Engineer Project Engineer EIT/CAD Designer Task 210$ 172$ 137$ 122$ 1 Project Mangement/Coordination 40 20 11,840$ 2 GEPDI Phase 1 Bid Package 8 8 16 5,248$ 3 GEPDI Phase 1 Post-Design Services 16 40 16 12,432$ 4A GEPDI Phase 2 Preliminary Design 8 40 20 20 13,740$ 4B GEPDI Phase 2 Final Design 16 20 40 80 22,040$ 4C GEPDI Phase 2 ADWR Application 16 20 20 9,540$ 5 GEPDI Phase 2 Post Design Scoping 4 4 1,528$ Labor NTE Total:76,368$ 249$ 1,000$ 29,245$ 5,000$ Direct Costs NTE Total:35,494$ 111,862$ FULL PHASE 2 NTE TOTAL: Golden Eagle Park Drainage Improvements Fee Estimate - Phase 2 Post-Design and GEPD Rehabilitation Design Direct Costs Mileage (380 mi @ $0.655/mi) Subconsultant - Structural - Ethos Engineering Subconsultant - Landscape Architecture - Dig Studio Printing, Plotting, Postage (at cost) - for ADWR Submittals