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HomeMy WebLinkAboutAGENDApacket__06-04-24_0541_608       NOTICE OF MEETING REGULAR MEETING FOUNTAIN HILLS TOWN COUNCIL      Mayor Ginny Dickey Vice Mayor Brenda J. Kalivianakis Councilmember Peggy McMahon Councilmember Hannah Toth Councilmember Gerry Friedel Councilmember Sharron Grzybowski Councilmember Allen Skillicorn    TIME:5:30 P.M. – REGULAR MEETING WHEN:TUESDAY, JUNE 4, 2024 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 June 4, 2024 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 Dr. Cathy Northrup, Community Church of the Verdes.    3.ROLL CALL – Mayor Dickey     4.STATEMENT OF PARTICIPATION     5.REPORTS BY MAYOR, COUNCILMEMBERS AND TOWN MANAGER     A.PROCLAMATION: Designation of December 5th as John Cutillo Day.     6.PRESENTATIONS     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.     A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Town of   Town Council Regular Meeting of June 4, 2024 3   A.CONSIDERATION AND POSSIBLE ACTION: Approval of the minutes for the Town of Fountain Hills Town Council Work Session - Budget Workshop of April 9, 2024, and the Regular Meeting of April 16, 2024.      B.CONSIDERATION AND POSSIBLE ACTION: Approval of Resolution 2024-24 for an Intergovernmental Agreement with the Maricopa County Justice Court to provide video appearance services for the Fountain Hills Municipal Court.     C.CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-19 approving the designation of Chief Fiscal Officer of the Town of Fountain Hills for FY24.     D.CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-20 approving the designation of Chief Fiscal Officer of the Town of Fountain Hills for FY25.     9.REGULAR AGENDA     A.PUBLIC HEARING regarding Resolution 2024-17, approving the final budget for the Town of Fountain Hills for the fiscal year beginning July 1, 2024, and ending June 30, 2025.    RECESS REGULAR MEETING OPEN SPECIAL MEETING CONSIDERATION, AND POSSIBLE ACTION: RESOLUTION 2024-17 - ADOPTION OF FINAL BUDGET; RESOLUTION 2024-18 - BUDGET IMPLEMENTATION POLICY Town Council will consider a request to: (a) Adopt Resolution 2024-17, approving the Final Budget for the Town of Fountain Hills for the fiscal year beginning July 1, 2024, and ending June 30, 2025; (b) Adopt Resolution 2024-18, approving and establishing the FY25 Budget Implementation Policy and approving the Town's organizational charts, pay plans, schedule of authorized positions, updated employee job descriptions, and comprehensive fee schedule for fiscal year 2025.     B.CLOSE SPECIAL MEETING RECONVENE REGULAR MEETING     C.CONSIDERATION AND POSSIBLE ACTION: Waiving attorney-client privilege for limited purpose of releasing draft wireless facilities ordinance.      D.CONSIDERATION AND POSSIBLE ACTION:  Expanding the review of Zoning Ordinance Chapter 17, Wireless Telecommunications Towers and Antenna, to include review of Town Code Article 16-2, Small Wireless Facilities, and authorizing the Planning and Zoning Commission to provide a recommendation to the Town Council regarding modifications to these ordinances.     E.CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-30, approving one of the Intergovernmental Agreement renewals presented to Council with the Regional Public Transit Authority - Valley Metro, relating to transit services in Fountain Hills.   Town Council Regular Meeting of June 4, 2024 4     F.CONSIDERATION OF AND POSSIBLE ACTION: Approval of Cooperative Purchasing Agreement 2024-067 with Empire Caterpillar.      G.CONSIDERATION AND POSSIBLE ACTION: Relating to any item included in the League of Arizona Cities and Towns' weekly Legislative Bulletin(s), or relating to any action proposed or pending before the State Legislature.      10.COUNCIL DISCUSSION/DIRECTION to the TOWN MANAGER Item(s) listed below are related only to the propriety of (i) placing such item(s) on a future agenda for action, or (ii) directing staff to conduct further research and report back to the Council.     11.FUTURE AGENDA ITEMS     12.ADJOURNMENT         CERTIFICATE OF POSTING OF NOTICE The undersigned hereby certifies that a copy of the foregoing notice was duly posted in accordance with the statement filed by the Town Council with the Town Clerk. Dated this ______ day of ____________________, 2024. _____________________________________________  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 June 4, 2024 5   ITEM 5. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Reports                  Submitting Department: Administration Prepared by: Angela Padgett-Espiritu, Executive Assistant to Manager, Mayor/Council Staff Contact Information: Request to Town Council Regular Meeting (Agenda Language):  PROCLAMATION: Designation of December 5th as John Cutillo Day.  Staff Summary (Background) Mayor Dickey will proclaim December 5th as John Cutillo Day in the Town of Fountain Hills.    Attachments Proclamation - John Cutillo Day  Form Review Form Started By: Angela Padgett-Espiritu Started On: 05/23/2024 08:23 AM Final Approval Date: 05/23/2024  ITEM 8. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 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 Town of Fountain Hills Town Council Work Session - Budget Workshop of April 9, 2024, and the Regular Meeting of April 16, 2024.  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 Town Council Work Session - Budget Workshop of April 9, 2024, and the Regular Meeting of April 16, 2024. SUGGESTED MOTION MOVE to approve the minutes of the Town Council Work Session - Budget Workshop of April 9, 2024, and the Regular Meeting of April 16, 2024, as presented. Attachments Verbatim Transcript  Verbatim Transcript  Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 05/22/2024 05:35 PM Finance Director Linda Mendenhall 05/24/2024 06:17 PM Town Attorney Aaron D. Arnson 05/27/2024 03:52 PM Town Manager Rachael Goodwin 05/28/2024 07:25 AM Form Started By: Linda Mendenhall Started On: 05/22/2024 05:28 PM Final Approval Date: 05/28/2024  TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL APRIL 9, 2024 A Work Session – Budget Workshop of the Fountain Hills Town Council was convened at 16705 E. Avenue of the Fountains in open and public session at 4:30 p.m. Members Present: Mayor Ginny Dickey: Vice Mayor Brenda J. Kalivianakis; Councilmember Gerry Friedel; Councilmember Peggy McMahon; Councilmember Sharron Grzybowski; Councilmember Hannah Toth; Councilmember Allen Skillicorn (arrived at 4:33 p.m.) Staff Present: Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately fourteen members of the public were present. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 1 of 65 Post-Production File Town of Fountain Hills Town Council Work Session (Budget Workshop) Meeting Minutes April 9, 2024 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 APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 2 of 65 MAYOR DICKEY: Good afternoon -- I was going to say evening -- everyone. We're here for a budget work study session. And we're informal, but I think we do a roll call, right? MENDENHALL: Yes, we do, Mayor. Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Friedel? FRIEDEL: Present. MENDENHALL: Councilmember McMahon? MCMAHON: Here. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MENDENHALL: Councilmember Toth? TOTH: Here. MENDENHALL: Councilmember Skillicorn on the phone or -- okay. MAYOR DICKEY: Thank you. Rachael, you want to kick it off? Thanks. GOODWIN: Sure. Happy to. Welcome to our budget workshop. Yay. As we were commenting, this is the most exciting day of the year around here. One of them anyway. As has been sort of the approach the last couple of weeks, you guys got an email late last week with some details outlining what we're going to do today, what we're going to talk about. But I think it's always important to sort of outline the value of why do we do a budget. What's the big deal? At the heart of every thriving community lies a carefully constructed budget. It's a blueprint that advocates and allocates financial resources that reflect our collective priorities, values, and aspirations. Together, we must exercise prudence and pragmatism in our decision-making, prioritizing projects that will yield long-term benefits for our community while ensuring that essential services remain accessible to all residents. Through open dialogue, transparent decision-making, and a commitment to fiscal responsibility, we can build a budget that not only meets the needs of today, TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 3 of 65 but also lays the groundwork for a prosperous tomorrow. I want to take this opportunity to commend our staff for their commitment and careful thought -- careful and thoughtful fiscal practices. Through their foresight and sound judgment, they demonstrate a dedication to safeguarding our financial stability, even in the face of uncertainty and challenges. And you'll hear more about that as we go through our budget today. However, the staff does not operate in isolation. We are supported and guided by the leadership of our mayor and council, who bear the weighty responsibility of representing the varied interests of our community. As stewards of public trust, it is incumbent upon us to work collaboratively to shape a budget that reflects our collective vision for the future. So let us proceed with a shared commitment to crafting a budget that reflects our values and serves the best interests of all those we are privileged to represent. So today, we will kick everything off and we will be led by our new CFO, Paul Soldinger. He's going to lead the way for us today and present the details of our proposed FY25 budget. SOLDINGER: All right. Thank you, Rachael. Mayor, councilmembers, thank you for the opportunity. I'm here tonight -- this afternoon -- to go over the proposed fiscal year 2025 budget and provide the details to council for their consideration. So we'll start by going over fiscal year '24, our current year-end estimates for fund balances. So we anticipate having about $10 and a half million of restricted fund balances in the town's restricted funds at year-end. These types of funds are externally restricted by statute. For example, on the screen, you'll see the streets fund. Statute requires towns to only spend monies in this fund for highways and streets purposes. And we anticipate having almost $8 million set aside in this fund for those purposes. Further, the bottom three funds, the development fee funds, are restricted by statute to maintain levels of necessary public services to keep up with new development within the town. As you can see, we have about $2.2 million of combined anticipated TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 4 of 65 development fee fund balances at fiscal year-end. But keep in mind that two of the planned proposed capital projects will eat up about $1 million of the parks development fee fund balance. MAYOR DICKEY: Paul, I promise I won't do this on every slide, but the special revenue fund -- oh, I'm sorry, the debt service fund, I mean. Is that just Eagle Mountain or do we -- because I know we don't have any debt, so to speak. So what is that and how is it funded? SOLDINGER: Mayor, council, great question. So a majority of those monies are in the general obligation bond debt fund from several years ago. I think, you know, I'm newer to the town, but I believe it was about nine or ten years ago that the town went through that process of issuing bonds. So there's still existing fund balances in that fund, and there's still a little bit of fund balance in the other two funds as well. MAYOR DICKEY: But what debt do we have besides -- because the Eagle Mountain is just a pass-through thing. So -- SOLDINGER: Mayor, council, we have no outstanding debt. We just have fund balances in those funds. So we also expect to have about $13 and a half million of year-end fund balances in the town's committed funds. These funds are imposed by past council actions and town policy requirements. So the top fund, the stabilization fund, as you can see, that's our rainy day fund. And town policy requires us to keep about 20 percent of the average of the past five years of general fund revenues in that fund within the general fund. So it's a rainy day fund for emergencies and things like that. The second fund below is the capital projects fund, which we discussed during our capital projects work session on our last work session recently. And we anticipate having about $6.9 million in that fund at fiscal year-end. In our assigned funds, we expect to have about $8.3 million of year-end fund balances to be used on purposes imposed by town policies, such as setting aside monies for facilities, vehicles, and technology replacements. I just want to note that of the $5.3 million in the facility's reserve fund that we anticipate having at fiscal year-end, 4 million TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 5 of 65 of that $5.3 million is specifically set aside for the lake liner project that will come in future years. MAYOR DICKEY: The environmental fund, one of the things we talked about a little bit was eliminating it just because of the fact that it's not generating any money in a different way. And I know that we talk about it because we can use it for stormwater and we can use it for culverts, and there are a lot of things that we can actually use it for. Did staff have any desire to eliminate that, so to speak? Do you find it useful to have something that's dedicated to culverts and stormwater, or should we just keep that with the public works? And then, if later we decide to have another discussion about raising some kind of fee, we could maybe revisit the public safety fee. So would it help or is it anything that you would look at wanting to do to sort of stop separating this out anymore? GOODWIN: Mayor, good question. And I think we get to it a little bit later in our presentation. And sorry for jumping ahead on you, Paul. Yes, so the recommendation right now is to sunset the environmental fund if there is no dedicated funding source. So right now we have the funds in there, and so you'll note as we move through that, we will be starting to allocate those funds to spend that balance down essentially to zero. And then if we have a future conversation about something else, yes. It's always good to have stuff that's earmarked so folks know where the money is going and what it's dedicated to. But in this instance, because there's no dedicated funding source, it's not good fiscal practices to have that sort of carve-out. Does that answer your question? MAYOR DICKEY: Yes. GOODWIN: Great. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. If we can go back, just like, I think two screens to committed funds and the downtown strategy fund. I think the downtown strategy fund is funded by 20 percent of 0.1 percent of the TPT. I know we talk a lot about taking out of capital improvements and putting it into downtown strategy fund. And this might be TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 6 of 65 a good question for you, Amanda, but would it be a good policy to maybe just earmark more funds for downtown and so we don't have to raid other funds, and that'll just be self-generating? SOLDINGER: Mayor, Councilwoman, it's a great question, and I'll have Amanda come up in just a second to kind of address your question. But to the first part of your comment, yes. So for the local sales tax rate of 2.9 percent, you're exactly right. Of that, 2.9 percent, .01 percent goes into economic development type funds, and 20 percent of that 0.01 percent goes specifically into the downtown fund, which makes up this fund balance. And I'll let Amanda take over. JACOBS: I didn't think the CFO would give me the mic. Madam Mayor, Councilmember Kalivianakis, if it were up to me? Yes, let's do it. Is there a motion? We're not making motions today. But really, that's up to the town manager and her recommended budget. So I leave it to Manager Goodwin as well as our CFOs. And then obviously, as we're having council retreats, these are the opportunities to get further clarification and direction from council. I think historically -- and again, I'll look to Manager Goodwin and Mr. Pock to help me -- but when we're looking at sidewalks that would come from public works, for example. KALIVIANAKIS: Yeah. JACOBS: As we're looking at certain things within the Linear Park, that's a capital improvement project and then is managed under community services. So it doesn't necessarily need to come from the downtown strategy fund. It could come from capital projects. Did anyone want to weigh in? GOODWIN: I'll be happy to chime in. The conversation -- all of what you said is correct. I think the conversation needs to be as well, as where do we anticipate pulling that funding source from? Because if we were to change the ratio of that divide, we're just taking it from one pot to another. It's not new money. It's not a new revenue stream. We're just dividing the pie in a different way. So if we wanted to earmark more into to create a more robust downtown strategy fund, it's really just sort of trickling it off from TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 7 of 65 another place where the rest of that goes, which I'm assuming -- I think the rest of the TPT goes into the general fund? Yes. So we would just be pulling, you know, again, just sort of trickling from the general fund into the downtown fund. Obviously, the downtown fund has a different purpose and it's governed differently as well. So that would be one of the conversations, if that's something you guys would like to see. KALIVIANAKIS: Yeah. Thank you. And yeah, I guess my point was instead of tapping other funds to go into this fund, we could just fund this and then let Amanda just say, okay, well, this is how much we have, and this is our downtown vision plan, this is our strategy fund. And those two can align according to priority, how much we prioritize those. And so then it wouldn't have to keep coming to us, quarterly or whatever, and like, we need more money, we need more. No, we've given you the money. So you have to spend on what you think would be best for the downtown vision. So it'd be a new way to look at it, but -- GOODWIN: It would. KALIVIANAKIS: -- I think it'd be worth having a discussion about. GOODWIN: Well, and perhaps that discussion aligns with when the downtown strategy process is complete later this year, as we kind of bring that online and find out what those recommendations really are and what we really foresee happening, then we can perhaps throw -- put a real dollar amount to it and a vision as to how, and the timeline for that. JACOBS: So I concur with Manager Goodwin. I think maybe keep things the way they are. And then the plan in October -- September, October is to bring that plan before council and you see those priorities, and we're getting your stamp of approval. So then when we come November, right, and start to get more priorities and we're planning for fiscal year '26 budget, then it's all in alignment. So I would say maybe leave things the way they are. I love the forward-thinking. We're all in alignment too with staff, and then we take care of it this fall. Thank you. MAYOR DICKEY: Just on that note, I'm glad that you're saying -- you don't have to come TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 8 of 65 back, but I guess I'm a little bit surprised because the bigger pot is economic development. And then what we're drawing from is economic development for downtown. So I would think that looking holistically at the whole town, we might want to keep it there. But you just said that, so that's good. Thank you. I think we have a question from Councilwoman McMahon. MCMAHON: Thank you very much. Going back to assigned funds and if we sunset the environmental fund. SOLDINGER: Yes. MCMAHON: Can those funds be used for anything, or do they have to be applied specifically to a particular area? SOLDINGER: Mayor, Councilmember, good question. So my understanding of it is the town used to impose a environmental fund fee to the citizens of the town that we collected in the past, and we have that existing fund balance. So those amounts are assigned based on policy restrictions for the purposes of watershed improvements -- something like that. Right? Is that the best - stormwater improvements. Excuse me. So those are the only purposes we can use those monies for at this time. And as the town manager mentioned, towards the end of our presentation will indicate that we budgeted to expend those monies in totality for this coming fiscal year. MCMAHON: Okay. Thank you very much for the clarification. SOLDINGER: No problem. Real quick, Mayor, Councilwoman, just to go back to some of your comments. I just wanted to add a couple items for your consideration. In the proposed capital projects that we've already discussed and I'll touch on later in my presentation, one of those projects is kind of earmarked to come from those downtown funds, the downtown restroom project. And so if we do move forward as a town with that project, that will expend about 80 percent of that fund balance. So just keep that in mind as we go forward. And just to give you an idea of how much monies are going in that fund each year based on fiscal year 2025 projections, we project about $120,000 to be deposited into that fund our next fiscal year. Oh, so before I move on, I want to touch on the unassigned TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 9 of 65 funds. It's a really important fund balance to kind of get into based on town policy considerations. As we noted at the CIP work session, we will be recommending a $2 million transfer to the facilities reserve fund that you see above. Currently it has $5.3 million. Of that $2 million, we're recommending that $1 million of that $2 million be set aside for the lake liner project as well, because that will be a significant expenditure in the future. Town policy, just like the other fund balance I just mentioned, the rainy day fund, town policy also requires us to keep the same amounts in this unassigned fund balance, so we're required to keep about $4 and a half million after fiscal year-end in that fund balance. And that will leave over about $4.7 million that town policy will require us, after fiscal year-end, to transfer into the capital projects fund. And that's one of the items that I mentioned during the CIP work session as well, that made up that $11 and a half million of total available for capital projects. FRIEDEL: Paul, I have a quick question. So did I hear you right? The facilities reserve fund, four million of that is lake liner? SOLDINGER: Mayor, Councilmember, yes. FRIEDEL: Okay. SOLDINGER: Exactly. FRIEDEL: Thank you. SOLDINGER: So just briefly, to give you an overview of all funds across the town. We estimate that we'll have about $43 and a half million of anticipated fund balances at year-end, which is about a $1 and a half million increase from the prior fiscal year, which is just a tribute to our conservative budgeting practices and methods. And below, if you're interested, those are some of the metrics that we use. Just like I mentioned, we're required by policy to maintain a certain fund balance, which is 20 percent in two different buckets in the general fund. Of those, the five-year average of general fund revenues on the screen of $22 million. MAYOR DICKEY: That 50 percent and six months is basically a good goal to have? SOLDINGER: Mayor, that's just -- 50 percent is the unassigned fund balance as a TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 10 of 65 percentage of the annual the -- the average of the annual general fund revenue. So we're just trying to say we have $11.3 million before we have to do all those transfers. That's really like unrestricted monies that we could use before those transfers. So we could cover basically half the year of general fund operations if need be, if an emergency occurs, things like that. All right. So now we're just going to get into our overall budget process, something we've already touched on in other work sessions. And we're going to get into some of our fiscal year 2025 projections. So as we've mentioned, we start at our base budget from the prior year. We also consider contract modifications, things like benefit changes and things of that nature. And then we go through the supplements process ,where departments submit those supplements to us and we discuss them with each department during departmental meetings. And then we conduct an internal needs assessment with the town manager. And then town manager recommendations are included in the proposed budget that we're discussing today, to maintain core services and programs for our town citizens. And then we go through this process where we meet with you and present the information, receive the input from the council, and we incorporate that into the tentative budget which we'll bring forth next month, in May of 2024. And then after that, it's kind of the final budget that's adopted in June of 2024. Just some brief overall budget considerations. The proposed budget book is available on the town's website to council as well as the public. You received an email with the link. It's also here. We have some links throughout if we need to refer to it, but we did want to go over some key terms real quick. Budget authority is not the same as fund balance or contract authority. Fund balance, kind of like we've talked -- like this concept of buckets -- it's basically monies that we have in these buckets that can be used for different purposes for the town. So it's basically -- think of it as cash in the bank. It's like a savings account, but we can only use them for certain purposes, depending on statute or other restrictions. Budget authority -- or actually, let me refer back to the fund balance slides that I went over in the beginning. That's kind of what we're talking about. We have that money for those TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 11 of 65 purposes like, we talked about the environmental fund. We can use those for stormwater improvements and things of that nature. So that's what we're talking about when we're going through the presentation. Now, budget authority is the departmental permission to use the cash. So once the budget is adopted, throughout the year each department has their own budget that they can expend from to meet the town's objectives and provide services to our citizens. And lastly, contract authority is essentially the terms and conditions agreed to in those contracts between the town and each vendor that we work with. So real quick, some overall budget considerations. Of course, the expenditure limitation for fiscal year 2025 is going to be important during the final processes of getting this budget together through the tender process, and the state has set the town's expenditure limitation at about $35.6 million. You'll see later in the presentation that our total budget expenditure is going to exceed that amount. But that's just because there are certain exclusions that are allowed, such as grant monies, HURF monies, debt -- if we had debt proceeds that we were spending -- and things like investment earnings. So we consider all that through the tentative budget process and we'll discuss that a little bit later on. And if revenues are less than expected or less than our projections, expenditures must also be reduced to maintain fund balance. MAYOR DICKEY: Paul, with the grants you have -- when we were going through the capital improvement, we know that sometimes we have to put the money up and then we get reimbursed. So is it the actual amount that we put forward? Are we allowed -- we're allowed to spend that if it goes over and then we're going to get reimbursed or how does that balance page look like? SOLDINGER: Sure. Mayor, council, great question. I'll try to explain it, but it's a little confusing to explain. But if we think back -- and I'll get into the capital projects in a little bit too. But if we think back to the capital project work session, we talked about $3 million of capital projects that could be funded partially by grants. And we talked about, let's say, 2 and a half million of that 3 million could be covered by grants, but we'd have TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 12 of 65 to get reimbursed after the fact. So through our budget process, we're required to budget for the full amount, because we'll expend that upfront. And once -- again, we'll talk about this too, but we wouldn't even move forward on those projects unless we were able to obtain the grant funding. So once we go through that process we spend the $3 million, we get the $2 and a half million back, that $2 and a half million we can use as an exclusion to say, hey, these weren't really monies that should be considered under the expenditure limitation, because that's not really the purpose of the expenditure limitation. So that's just one of the items that we're able to exclude as a town. MAYOR DICKEY: But not the amount that we spent? If like, so we actually had to match or whatever, that is not excluded from the authority? SOLDINGER: Mayor, you're absolutely correct. Not the amount that's the town match, it's just the amount that's reimbursed from the grant monies that we can exclude. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. I just had a quick question about the expenditure limit. As I recall, last year it was at $43 million, this is 35. I assume I know the answer to this already, but can you kind of go over why there's such a big difference? SOLDINGER: Sure. Mayor, Councilmember. Yeah, great question. So the $43 million you're citing, I believe, is the total budgeted expenditures last year. The expenditure limitation, it only goes up year-to-year -- as far as I know. I've never seen it go down. But essentially how it works is in 1980, the state set the expenditure limitation, then each year they increase it based on two factors: being the population of the municipality of the town and inflation factor. So last year it was around $34 million, 33 to $34 million, but I could get back to you with the exact amount, Councilmember. MAYOR DICKEY: But that's just an expenditure limit. It doesn't mean we have to or -- it just gives us the authority to do that should we have a project or come into more revenue than we thought, but we don't have to spend that money. SOLDINGER: Mayor, yes. The expenditure limitation is there to ensure that we're just TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 13 of 65 not -- we get a whole bunch of money and we're just spending it, you know? It kind of -- it's like a check and balance for the government for a municipality. So you'll see throughout the presentation, that even though we're considering the exponential limitation through our budgetary process, that our budget is really the limit of our expenditures as a town. You're often going to see that our expenditures come in well below. And that's just another consideration along the way that we have to take into account that we have to stay under as a town. Mayor, Councilmember Skillicorn, David just mentioned that last year's expense limitation was $34.3 million. So revenue assumptions. Town staff remains conservative when estimating revenues. We actually just got our third quarter fiscal year 2024 revenue reports in very recently, and we wanted to highlight this. It's a good example of our conservative revenue projections. So far through this current fiscal year, we've exceeded projections by about 34 percent for TPT taxes. We brought in about $15.2 million, while we budgeted about $11.3 million through the first nine-month period. So also on this slide, it's good to understand that preliminary state-shared revenue estimates were received from the league. We use those, they're very accurate year-to-year. And we actually just received the final projections and I believe they are very, very similar to the preliminary estimates that we received. Some expenditure considerations. This is one thing we talked about at the council retreat. The contingency amount is included in the general government in your budget book. It provides budget authority for unforeseen or emergency expenditures only if expected revenues are received. It's a way that we balance our general fund budget from our expenditures to our projected revenues. You'll see that in the presentation. And our general fund expenditures, excluding the contingency for fiscal year 2025 for the proposed budget, is about $23.4 million. About $300,000 more than the current year for the general fund. And that's not including any potential pay adjustments or things of that nature. MAYOR DICKEY: Oh, it does. So it includes the contingency. And does it include the TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 14 of 65 supplements? SOLDINGER: Mayor, I might have misspoke a little bit. The 23.4 million does not include the contingency. So if you add that 23.4 plus the 2.4, that gets you to the total budget expenditures of 25.8 in the general fund, but that amount does include the supplements. MAYOR DICKEY: It does? SOLDINGER: Um-hum. MAYOR DICKEY: Okay. Thanks. SOLDINGER: As far as staff pay adjustment considerations. We're going to discuss that today and ask for council direction on that. And that would reduce that contingency amount. So that $2.4 million you see on the screen, let's say -- I don't want to throw an amount out. If you approve an increase, that would reduce that amount. MAYOR DICKEY: And we'll get to it, but I think we talked about a code enforcement officer. So I don't think that's in the budget, so to speak. So if we decide to do that, would that come out of the contingencies and then that 2.4 -- which is really a big amount for a contingency anyway, I think -- but would come down and it would change then that 23.4 million by that amount? SOLDINGER: Mayor, Council. You're exactly right, Mayor. And we actually added a slide -- it's not in the packet that you received, we added it after the fact. So we'll discuss that proposed code enforcement officer with animal control responsibilities as well. Grab some water real quick. So on your screen is a broad picture of the town's projected revenues for fiscal year 2025. Fiscal year 2024 and 2025 show budget amounts in light shaded green for revenues and blue for expenditures. You can also see that in the previous three fiscal years, we exceeded projected revenues in two of those years and anticipate exceeding revenues for this current fiscal year based on the projections I just talked about. I did want to bring up the fact that in the council retreat, we talked about certain revenue reductions that we can expect for fiscal year 2025 and prospectively. So I wanted to bring those to your attention as well; those are also included in these figures. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 15 of 65 We expect that we will reduce our urban revenue sharing revenues from the state, which is basically state income taxes that the state shares with the town, by about $1.3 million in fiscal year 2025. And we're also losing the -- we anticipate losing the long- term residential real estate tax that will go away in January 2025. That will affect the town by about $300,000 next fiscal year. And fiscal years after that, it will be about $600,000, is what we're projecting to lose. MAYOR DICKEY: So the 1.3 is the flat tax coming into play? And then 300,000, because it was rental tax will get up -- so it would be about $2 million, maybe, by the time we get to FY2026. And continuously a less amount that we'll collect that in that way? All right. Thanks. KALIVIANAKIS: Just one moment, Ms. Mayor. And just for clarity's sake it goes from 300 to 626. Why the bump? I was anticipating 600,000. Why only 300,000 for '25? SOLDINGER: Sure. Mayor, Councilwoman. Yeah. Great question. So really, for that one, it's just because it's halfway through the next fiscal year is when it goes into effect in January. So we're losing about half the year of revenues for that revenue stream. And then it's going to be completely gone the next fiscal year, which is the bump up to the 600,000. All right. Despite these revenue reductions, we project the town's revenues to still increase by about $365,000 next fiscal year, which is primarily due to the increasing local sales tax revenues that the town has been receiving. Here is also a broad picture of all proposed planned expenditures for fiscal year 2025 on your screen. Total proposed expenditures of $47.1 million is an increase of about $4 million from the current fiscal year. And pretty much the entire increase comes from increase of proposed capital projects that we discussed during the capital projects work session. MAYOR DICKEY: Does that include -- oh, I'm sorry -- does that include the yellow light ones that -- oh, you're going to talk about capital. But yeah, because I think it's like 10.5 million capital, that is the difference right there. So if you see that, you'll be like, what the heck? That's what it is. It's capital funds. But when we talk about the projects, we TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 16 of 65 make sure that we know which ones we're talking about. Was it the yellow light ones? GOODWIN: Yes. And just to clarify, so every, whether they are considered yellow or green, they are all budgeted for at this point. So that is all in that number. MAYOR DICKEY: Right. Gerry? FRIEDEL: Paul, you mentioned that even after all the reductions in the state-shared revenue and the rental tax, that we would still be a net 360. Is that still using your conservative approach? SOLDINGER: Mayor, Councilmember, yes. We're using the same approach that we've used for years, which is a conservative approach to forecasting revenues. Any questions before we move on to supplements? MAYOR DICKEY: The amount that we collected in sales tax, that's quite healthy. Does any of that have to do with inflation and any anticipation of that changing? I know that we're still going to budget in a very conservative way in what we expect from sales tax, but do you think that this is a trend that could still continue and we may end up being in this good position again next year? SOLDINGER: Mayor, Council. Great question. I mean, you know, I am newer to the town, so I don't want to come in and completely change things or anything like that. But you know, we are seeing increased revenues in certain areas and some of them are one-time in nature and really, frankly, difficult to forecast. For example, construction sales taxes were well exceeding our forecast for construction sales taxes so far through the nine months. We budgeted $1 million of those revenues total through the nine months, and we've already received $2.4 million. So that's explaining part of it. I think that's the main thing to point out there. MAYOR DICKEY: I don't want to hear anything else. That's good. SOLDINGER: Yeah. All right. So as I mentioned, we've included town manager and staff-recommended supplements in the proposed fiscal year 2025 budget, which we'll go over now. Please note that in your printed budget books that you received, they also include the full list of department-requested supplements. But today, for the purposes of this presentation, we're only going to go over the recommended supplements. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 17 of 65 MAYOR DICKEY: And I'm going to just give Rachael -- I wanted to make sure that she was clear with that, because there were a lot of great requests from every department. And she did eliminate quite a few of those or made them smaller. So I wanted to give her credit for doing that. I don't know if you would all agree that "credits" the right word, but she's looking out for all of us, so thanks. SOLDINGER: All right. So real briefly, these supplements are made up of $267,000 of total ongoing non-personnel supplements. You'll see towards the top left of that slide; it's breaking it out by different funding sources. So 121,000 of that 267 would be paid out of the general fund for ongoing non-personnel. 144,000 would be coming out of economic development-type funds, including the downtown strategy fund and the tourism fund. And $2,500 would be coming out of the court enhancement fund for the courts. We also have about $109,000 of total one-time supplements and $148,000 of total personnel supplements, which we'll discuss in just a minute. So on your screen, here are the $121,000 of non-personnel ongoing requests from the general fund. Two of these requests include full revenue offsets which will generate enough revenue to cover the expenditure. Does council have any questions on any of these items? MAYOR DICKEY: In general, why are non-personnel non-ongoing called supplements? I mean some of these are just going to be every year. What makes them a supplement instead of just a regular budget item? GOODWIN: I think it's more of a semantics than anything. The way we internally, we review it is that these are not currently budgeted for. They're requests to be added to our base. So correct, in that if these are approved, these are now incorporated into the base budget and they become a year over year expenditure. So for instance, I'll just take the first one, the splash pad sealant. It requires that to be added to the budget year over year. So that's what we would do. So we see it as a supplement because it's not currently part of the base. The request tonight is to say, yes, we want to add these to the base and understand that these are ongoing. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 18 of 65 We refer to anything basically that's over and above our base as a supplement internally if and until it's adopted. MAYOR DICKEY: Never mind. We had T-shirts last year at the Turkey Trot and then -- GOODWIN: Yes, we did. And they are a favorite. So for instance, the Turkey Trot shirts, we have more runners, we increased runners. MAYOR DICKEY: Okay. GOODWIN: We have to spend more to get more T-shirts. That's what that is. Same thing with the restrooms. We have more people. We need more restrooms. That's kind of -- it sort of goes hand-in-hand. So a lot of these are a little bit in -- those particularly are in response to increased demand. And then some of these are, for instance I'll use the Make a Difference Day project cost. We all know Make a Difference Day is a very popular program. And we have more and more projects that come online each year and we want to be able to tackle them. Well, in order to do that, Kim needs a little more in her budget in order to do that. So a lot of these are translated because of either cost, direct costs, or because we're taking on more in those programs. FRIEDEL: Suffering from success. GOODWIN: Yes. The success of the programs. Exactly. MAYOR DICKEY: Thank you. SOLDINGER: That was a great way to explain it. That's better than I would have done. So thank you. MAYOR DICKEY: Councilwoman? TOTH: I had one more question on this slide and it might be a little bit in the weeds. But the last one, Microsoft Office 365 license upgrades. What are we upgrading and why? GOODWIN: Oh. Where's Mike? TOTH: Sorry, I put Mike on the spot. I will send him an email instead. GOODWIN: I'm going to take it -- I'm going to take a stab at it. But I don't know for sure. But I think we also brought more staff on. And the more staff you have, the more licenses you need for those types of services. So all of that is kind of part of that ask. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 19 of 65 GRZYBOWSKI: And the prices go up every year. GOODWIN: That too. Their contract prices do go up. SOLDINGER: Moving on. Right. So on your screen are the $144,000 of non-personnel ongoing requests from economic development type funds. And we actually have Amanda, our economic development director, available here to answer questions if you have any questions on any of these items. All right. Lastly, the court has one supplement that will be paid out of the court enhancement fund. Any questions from council before we move on to the one-time supplements? No? Okay. Right here are the two personnel supplemental requests that include estimated offsets. Adding another recreation assistant for our parks would help us better meet demand for our additional programs which would bring in additional revenue to the town. And that's that $16,000 estimate offset there to the right. Further, the senior building inspector would allow the town to hire contractors less often to perform these necessary inspections, with an estimated offset savings of about $110,000. Now keep in mind this new staff member would need an additional vehicle the town would have to procure, which is included as a one-time supplement on the next slide. So as I mentioned, here are the four one-time supplemental requests that would all be paid out of the general fund. And the top one relates to that new vehicle for the building safety inspector. KALIVIANAKIS: Just going back to the previous slide, the recreational assistant. I assume that's a part-time? GOODWIN: Yes. Vice Mayor, that's correct. It really is intended to supplement our evening and weekend programming. When you need to have a body out there to facilitate, let's say, a cornhole tournament or a pickleball program or something of that nature. KALIVIANAKIS: Okay. Good. And they qualify for benefits or no benefits? GOODWIN: I don't think so. Is that right? Non-benefited. KALIVIANAKIS: Okay. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 20 of 65 GOODWIN: There you go. KALIVIANAKIS: Thank you. SOLDINGER: All right. So that concludes our supplements. Any questions from council before we move on? Recommended supplements. We have one more supplement to discuss. I believe we discussed this at the council retreat. But council discussed a potential new code enforcement position with duties over animal control enforcement during the budget retreat. Although that request was not included in the proposed budget by town manager and staff, we wanted to bring it to your attention before the tentative budget next month. If council directs us to add this new staff member, it will cost the town about $95,000 of annual costs, with about $30,000 of offset savings from removing a contract with the county for animal control services. It will also cost about $43,000 in one-time costs, including purchasing a new vehicle. We are asking for council feedback and direction on this item at this time. MAYOR DICKEY: Councilwoman? TOTH: I'll just start by saying thank you for including this. I know this was a discussion we had a lot of different opinions on. My opinion would remain the same, or maybe be a little bit more extreme now of, no, thank you. I know we do need a code enforcement officer. That's something I'm interested in looking at in the future. The original plan of having it focus primarily on the leash law, I don't think I agree with. And was I correct in thinking that we were already not going to have -- continue the contract with Animal Control? SOLDINGER: Correct. TOTH: That was already? So the 30,000 is like an offset, but an offset that would have happened anyway. Anyway, I'm thinking out loud a little too much here, but I would say that this is a good opportunity to save some money, not save some -- not spend more money than we planned because you were already planning to not do it. Anyway. MAYOR DICKEY: Councilwoman? MCMAHON: I have a question. I don't know who to direct this to. Wesley -- John TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 21 of 65 Wesley, is it -- we have a -- one of the code officers is part-time right now, correct? Is this a brand new full-time one, or are we turning the part-time one into full-time? WESLEY: Mayor, Councilmember McMahon, yes, we do currently have two and a half officers. My understanding of this proposal as we heard it from council, would be for an additional full-time. MCMAHON: Okay. And this isn't just for a dog catcher, correct? WESLEY: I would turn that back to Manager Goodwin and the council. We heard a lot of discussion at the retreat. MCMAHON: Yes. WESLEY: And so that's what we need some clarity on. MCMAHON: It was my understanding, I think, that the additional code officer would not just be for leash laws, et cetera, that it would be for as needed for code enforcement, period. GOODWIN: That was certainly one element that was discussed. MCMAHON: Right. GOODWIN: And I think that there was a question -- the original point was how could this person better enforce our leash laws, help us with the curb your pet efforts, and things like that. And then it sort of evolved into, well, you know, could they do more than just that? Because that's not a full-time role, I don't -- MCMAHON: Correct. GOODWIN: So that is -- that was the discussion. The question is, is there still that expectation associated with this role? What would they be asked to do? There's definitely some clarification needed because if leash laws and other animal control elements were incorporated, they don't have the authority per se for ticketing and things like that. MCMAHON: Correct. GOODWIN: So that's where things kind of devolved a little bit. MCMAHON: Okay. So having given that explanation -- thank you very much -- it seems to me that this new code officer is needed to enforce the codes that are being enacted TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 22 of 65 by council, et cetera. That we're busy enough that we need a code officer and when appropriate, this code officer would enforce leash law. It's not just a dog catcher, correct? GOODWIN: Correct. MCMAHON: Thank you. So it's based on need not want, it sounds like. So I'm for it. MAYOR DICKEY: Councilwoman? Oh, sorry, Sharron. GRZYBOWSKI: That was me. According to my notes from the retreat and our long conversation about it then, and the code enforcement officer that was actually here, they are very busy. And he made it perfectly clear that they would welcome another full-time person. Yeah, it's another $65,000 a year over the savings that we're going to be making from dumping the animal control people, for lack of a better word. I feel like we heard from staff that they need this, and I know we hear from the town that they want more code enforcement presence out there. Whether it -- we talk about the dog park or we talk about other aspects of code enforcement, we hear from our townspeople that we need to have more code enforcement. So I would totally support this. FRIEDEL: I would have to say that I'm against this. We don't have a leash -- a big leash law. I think there were 350 occurrences that Vince checked on when he was up here talking to us, and he found six or seven people without leashes on there. So I don't think it's a rampant problem that would necessitate almost $100,000. I know there's 30,000 annual savings, but then there's 43,000 in a vehicle as well. So I would be a wait- and-see on this. I don't think it's something that we need to do right now. MAYOR DICKEY: I'm for it, of course. I think we need it in general, and I don't know, I guess I just get people writing me saying they're getting bitten and that it is an issue. And I don't know that that is something that would have to be worked out with staff on how this particular person could handle that aspect of the job. But again, the $30,000 is an annual savings. So it's -- and yes, we would need another vehicle, so that is a one- time cost. But I think it's well worth it to do that. Remind me was it in the bottom line? I think I had asked that -- if it was included, it was not yet. So this is the discussion to TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 23 of 65 include. So it would be really 65 ongoing and then the vehicle. So I think it's a good use. And we did hear that from the code enforcement officer when he was here, in general. So not just for this aspect of it as Peggy said. Brenda? KALIVIANAKIS: Thank you, Ms. Mayor. I guess, just to raise a point of order, is this something that we're actually taking guidance on tonight? I thought we're just here to talk about the budget. Isn't this something that's going to be handled in a future meeting? GOODWIN: What we need to know tonight is if there is a consensus to add it to the budget, because right now, it's not in the budget. Originally, it was not proposed by staff. It was not an ask. It wasn't a supplement proposed by staff. It came out of the conversation that we had regarding the animal enforcement and things like that. I'll be honest in that, I think if you asked all of our departments if they want another staff, they're all going to tell you yes. And goodness -- and we love Vince and we do know code enforcement is inundated. There's no doubt about that. I think we all get calls and emails over the weekend about things that are or are not being addressed. And again, more enforcement means better adherence to our codes, no doubt about that. But at the same time, if the focus is on the animals, we don't have a plan yet on how we would tackle that. So I think that that's a crucial conversation as to how we would do that. But to answer your question, Vice Mayor, yes, we are looking for direction of whether we should be including this into the tentative budget that comes back next month. KALIVIANAKIS: So tonight would be the appropriate -- GOODWIN: To let us know if -- KALIVIANAKIS: -- time to do that? GOODWIN: Yeah. KALIVIANAKIS: Okay. MAYOR DICKEY: Hannah? TOTH: I just wanted to reiterate that that $30,000 of annual savings is something we TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 24 of 65 are already saving. So this -- yes, it is an offset in that it's in the same vein, but am I -- am I correct in saying that the $30,000 a year is what we're looking at here? We either have $30,000 of annual savings or 105 this year and then, essentially, 65 each year afterwards? So when I had mentioned in previous meetings that maybe we need to tighten our belt a little bit, show the community that we're serious about this roads issue ourselves and we just need their help, I would personally need to vote on the side of spending negative 30,000 versus spending 105. FRIEDEL: And I also think I agree with Rachael that Vince stood there and he said, hey, if you ask me if I want another person, I'm going to always say yes. But he also made it clear that this future code enforcement person has no teeth to stop somebody, confront somebody, or do anything. So again, I don't see the effect of it. MAYOR DICKEY: Councilwoman? MCMAHON: I think that, basically, part of the conversation is if possible this code officer could have animal control, if possible. But regardless of animal control, I heard that a code officer is needed in order to properly enforce our codes that are on the books. So I think the emphasis needs to be on the need for the staff versus just one aspect of it -- potential aspect of it. So again, I'm for a code officer based on the need. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. You know, I see this town, I see it as a very dog-friendly community. I see a lot of people walking dogs, enjoying their animals outside. I don't see the pressing demand or need for this. I'm not getting emails about people getting attacked. If you're out there and you've been attacked by a dog, let me know, maybe I'm wrong, I'll be the first to admit that. But I just -- I have not gotten a single resident that has ever told me that. So I don't think it's a need for that. And you know, there's a pressing need for roads in this town. You know, we got roads crumbling away. And the idea of expanding, hiring more people and such, that are not working on roads, is not something I'm going to support. MAYOR DICKEY: The Maricopa County Animal Control, did they provide a service for us? GOODWIN: Right. Define service. On paper, yes. And they did provide -- we had a TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 25 of 65 contract with them. The hazard was that the contract was such that they had five days to respond to a dog off leash. Well, that's not really a reasonable amount of time to address that type of an issue. And they tiered their concerns in tier 1, which is something an active dog at large, vicious, rabies, whatnot, that they would react in those situations. But when you have a dog off leash or if you have a dog wandering a neighborhood, they weren't able to. And were truthful about that, they'd said, we won't come for that. We aren't able to do that. They're not equipped or staffed to do that. So that left us sort of in that no man's land of, well, we don't have staff available to do that. It's not MCSO's role, nor do they have the capacity to do that. So if we're paying for their services, in which case -- which, by the way, the 30,000 is what we had budgeted. What we were actually billed was 48, because their fees continued to increase. But we had no justification as to why, because our services are our asks and our deliverables had not changed. So if and when they did come out and respond to a call or they followed up on something or there was an issue, yes, they would take dogs, they would -- or animals of any kind. They do have the housing capacity, so if there was a -- somebody dropped off a stray dog or called about that, they are able to house those and whatnot. So we do have those services, but we really didn't utilize them to the extent that -- for $30,000 worth, frankly. We were also at an impasse with them because we were relying on them to come out and offer sweeps of our parks. So over and above our contract, we said if we -- are we able to have an officer come once a month, twice a month, to a designated park to do sweeps and issue potential off-leash tickets? And we did that for probably two years with them, and then we got to a point where they said, we can't do that. We're not able to provide that. And oh, by the way, until you pay the 48,000, we're not even going to have the conversation about how we could get there. So there was quite a bit of an impasse in their services. MAYOR DICKEY: So the service that they should have provided, though, was something that was needed on a sporadic level? Or what I would say is if we're not going to provide this, it seems kind of odd that we have no answer here for something that TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 26 of 65 probably every city has, which is dogs that are not rabid or anything like that, but that are off leash or are chasing kids or whatever, it doesn't have to be a vicious attack. It's still against our ordinances that we have in place and we're not enforcing them. So if that's the case and we're not going to do this particular code enforcement officer, which I think could use -- we could use anyway, then we should come up with an answer for people to call or to write or somewhere for them to turn so that they know what to do when these things happen to them at the park, to their kids, to their dogs. GOODWIN: Mayor, I don't disagree. I think two things to that point is: one, Maricopa County Animal Control is -- we are still part of the county and they are still obligated to provide us service, whether we have a contract with them or not. And please chime in if I'm wrong, because I remember we've talked about this a number of times between myself and Pock and Aaron. My understanding is they still have an obligation to serve us. So if there is a situation where there's a -- where they need to be called, they can be. What we have foregone is our designated contract where they provide certain service levels, but they do still -- ARNSON: Emergency services. GOODWIN: -- yes. They do still have emergency services for us. That being said, you're right, we don't have a plan as to what now. I go, we're still in the same boat. There's still not a responsible party that is showing up when you call and say, hey, there's an off- leash dog over here. What I would recommend if there's a conversation, is to continue this conversation and figure out what we really can do reasonably, responsibly, and what that financial cost is? Is it another code enforcement officer? We've evaluated that. That seems like it's not going to get us where we want to go. So the question is what then? And we're still kind of working through that. So before we -- is it more prudent to wait on bringing a staffer on board until we have a plan and we know what we want of them, so that when we hire them, hopefully they have the skills and the necessary training that we are looking for. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 27 of 65 MAYOR DICKEY: Thank you. It's clear there's not support for this. So I think. Yes, Gerry? FRIEDEL: I would ask one thing. Consider maybe looking at this as a part-time. You've got two and a half now, so you've got a guy or a person that's here part-time. MAYOR DICKEY: For me? Oh, sorry. Go ahead. FRIEDEL: I'm sorry. KALIVIANAKIS: Excuse me. I'm sorry to interrupt. FRIEDEL: Oh. Maybe take a look at seeing if there's something we can do in a part-time basis. Then you wouldn't need another truck. He could use the truck from the other person. So there's some -- there would be a lot more savings. And maybe it's something we can look at as a part-time. MAYOR DICKEY: Sure. SOLDINGER: Mayor, Vice Mayor Kalivianakis, is there any way we could get your further input on this? Because I'm not sure that we got your full input on this. KALIVIANAKIS: Yeah. Actually, I just turned on my light, like, five seconds ago. SOLDINGER: Okay. KALIVIANAKIS: I'm kind of with the Goodwin strategy on this whole thing. I'd kind of like to flesh it out a little bit more. I wasn't actually prepared to vote on this tonight. I can see the merits of having another officer. On the other hand, in our last meeting, we couldn't really address the dog bite issues, we don't have the kennel that we could impound the animals. And we don't have a cooperative agreement, I don't think, with Maricopa County. And so that seems like the -- for the security of having an officer that could do more than just yell at people to put your dog on a leash, that seems like all he's going to be doing. And so if we could flesh this out a little bit more, maybe change the code, maybe put some teeth into a code, then I think it'd be it would be worth having this officer. But if we don't have any teeth in our existing code, and if all he can do is yell at people and they don't have to provide ID, they don't have to to do anything other than it's my dog and just leave me alone. Then it just seems like it might be a waste of money. So if we could provide the code enforcement officer the ordinance would take TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 28 of 65 to actually enforce this, I think it'd be a great idea. But I just don't -- I don't think we're there yet. SOLDINGER: All right. Thank you for your feedback. So we're going to move on. Related to staff pay adjustment data. Staff has compiled relevant pay adjustment data for council consideration, similar to last year during the same session. As you can see, the average for all this data is almost five percent -- on your screen towards the bottom right. And each one percent increase would represent about $100,000 in payroll costs for fiscal year 2025, which includes the added in-house fire department that just came in-house a few months ago. Any council direction on pay adjustments for staff will be incorporated into the tentative budget and will reduce the contingency amount that we discussed earlier of $2.4 million. And at this time, we are requesting council feedback. FRIEDEL: I guess I'll start it out. So last year we gave a cost-of-living increase of seven percent. Some of the work that I did preliminarily, SHRM, which is a major HR firm, their average increases are around 3.8 percent this year. And Willis Towers Watson, another big HR firm that does surveys across the nation, they were around four percent. And last year, like I mentioned, we had given seven percent pay raises. So I think somewhere in our -- the way I'm looking at this is, somewhere between three and four percent would be somewhere to start, anyway, with the conversation. MAYOR DICKEY: Councilwoman? TOTH: Just as a clarifying question. The 2.4 million contingency, that's the one where 1 million of it would be going to the lake liner; is that correct? SOLDINGER: Mayor -- TOTH: That's not the same? Sorry. SOLDINGER: Councilwoman. No, that would be separate. That's related to the unassigned fund balances that we would be recommending to transfer. That $2.4 million is essentially set aside for these purposes to take into account these final kind of things that are going on, such as pay adjustments. And there is a contingency throughout the fiscal year for unforeseen and emergency expenditures if they do come up. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 29 of 65 TOTH: Okay. Thank you. MAYOR DICKEY: (Indiscernible)? GRZYBOWSKI: Yeah, you saw me in process. I agree with the Councilman Friedel that we need to look at something between three and four range. The COLA for Social Security is 3.2. And in my opinion, going anywhere below that is an insult to the staff. I would prefer more of a four. He gave some great stats over there that some HR firms have put into place. One of the things that I was looking at is, according to smartasset.com, the Phoenix-Mesa area is -- so the stats I was looking at is what's required to live comfortably in your area. And the definition of living comfortably is having a buffer from the stress of living of paycheck to paycheck. We are at a position here in the Phoenix Valley area, where we are actually ranked more expensive to live than Chicago; Durham, North Carolina; D.C.; Austin; Nashville; Orlando; Miami. We are ranked higher than those kinds of places. So again, I feel like anything less than 3.5 is unacceptable. I would love to go towards a four. I just think it's the right thing to do and I preach this every year we have this conversation. It is less expensive to pay our staff what they are worth than it is to go look for new people. Thank you. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. When I look at the Phoenix Scottsdale, I think last year they went really high. And then I think this year it was a boomerang effect and they went really low. I thought last year we pretty much hit the mark. And when you look -- the Social Security increases, that's a joke. It's just way too low. When I look at the average estimated around the Valley, 4.8 and the average for all the data points, 4.57. When you look at living in Fountain Hills, it's more expensive living here than it is in most of the Valley. I agree with Sharron, I think that we want to keep our staff, and I don't think we should punish people for living and working out here. And so I'd be more into the, like the four points -- four and three-quarters would, I think, be slightly below the estimated average but above the data points. And I think that would be fair for our employees. So I'd go for 4. -- 4 and three-quarters. GRZYBOWSKI: I support that. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 30 of 65 SOLDINGER: All right. So just to clarify. Council is suggesting four and three quarters -- 4.75 percent for the staff increase? MAYOR DICKEY: Hannah? TOTH: I would actually like to continue this conversation if possible. I would also lean toward the three to four recommended by Councilmember Friedel, purely because we did do seven percent last year. I agree with Councilmember Grzybowski that we shouldn't go below the 3.2. So I would like to bring back up the 3.5 percent suggestion. I want to ensure we're taking great care of our staff, but I also want to ensure that there's some consideration toward last year's cost of living increase as well there. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: Last year we discussed seven percent. I actually didn't pull my notes from last year, I should have. But a big reason why we went there is because they were so far away. So we were kind of bringing them up to where I felt. we felt that they should be. So I hate to punish them because they got a seven percent last year. I don't think that's fair to them. If you were the staff member and you were sitting at your boss' desk and he said you got seven percent last year, so oh, well, you're only going to get three and a half or whatever the conversation is. It's not fair that we had to bring them back up, and now we want to use that number to then bring it down. So I am still at the four and three-quarters is where my head would be. MAYOR DICKEY: Councilwoman? TOTH: Just as clarification, nobody's getting punished. It's still a 3.5 percent raise. We're not decreasing pay. The cost of living raise is a cost of living raise. So I just want to say I disagree with that language. We're not punishing anybody. Nobody's getting their pay cut. It's an increase in your pay. MAYOR DICKEY: Councilwoman? MCMAHON: I thought that the increase last year was also a catch-up. And I am, given the cost of living today, given how expensive it is to live here, I think that the higher rate is appropriate and I'm for that. Thank you. MAYOR DICKEY: Councilman? TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 31 of 65 FRIEDEL: I can't agree more with Councilwoman Toth. We're not punishing anybody. And last year's raise was not a catch-up. It was due to the factors of inflation and the inflationary period. And we're still dealing with the effects of that with this economy. So I'd be willing to go to four percent, maybe even four and a quarter, but I think Councilwoman Kalivianakis is a little overzealous with her estimates. Again, I've got hardcore facts. And just for the record, the State of Arizona employees haven't had a raise since 2021. MAYOR DICKEY: So to try and put some numbers on this. So we already determined that the contingency would be where the shift would go. So it wouldn't really change the bottom line of what we saw of the actual amounts. But it would shift the very healthy 2.4 million contingency, into taking this out of that and putting it into salaries. The average of the averages there, the 4.57, was about $470,000. So it would come out of that, but it would still leave a contingency fund that's pretty, again, very healthy above -- about a million or 1.2 million. If everybody would be more amenable to a -- well, I think, I don't know, four and a half, I'm willing to do that if that kind of makes us more in agreement. FRIEDEL: I would agree with that. Because, again, when you factor in the cost of replacing employees and retraining them and everything else, so I would be good with four and a half. MAYOR DICKEY: And also again, we talked about this year and last year we still have vacancies that we haven't filled. We had people that were doing double duty and working late. And so it's beyond just being able to maintain, it's also to encourage and we also get back to the not being in Arizona State retirement. So I feel like these things all go towards the four and a half, to me at least anyway. So any other discussion? Okay. Thank you. SOLDINGER: Right. Thank you, Mayor, and council. So we'll include that four-and-a-half percent increase in our tentative budget that we bring forth next month for your consideration. Okay. Now the fun stuff, the general fund. Before we get started, just please keep in TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 32 of 65 mind, as we go through these slides that the printed budget books that you do have, the middle bars -- the fiscal year '23 numbers -- the printed version will actually have the budgeted amounts shown, whereas our presentation will include the actual amounts. So at some -- if you're trying to compare, sometimes our presentation will differ just by that middle amount. So the general fund requires a balanced budget, and the fiscal year 2025 proposed budget is set at $25.8 million, a slight increase from the current year 2024 budget of 25.6 million. As you can see on the screen, the fiscal year 2024 and 2025 budgets are balanced, while the town exceeded its projected revenues and spent well below budget expenditures during the previous three fiscal years in the general fund. Based on council feedback at the council retreat in February, we moved the vehicle license taxes out of the general fund into the streets fund prospectively, but we still have increased projected general fund revenues of about $200,000 for fiscal year 2025, even including that removal of those revenues. As you can see, taxes have increased in the green on your screen, but intergovernmental revenue in the blue, such as the urban revenue sharing and the loss of the VLT from this fund, has gone down. Here are those same expenditures for fiscal year 2025 presented by function. As you can see, about 45 percent of the town's proposed budget in the general fund is going to law enforcement and fire and emergency medical services. And as you go down the line, you'll see community services and our other departments as well. Here are those same proposed budgeted expenditures presented by expense type. This may look a little different from the chart that you saw last year, and that's really only because of the fire department coming in-house. Those are considered payroll expenditures going forward rather than contractual services. and that's where a majority of our expenditures lie. MAYOR DICKEY: And this will be shifted a little bit from the payroll line to the contingency line, or vice versa? SOLDINGER: Mayor, yes, absolutely. You're correct. All right. Now we're just going to TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 33 of 65 present brief overviews of proposed expenditures in the general fund by department. Starting with the town council, which has a total budget of $73,000 in fiscal year 2025, an increase of $7,000 from the current 2024 budget. The administration department is set at about $3.2 million, which is about $200,000 higher than the current year, 2024, because of added supplements and contract modifications. GRZYBOWSKI: Actually, I do want to say -- I'm sorry. I got to back up to the whole council conversation that you just had. People need to know we didn't give ourselves a raise. So can you go back to that council conversation that you just had and reiterate why there was a difference for us? Because I don't want people coming back saying, you gave yourself a raise. Because that is one of the things that I have actually said, is I do not approve of changing our rules or the way our job is described or giving ourselves a raise. So if you could go through that, that'd be awesome. Thank you. SOLDINGER: Sure. Mayor, Councilwoman. So if we go to our website, which everyone in the public has access to, it looks like the changes come from professional fees and legal fees for the most part for next fiscal year. ARNSON: Now I'm -- you heard them. MAYOR DICKEY: Oh, my God. GRZYBOWSKI: Thank you. SOLDINGER: No problem. All right. So just touched on administration. Now general government. The general government department is set at about $3.2 million, which includes that contingency that we discussed of $2.4 million, which will be adjusted. Any pay adjustments would lower that contingency amount to keep expenditures balanced with projected revenues in the general fund. This compares to the current year general government amount of $3.5 million, with a contingency of 2.5 million. Our municipal court budget is proposed at $557,000, which is pretty much identical or very similar to the current year budget. In the general fund, presented are the public works general fund department expenditures. Public works is a department that also expends monies from other funds in the general fund for capital projects and street pavement projects. But the public TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 34 of 65 works general fund budget is set at 1.67 million, very similar to the current year, 2024 budget. Presented here are the general fund expenditures for the development services department. This department is budgeted in the proposed fiscal year 2025 budget, for $1.53 million. It's an increase of $200,000 from the current budget year and that's just because primarily of the proposed supplements that will be included in development services related to the building inspector and the vehicle. That's the primary increase right there. Again, for community services, it's another department that uses multiple funds, such as the capital projects fund, but specifically for the general fund, the fiscal year 2025 proposed budget is set at about $4 million, about $100,000 higher than the current budget year, due to supplement additions and contract modifications. Presented are the general fund budget expenses for the fire department, which is set at about $5.5 million, or about $76,000 less than the current budget year, 2024. Now, if you look at your screen, the previous three fiscal years look kind of odd. They're a lot lower. Just to explain that the previous year, actual expenditure amounts were lower because of CARES Act and ARPA funding. So, the fire department, the contractual services at that time were supplemented by those funds in different funding sources. And on your screen are the general fund expenditures budgeted for the proposed budget for the law enforcement MCSO contract. We set these expenditures at about $6.24 million, based on the contract terms and available -- and credits that are included, or about $144,000 less than the current fiscal year, 2024. So that's the general fund. Does council have any questions before we move on to streets? All right. So on your screen are the streets fund budgeted revenues and expenditures. As noted earlier, based on council feedback at the council retreat, we moved the full amount of vehicle license taxes from the general fund into the streets fund. Previous councils directed 30 percent of these revenues to be deposited in the general fund. But going forward prospectively, beginning next fiscal year, we will begin depositing the entirety of these monies into the streets fund. This resulted in an increase of about TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 35 of 65 $390,000 to this fund, and the budget expenditures are similar to those of the current year at $7.1 million. And I'll get into both of those items in the next two slides. So as you can see on your screen, the changes by council increased intergovernmental revenues in green, and including other revenue projected increases. We are projecting about $4.9 million of revenues to be deposited into the Streets fund next fiscal year, which is about a $1 million increase from the current fiscal year, 2024. And as I mentioned, streets fund expenditures in the proposed budget are about the same as the current fiscal year at about $7 million. Council have any questions before we move on to another fund? MAYOR DICKEY: I just have like, an overall question, so we've been – we were putting the CARES money into that, and then -- you know, $7 million. That's when we start talking about what we're going to do with it because we've had a lot of conversations about whether we can actually move forward with that much. And I know that we'll be going into that more when we talk more about the projects. But I mean, it's a very complicated -- it's pretty complicated because we have HURF money then we have capital money that we use, and then we have regular general funds, and I think there was a couple other things that go into the streets fund. And I'm hoping that we will show that we were able to use all this money this year. And I think we're kind of relying on it, in our earlier discussion, when we had the retreat about all -- that was all about the streets. So it's just kind of a general comment. Because if we can spend it all, then we can use capital expense, we can use streets funds expenditures, and then, maybe, look at Palomino or do something like that and split up some of these projects so that we can hit some of the streets that people and we have been talking about for many years. And I know Justin, this is nothing new to you, but I just wanted to make sure I mentioned it because that's a good, healthy fund. SOLDINGER: Thank you for that feedback, Mayor. And just for council's understanding. As you see on these three slides, we are budgeting the same amount as last year, which is above the projected revenues. However, as we mentioned earlier in the presentation, we do have about $7 million of projected year-end fund balances that we can draw from TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 36 of 65 to meet these budget expenditures for the proposed budget. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. I'm actually kind of shocked to hear that we're going to be -- or the projected number is that's for '25 is the same as '24. Costs are going up. The need for repairs is going up. Roads are further decayed this year than last year. Residents keep telling us that that has to be a priority. And it's a priority of mine, and I want to encourage staff to also take that as such a big priority. I have met with people who live on Barnes Drive, and I've been to their home and I've seen -- they don't live on asphalt anymore; it's gravel now. I've had contact with people who live on Palomino, and frankly, just the other day I drove down Palomino and you had to swerve around potholes. I feel bad that this hasn't been addressed in so long, but last summer I remember talking to staff and visiting homes on Rockview, and like there's literally buffalo grass growing up in the cracks there. There's enough density of the grass, at least, last summer or last June that it could start on fire. These are big, big concerns. And I just don't see that we've taken this as a big deal in our town. I think we should take it as a big deal. And furthermore, I'd really like to suggest that, if we would forego the nice-to-haves, we would forego the pet projects for a couple of years, we could pave half the roads in this town. And then we could get back on to the nice shade structures and the nice things here and there, because we've taken care of the basics. And in my household, we take care of the basics before we go on the extravagant trips and vacations and do the nice little things. I think we should work on the basics. And that's going to be my theme. And this is going to be something that I'm going to repeat through this process up until we vote on a budget. And frankly, I don't find it acceptable to spend the same amount of money last year as this year. And I see the newspaper reporter back there. We need to forego pet projects and fix our roads, period. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: If I may, Mayor? We've actually had a number of conversations about streets and heard reports from our Citizens Street Committee or -- called something like that. We had an entire meeting in November -- November 16th -- where we heard from TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 37 of 65 the Citizens Street Committee report. We heard from the roadway guy -- I can't remember the name of the business -- but he had that really cool little van that drove around and felt our roads up. We discussed it at the retreat, at the second half of the retreat, we've had quite a few conversations on this. Oh, I think the last meeting in June last year, June 20th, was the other meeting. We've had a number of conversations. We have discussed that bonds may be where we need to go. It is unfortunate that you weren't there for a couple of these conversations: November 16th, the second half of the retreat in February. We all agree with you. And we've had conversations about bonds, which I assume we're going to have a conversation about later today or maybe that's going to be a conversation next week. But the conversation has happened. I feel like you've missed it. And to come to us and say, we need to stop spending money here and spend it here, you're not telling us where. We have heard nothing substantive from you. And you weren't there at the meetings where we heard from Jerry Butler, and they've got these fabulous breakdowns of how we can ask for bonds and how much we should ask. And they've mapped out all the roads and given us green and red and yellow as to the conditions of the roads. I'm really sorry, I realize I'm on a soapbox about this, but I just kind of feel like you're all of a sudden bringing it up, like we've not discussed it. And we have a number of times. Thank you. And again, I'm sorry I went on a little rant. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. Well, I'll be specific. I'd like to see Barnes Drive fixed. I'd like to see Palomino fixed. And I'd like to see Rockview fixed. Is that specific enough for everyone? MAYOR DICKEY: I think what that shows is that you weren't listening or here to know the recommendations that we got from people that spent months and months, including RAS, deciding which roads really did need to be treated. And thank you for what you said, Sharron, but it was beyond discussion. We've paved roads for several years here, more than ever. And the idea that all we've done is talked about it and not done anything about it, we've funded roads more in the last several years than ever. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 38 of 65 And yes, there were sometimes where we couldn't get the supply done. We couldn't get it done in that fiscal year. So it looked like maybe one year had a little bit less going on it. But this is not some scattershot plan that we just go and say, hey, look, that road needs something. Maybe one of those streets needs a full rebuild. You can't just rebuild a road with the money that we have. And to get to your other point. Yeah, do we look like we have money that we spend? We have a $4 million budget for community services? So if we cut off community services every year, yeah, we could fix every street in this town, every single year. But there are other people that live in this town who think that that quality of life, that that shade or that that activity or any number of things that we spend money on: the camps, the whatever, the events, that's why they live here too. Not just so that they don't have to go around grass that's growing up in the middle of the street. And Justin knows, I mean, I send them pictures, I've been on this forever. But it's more than a discussion. It's plans and action and paving, and if you want to know how many miles of -- how many miles of paving we've done in the last couple of years, how many tons, I think you gave me one time, that we've used to fill potholes over the years. So this is a red herring. Unless you want to stop doing everything else. And again, we don't need to have a bond this year because we put all the CARES money, the previous council -- 4 million, 4 million, over $10 million into streets. So we have the luxury of not needing a bond for this November. But we will have to talk about it in the fall, and then we'll make a plan and then we'll see where we're at. But it's very -- it is frustrating because we had an entire meeting about it. And then this last retreat, we just had the second half of it, which was all about streets. You didn't attend, so it is a little difficult to accept your criticism about it. Councilman? MCMAHON: Yeah. SKILLICORN: Thank you, Madam Mayor. Well, I'm just being very specific, listening to the people, and I'm trying to do the will of the people, and my vote will reflect that. MAYOR DICKEY: Thank you. Councilwoman? TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 39 of 65 MCMAHON: Thank you very much, Mayor. We're all doing the will of the people. It would be nice for everybody to dial-up and say, get my street paved and within six months. That's not how it works. I would like to make a suggestion. I sit here and I listen to what you said, and I think it's a -- personally, I think it's offensive because it hasn't been -- I haven't seen you at a lot of these meetings for the discussion. But nevertheless, I would like -- we have a whole streets committee of 11, I think, different men they happen to be, that have taken years and thousands of hours to develop a plan for our town to address the streets. And I would like you to sit down with at least one or two of them and discuss the plan, and maybe that would help you to understand it better. How we're trying to align what monies we have for street repair to the plans that have been collectively decided amongst the staff and the streets committee, that was purposely developed for the reasons to address the street problem we have. And like the mayor said, no matter what amount of money that we can pretend to slide from one place or another in the budget, to not have community service or whatever, is just merely playing chess with the money. We don't have the money to repair our streets. So therefore we are going to have to be looking for a bond. So I'm asking you to sit down with Mr. Butler or somebody and please understand better the street plan, and even Director Justin. Thank you. SOLDINGER: All right. Well, I sincerely appreciate all that feedback. MAYOR DICKEY: You got more (indiscernible). SOLDINGER: All right. So now we're going to discuss capital projects fund. And we're going to discuss some of the proposed capital projects that we already kind of went over during our last work session. As council discussed with town staff during the last work session, town staff is proposing about $10.3 million of capital projects, including $8.1 million of public works improvements and about $2.2 million of parks improvements. And just keep in mind, some of these expenditures will be covered by other funds, which I'll show you on the next slide. So on the screen is essentially what I started to provide the information for during the CIP work session. At the top, $10.3 million of proposed capital projects. And the next TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 40 of 65 two numbers are the numbers I specifically cited during that work session. We project to have about $6.9 million of projected ending capital projects fund balance based on this fiscal year's operations. Adding to that, after fiscal year-end, we project to have about $4.7 million, that town policy will require us to transfer from the general fund into the capital projects fund. So that's the $11 and a half million that I kind of gave you that big picture number during the last work session. This table is just incorporating additional figures for consideration in fiscal year '25 operations. That next number is $900,000 that we project the town will receive and deposit into the capital projects fund based on that construction transaction privilege tax, as well as those grant monies that will reimburse the fund of $2.6 million and the parks development fee fund monies and the downtown fund transfers of $1.5 million total. So that gives you a big picture considering the fiscal year 2025 operations, the current year operations, as well as other funding sources. We have about $16.7 million available to take care of these proposed capital projects of $10.3 million. FRIEDEL: Paul, quick question on that slide. So I see that we have a general -- excess general fund revenues over expenditures of about 4.7. And the bottom line is we've got 16, almost 17 million available for capital projects. Can any of that money, based on council decision, be swept over into streets? SOLDINGER: Well, Mayor, Councilmember, good question. I think really, it depends, right? If you look at each of these numbers, if council directed us to do something different than past council direction, I think it is possible. For example, the $4.7 million that's required by town financial policy right now, which was approved by council, that could be something considered. The construction taxes, half of those are deposited into the capital projects fund. That's based on past council direction as well. So those are really the two items that you could consider for something like that and further discussion and further council meetings. MAYOR DICKEY: Maybe this is for Justin. What limitations do we have to use capital money for streets? Like what kind of a project, where it wouldn't be maintenance and it TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 41 of 65 wouldn't be -- how can we use capital funding for streets? Because I know we use some, but I've always kind of like -- what actual project would you say, no, we can't use capital funds; yes, we can. WELDY: So Madam Mayor, and it's a good question. So the capital is really based on -- so it has to be basically $50,000 or above and really a one-time. So we're going to go in and we're going to build or eliminate a gap in something. That certainly adds to what we do in streets, but they're two totally different funds, used for different things. So the street fund is really for maintenance and reconstruction as needed. And the capital has different uses. Do they complement one another? Absolutely. But combining the two of them in the way that you're describing is quite challenging to say the least. MAYOR DICKEY: Is there a way that, say, Palomino Boulevard is a capital project, a one- time capital project? WELDY: The short answer is, yes. It would have to be segregated from anything else we're doing, and we would have to identify it, design it, obviously, and then fund it. Can it be a capital project? Yes. It becomes a little bit challenging, and one of these two CFOs would be able to explain in detail in regards to funding that and paying for it. MAYOR DICKEY: Thank you. Hannah? TOTH: If I could actually ask for you to define that in detail? What would the difference be if we said Palomino Boulevard is a capital project we'd like on the next budget, versus if we were to look at the town financial policy and maybe adjust ten percent of that 4.7 million or so? I'm just throwing out a random number. But if we were to reconsider that town financial policy and have that money put into streets fund, how would that be different in accounting for that project versus Palomino as a capital project? SOLDINGER: All right. Mayor, Councilwoman, very challenging question. So I'll try to cover -- TOTH: Sorry. SOLDINGER: -- the best I can. So the main thing -- so going back a step to Councilmember Friedel's question. We presented the streets fund and how we have those existing fund balances, and we continue to have those. So first, as a town we're TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 42 of 65 going to want to spend those most restricted monies, which are those streets monies because statute requires those monies to be used for that purpose. And after that, that's when maybe, after we expend those fund balances, that's when we could consider some of these other types of actions. As far as your question, Councilmember Toth, it's challenging. It's kind of a balancing game from the finance perspective because we have to consider the expenditure limitation. Kind of what we talked about earlier is we're already increasing our capital projects this year by $4 million, and in the end, we have to consider the expenditure limitation. And we've been well under it for a few years. A lot of that has to do with the CARES Act and ARPA funding, because those are excluded revenues that we use for like law enforcement purposes. But we're going to start getting closer to it. So that kind of limits us. We couldn't just -- we'd have to basically play the game of, hey, we'd like to skip some of these capital projects and go down that road of considering these streets projects and using those monies. And that would be a council kind of consideration. TOTH: Thank you. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. This actually is a question for Director Weldy, If you don't mind stepping back up? I seem to recall throughout the 16 or 17 months I've been on this dais, that we've put a lot of money into the roads. And I seem to recall you saying that we pretty much gave you all you can spend for two years. Am I recalling that correctly? WELDY: Madam Mayor, Madam Vice Mayor, you are correct. We can only do so much annually because of the impact it has. And I don't want to drag this down a little bit, but in order to -- let's just pick Palomino as a good example, it's going to take over a year and a half or two years of planning. The primary reason is obviously we need to do a Geotech report on it to determine what needs to be done, to do it correctly, and then decide how we want to proceed with that. During that time frame, we need to start notifying all the utilities that are in that roadway and allow them an opportunity to take any corrective action necessary on their facilities or already planned capital projects of TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 43 of 65 their own. That has an impact. Once all of that's done, then we need to get in line in regards to the contractors that do that type of work, and either, one use a cooperative use agreement, two, a job order contracting agreement, or lastly, go out to bid. So I'm just picking Palomino as an example because it's not something we can pick next Tuesday and get started on in July. We are simply not prepared for that. There are several reasons that I just listed. One of the things that causes a considerable amount of emails and phone calls and criticism right here from this podium, is when we pave a street and somebody has to come in and fix a water, sewer, or electric line. It personally makes myself look like a fool because we were not aware of it, and that's a poor excuse. But it also rains poorly on the mayor and council. It appears as though we're spending money and then we're letting people tear it up. So there's challenges, but right now we are really at the threshold for as much as we can do in one year, with the challenges we face. KALIVIANAKIS: And thank you for that answer. And the time that this council has been seated, do you feel like we've been neglecting the streets? And do you feel like this council has not given you direction to fix the streets? WELDY: Madam Vice Mayor, I do not agree with that. We have certainly had an incredible amount of discussion. The mayor and council has continued to give direction through the town manager and the funding allotted. And each time we prepare -- we had already showed you our considerations for next year -- we bring that to the mayor and council, and obviously, there is feedback in regards to that. You approve the expenditure of securing the services of Roadway Asset Services to do an analysis. You agreed that we should have a citizen advisory streets committee. So the mayor and council, as a whole, and the town manager have been involved in this process for a lot of time. At least the amount of time I've been here, it comes up at the majority of the meetings. KALIVIANAKIS: Thank you for that, Director Weldy, because that's also my considerations. It seems like almost every town council meeting that we take these up. I know Councilmember Friedel has been a pit dog trying to reallocate funds, trying to TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 44 of 65 put funds from -- into the HURF, trying to take the fees, put that into the roads. So it seems like my recollection is we've pretty much done everything that we can to fix the roads in this town and without actually compromising too many of the other services that the town provides, that the citizens need and want. I know some of the people on the outlying streets might want their streets to get fixed first. I would never accuse anybody of going to their homes and accepting campaign contributions to do that, that would be inappropriate. But I know that that's one of the things that we have to go -- we have to fix our primaries and our ancillaries first, and then we try to get into the streets as much as we can. But it's hard to spend a million and a half dollars on a street that's got six houses on it, we just simply don't have that kind of funding. And if we did want to pass a bond or a primary property tax, then maybe we would be able to dig deeper. But I think the implication that we're not doing everything that we can is -- I think it's wrong and it's taking this council, this manager, and these people that have tried everything to try to address this problem and minimize it, and so I just want to tell you as a person that's responsible for that. And of course, it was mentioned that the media is here tonight too. And as I read the Fountain Hills times, it seems like phase 1, phase 2, Panorama -- it seems like the reporting on this is -- almost every newspaper article is what we're doing on the streets and what project is next and putting up signs this is going to be parking and this and that. So it seems like we've been accomplishing a great deal in what's only, I think, been 16 months since we've been seated. And so yeah, I think it's disingenuous to throw this council under the bus. It's just wrong. Thank you, Director Weldy. [CLERKS NOTE: Councilmember Toth left the Dais at 6:13 p.m. and returned at 6:17 p.m.] WELDY: You're welcome. MAYOR DICKEY: Councilman? FRIEDEL: Justin, one more question for you. Trying to run away on me? You mentioned the Geotech report on Palomino and taking a couple of years to get ready for that. Is that something we can get ordered with council approval, if it's needed to get that TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 45 of 65 process started? Since it's going to take so long to do that road, why wouldn't we get that underway and then be able to set our goal to get that road fixed? WELDY: Madam Mayor, Councilmember, we currently have that underway. So the assistant town engineer is currently preparing an exhibit based on a conversation that the town engineer and I had with the town manager about several different locations. And we'll provide more about that at a later date. But we are going to be going out and doing the Geotech ourselves based on the stuff that we're currently doing right now. We're having positive results and we will have that ready -- I don't want to give a time frame because we've got a considerable amount of work. I also don't want to name the locations, but Palomino is one of those and there are several others. But we're going to be back before long and give, at least to the best of our ability, without having someone give us a quote directly, have a cost for each of those locations that have been identified. FRIEDEL: That's great to hear. Thank you. MAYOR DICKEY: Rachael? GOODWIN: I was just going to add on to what Justin was referencing. Based on dialogue here, and the conversations we've had about streets, and the feedback we've heard, the intention is to come back before the summer break to discuss next year's paving and what we can get done and which streets we'd like to target. Originally – and there's been multiple approaches to this process over the years, so there's not one right way or wrong way. It's just what way do we want it to go next year? There is the RAS recommendations, it's the streets that are -- based on their data and their collection. And that's what we're doing right now. I know a number of us have heard feedback of, well, why that street? I think the street is worse. Doesn't seem that bad to me. It takes out the guesswork. It's very, very unbiased. That being said, we definitely know Palomino is a priority and it is a very well used road, so we threw that in the mix. And then we're also taking a third look at from what we're seeing at the staff level. Where are we investing a lot of time and effort in our pothole refilling? Where are we seeing claims in terms of damages and other vehicle issues? TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 46 of 65 Where are we seeing our time and resources being invested? And we'll be bringing that back as well. So the idea will be to give you some options of what roads you want to go move forward with next year, and what can we reasonably do with the budget that we have, and then we'll take it from there. So we do hear the conversation and we're absolutely willing to meet you halfway and figure out what the best course of action is. MAYOR DICKEY: Thank you, Rachael. I appreciate that. I know I'm one of those people that are talking to you and the Palomino theme. And so I do appreciate that. It's hard because we get information from RAS and then that -- all those pages and pages and pages of every single street and this many inches and whatever, and then the committee disseminated that and put it in a way that came up with a plan that was a little bit more palatable, maybe, money-wise, or whatever. But then we have the third, which is Palomino, Golden Eagle, whatever. And that's what we're starting, to get to that point where we might have to blend some of this stuff. So I appreciate that very much. Thank you. Oh, I'm sorry. Brenda? KALIVIANAKIS: Yeah. Ms. Mayor, if I may? Just one more thing. And this is a program I don't think people maybe are familiar with. A lot of times, people will have a pothole in front of their house and curse this Town of Fountain Hills. We don't have to fix the whole street to fix a pothole. And if the public out there right now wants to reach out to our town engineer or to Justin Weldy and report potholes in front of their house, we do have patch teams that are designated just to go out there and fill these potholes. And so it's just something that maybe people don't understand, they don't appreciate it, they don't know. But if somebody's got a driveway that's got a pothole or several potholes out there, simply contact your town council person, the mayor, Justin, or David, and we'll fix them and we won't even send you a bill. How about that. MAYOR DICKEY: Vice Mayor, on that note, you can also do it online. Just in case you can go that route too. So one more option. Just wanted to throw that out there. KALIVIANAKIS: Thank you. And how would they do that? GOODWIN: Yeah. I'm so glad you asked. You can go to the town website where you TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 47 of 65 can upload it, you can send photos, you can send location, that type of thing, in that way. And then it gets disseminated to staff and then we take it from there. So use the town website. We're also out on -- the boots on the ground and we see it too. So the more the residents help us and let us know, they are often our eyes on ears on a lot of things, so we appreciate it when they do. MAYOR DICKEY: So is this anonymous? Have I got a street for you. Thank you. SOLDINGER: All right. Great conversation. Thank you. Appreciate that. All right. So based on council feedback at previous work sessions and the council retreat, we categorize proposed capital projects -- the $10.3 million we mentioned -- into green and yellow light projects. Our understanding of green light projects indicate that council has approved these projects to move forward to completion and will only require coming back to council if the project substantially changes in scope or cost. Now, our understanding of yellow light projects indicate that council has approved the project to move forward on tasks such as planning and bidding, but should be brought forth back to council for final approval of the construction costs. On this slide are the projects that we consider green light projects in the community services kind of realm and the department. The top items in orange are the community services projects in general, and the ones below are those that are paid from alternate funding. And those two in particular are paid from the development fees for parks. That $1.3 million that we mentioned earlier, so 1 million of that would be used on those two projects. On this next slide are the green light projects in public works that we discussed at the CIP work session as well, about $3.6 million of projects there. And the total green light projects that we have indicated, are about $5.3 million. FRIEDEL: I think there's one on there that I don't think we actually gave a green light on, and that was the Palisades and La Montana. Is that for the roundabout design? I think there were four of us that did not go along with that. SOLDINGER: Mayor, Councilmember. Yes. FRIEDEL: Yeah. I don't think that that direction was correct on that one. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 48 of 65 TOTH: I just -- echoing that question as well. That is not my memory either on the roundabout. GOODWIN: Well, now's a great time to confirm. If we want to discuss and give some direction, we can either remove, we can move it to yellow, we're open to -- that's what tonight's for. So if there's discussion or direction there -- open to that. TOTH: I'll go ahead and kick us off, if that's okay. If I remember correctly, I was over the phone for that meeting, but I did mention again my belt-tightening thing. This is going to be an ongoing theme, so I should apologize to how often you're going to be hearing that phrase. But this was the project that I remember stating was something we can wait for future years on. I believe if memory serves, Councilmember Grzybowski had noted that this was for design, not for building it, and I think I either spoke directly afterwards or maybe one other person in-between, and I said, okay, if we're budgeting this for the design, this is something that wouldn't be built for some time anyway, so this is something that we can consider for next year, and it's an easy one to push off since we're in the design phase. If memory serves, Councilmember Friedel also mentioned not being for this, and I don't think I remember the rest. If anyone else wants to jump in there. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: According to my notes, I believe Councilman Toth -- or Councilwoman, sorry -- Toth is correct. The concern was brought up that if we do okay the design now, it'll be built in fiscal year '26. But that was not really the conversation. The conversation was, let's do the design now. Then, in two or three years, a future council can say, okay, now it's time to do it. My concern is if we don't do it now in two or three years if it needs to be done, then it's going to take a year to do the design, and it will cost more money in two or three years to do the design. And according to my notes, Justin said the design alone takes 10 to 11 months. So once it gets to the point where council says we need to do something, I would like to have the design done, so that then they can go out for bid and start trying to figure out how much it's going to cost and if they want to do it. And again, we're talking years before this thing gets built. I just feel like it would TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 49 of 65 be great to do the design at today's prices instead of doing the design at, say, fiscal year '27 prices. MAYOR DICKEY: Thank you. TOTH: I think I'm remembering something else from the last meeting. Someone can confirm this. But I thought we had also brought up waiting until Amanda had the downtown strategy for approving this. Is that the same project that we had said, let's see if there's going to be any other changes to that area before we -- sorry, Amanda, to put you on the spot. I'm trying to remember if this was the same conversation. GRZYBOWSKI: You should just sit closer. JACOBS: I have the best view of everybody in the house over there and helps with my vertigo. A little personal. Madam Mayor, Councilmember Toth, we actually did not have a conversation publicly regarding this in the downtown strategy of waiting. However, maybe some side conversations is, we are supportive of doing the design as mentioned. Mr. Weldy mentioned too, showing we're putting money in for the design could assist with potential grants. And we're supportive, again, of doing some of the design because it's the entryway into the business district. TOTH: Okay. JACOBS: Does that help? TOTH: That is super helpful and thank you. I am thinking I had my wires crossed and that that was for a different project that we had said that. So I'm sorry. JACOBS: Any other questions for downtown? TOTH: All good for now. JACOBS: Not yet. TOTH: I would still personally argue -- and even if maybe there was a miscommunication, again, I know I was over the phone for this meeting, so I might have missed that -- we had decided to just leave it in. My personal opinion would be that we can design it once we know we're going to do it. And I think that at this point, this is something that can wait. Again, if I'm really hoping to show the community that we're serious about finding as much money as we can, I would think that this is a good TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 50 of 65 candidate for that. MAYOR DICKEY: Councilwoman? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah. Since we're just all playing, what do you remember? I remember, I kind of didn't like this project either, as a roundabout. And I specifically mentioned I didn't like it going from eight lanes down to, like, one. And I called it road diet-ish. And I do think that something's got to be done with this intersection. It's very large. And Justin, you please listen to this conversation, there's just a couple little stop signs, and I've literally seen people just drive right through it and not stop because they didn't see the stop signs. And so I spy a dangerous intersection. But I don't think that putting a roundabout there and restricting the traffic -- it's almost like a choke point right there -- I just wouldn't be for that myself. And I do think the guidance was against it when we just discussed this, whenever that date was. And so I would like to scrap the design, but then maybe come up with something to make it a little more safe, maybe some cautionary lights. Just more of -- yellow flashing, whatever, to remind people that this is a four-way stop and so that's my recollection. MAYOR DICKEY: I do think we talked about the -- not only the idea that it would go up in price. When we did the roundabout out here by the post office, I think the whole thing was $700,000. And then when we looked at what we might do if we were going to do the one on Saguaro and Avenue of the Fountains, it was quite a bit more. And in fact, the design was like $300,000 or something. This design is $150,000. This intersection needs attention. It has nothing to do with trying to stop cars from going through or anything like that, it has to do with being safe. You can't cross there without, like you said, eight -- well, it's not really eight, maybe six. Because you've got turning lanes, then two lanes, and you've got four ways that it's coming. We just heard from the -- the Chamber was talking about how many vehicles go by their sign every month, and they said 77,000 cars on average, go by that sign. Which is 20 -- almost 2,500 cars a day. And that's on Palisades, and that doesn't count La Montana. That's a lot of traffic. And that is not an intersection that we should just leave at this point at all. And I think it should be narrowed and it should be made more safe. And we've already had the TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 51 of 65 design as far as saying which would be the safest thing we could do there, which is a roundabout. This roundabout works well here. It's just a traffic calming, pedestrian- friendly area, and if that's going to become part of anything that is downtown with Basha's there, with all the other things that are going on around there, and in addition, there are homes there. I think it's a very important for us to do something with that intersection. I would really like to go ahead with this, particularly at this low cost for the design, which is the engineering design. And again, having that ready -- and I know that we did talk about that -- makes it easier to get what would be probably a very, very healthy grant because this is a pedestrian safety issue. So I would like to keep it on if -- But yes, Gerry? FRIEDEL: Mayor, I think we could have our town staff take a look at maybe doing some different kind of striping in that intersection. I'm not for this. You can't sit here and convince me that pulling stop signs out on a designated truck route is any safer for pedestrians crossing that intersection. We have two designated truck routes in this town, Saguaro Boulevard and Palisades. Having trucks roll through there at 30 miles or plus an hour per mile, with pedestrians crossing there, you can't convince me with any study that you come up with that that's safe for pedestrians. So I think maybe we could forego this. We're not going to build this. We might not have the money to build this for five years or ten years. You're going to get a design done now that inevitably will sit on top of the refrigerator, let it collect dust, and it might change again, and something else will come up and there'll be a better way to do it. I don't think we need to put the money into this right now. I think it's prudent to scrap this right now. Have our town staff take a look at that intersection and see if they can come up with something else that would make it a little safer for the pedestrians. One thing I heard from residents in this town is the fact that that stop sign that's sitting there, you've got a left-hand turn on the other side of the stop sign, and that could be confusing to people. Just that in and of itself, could be a fix that would make that intersection a little bit safer for pedestrians and cars going through there. So I think we need to have our town staff take a look at this intersection and maybe see if they can TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 52 of 65 come up with some solutions. Bank our $150,000, put it toward road work or something else that needs to be done. And when we're ready to do this, then we do it. It's again $150,000. Yes, it sounds like a good deal. However, we're not ready to build this, and we might not be for several years down the road. MAYOR DICKEY: I'll let you go, Peggy, but I just want to say. I, again, believe that this would be very eligible for a grant, and I would not put it up on a shelf if I was still here. Thanks. Go ahead. MCMAHON: Thank you very much. I agree with Mayor Dickey and Sharron. This is a dangerous four-way stop, given the amount of traffic and given where it is. That happens -- and daily there's traffic there, et cetera. In conjunction with what Amanda said with the downtown improvement plan. Also, this I'm not -- I'm not for wasting money on putting other red stop light, flashing, et cetera. That's a Band-Aid. I don't want Band-Aid on this. I would like to be more proactive about providing safety for everybody at that intersection. I think it's a dangerous intersection. I don't like it. I don't think it's even attractive for the town. I think that a roundabout has proven itself to be very, very safe, cost less to put in, is less maintenance than a traffic light. So I am for spending this reasonable amount of money on a design. I know we don't know what the next council is going to be like right now, but they're going to have to pay attention to this particular four-way stop in the future. And I'm just not for waiting around any longer to be proactive and to take some safety measures in a design which would go towards helping and educating the next council and making a better educated decision about what to do at that intersection. So thank you. MAYOR DICKEY: Hannah? TOTH: Mayor, really quickly? Could you repeat that number that you had mentioned, the amount that go by the chamber sign each month? 77,000 -- MAYOR DICKEY: Here it said. The LED sign, approximately 77,000 a month on average. And then I just divided it -- TOTH: Yeah. So -- MAYOR DICKEY: -- by 31 or whatever. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 53 of 65 TOTH: -- 2,567-ish -- 6.6666 a day about. That would be assuming -- conservatively assuming that cars aren't driving at the same pace at 2 a.m. so let's say like 13 hours of regular traffic going through. That would be about 197 an hour, about 3.2 a minute -- well, 3 a minute because .2 of a car would be kind of weird. Point being, this is not as busy of an intersection as it is sounding like when we first hear some of these numbers. And that's -- I said, 13 hours, assuming like 7 a.m. to 8 p.m. because Fountain Hills goes to bed early and good for us, we're healthy. But my point being here, this is not an immediate need and that's why I would also be for not doing it. But at the same time, I believe at the very least, we've shown the staff that this is definitely a yellow light, not a green light. So just to help us keep going. MAYOR DICKEY: I appreciate that. I wanted to ask Justin because to Gerry's point about staff looking at it, isn't that how we got to the point of this recommendation? WELDY: Madam Mayor, the intersection analysis was a directive from the mayor and council. MAYOR DICKEY: (Indiscernible). WELDY: Correct. The intersection analysis is done. The analysis showed us the crash history, showed us the types of crashes that were there, and made a strong recommendation for a roundabout in this area. We have two lanes in each direction for east and west, and one lane in each direction for north and south. And so the north -- excuse me -- the east west legs would be narrowed to one lane to enter the roundabout. It wouldn't have an impact on the north/south because they're already single lanes. And the design takes into account the type of road it is. So the design class and the classification identification, which is a truck route. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Actually, Peggy said something that she's not for but I would be for her. And that would be -- what about just the hanging, blinking reds, just to designate that there's stop ahead? I've seen those done with just poles and like, chains or something, and they just go up like Christmas lights and they have blinking reds. Is there just another, more cost effective way that we can make this more safe TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 54 of 65 without either having to do a roundabout or the expense of a whole stoplight situation? WELDY: Madam Vice Mayor, I don't have the cost available for what you're referencing, which is a span. I simply do not have the cost for that. Or am I willing to offer up an analysis on how we could make improvements. The firm that looked at the analysis did make some recommendations, but they were minor in nature in regards to advanced signage to let people know there is a stop sign ahead, those types of things. Just very, very minor in nature. We can certainly look at the intersection, but it's difficult to change human behavior. That's the factor here. KALIVIANAKIS: I understand, but like what Gerry said, that stoplight being in the middle of the turn lane, it almost does look like that's just for the turn. I don't know. I'm just hoping that if we do red light this tonight or yellow light it, that we can just come up with a reasonable, cost-effective solution just for our safety concerns and also the fact that it is a truck route. I think that's got to factor into the it being a roundabout versus a stop sign. WELDY: We'll certainly take a look at it and see if there's anything that we think might be able to make improvements. MAYOR DICKEY: I think the truck route is a good reason for it to be a roundabout. You've got to slow down. You can't go through it. You can't blow through -- you can't blow through it. And that's literally why there are so many less accidents. And pedestrians do not cross at the roundabout. They cross away from it and they have a safe haven in between. They only have to look one way, get to the safe haven, look the other way. So it is proven safer. The other thing is about the stop sign being on where it's located, where else would it be? WELDY: So Madam Mayor, there's a reference -- so I'm going to use some a little bit of technical terms here. So we reference nearside right. And we reference nearside left. When we have a split, which is what we refer to as a carrot configuration for striping, it's not a good idea to put the nearside left stop sign on the left side of a dedicated left turn pocket, because people that are coming from an opposite direction making a left turn -- think Verde River at Parkview -- have a tendency to run those stop signs over, even with TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 55 of 65 giant orange barrels on them. So by offsetting it that 12 feet to make it a nearside left for through traffic, but nearside right for a left turn is more economical and are feasible. And also follows the guidelines on the manual for Uniform Traffic Control Devices, which is really tells us what we need to put there when the distance, the size, the height, all of those things. MAYOR DICKEY: Thank you. WELDY: Easy to understand? MAYOR DICKEY: It's where it should be. Rachael? GOODWIN: Mayor, for the purposes of this conversation, I think it's pretty clear that there is still some division on what we want to do. So this definitely moves to yellow, if not red, depending on further conversation. I think also we have a traffic safety pedestrian committee. MCMAHON: Um-hum. Tomorrow. GOODWIN: Yes. I think it might be tomorrow. So perhaps this conversation needs to go to that small group to kind of flesh out, and maybe either future or additional recommendations or review is warranted. And it might make sense to move that conversation to that group so that we can get more input, not just from Justin, but from our engineers and some of our other staff, to get a little bit more insight. Does that seem reasonable? Great. MAYOR DICKEY: Sharron? GRZYBOWSKI: I wanted to discuss the 18-wheelers and trucks driving through a roundabout. If you've driven to Vegas -- It's been a long time since I've driven, I think, it's Wickenburg -- and they have at least two. And I have admitted to you guys before I'm not the best with my lead foot, so I have followed truckers going through that thing at highway speeds, if not more, and they're capable of handling traffic circles. There is no doubt in my mind. But I do agree we probably should just yellow light this sucker for now. MAYOR DICKEY: Okay. SOLDINGER: All right. Thank you for all that feedback. I think it was really helpful. Just TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 56 of 65 keep in mind that when we're preparing our tentative budget for next month's presentation we'll have to consider whether we include that $150,000 or not. So it sounds like we're going to have future conversations on it. MAYOR: (Indiscernible). SOLDINGER: Yeah. If it's a yellow light project, we would include it in our tentative budget. If it ends up being a red light project, we would take it out. MAYOR DICKEY: I think, including it, just even if it ends up being some kind of a striping or different kind of a situation, it's probably good to have that in there. SOLDINGER: Right. So moving on. That was a fruitful conversation. But so the projects that we considered yellow light projects are on this slide and the next slide. Number one being the community center renovations phase 3 for $750,000, as well as an alternate funded project, the downtown restroom, which would be paid out of the downtown fund of $475,000. So at this point, we're categorizing these as yellow light projects. And talent for the downtown restroom, town staff is following council's input and should have further information for the project by the beginning of next month. MAYOR DICKEY: Thank you. Councilwoman? MCMAHON: Going back to the community center reservation -- renovations -- excuse me. MAYOR DICKEY: Reservation? MCMAHON: On the reservation. I thought that was a need. I thought that was something that had to be done in order to complete the project. GOODWIN: It certainly does. I think the question that was brought up was, what are we getting for 750? How do we know it's going to be done? What all does it include? The scope of it. MCMAHON: Okay. GOODWIN: And so I, based on the conversation, what staff will do is it -- we budgeted for. But we will go, we will work with our contractor and vendor to get a better idea of what -- MCMAHON: Okay. TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 57 of 65 GOODWIN: -- that includes, and then come back before we do anything. MCMAHON: Thank you very much. GOODWIN: Great. SOLDINGER: And so lastly, for yellow light projects. Anything that was a grant-funded project which would be contingent on obtaining the grant funding, we consider to be yellow light projects as well, which are on your screen. So total yellow light projects for these past two slides equal almost $5 million. Does council have any further discussion or questions about these projects? All right. We're almost -- oh, I forgot about this one. All right. Wayfinding signs. After fruitful discussion at the last council meeting, it's important to note that council recently directed staff to move forward on the wayfinding signs project, with an estimated cost of about $700,000. However, that project has not been incorporated in the proposed budget that we've discussed today. And we will need to determine if we can even incorporate the project into the fiscal year 2025 tentative budget considering several factors we've discussed today, such as funding availability, as well as the expenditure limitation. Does council have any discussion or questions on the wayfinding signs project? MAYOR DICKEY: Hannah? TOTH: Don't be mad at me. I would rather have the wayfinding signs than the roundabout. MAYOR DICKEY: (Indiscernible). FRIEDEL: You're not saving us a lot. MAYOR DICKEY: Go ahead. FRIEDEL: I have a concern with the dollar amount on this, $700,000. I just think that's an awful lot of money. So I asked the question, how many wayfinding signs do we actually have right now that are up? I know some of those brown signs have disintegrated and been removed. So I guess, I ended up at -- originally there were 55. Do we know how many are still in use right now? WELDY: Madam Mayor, councilmember, there are probably less than a dozen TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 58 of 65 wayfinding signs leading off of Shea. So we had two large ones on Shea. One of them was badly damaged and not replaced because of its poor quality. And obviously, the outdated brown ones have been either removed by staff or simply damaged or unreadable. So we're very, very limited. I would say probably less than 12 total. FRIEDEL: All right. So if we have 12 that are actually serving that purpose right now -- I think 40 is the recommended discussion that we had before. Going up to 40, I'm not sure we need 40 more signs in this town. I love the signs. I love the look. I think they're perfect. They'll last a long time, but we need to come up with another number to serve the town, I think. 40 to me is just an awful lot of signs. And that $700,000 price tag is up there. Well, we don't even know if that's really the price tag. We're going to get that figured out, aren't we, when we ask them to bid on it or something? WELDY: That is correct. FRIEDEL: Okay. WELDY: We'll know the real number when we open bids. FRIEDEL: So can I ask this question? Can we get a bid that would include a different set of signs like 20 signs, 40 signs, 30 signs? Is that possible, do you know? WELDY: The bid schedule will include -- so each classification of sign, the cost for each of those. FRIEDEL: Okay. All right. Good. Thank you. MAYOR DICKEY: Hannah? TOTH: Again, my memory. But Director Weldy, am I correct in thinking that we had discussed maybe lowering the number of the signs in our last conversation? WELDY: Madam Mayor, councilmember, correct. There was a discussion on whether or not we could use unit pricing based on the sign classification. And the answer to that is, yes. TOTH: Okay. Wonderful. So to further clarify, I would still -- I support wayfinding signs in town. I support making them more up to date. I do agree that maybe we can afford lowering the number a bit, so that the number maybe is a little bit more comparable to the roundabout. But my point being, I think this is something that improves people's TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 59 of 65 ability when they're in town to visit town and hopefully therefore gets people shopping and dining and spending money and paying for the sign. MAYOR DICKEY: Councilwoman? Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. WELDY: If I may? When we're discussing the size or the locations and the amount, as we get closer to this, and we'll certainly try to provide a detailed map, each of these are at a strategic location where staff believes that somebody would likely need additional information, because it's a great distance in between location A and B. In between there, there are local streets and other collectors, and people have a tendency to want to turn down those streets. So keep that in mind, as we're eliminating them, we really need to look closely at where they're being eliminating and whether or not we're going to reach that goal, which is to get them to this area, for lack of a better description, or a resort, or the hiking amenities. KALIVIANAKIS: Okay. MAYOR DICKEY: Yes, Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Justin, if you could -- directed to you. I'd just like to say yes to this project, but the budget for this, it's $700,000, is kind of a problematic for me. Now, you stated that we were down to 12 signs, existing wayfinding signs, and that the rest were damaged. What kind of damage happens to a wayfinding sign? WELDY: Madam Vice Mayor, nature, and vehicles. So the previous signs were made of untreated wood. And put in in the 90s. KALIVIANAKIS: Oh, so they're not metal. WELDY: No, ma'am. MAYOR DICKEY: No. Just those downtown things -- KALIVIANAKIS: Just the downtown ones? MAYOR DICKEY: -- that says town center. KALIVIANAKIS: So you can't powder coat wood can you? MAYOR DICKEY: For sure. KALIVIANAKIS: So yeah, I was hoping that maybe we could renovate the old ones, but I TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 60 of 65 guess that's not going to be. I thought that some of them were directing the -- MAYOR DICKEY: Just the different one with the mountain thing on. KALIVIANAKIS: Okay. Okay. So -- okay. Well, let's try to get a good bid. MAYOR DICKEY: Sharron? GRZYBOWSKI: Councils have been kicking this can down the road, don't -- you can sit down, it's okay. Councils have been kicking this can down the road for years. I can't remember if I started coming to council meetings in 2016 or 2017, but it has been a topic of conversation. And I imagine the costs have gone up dramatically -- SOLDINGER: Doubled. GRZYBOWSKI: -- since they initially started talking about this. Yeah, the dollar value sucks, but honestly, when you're going into a town, you so appreciate these kinds of signs because you're on your way in and you're excited and then you're like, well, crap. So I just -- I feel like this is very important. The other cities and the other towns have it, I think it is very important for us to do. I also think consistency is important, not just in the sign, but also in the -- I'm going to call it location or maybe frequency -- because if you drive too many miles and you haven't seen that sign in a while, you wonder, did you yawn and miss it? So I kind of feel like, yeah, it seems like a lot, but I think the locations that were indicated in our last meeting or two meetings ago or whenever it was, I feel like that many is probably important. I'm all for this project. Yes, the dollar value stinks, but if we pass it on to councils further down the road, it's going to stink even more. FRIEDEL: I think we talked about putting mileage on some of these signs too, so that would eliminate some of the repetition too. MAYOR DICKEY: Yes. I think that was my brilliance. I just thought like, if we put them on Shea and we put them on the places where people that don't live here. And then just say something or another is one mile or two miles or three miles. The other thing we could do is break it up over a couple of years. If the harm -- what's the harm of -- or is there harm with budgeting it and then not doing it? Or like if for some reason we feel like we can do the whole thing in one year or making it a two-year deal? I really want to do it too. It was like 2018, 2016, something like that, and I'll tell you, it was like going to TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 61 of 65 be 100 grand, and so it's a lot different. The design was 100, and then the signs were just going to be pretty comparable. And we were even looking at -- not we, I wasn't on the council -- but monument signs and this doesn't even do that. So I'd love to see it happen. I think it's important. I think the 700 is kind of making us all a little antsy. Yeah. GOODWIN: I think that's what gives everybody a little bit of pause. I mean, I feel like the direction was, yes, everybody seemed to like the idea. It's the dollar threshold that seems to be uncomfortable. So what we're looking for is just -- is what number would you like us to put in as that placeholder for next year? If it's 700, that's fine. If it's less than that and we want to take a phased approach, that's certainly fine. The question is, is that no matter what number we pick, we're going to have to figure out where that comes from based on what the budget was presented tonight, because it's not currently integrated. So the direction we're looking for is, is give us the number you'd like for us to work with, and then we can -- we'll adjust the budget accordingly. MAYOR DICKEY: Hannah? TOTH: Justin, if I could ask you to get up one more time? We're all getting our steps in tonight. I'm so sorry to our staff. Okay. If we were to split this into two years, if we said 350 and then 350, what would be the challenges for that? Is that something that you would recommend? What do you foresee if that's what we were to do? WELDY: Madam Mayor, councilmember, phasing is not uncommon. So what we would have to collectively decide, is what classification would we like to start with, or do we want to do a mixed? So do we want to do just some of the ones on Shea, some of the ones on Fountain Hills Boulevard? Or do we want to focus on let's get them off of Shea and get them halfway up, and then we'll bring them into town next year. So it's a discussion that we would obviously need to take a closer look at. And then we would most likely come back with the recommendations to the town manager. And then she would, obviously, get feelers from the mayor and council. Phasing is not unheard of for projects that are this expensive. GOODWIN: Justin -- TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 62 of 65 WELDY: So is there a downturn? To some extent. We would probably have to rebid the project for the balance of them. GOODWIN: Just for clarification. If we were to do it in two fiscal years like we were proposing, but we were to sort of join the two fiscal -- do it at the bridge of the fiscals. So i.e., the end of '25 into FY '26, a June into July sort of installation, where for our budgeting purposes, it would be in two fiscals, but from the user perspective, they would all go in. Is that possible? WELDY: Absolutely. GOODWIN: Okay. WELDY: We have several projects -- GOODWIN: So there may be options. WELDY: -- that bridge the fiscal year. GOODWIN: Okay. MAYOR DICKEY: (Indiscernible). WELDY: But it's just critical that you're -- before right now, today, letting two of these guys know that you need an additional two hundy. FRIEDEL: I was going to ask if we could put a cap like half a million dollars on this project. I don't know if that's reasonable, feasible, but you're going to come back to us if we say yes, let's phase this in. And your bid comes in lower, of course, then that's the best of both worlds, right? KALIVIANAKIS: Yeah. And just one brief comment. I know sometimes when you bid projects for a town this small, that you have a hard time even coming up with a bid. And that's been part of the problem that we've had in the past. You're like, well, we put it out for bidding, we got one bid. So do you want it or not? For a project like this, do you accept -- do you expect that we'll get multiple bids? WELDY: Madam Vice Mayor, surprisingly, the last time we got three. KALIVIANAKIS: Okay. WELDY: And we're delighted when there's more than one. KALIVIANAKIS: Yeah. So there's a chance that -- TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 63 of 65 WELDY: And they were somewhat comparable -- KALIVIANAKIS: Okay. WELDY: -- in regards. And they were in the $300,000 range. KALIVIANAKIS: Okay. So there's a chance that we could be well below 700. WELDY: There's a possibility. But that was three years, four years ago? KALIVIANAKIS: Yeah. I would just prefer to get the number before we start to phase it or break it down or do less signs. Let's just, let's get the number. WELDY: Understood. MAYOR DICKEY: Councilwoman? TOTH: I was thinking we could combine a couple ideas and one, really like our town manager's idea for it effectively still being the same item but splitting that toward the end of fiscal year '25 to beginning of '26. The other part that I was hoping to maybe discuss further is, I like the idea of putting a slightly lower cap on this. Maybe the 500,000 is our -- this is what we're willing and able to spend on this. And then we say 250 in this year and 250 in next year. But maybe I'm piecemealing this too much at this point. But. MAYOR DICKEY: Well, what is the -- what are the ramifications? So we -- obviously, this is just a preliminary work study session for our budget. So if we said -- if we waited for you to get some of those numbers back, what would -- would that mess you guys up? SOLDINGER: Mayor, Council, another challenging question. Essentially, in the end, we have not incorporated it into the budget process yet. And in the end, for the tentative budget that we present to council next month, we have to consider the expenditure limitation. And so therein lies the challenge. We just don't have the full picture yet, we're getting there, so it's hard to give you definitive yeses or nos or what's going to work. Like, for example, the $150,000 for the roundabout, that becomes a red light project, that frees up $150,000 that was kind of already included in the budget. So that would make it more palatable. So I think it just depends on how this process goes. But based on council discussion, if you want to do 500,000 -- for example, Councilwoman Toth mentioned 500,000 total, 250,000 next year, 250,000 the following year. That TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 64 of 65 makes things a little bit easier from the expense limitation consideration standpoint, but we won't know until we go through the calculations. MAYOR DICKEY: Councilwoman? MCMAHON: Can we just leave the money in for right now as a placeholder? And then when we know a little bit more about what the price will be, then we can take a look at it and adjust it accordingly? SOLDINGER: Councilwoman, it's not in the proposed budget we've discussed today at all. Yeah. So we would have to include it at whatever amount we receive direction on in the tentative budget process. MCMAHON: Okay. Thank you. MAYOR DICKEY: Are there ramifications to -- so we would get one bid, that would be great. And we would just have to know that that would be an obligation. So if whatever the next fiscal year brought, we would still have to continue and complete the project, right? I mean, if we did one bid, it would -- but it would still come from two different years. I kind of like that, the $500,000 idea because I think that would -- that would save quite -- that would put quite a bit of money into the budget, but it would also sort of self-limit, maybe not with 40 signs or whatever -- and we'd have to make some decisions and that might be something we could -- the 250, 250. WELDY: I think it's important to note that at the earliest, it would be the very last meeting in June before we would be able to put this project together, advertise it, and get bids and sort through that. Realistically, it would be after the summer break when we would know the true cost. So keep that in mind. We have an estimate now. The true cost we won't know until we actually open bids. SOLDINGER: You got it? All right. Presentation's almost complete. Just a few more slides, so bear with me. So for the environmental fund that was mentioned at the beginning of the presentation, we still have a fund balance that we anticipate spending down next fiscal year, in accordance with council feedback at the budget retreat. We still project collecting investment earnings in this fund based on the fund balances -- the cash in the bank that TOWN OF FOUNTAIN HILLS APRIL 9, 2024 TOWN COUNCIL WORK SESSION (BUDGET WORKSHOP) MEETING MINUTES Page 65 of 65 we're holding. And we are keeping a consistent budget for fiscal year 2025, granting the budget authority to continue to spend these monies. And lastly, in our presentation, here are other funds not discussed today, including economic development, development fee, and internal service type funds. Earlier this year, before I was a town staff member, council directed staff to defer replacing three vehicles. Therefore, we did not include proposed expenditures for these purposes for fiscal year 2025. But we will bring this back to council in the future. Does council have any questions? No? MAYOR DICKEY: Oh, there was some questions now. No. I think we've asked and we really appreciate all your input and all the staff input into creating this, and we'll do our best to get over the finish line with this and have good conversations with Rachael. Gerry? FRIEDEL: I just want to say thank you guys, all the staff for this -- for the presentation. We value you. And thanks again for all your hard work. MAYOR DICKEY: All right. Anything else, Rachael? GOODWIN: No. That leads us to the end. We've got -- I think we've got direction on all the pieces we needed. So when you see the tentative budget come back in May, it should reflect those changes and should look pretty similar. So we'll keep moving forward. We appreciate the feedback and the time tonight. MAYOR DICKEY: Thank you. All right. We are adjourned. Having no further business, Mayor Ginny Dickey adjourned the Work Session - Budget Workshop of the Fountain Hills Town Council held on April 9, 2024, at 7:04 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 9th day of April 2024. I further certify that the meeting was duly called and that a quorum was present. DATED this 4th Day of June 2024. _____________________________ Linda G. Mendenhall, Town Clerk TOWN OF FOUNTAIN HILLS MINUTES OF THE REGULAR MEETING OF THE FOUNTAIN HILLS TOWN COUNCIL APRIL 16, 2024 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 Brenda J. Kalivianakis; Councilmember Gerry Friedel; Councilmember Peggy McMahon; Councilmember Sharron Grzybowski; Councilmember Hannah Toth; Councilmember Allen Skillicorn Staff Present: Town Manager Rachael Goodwin; Town Attorney Aaron D. Arnson; Town Clerk Linda Mendenhall Audience: Approximately fifty-five members of the public were present. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 1 of 55 Post-Production File Town of Fountain Hills Town Council Meeting Minutes April 16, 2024 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 APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 2 of 55 MAYOR DICKEY: Good evening everyone. Welcome. Please stand for the pledge and remain standing, if you so choose, for the invocation. ALL: I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all. MAYOR DICKEY: Thank you. Pastor Rod Warembourg from Desert Creek Fellowship. Hi. WAREMBOURG: Thank you for having me. Please join me if you'd like. Father, I come before you tonight in Jesus' name and I ask, Lord, for your help. Father, I ask that you would grant wisdom and insight to this council. I pray, Father, that you would lead them and guide them, and you would help them to make good choices for our town. I pray, Father, that you would help them to step into the things that will make this community a better place for all of us. And so Lord, I ask that You would be light and guide for them. In Jesus' name, amen. MAYOR DICKEY: Thank you. Roll call, please. MENDENHALL: Thank you, Mayor. Mayor Dickey? MAYOR DICKEY: Here. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Here. MENDENHALL: Councilmember Friedel? FRIEDEL: Present. MENDENHALL: Councilmember McMahon? MCMAHON: Here. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Present. MENDENHALL: Councilmember Toth: TOTH: Present. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Here. MENDENHALL: Anyone wishing to address the council regarding items listed on the agenda or under call to the public should fill out a request to comment card located in TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 3 of 55 the back of the council chambers and hand it to the town clerk prior to consideration of that agenda item. When your name is called, please approach the podium, speak into the microphone, and state your name for the public record. Please limit your comments to three minutes. It is the policy the mayor and council to not comment on items brought forth under call to the public. However, staff can be directed to report back to the council at a future date or to schedule items raised for a future council agenda. MAYOR DICKEY: Thank you, Linda. We'll start with our reports by our town manager and council. Rachael? GOODWIN: Thank you, Mayor. Welcome, everybody. I just have a couple of updates tonight. They're kind of all over the place. First, I wanted to mention, I know our council -- and it has heard from a number of residents about conditions and concerns about the Park Place phase 2 property. I want to let you know that we've been in touch with the owner of the property, staff's been working with them, and we're going to be evaluating the situation. So, we'll have more forthcoming about next steps with those concerns. Also, as many have heard, our own Arizona Coyotes are on the verge of relocating after this season. As a result, tomorrow will likely be their last home game. So the fountain will be lit in 'Yote colors as a tribute to the players and the fans that have been part of the Valley since 1996. I believe our vice mayor will be speaking a little bit more on that during her update as well. Lastly, I'd like to officially welcome our new park superintendent, Brandon Putman. I don't think Brandon is here tonight, but I did want to welcome him. Brandon came to us from Peoria, where he was the field operations and planning services superintendent for their parks department. He has a master's degree from Grand Canyon, as well as a bachelor's from Colorado State, with an emphasis in landscape horticulture and turfgrass management. So, we're really excited to have him and bring him on board with us. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 4 of 55 MAYOR DICKEY: Thank you. GOODWIN: Absolutely. MAYOR DICKEY: Councilwoman? TOTH: Thank you, Mayor. I had the pleasure, like many of us, to attend the Dark Sky Discovery Center's groundbreaking on the same day as our solar eclipse. That was so lovely. We had such an incredible turnout for that event. It's so clear how much community excitement is around this project and can't wait to watch it grow over the next couple of years. GRZYBOWSKI: I feel like we just sat down two days ago. So I looked at my calendar and I'm, like, we haven't done anything in two days. But it has been two weeks since our last regular meeting and the only thing I have is the Dark Skies, and I know everybody wants to talk about it. It was a great ribbon cutting, and it was so exciting to see so many people here as excited about the project as we are. And my special Dark Skies dress went over very well. I got "you were best dressed" emails from a number of people. Thanks so much. FRIEDEL: Thank you, Mayor. Did you get a candle for that? Just kidding. Like everybody else, I attended the Dark Sky event and the eclipse, and it was a fantastic turnout. I think more than they anticipated. So that was a great event for the town, and it will be great to see it progress. We did have a budget workshop last week, so we went through a lot of stuff that are going to affect the future of the town: capital projects, finance, et cetera. And I attended the Regional Domestic Violence Council meeting and a couple of notes from that. They see a very big increase from July through December, during the summer, and the holidays of domestic violence. They're trying to figure out what those numbers mean and why it's increased at that particular time of the year. And also, April is Sexual Assault Awareness Month. So, on Fridays, they're going to be wearing teal. So that's for sexual assault month. That's all I have, Mayor. Thank you. MAYOR DICKEY: Thank you. MCMAHON: Good afternoon, everybody and thank you very much for coming. I also TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 5 of 55 attended the groundbreaking ceremony and I have to say it was fantastic. It was so well put together. The board is so proud of their accomplishments. I just can't wait to see what they'll do and how fast it's going to be built. And it was awesome because it was simultaneously with our solar eclipse. And they handed out solar eclipse glasses, so everybody got to enjoy that. It was a great groundbreaking ceremony. Also, we're planning -- the Dementia Friendly Town Committee is planning our new summit. It's going to be April 27th here at the community center. It's free, and it's going to be about taking care of the caretaker and providing them with information and support to get through a difficult time. In addition, yes, we did have a budget workshop the other day and I have to say I was impressed because, as usual, David Pock and Paul do a great job and it looks like the town has a bright future. So, thank you very much. MAYOR DICKEY: Thank you. KALIVIANAKIS: Thank you, Ms. Mayor. And thank you, everyone, for coming tonight. It's so nice to see you again. For everybody on YouTube and livestreaming, wish you could be here, but it's a nice room. It's a great audience. I want to congratulate all the Stellar Students tonight for being here and for your outstanding work in the schools. I did go to two ribbon cuttings: KDA Dance and the Gallagher Framing Company. Those are both wonderful. It's always nice to see our business community engaged with the Chamber in the town. Also, I would like to, kind of -- and the big picture is, this town council, we deal with public safety, we deal with fire, roads, safety, infrastructure, parks, recreation. But just as important, or maybe more important, is the individual interactions that this council has with the community. It's really meaningful. This gets us back to the Coyotes and the lighting of the fountain. A number of constituents came up to me and they were Coyote fans, and they had said, wouldn't it be nice if we could do something to celebrate this wonderful team that we've been enjoying for so many years? And so based on the input that I got from the people in this town, I went to the mayor, and I went to our wonderful town manager, and they're like, yeah, what a great idea. And so, TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 6 of 55 we put that together and that's again, that was just completely generated from the people in this town who we represent. Just again, just on the small level, the little level, we're having, the Fountain Hills Cares again. Last month we had it for the celebrating civility, and it was the most well- attended one that we've had. And this next one is going to be on personal responsibility. And so, this is something that touches all of our lives. The police tend to be as proactive as they can, but they're reactive. If something happens to you, you call the police, they come and investigate. And so, we all have a duty to be proactive. And so, the basic principles are: be safe from danger; protect yourself; protect your property from theft, violence, cyberattacks; be alert; display confidence when you walk; keep your hands free, especially from your phone; and ask for help if you need it. And always out there, trust your instincts because they'll usually be good for you. And so I just want to let people know about that. The last thing is we had our streets and pedestrian safety committee this month, and just so everybody knows, this is our town engineer, this is our town manager, the mayor, myself, Peggy, and other principals. And we literally sat down for almost three hours, and we went over every email, every correspondence, everything that anybody had about public safety: about their driving too fast on Main Street, could we get rid of this speed bump, we need a sign here. And so just so you guys know, we get one letter in, every single one is looked at and addressed. If it's a speeding issue, we take that wagon that goes out there and measures the speed. And just so you know, when you're driving up there, it measures your speed before you even know it's there. So sometimes they say, oh no. Anyway, so yeah, that's one thing we talked about in that meeting. Anyway, so I just want to let you guys know that we are looking out for you individually as well as the big picture. And the last thing, on March or May 11th, the Desert Valley Winds will be playing -- that's a band that I play in -- at the community center. So, I invite everybody to go there. And this month we have a new song called Saxation (ph.). It features the saxophone, which I play. So, I hope everyone can come out and join me on the -- it's at TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 7 of 55 noon on the 11th of next month, at the community center. So, thank you everybody. MAYOR DICKEY: Councilman? SKILLICORN: Thank you, Madam Mayor. Welcome Fountain Hills. So good to see all the people here. And I'm just going to keep this so short, because I'm just excited to see the Stellar Students and hear the presentation from the university. Thank you so much. MAYOR DICKEY: Thank you all. So, I don't think anybody mentioned the music fest. So yay Went to the music fest. The groundbreaking. The budget work study, which is on video. So, you can see that conversation. Pedestrian traffic safety as Brenda and Peggy were talking about. Canada, Arizona Business Council, kind of, narrowing down to something called medical travel. And so, Amanda and Rachael met with them with me, and we'll see where that leads. Had our mayor's education roundtable, and I'll talk a little bit more about that when U of A is up here. The Community Foundation luncheon, they had the whole butterfly weekend, pretty much. So that was a very nice event. Fountain Hills Cares committee. And then just two things that the timing was a little bit off, so National Therapy Animal Day is April 30th. I couldn't get it on for today, so they'll probably have a proclamation on the 7th, but I wanted to mention that. And then International Firefighters Day is May 4th, so we'll miss that one too. So, I wanted to mention those. Folks ask us to do proclamations, so and we will do those on the 7th. So now, we're going to go to the Stellar Students and the kids, I will read your name from up here because I have two from each school. And then you come on up and Angela will give you a certificate. And after everybody's all lined up, they'll come down and the paper will take some pictures. And then I'm going to go straight into the proclamation for the Fountain Hills Women's Club. And I think there's somebody here to pick that up. Is Joanne Colella here? If not, I'll just read it. But let's get started with our students. And we always start with our little Falcons Preschool. And our first student is Braylee Gallagher. Is Braylee here? You can come up with her. Yeah. Of course. So "Braylee always walks into school with a huge smile, ready to learn and play with her friends. Braylee is eager to explore the classroom TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 8 of 55 environment. She has shown so much growth throughout this school year and she demonstrates all the characteristics of a great Falcon." So let's hear for Braylee. Our next Little Falcon, so you won't have to be up there too long. Is Cash Fritz. Is Cash here? Come on up, Cash. Go stand right up there. "Cash is a new student in my class, and I couldn't be prouder of him. He loves coming to school every day and always greets his teachers and peers with a big smile. Cash is considerate, mannerly, and very helpful. He has made many good friends in a short time. Cash loves learning and his enthusiasm is reflected in the quality of work he does in class. He's very artistic. It's inspiring to see his creativity flourish in my classroom." Cash. Moving on up. McDowell Mountain Elementary School. Keeva Wendt-Swan. Is Keeva here? Come on up, Keeva. "Keeva is a pleasure to have in class. And a very bright person to be around. She's an exceptional student and will not shy away from any challenge in PE, no matter how tough it may be. Keeva possesses a superb attitude with tremendous character, and she'll greet me every day with a fist bump. She brings a lot of energy to each activity and brings out the best of her peers in terms of effort, attitude, and curiosity to learn. Keeva is always one of the first ones to help me clean up the gym after each activity and she does a great job following directions while going above and beyond her class." Keeva. But you know that teachers write these for them. So, our next one is Jamie Michel. Is Jamie here? Jamie, come on up. "Jamie always comes into class with a positive yet competitive attitude and is always willing to help. He does a terrific job following the rules of each activity, and truly sets an example amongst his peers on how to follow directions, work as a team, and give a 100 percent effort. Jamie approaches each activity with enthusiasm and eagerness to learn each sport or activity at hand. He's one of the best first-team students I've had the privilege to be around, as he frequently puts others above himself. His respectful attitude to myself, his peers and his classroom teacher, Ms. Silver, are greatly noticed, and I'm very much looking forward to seeing Jamie continue to learn and progress." Wow. Jamie. The Fountain Hills Middle School, Scarlett Grieco. Is Scarlett here? Come on up, Scarlett. "Scarlett is known by her teachers to be of sound character, compassionate, TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 9 of 55 conscientious, creative, disciplined, honest, persistent, resilient, sincere, and has a great sense of ambition. She has had tremendous growth in adaptability, communication, organization, self-management, teamwork, and problem-solving. Those cultivated skills will certainly allow Scarlett to excel. In addition, she is a model scholar athlete who shows strong leadership among her peers." Scarlett. Also, from the middle school. I think I saw a dad out there. Jonah Maroon. Jonah, come on up. "Jonah is a quiet yet motivated scholar-athlete who's a quiet leader. He's kind, thoughtful young man, he works hard in class and gets along with everyone. He's not afraid to ask questions and is willing to help whenever he sees a need. On the basketball court or the cross country field, he puts forth his best effort and also supports his team members to do their best as well." Jonah. All right. High school. Seilah Smith. I see she's called CC (ph.). Is she here? Well, we'll read about CC. "She is an outstanding student and athlete and a leader. She works hard both on and off the court, maintaining her grades, practicing stellar citizenship, and exemplifying the Falcon way. Her grit and dedication to athletics is unmatched. She leads by example and pushes herself and her teammates to be their best. As a coach, I couldn't ask for more in terms of character, grit, determination, and drive to be successful." CC Smith. Our last is from also the high school. Jack Dwyer. Is Jack here? Oh, I guess they will probably have practices in all kinds of things going on at the high school. "Jack embodies kindness and camaraderie on campus. Known for being the nicest student around, Jack extends his friendship and support to anyone in need, fostering a sense of belonging and community. Jack exemplifies the values of empathy and grace in every interaction he has, whether it be with an adult or a student. He fearlessly embraces new challenges, such as joining the football and the wrestling team. His genuine compassion and altruism shine through, affirming his status as just being a good human. The world will be a better place if it had more Jack Dwyer's." Well, that is something. Jack Dwyer. All right. So, we're going to get a picture for the paper. Close. Proud of yourselves, this TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 10 of 55 is awesome. Mom can stay. Just get a picture and then you can go. Okay? There you go. Thank you, guys. Thank you so much. Anybody here from the Women's Club? No? Okay. Well, we'll make sure they get this, but I'll read it. "Whereas, officially established in January 1974, the Fountain Hills Women's Club is celebrating its 50th anniversary, marking five decades that the nonprofit volunteer organization has sustained its mission of women supporting women in Fountain Hills; and "Whereas, the history of the Women's Club is closely entwined with the history of the town itself, which was founded just four years earlier, and the club's guiding creed was written in its early days by member Karen Myers and states its members' commitments to the town's common good to serve wherever they need be and to support worthwhile causes that exist in the community, working together in harmony and friendship; "Whereas, the Women's Club and its members have been instrumental in building and lending generous support as a benefactor to the Community Center, the Library Association, the Senior Center, River of Time Museum, Botanical Garden, Extended Hands Food Bank, Fountain Hills Chorus, High School Band, Fountain Hills Theatre, and many other organizations and causes; "The Women's Club mission is to raise funds through an annual lunch to support scholarships for women 23 and older who live or work in Fountain Hills to assist them in returning or continuing their education. Plus, two scholarships are given to graduating seniors from Fountain Hills High. "And to date, the Women's Club has presented more than $325,000 in scholarship funds. "The Fountain Hills Women's Club welcomes women of all ages in Fountain Hills and the surrounding communities to join them for their monthly luncheons, social activities, presentations, volunteer efforts, and fundraising. "And on March 9th"-- Peggy and I were there -- "The Women's Club presented their 50th Anniversary Gold in Them Hills gala luncheon and fashion show to celebrate five TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 11 of 55 golden decades as one of the first social and service organizations in Fountain Hills. "Therefore, the Mayor of Fountain Hills, Ginny Dickey, recognizes March 9th, 2024, as the 50th anniversary of the Fountain Hills Women's Club and call upon all citizens to join in yearlong celebrations, recognizing the remarkable service, achievement, and commitment of the Women's Club to the betterment of our community. And I'm sure Joanne Colella and all the members will be happy for you to look them up more about them and join the club. Thank you. Thanks again, everyone. We have a couple of presentations tonight, and our first one is going to be presentation from the University of Arizona. And we welcome you and invite you to come on up. If you kids are heading out, that's okay, despite what Sharron might say, you may leave. But Amanda, maybe you'd like to introduce? JACOBS: Yes. Good evening, Madam Mayor, members of council, if anyone is tuning in, want to remind our community and council that in September, this council unanimously approved a community economic development strategy. Thank you to the [aaws] in the background. But one of the focus areas in the economic development strategy is strategic partnerships. And then a couple of items are one, to partner with a university to perhaps locate a satellite campus. And then two, to work with our universities to help with our talent pipeline. Back in January, I was attending a conference and saw some old friends from U of A that I worked with with the town of Oro Valley, and they said, Amanda, you need to meet Jane. And so, I'm like, okay. So, for the last few months have been working with Jane, and Jane is here -- I'm not going to steal her thunder -- Tara and Mike. But before I turn it over this university is the real deal. So, in Oro Valley, the U of A was able to acquire a building and build a veterinarian school. We worked with them in our Innovation Park, which is our bioscience corridor, to build an incubator. It was done, of course, through public-public, private-private partnerships, not just the town and the U of A, but a lot of people just believing in the town. And then also we would hear from constituents, again, this is a different community, to say is there a way to bring seminars and classes TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 12 of 55 into the council chambers and test it? And so, for a couple of months, we'll say the summer and the fall, we did a humanities class. So, some people were asking, was I going to have a surprise announcement? No. It's all about building those strategic partnerships, starting to plant some seeds. And so don't get too excited. But get excited that we're starting these conversations. And Jane, with that, I'll turn it over to you. SURGENT: Oh, okay. MAYOR DICKEY: Hi. SURGENT: Hi. Good evening, Mayor Dickey, and members of the Fountain Hills Town Council on behalf of the University of Arizona. Thank you for inviting us to speak with you about the university and its growing presence in Maricopa County. I'm Jane Surgent and -- there we go. And I am the assistant director of local and rural outreach in the government and community relations office in the at the University of Arizona. The U of A is Arizona's original land grant university. As a land grant institution, we are here to make science practical and bring the university to people throughout Arizona. We strive to build sustainable relationships with all Arizonans through education, partnerships, and community service. As my role, I explore ways to work with Arizona's 15 counties and five tribal communities with which the university has a physical presence. I work and engage with elected officials and foster connections with farmers, ranchers, nonprofits, and community leaders in urban and rural areas across the state. As a fifth-generation Arizonan who was born and raised in a rural community, I have a passion and commitment to make a real difference in the lives of people living throughout the State. One of the ways this happens is through the university's cooperative extension. Cooperative Extension is part of a nationwide educational network of scientists and educators, all from land grant institutions. It provides a link between the university and citizens of this state, creating programs that address community needs for all ages. These program areas include tribal extension. With more than 30 percent of Arizona's land being tribal, our initiatives help Native American TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 13 of 55 communities with education and outreach and development, sustainability and resiliency. Our second area is agriculture and natural resources. We assist farmers, ranchers, agency personnel, and others involved in natural resource management to increase profits and steward our natural resource responsibility. Our third area is 4-H Youth Development. As the state's largest youth service organization, Arizona 4-H is inspiring the next generations of leaders, entrepreneurs, and problem-solvers. And our fourth area is family, consumer, and health sciences. These community-specific programs and educational classes help build strong families, strong minds, and strong bodies. Master Gardeners School and community gardens, which I understand you have one here, 4-H, Urban Horticulture in Arizona Project Wet, which is water education for teachers and students, are just a few of the many programs that we offer. As residents of Maricopa County, I encourage you to look into the U of A's cooperative extension and see if there is something that aligns with your interests or needs, as it can be a valuable resource for all ages. So thank you so much for your time. And with that, I'd like to introduce my colleague Tara Burke. And after that, Mike Mobley. Thank you very much. BURKE: Hello, everyone. It's a pleasure to be here with you today. I'm not a fifth- generation Arizonan, but I have been here for about five decades now, so I'm very happy to be in front of you today. I work for student engagement and career development. So, my department, we are tasked with helping our students to really learn who they are as individuals and match their talents and their desires, their values with their future careers. U of A has, as I think the materials you have in front of you, over 50,000 students, about 40,000 of whom are undergraduates and over 10,000 are graduate students. We have 22 colleges and schools. Our newest school is the School of Information, which will become the College of Information as of July 1st. And that school was spun off of another school so they could focus on new technologies like AI and game design. So, my department, we service all of the colleges and schools. However, many of the schools also will have their own career person embedded in their department. So for TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 14 of 55 example, there's someone in engineering who actually is a trained engineer but works in career development. And then we partner to bring in industry partners and connect them with students for internships and for jobs. So, if you had the pleasure of attending college yourself, your experience is probably very different from what we provide to students today. We start on day one helping students to connect their academics to their careers. So really, from the very beginning, we're talking to them about career. There's a career map that they can follow. For every semester we recommend different activities that they can do. But our big push right now is to connect students with internships. We know that students who do internships, especially paid internships, not only will they get a job faster upon graduation, but their salaries are about 20 percent higher than a student who does not do an internship. So that's a message that we're trying to get out to students and to parents and to community members. So, if any members of the community here would like to interact with our students, I think some students would be interested, perhaps, in municipal government. And if you could use an intern, please do let me know. I did want to make just a couple of comments too, about this current generation, Gen Z. Most of our students today, at least our traditional students, are members of Gen Z, born between 1997 and 2012. Right now there are about 25 percent of the working population, believe it or not. And that will become 30 percent in just a few years. So we all need to embrace this generation and kind of learn how how they think and how they learn. A couple of things to know. They're very socially responsible, very purpose-driven, cost- conscious, culturally open, and they're really tech expectant. So, they expect technology to work and to work well. And I can say sometimes they're a little dismayed with perhaps some of the older systems we have at the university, but we are rapidly changing to accommodate their needs. In terms of communicating with Gen Z in the workplace, interestingly, they expect a job offer just one week after the first interview. And if you've ever worked in career development, you know that that probably doesn't work that way. Or if you're TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 15 of 55 someone who hires folks, you know that probably doesn't happen. So, we work to manage those expectations. But if you can cut down the time to hire, that's super helpful. Let's see. And they also do really like face-to-face. I think there's a bit of a misconception that this generation wants everything to be online, and they don't at all. In fact, they really hunger for that human connection. So, they are also looking for flexibility, though. So that means hybrid workplaces and spaces would be really important to this generation. All right. I could go on, but I will not. I will let my colleague Mike Mobley speak to you now. MAYOR DICKEY: Thank you. MOBLEY: Hi everyone. Thank you very much for inviting University of Arizona to be here and trusting me to be a representative of the University of Arizona. You're taking a big risk there, and I appreciate it. And next time, if I am invited back, I apologize, I will make the font bigger on the slide deck so everybody can see who we are. But my name is Mike Mobley. I'm the region manager for the Near You Network here in Maricopa County. You might be asking yourself what is the Near You Network? As has been mentioned by my colleagues prior to me, University of Arizona is everywhere, right? We're all over the state. We're all over the globe for that matter. But the Near You Network is our distance campus. And so publicly we call it Near You Network. Internally it's distance campus. And we have five different locations. So Yuma, which is primarily focused on agriculture and some engineering, in particular engineering within agriculture and several other programs. And then Douglas and Nogales, Arizona, we also have campus locations there. But me, being in Maricopa County, I'm primarily focused on our two campus locations in Chandler and in Gilbert. Those two campus locations are completely different in terms of their offerings. The Gilbert campus only has nursing. We have undergrad and graduate. And then in the Chandler location, we have a BS and law program. Sorry to point out the attorney in the room, but then we also have interdisciplinary studies. We have psychology and education programs as well. But part of that, part of what Near You Network can bring to any city within which we operate is the ability to network with TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 16 of 55 the mayors and other businesses within that community to determine what their education needs are. And that's where I spent a lot of my time, is working with the mayor of Chandler, the mayor of the town of Gilbert, and those chamber of commerce to really understand their assessment of the educational needs in their community and how the University of Arizona can close those gaps. Say it's cybersecurity education, guess what's going to happen? We're going to have a cybersecurity program at our Chandler or Gilbert location, because that's what the community is telling us that we need. So, when it comes to partnerships -- I lost Amanda. I don't know where she is -- that's my -- there she is -- that is my job. To interface with the community and understand what your needs are as a town and and do everything we can to ensure that we're meeting those needs for the community. So, thank you very much. Again, it was an honor to be here. Have a good rest of the night. Thank you. MAYOR DICKEY: Thank you. And anybody have any questions or comments for our guests? Well. Okay. Go ahead. MCMAHON: Thank you very much for the presentation. And thank you, Amanda. I do hope that a partnership can be worked out with them. I think that would be awesome. So, thank you. MAYOR DICKEY: Yes. I appreciate you coming very much. Just wanted to ask if, I mean, you don't have to answer, but if you are familiar with the Arizona mayor's education roundtable and mayor of Chandler and mayor of Mesa, a whole bunch of mayors are on that. But one of the things we've talked about graduation rates and absenteeism and different things. The one that we just had was about the importance of post-secondary education. So, the Education Forward Arizona, that's what it's called. It's called the Everything to Gain campaign. I don't know if you're familiar with it at all. But it's basically about education and training beyond high school. Some of the things that Helios Education Foundation does some research, they've shown that Arizonans who pursue education after high school experience higher lifetime earnings -- that would be expected -- but better health and more economic opportunities, and there's a whole great report out there and a whole great survey. And it not only just helps the TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 17 of 55 individual's income, but it helps the communities at large. One of these statistics says that increasing higher education enrollment by just 20 percent per cohort would lead to more than $5 billion in economic gains for Arizona each year. And Arizona does have some gains to be made, I would say. So educationforwardarizona.org. West.ed, you know them, and Helios are all working in concert with you and trying to keep up that that conversation about how important it is. And also we have EVIT here, East Valley Institute of Technology, which also helps with those internships and to get people on their way if they don't go on to traditional colleges. So, I think there are so many different parts of this, but we're all in the same boat on it. And we're just so happy that you're here and that you're working with Amanda. And if there's anything that we can do and our staff and any of us here, we would love to hear and move forward on that. Thank you so much. We have another presentation. Speaking of Amanda and speaking of economic growth and vitality, we're going to get our quarterly report. JACOBS: And we did have to squeeze in the U of A, so they have another commitment. That's why they're leaving. And again, hopefully, right, they'll be near us at some point. But Jane and I are brainstorming. We've got ideas. All right. Madam Mayor, members of council, here tonight to present our third quarter report. So that's typically from January to March. And your economic development team is extremely excited about this report. 2024 is off to a great start. And we hope you have the same enthusiasm as we do. So, starting with business attraction. Here are our new openings. We've also added employee numbers. After our last quarterly report, a constituent reached out and said, Amanda, could you make this public? And absolutely, that's an easy ask. We have the information. We're starting to track that. And so, I'll look to you. Do you want me to go over each one or we got like 20-plus slides and then the coming soon. So. You're welcome. All right. Business attraction for Park Place Phase 1, which is currently up. You've heard me, I TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 18 of 55 think, in a council meeting and then perhaps in an email say that there were three commercial spaces available. There will be another one becoming available. So if you see that difference, there will be four commercial spaces remaining. In talking with the property owner and the broker, there's lots of enthusiasm. And what they tell me is like, he can't even tell me who will be first. Is it a grocery store? Potentially. Is it a restaurant? But those are some of the potential tenants that are interested. And some folks think with these private developments that I'm in charge or you guys are in charge, we are not. It's private. We are public, so don't have a say. But of course, always encourage with our partners that they be mindful that we do not have a property tax. We have a sales tax. So, anything that can generate and bump that number up is appreciated. Manager Goodwin made a note earlier in the program regarding Park Place, so I will not say anything further. All right. Continuing. So, since last year, the Former Vu restaurant was up for sale and we have been meeting with the new property owner that is looking for, either to have someone else purchase it or looking at a reliable person to take over a lease. We've had lots of conversations and I'll say there was an idea to potentially redevelop this area, but staff is pushing hard to keep this as a restaurant, again, because of sales tax. And then that's just one picture. It's flipping gorgeous, if I do say so myself. And so, we've been partnering with the owner to produce marketing material, drones, video footage. And so your economic development team has been pitching out to national restaurants and working in conjunction with the property owner. And so, they're also working on things. Unfortunately, they don't share that unless there is a letter of intent. But working very closely on this project. There will be a mixed-use project going along Park View and Saguaro. Not the greatest picture, but again within our downtown. So mixed-use, the first floor is restaurant and office space, and the second floor, they identified the description as condos. It'll be two apartments and then these are the same owners. We can divulge this because it's been a public record, but they're the same owners as Pisa Pizza. Say that five times. So, they have submitted their building permit into our development services department, and TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 19 of 55 that's currently under review. So, things are happening. "All right. For business attraction lead generations, we had started sharing this. This is, again, your economic development team being proactive, reaching out to developers, retail, restaurant, and then we were able to respond to an actual tech firm that came through the Greater Phoenix Economic Council. So that's GPEC. So, they'll get leads directly as our regional economic development organization. And then sometimes it will funnel through the Arizona Commerce Authority. And again, this is as good as it gets. I can't tell you any more until it becomes real. And then just wanted to to share and put things in perspective. So again, the Greater Phoenix Economic Council, when they get a lead, it is sent to the Valley partners, all of us. But there's requirements that need to be met in order to respond. So, there's been 25 projects, the average square footage -- this is where it's been killing us -- is that square footage requirement. And so having it already shovel ready, if you will, a built environment or the land to build new. And the average salary is roughly 69,000. And a lot of what we're seeing, the industry is manufacturing. And so wanted to share that. And then you'll see a little bullet that says bioscience business development. So, to remind everybody, you guys helped me change our targeted industries. And back in September, we had lots of conversations for a good nine months. And one thing that the community and you, as council, said is, Amanda, you have experience in bioscience, can we add bioscience? So, I said absolutely. That was September. And I want to say we were being very forward thinking, because in December, at the tail end, the Greater Phoenix Economic Council has hired a specific employee that will be assisting in bioscience. So that's awesome that we're thinking ahead. Now we'll move on to business retention and expansion. We continue to partner with the Chamber of Commerce and rotate through councilmembers. Right now, the councilmember I'm working with is Councilmember Friedel, and then next will be Councilmember Grzybowski. And so, haven't seen too many new trends, but just want to point out we had heard from some of the businesses about communications and so we said, tell us more about communication, right? We wish communication was better. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 20 of 55 And what they shared with us is let us know. We don't care if the town's operating the chamber, but there's all these magnificent events happening, we're having -- and still to this day, two years later -- having issues with talent and then staffing up. And so, when you are having these visitors come to town, we want to make sure we're staffing up. And then Councilmember Skillicorn and I met with one of our restaurants in the winter. And so, she shared with us that as soon as she gets that hand delivered, that she is entering it into her system and so preparing. And then that -- I can say it was Euro Pizza. And so, relocations, remodels: the Elliot Group, which is located off of Saguaro, they will be expanding. Which is exciting. Again, when someone who is existing is willing to invest, they are planning to build three new buildings. And then -- so within their current footprint. And then Oka Sushi. We did all see, perhaps, that a sign came down for Snowee. And then, so there was all this concern. And Amanda, there's another vacancy. That is not true. Oka Sushi is now just expanding their restaurant footprint. So, they still are leasing that space. And then KDA Dancy, Vice Mayor Kalivianakis brought up KDA. But just want to share that they were in the biz hub. And so, months ago with Councilmember Toth, we were having specific meetings with some of those tenants to make sure that they didn't leave Fountain Hills and that they could be placed. And so happy -- this is a 17-year business -- is staying here in Fountain Hills. And then as the membership, just for full transparency, at some point I had presented to council, we had a press release that the town was going to invest $2,000 to participate in the Arizona Small Business Association and pass it down to some of our businesses. That recently came up to renew. But just so you know, staff is not quick to renew. And so, we wanted to reach out to the tenants that were participating to see if they were finding value. And the feedback we received is no. But part of it was they just did not have the time to participate. Some people didn't respond. Or again, it was just a flat out no. So, at this time we did notify ASBA that we won't continue that. And I'm always open to reevaluating. But if people are not seeing value, I can't justify, even TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 21 of 55 though it's a couple thousand dollars expense. And then just a teaser, our Shop Local Summer Campaign in partnership with the chamber will begin in May. And then we're also working with Debbie Clason, with Clason Communications to do a social media campaign. So, we're also participating in paying local with Debbie Clason. And then we'll be doing some ads and sticky notes as a new thing on the paper with the Fountain Hills Times Independent. There are a few slides on downtown Fountain Hills. Everybody's excited. Want to let the council know and our community that the town is starting to have conversations with Plat 208. We all recognize there's lots of opportunities, but there's also some challenges. And so, knowing when a new business is coming up, are we in conflict in any way with some of the policies they have in place. And some of their policies are from the 1970's. And so wanting to partner and collaborate -- because the last I checked were in 2024, and we have evolved. And so we're working on that. And then I had the opportunity the end of February to attend the International Downtown Association Conference in San Diego, very timely, since we're working on downtown. And then a lot of the topics they were talking about as far as placemaking, arts, the different trends, and so folks that I met with -- so again, you're not falling out of your chair come the end of the year. They are investing 20 to $40 million in their downtown. We won't be coming before you and requesting 40 million, but just to sort of set the tone. Now, granted, I asked questions, how are you doing this? And some are like, we have support from our councilmembers. I'm like, that is fabulous. But then to dig deeper, there's also different taxing districts. And then some of these folks use their ARPA funding to invest in economic development in downtown. So, when you start to see that 40 million, it's okay, this makes sense. Some of the trends. There were some folks that I met with that are dealing with the same thing as we are, updating their their strategy. It started and maybe never quite took off. Folks, again, from -- it's basically international, so around the world, but of course talking to folks in the U.S., they are seeing too that people are not going back into the office. And so, seeing some of those projects convert to mixed use or just TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 22 of 55 straight-up multifamily. And then talked a lot about placemaking. And there's been some folks in the community that are like, Amanda, I think I get the placemaking, maybe not, but those two pictures, they're not from my travels. But this is also those pictures are depicting placemaking, creating that sense of place. So again, the seating, having it being inviting, seeing the lighting, those are some ideas. And then on my second day, for half the day, I was able to connect with some developers that are building a life science district, which is this picture. And so saw this architectural rendering. We got sort of a sneak peek, and then we walked down and some of this is coming to life and is still being built, but it was safe for me to enter. And I will have to admit, I saw this and yes, that is the ocean, but I thought we've got Fountain Park. Why not Fountain Hills? And so you'll see, the first three levels are actually spec space. And I'll tell you too, in my 20-plus years, it's very rare for a developer -- and to find a developer that is willing to build something to this magnitude as spec space. That there's there's no solid tenant. And so, this is for life science bioscience. And then I thought, too, it was very clever, is that top which is cut off -- which I did make it up there -- is that is completely opened and is an event space because sometimes with bioscience companies, there's people from all over the world and they're having different trainings. So sometimes they're going into hotels or in this case, they're ready. So, because they don't have a tenant, they're working with Major League Baseball to start doing stuff on that top floor. But again, very exciting, helps us to sort of imagine the possibilities. But also nice to talk to some of these developers. It was interesting when I first met one of them, she had her arms crossed and she's like, let me guess, here's what I've heard on my second day. So, there's the first day and half the day. I bet you have lots of crime and homelessness. And so, I looked at her, her arms are crossed, and I said, absolutely not. And then so she opened up and was like, like, tell me more about your community and how is this -- how is this happening? And she's like, let me guess too, like it's your demographics and you have an elected body that is being proactive? And so I just shared this is sometimes we can focus on negative things that maybe are perception, maybe not reality. But again, you guys have heard TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 23 of 55 me privately, sometimes publicly, that words matter. And when we say harsh things it can be a turn off. So again, just with her body language really closed off and opened. So I just share that. Now let's bring it back home. So, our Fountain Hills strategy we have concluded with our focus group meetings. I do want to give a heads up to council that they weren't wildly attended and want to share with you, so you're not shocked, we actually had our ASU intern that's interning for the Development Services department, go above and beyond and knock on doors and hand deliver fliers to get people into these focus groups. And some of the feedback was, why am I going to waste my time? You guys tried this, you put this strategy on the shelf. And so I was present during one focus group. And what I said -- and this is where I need your guys' help, and the community back here are watching -- is, I asked this particular business owner who has been here -- I've only been here 2 years -- over 20 years. But I asked, have you met this council? Because this council has been unanimously supportive of even doing the strategy. Yes. We'll have to get down to budget and start implementing. But I encourage you to participate in the meetings and show up. If you don't show up, I don't know. I am not gifted at being a psychic. And so again, the past is the past. And what I've shared, I appreciate past information so we don't step in it and make mistakes. But I will leave folks in the past and then ask folks to join me on a journey. Let's look at the present and the future, and let's do something to improve the downtown. I'm inviting everybody on May 15th to an open house. It will be at the community center ballroom run from 6 to 8 p.m. I also invite all of our councilmembers to please attend as well participate, your residents, but also to just kind of be that fly on the wall and engage and see what we're hearing. I'll say with the focus groups, there have been no surprises. We're hearing infrastructure, lighting, signage, and then also looking at updating our policies. And so some of you have shared more privately, I think, that perhaps you would be interested in the future of investing in some type of facade improvement where there's a cost share. So, we're hearing some of that. And again TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 24 of 55 later this year we will show you where there will be costs associated and then where, with policy, it may just be staff time or where there's a potential opportunity that that could cost something. Then folks have shared with economic development that we have had no downtown Fountain Hills web page that has our events, arts and culture, where to park, business resources. And so, we had reached out to our web host to see what would it cost to design this? It was only $640, but I did go to our IT team. And then John Perez, who's in the back, our economic development specialist, and said, hey, I know it's only 640, but could you do this? And they're like, absolutely. So, a big shout out to Mike and IT that helped with the design. And then John did the heavy lifting with all of the content and putting this together. So, I invite you, you can go to the town website economic development and right on the top downtown. Arts and culture. River of Time Museum is now helping the town and economic development, specifically with the art walks, and starting with the pilot program that will end later this month but will reconvene in October. And some of you may think what art walk? So, when I started, I was told we used to have art walks and then because of COVID, we stopped them. And then so I asked, well, because that was something that was outside, why did we stop it? And it was because the docents did not feel safe, so fair enough, but when I started, this was not my biggest priority. Although you all know I support arts and culture. And so, in brainstorming the last few months with Sherry, the executive director at the River of Time, she said, well, we can take it on. And I said, sold. Whatever you want to do with it, you go, girl. So, we're starting that again. Here's an announcement. It will end later this month. But again, tune in in October. We're also partnering again with the Southern Arizona Arts and Culture Alliance on a photography contest. We had a lot of old photography, but again, want to engage with our residents and community about what makes Fountain Hill so great. Also expanding to our partners when they're visiting Fort McDowell Yavapai Nation as well as salt River Pima to take photos. As of a couple of weeks ago, there have already been over 80 TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 25 of 55 submissions. So, stay tuned. I'll collaborate with the mayor of where we want to kind of highlight. We are going to identify a 1st, 2nd, 3rd winner. And then we're also partnering with the school district on engaging with our youth. I'll also then say too, an opportunity where we have been forward thinking. But last month when I had my monthly meeting with GPEC, they are now looking at arts and culture and how do we compete nationally and globally. There's times I will meet and folks in the community get it, and then sometimes I get a big eye roll. But I'll say again when one of your target industries is bioscience, the arts and culture are very important to help with attraction. And we can talk about that more offline if you want more specifics. And then just looking ahead in October, it's National Arts and Humanities Month. And so, we are planning to elevate our arts in that month. And so, it's taking many boxes: marketing, business retention, et cetera. So, we will be partnering with all of our art organizations to see what will be happening that month and highlighting and then, hopefully, build into the fine arts festival that's hosted by the chamber, and then install another mural. So, stay tuned. CEDS. That's again our community economic development strategy that was included in your packets, it's also available online. Not going to go into detail because then we could spend hours here. But we have 31 strategies. There's 20 in progress and 11 not started because this is a three-year plan. And again, it is available on the website. Apartment occupancy rate. So, our average rate is 95 percent. And then John was sort of teasing me because he knows what I always say. And so, what do I always say? We've got a supply/demand issue. And then look at the top two are now at 100 percent. Apartment pipeline. This was added back in January at the request of some councilmembers and constituents. And so, if you continue to see value, we will share this again. This is -- I saw a few head nods, so we'll continue to do that. So important information. This is the pipeline that is built in to and looking at the building permit process in development services. And so, the first one is waiting for a resubmittal of their building plans: the Kingstree and Saguaro. This council -- or maybe it was a TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 26 of 55 previous council -- did approve an SUP. It has now expired. So, the applicant has been contacted that they will be required to start the process. There's a couple there waiting to issue. Some no applications submitted. You'll see Rand and Saguaro is under construction. Ivory and El Pueblo has been issued. And then we've got an approved site plan for the last. And so again this is our pipeline. But it's also really important to know -- it is interesting, this week actually I got a call of didn't the town just recently approve apartments and when's there going to be a groundbreaking? And so although at the council level you may approve things, the next step is going through our development process. So, submitting plans, having the applicant -- so again you may be saying yes to the applicant. But the applicant now needs to build up the team, so the contractors, the architects, the engineers. So, this does not happen overnight. And so hopefully this paints that picture. Vacancy rate - existing buildings. So again, the first one is just that comparison. And then always just being forthright and honest, that if you were to go into CoStar, those are the numbers that's produced. The reason why is, not all of our buildings that are available are actually using CoStar or actively marketing. This continues, and so I was able to get a hold of a couple of brokers and some reasons to, they say that they're not making this investment is they feel -- and it hurts my soul -- is they're like, the town's never going to change. And so for economic development, I'm hoping we're going to change and again pointing them to the economic strategy. That last one is then your economic development team doing legwork to provide more real numbers. Looking at some of the the vacancies that, again, are not being actively marketed. Grant funding. We of course have our AOT Prop 302 funding. We announced that could expire in fiscal year '26. But we're doing print advertising, partnering with the chamber, working on our website, and social media. And then we received from the Salt River Pima Maricopa Indian Community 50,000 for the music fest. And since that happened in April, we'll tell you more in the fall when we give the fourth quarter update. As far as marketing, the mayor announced at her State of the Town, we're going to start TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 27 of 55 doing a "Naturally" campaign. So, thinking "Naturally Adventurous", "Naturally Beautiful". We have been partnering and going to different cities and towns in the state and targeting them and also targeting young professionals and to just see what that outcome is. Once we have those numbers, we'll present that. And then last month, and what we're hoping to continue to do, is a monthly economic development newsletter. Because exciting things are happening, and I hope we can start elevating the exciting things, not the less fun things. Here are partnerships. I won't go through all of them. We've been talking about it throughout. This is our Irish Fest, Greening of the Fountain. A big kudos to the community services department and our recreation team. The attendants for the Irish Fest was 10,000, for the Greening of the Fountain was 5,000. And through our partnership with the Evolve. And so, we've been paying that currently through grant funding, again, through a couple of residents and business owners that said, hey, you really want to work with Evolve? That whole weekend we had lots of coverage, and then you will see our very own team taking a little selfie because they were on camera doing just some live interviews and taping. And then also what we started new this year and hope to continue is staff said, hey, what if we did state 48 Greening of the Fountain limited edition shirts? And I said, why not? Because you can invest in it. And then we sell and then we recoup the funding. And so, we started that again this year and we'll continue to do that if it's a success. We'll evaluate it each year. Tourism occupancy remains the same. Social media increased by 55 percent. Our Fountain Hill live feed again for the quarter almost 250,000. And then our Experience Fountain Hills website 39,000 unique views. And that's an 86 percent increase from the previous quarter. Some of that again is a lot of the events. And so we'll see and track. So, it's events -- the fountain, of course, are the most popular. And then tourism continued. So, this -- again we changed last quarter. There was some confusion. And so, looking at our Fountain Hills website and the data and the viewership we receive, what is happening in Arizona is these are the top five cities that TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 28 of 55 are coming to the experience Fountain Hills website. And then when you look at top five national, those are the national city-states looking at us. And then, so what we are starting to plan to do -- and again as our economic development strategy -- is for business attraction tourism. A lot of that is in alignment. When you look at Chicago, Vegas, the San Diego, the California's where people are wanting to migrate to Arizona for various reasons, so to tap into that. Madam Mayor, before we open up to questions, I do have to share some bittersweet news. So last week, John Perez, our economic development specialist, did submit his resignation. And so why it is bittersweet is since the interview he has been very open that he has future aspirations, and I will never stand in anyone's way. When I started in local government, I was a secretary, and then just had the opportunity. So whatever I can do, if staff says they have future aspirations, I will not get in their way and do everything I can to help. And so, he will be relocating to Utah and he has accepted an economic development director position. So, while we are sad to see him go -- his last day again is April 25th -- extremely excited for him. But some of you sometimes tease and are like whoa, whoa whoa, there's too much laughter going on. There may be a little less laughter until we fill the position. So, John, thank you, and congratulations. Madam Mayor, council, with that any questions? FRIEDEL: I have a couple of questions and not to put you on the spot. I'm wondering if at a future briefing of us, you could give us some numbers. And we don't have to answer these tonight, but I have some questions for you. Can we get an idea of the brick-and-mortar businesses that are in the town from 2023 to 2024? Get a comparison as to where we stand with that. And I know our biggest employer is the school district. Can we get a number of total employees in the town from 2023 to 2024? Get an idea where we're headed with those numbers? And I'll reach out to you after this and give you these questions again. And what's our total capacity? I mean, how many jobs are open in the town? I we can get that information? And what what are the areas of need? Are they in the restaurant business? Are they in physical therapy industry? So, we have an idea what we're up TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 29 of 55 against, what we're looking for. And then one final question is, I know we have the FTS, Fine Timepiece Solutions, the watch guys in the biz hub, and I know we've reached out to them a number of times. Is there any kind of a follow-up or any information you can give us on where they're going, what's happening with them? JACOBS: Madam Mayor, Councilmember Friedel, we'll take all of your notes and then see when we can bring that back, and if we can bring it sooner. But then also daylight it to the public. As far as FTS, we've had several site visits and then staff has met with the president and CEO. They have shared with us they would love to stay in Fountain Hills, but they have not been shy -- I'm not divulging too much -- to where they may relocate to Mesa. We're trying to do what we can to stop that. But part of the rationale is too, that their employees are traveling and driving to Fountain Hills. And so again when I've shared with you multiple times that employers do right by their employees, if you want to keep them, especially if they're wonderful, is how to retain them is sometimes they want to be close to where they live instead of driving 30 to 45 minutes. And so, Councilmember, we're still working on that. And when we have more news, we'll be happy to share. But hopefully we can be creative, which we're trying to be development services and myself to keep them here. And then if I need help, I'll be asking you all. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Thank you for your thoughtful presentation once again. It really is bittersweet news about John Perez leaving. I'm kind of unhappy about that. But I'm happy he's going on to, I guess -- does he play hockey? Is that why he's going? JACOBS: He's helping with the deal already. I'm kidding. I'm kidding. KALIVIANAKIS: But anyway. But thank you for your service, John. You will be missed. Kind of in line with what Gerry was saying. There's an abacus which wasn't invented in Greece. Unfortunately, there's businesses opening and there's businesses closing. In your future reports, could you also report on businesses closing, too? So we can kind of TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 30 of 55 get an idea if we're just treading water or if we're gaining business? JACOBS: So, Madam Mayor, Madam Vice Mayor, I'll say we'll try. Sometimes people go, like, in the middle of the night. And then what is helpful is we try to get a hold of them to understand the why. Is there something that we could have done better to improve the business climate? And so we will certainly try just to manage expectations. And I know I think I've worked with 20-plus councilmembers, and that's always been an ask. And sometimes, quite honestly, it's challenging. But we'll try to figure that out. And also see too with our business license. So, I'm working in collaboration with finance. Sometimes what happens too, is our businesses may stay here but relocate. But the business license shows a previous address. And so, we're trying to educate them too that, again, I'm not psychic. I don't take a psychic pill. We don't know what we don't know, so to please call. And it's very simple. Our staff can manually do that. There's nothing they need to do except for call. KALIVIANAKIS: Okay. Thank you. And then, me and you recently talked about a vision plan and the downtown strategy, which I think is really important to this town. It's unfortunate that your workshops aren't being populated by our local residents. That's where you're going to get the input, and that's where we're going to know what you guys want to do. It's disappointing because there's some issues in this town that get such traction and have so many people hot and bothered over them. But then when it comes to just developing the future, you know, it's an empty room. And that's really unfortunate. When I first moved here 24 years ago to Arizona, I moved to Gilbert and their downtown area was pretty sparse at that time. And now you look here 24 years later, and it's a really nice place. When it comes to our vision plan and our vision strategy, do you think it would be beneficial to look at this like the lake liner, like when you just throw out 20 to $40 million to develop a downtown, I think all of us here are in shock. We don't want to write a bad check. But maybe we should be allocating funds every year and then develop the vision plan. So then when we do have something that does launch, we'll have already allocated the funds. Because without a primary property tax TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 31 of 55 and relying on TPT, our funds are short. But we do want to build big things. And we do want to have an active, vivid downtown as part of our vision plan, as part of our general plan. And so, I think maybe if we look more in the longer term that might be beneficial instead of, coming for an ask for like $10 million, which I don't think it's going to happen. The other thing is, part of your presentation, they seem like business development and then part seemed more like tourism. Do you need help in your department? Because like when you were talking about developing where the Vu restaurant used to be, I know that'd be such a perfect place for a steakhouse or some kind of a restaurant that we could draw people from Scottsdale and all over our town, something that would be a regional draw. But then when we talk about contests and sort of -- so I don't know, maybe you're just wearing too many hats. So that might be something we need to think about. Yeah, I think I'm good. Thank you. JACOBS: You're welcome. FRIEDEL: I have one more comment. You mentioned affordable housing. Last week I did a little bit of research and presently right now, as of last week, anyway, we had 31 listings under 400,000 in our town, and then we had another 15 that were under 300,000. So, we do have some affordable housing and we -- like your like your one-slide show -- we have 332 apartments in the Q2. So, we do have some affordability and we don't have a primary property tax. So that's kind of another selling point and helps people qualify for a mortgage easier too. Thank you very much. And thank you, John, for all your work and everything you've done for Fountain Hills. When you talk about a sense of place, and that's always been something that's not easy to define, almost like you feel it when it's there. And recently, especially now with all the events we just had and the restaurants that are down at the Avenue and elsewhere, you can -- all of a sudden you're like, oh, I have a sense of place or you have the green fountain and everybody walking around and who's happy and talking to each other, and there's little kids and there's people like me. But I think that's what you're achieving, and that's what we're hoping to do, and it's kind of a combination. You can't, like, build a building and say, okay, we're going to have a sense TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 32 of 55 of place. You need what's happening now. And you can't make it happen like that. It has to sort of be, I guess, organic, if that's the word. One of the things with the Dark Sky as well and with Bo, I want to give him a lot of credit because we've had -- we're on TV. We're almost mentioned on TV somehow, every single day, whether it's Channel 3 showing us every morning. The Dark Sky yesterday, just random, they come up and say Arizona was the first, the best place to see the dark skies in the State of Arizona. You know, you would have thought Flagstaff -- and Flagstaff was on the list, but. So, these things are happening. And I appreciate everything that you're doing. The music on the Avenue, the music fest these things are all different. And like, talking about Gilbert. It's the way I feel about here, because, I mean, seriously, 40 years we are a lot different than we were then. And one of the the other things I just want to mention real quick was, years and years ago, I don't think development department and public works department and economic development did not really work together. It felt like a separate entity. And now I see so much interaction. I mean, you're doing an economic development presentation, but you have housing in there. You've got your survey, but we also have a parking survey going on. So, we have public works. We're talking about the median. So the idea of knowing that we all know what each other are doing, and I think everybody has a great vision for what we'd like to see. And it's unfortunate some of the stuff you tell us, it's hard to hear somebody say, oh, you're never going to change because it's like, holy cow, we've changed a lot. And but there are some people who don't want us to change. So those are the kind of things that we always have to keep talking about. But the work and all of the efforts and the out-of-the -- I hate saying it's out-of-the-box, but the out- of-the-box thinking that you're doing is really helpful for us. And we want to, as always, help as we can. Councilwoman? MCMAHON: So, thank you very much for your presentation, I appreciate it. I think it's great that you're combining so many things in it and being so successful. I agree with the mayor that we have changed. We have changed for the positive and we are moving TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 33 of 55 into a vibrant future. Also, how is the online survey going? Strategic online survey? Can you talk just a little bit about that really quickly and let us know any updates, please? JACOBS: Yes. So, Madam Mayor, Councilmember McMahon, we will have a series of four different surveys. Our first one, we had almost 400 folks respond. And so, we're diving through and analyzing that data. And again, we have help with Bo, our development services team. Like, again, economic development is a team sport. You may see me standing, but all of this is, again, all of our departments working together. And Madam Mayor, I am happy that you're recognizing that we're all collaborating together. As I tell Manager Goodwin and then my fellow colleagues, I don't work in a silo. Like I'm allergic to that. We need to be collaborating and talking so we look good. And so, the second survey that went out this week is on land use. And so, we'll wait to share those results as we get them. But that's again where you guys can help and toot your own horn to say, hey, we're supportive of the downtown. We're supportive of this strategy. Fill out the the survey. Instead of spending two minutes potentially adding a negative or complaining comment, use that time to respond to the survey, which takes maybe two to five minutes, because we truly do want to hear from the community. And as long as I'm standing here as your economic development director and I have your support, nothing will be shelved. We will be working on this. And again, to the vice mayor, we will be showing -- I'm not going to ask for a blank check of $10 million. We're going to show our priorities, how much it costs, and you guys will help us come this fall. Put your stamp on it and give us some of that approval. And then we'll continue to be flexible as we navigate the council retreats and the budget process. So again, you guys will help and have a say in that. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Okay. JACOBS: But if you want to give me a blank check -- KALIVIANAKIS: Just don't -- JACOBS: I won't resist. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 34 of 55 KALIVIANAKIS: Just don't cash it. JACOBS: Okay, I'll hold on to it. KALIVIANAKIS: Two more things I'd just like to flesh out a little bit. And this is maybe me, I just didn't listen closely enough. But when you came to the slide for the office and commercial space, it seems like we have a lot of vacancy. You seemed a little disappointed, and I thought you said something to the effect of we need to change. Could you explain what -- how we need to change? JACOBS: So, Madam Mayor, Madam Vice Mayor, there wasn't change on that particular slide. And with that number, it's actually pretty good. And again, you will always have a vacancy, any community. And again, when we look at other cities and towns in Arizona, it's not that bad. We're not doing that bad. That is the message. What I referenced was some of our property owners and brokers are making a decision to not actively market their building, so whether it's office, a retail, a restaurant. And so in talking to some of those folks to say, well, why won't you actively market? It's just like if you have a home and decide to put an A-frame sign, you're depending on whoever is coming to that subdivision to see. If you're not listing it on MLS, how are you not going to know? And so, there are some folks that feel, well, Amanda, why should I actively market? Because the town won't change. We will just continue to have businesses move around. And I've shared with you that is not economic development. That is not generating new wealth. Moving around does nothing. If they move around, relocate, and expand their footprint and the employees, yeah, that's that's economic development. But there are some feelings that we're not going to change. We will continue to stay, I don't know, from 2022 or what it is today. But those are some of the feelings. And I feel I need to share that with you as our council leaders. KALIVIANAKIS: I really appreciate that. JACOBS: You're welcome. KALIVIANAKIS: And then the other thing, as long as we're talking about occupancy and apartments. On that slide, when you showed that most of the apartments were either 100 percent, 100 percent, 98 percent, 96 percent, 94 percent occupied that's pretty TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 35 of 55 much 100 percent occupied because it's people moving in, people moving out. So you're never going to get 100's down the board. It's always going to be 96 because they're scheduled to move in a month, and then they're going to move in in two months. And so, it seems like right now for us to have apartment occupancy, we're maxed out. Would that be a correct assumption? [CLERKS NOTE: Councilmember Toth left the dais at 6:53 p.m. and returned at 6:55 p.m.] JACOBS: So, Madam Mayor, Madam Vice Mayor, that is correct. And then I've been saying that and shared my own personal story that it was an issue trying to find a place. But the stars aligned and was able to become a Fountain Hills resident. But there was two options, and one just was not feasible. Or what you'll get is when I'm saying I need to move in a couple of weeks, I'm moving my life to Fountain Hills, where someone may say, well, in April or in June. And it's like, no, I'm going to have to pass that up. Like I need something now. That is a little bit of a problem is if someone wants to move now or in the next four weeks, there's slim pickings. Or they're looking elsewhere if they're wanting an apartment. KALIVIANAKIS: And the apartment dweller, they just have to pay, like, a first month's lease and the damage deposit, and then they can move into Fountain Hills as compared to single-family homes, which, even if it's $400,000 house, you're still going to need a $20,000 -- and how much of a down payment? I don't do that for a living, but a big down payment and a big mortgage payment, and to qualify for the home. So it seems like that apartments would really encourage more people to be here and would accommodate more businesses, more customers, it just seems to me. And like when you said that Snowee moved out, but Oka moved in, to me that's just a wash. It's there's no gain there. But it looks good to say that Oak is going to expand, but we just -- we took a loss, we took a gain. That's what the abacus thing was all about. And so -- JACOBS: Vice Mayor -- KALIVIANAKIS: Yeah. JACOBS: -- I'll say it didn't become a vacancy where now we're going to have to attract TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 36 of 55 someone new. So, if they're adding to their menu, they are providing a service. So, I don't want to completely discount that. But I understand your point. KALIVIANAKIS: Yeah. And I just had a friend that was looking for an apartment in Fountain Hills so I'm intimately aware with the process. Matter of fact, I think I came up to you and said, where can my friend go? And he was lucky enough to have an opening in the Park Place, which he moved, but it was like, hey, you just got lucky one opened up. So again, if you're on the ground out there, apartments are kind of hard to find right now, especially for our young white-collar professionals that can work and can live here. JACOBS: Great. KALIVIANAKIS: Thank you. JACOBS: Welcome. MAYOR DICKEY: Gerry. FRIEDEL: Councilwoman, I have to correct you, though. If they close the ice cream shop because it's not doing well and they're expanding their restaurant footprint, which is doing extremely well, they're busy every night there, that's not a loss. That's a big gain for the town, because every meal they serve, we pick up sales tax revenue from. So, if you've got an ice cream shop that's sitting there doing nothing, we're not getting anything anyway. But we will reap the reward of that expanded footprint in that new expansion at Oka. KALIVIANAKIS: Again, it's understandable that it would be a wash and there would be a -- FRIEDEL: It's not a wash. KALIVIANAKIS: -- that you would get one person leaving, one person coming, and you'd still get sales tax revenue from that. But you know, Flap Jacks just closed, the Snowee just closed. Several other people have closed. And I know a few that haven't even been announced, that are closing soon. So this is something that if we're not keeping track of, we're not doing our job. FRIEDEL: I think that's why I asked for those numbers. So, we will keep track of it. MAYOR DICKEY: Okay. And also, just please people close for a lot of different reasons. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 37 of 55 So, people are moving out of town and such. So, we just have to -- I mean, information is good no matter what we get. So, and then that's how we know where we want to go. JACOBS: Yes. MAYOR DICKEY: Thank you very much. Appreciate it. Our next item is our call to the public. Do we have speaker cards? MENDENHALL: Yes, Mayor, we do. We have four. First is Eric Wyckoff. And on deck is Bobbie Kennamer. WYCKOFF: First thing I say about developmental services real quickly is, why don't we just start calling this town what it is? It's the prettiest place in the Valley. Let's just say that because it is. Okay. We pay for -- I'm Eric Wyckoff, longstanding Fountain Hills resident for decades now. I've been a law enforcement officer for over 30 years. 22, in a supervisory capacity, I have all sent you an email with recommendations. Hopefully, you receive that. Look, we pay for public safety. We're getting public secretaries here in Fountain Hills. Okay? I wanted to speak about the MCSO contract. Am strongly recommending pulling funds from MCSO in form of a better solution, crime prevention through environmental design. Much like we have here with barriers, you guys are raised barriers. It prevents a person from coming up to the Fountain Hills council and harming you. We can do the same thing with the town. Okay? Take funds away and let's build some impressive infrastructure upon entrance into this town. We're talking -- you can have full guard gates, whatever you need, with arches that are impressive, that keep any never-do-well coming into town going, wow, this is a nice place. I'm nervous here, okay? I don't want to do bad things in this town, okay? However, if you decide to play the status quo regarding public safety budgets, and I understand that, that's a conservative viewpoint. But I will tell you that accepted has been around for decades and proven to work. It is. I'm not talking about defunding police for other things. I'm talking about supplementing public safety in an appropriate way and redirecting it from just the status quo into something that will improve all our property values and also add security to this town. Okay? MCSO is a very top heavy and inefficient organization. Here in Fountain Hills is a classic TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 38 of 55 bureaucracy, it's designed to enhance salaries of bureaucrats and not particularly offer the best service to the public. We are paying for public safety and receiving public secretaries. Per the MCSO website, we have one captain, two lieutenants, eight sergeants for a total of 11 supervisory staff overseeing just 15 deputies and 2 assistants. Where have you worked? Where 11 managers oversee just 17 workers, folks? Each one of those managers making significantly more than the worker bees out there doing the law enforcement. Okay? I submit to you such a business would be bankrupt in short order. Okay? For instance, equivalent captain positions in other police organizations have hundreds of thousands of citizens dealing with violent crime and major quality of life issues incessantly, that we don't have here in Fountain Hills. Hundreds of officers are beneath those positions. Yet our captain position here has very low crime levels, 25,000 citizens, and most tellingly, there's just 29 people to supervise. That's it. Thank you. KENNAMER: I'm a southern girl, so it's hard for me to talk fast, but I'm going to try to talk really fast. Good evening. Mayor, Vice Mayor, councilmembers, town manager, and attorney. Good evening to all of you. I'm here because, like Brenda, I really care about our future. I've lived in Fountain Hills for five years. Absolutely love it, strong advocate for it. But I am concerned about our future. It's more about our reputation than anything. The thing, the topic I wanted to discuss is squatters. I'm very concerned that my investment's not being protected when I go out of town. And we currently have a law, as you guys all know, SB 1129, which has been presented to the Senate, it passed 18 to 8, which is awesome. Yay Now it's in the House. Got a couple issues with it. We're going to have to work through that. So my concern comes with what are we doing while that's working through there? I was told by an attorney that I could just put in a trespassing sign, private residence, take a picture of it, make sure it's date stamped, send it to our local law enforcement, and that will make it more of a trespassing issue, as opposed to a civil suit where I have to go through that process. However, when I called our sheriff's department, they don't have a program like that in place. And I don't think we have a lobbyist any longer in Fountain TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 39 of 55 Hills, but you guys, your voices need to be heard. Please continue to speak up for us. Please enforce our needs, that we need this law passed. Whatever you need to do. I know that a lot of citizens, residents that I've talked to are more than willing to do whatever we need to do to help that thing pass. If we need to start calling our senators, getting lists. I mean, just somebody tell me what we need to do because we'll do whatever we need to do. I don't know how long it's going to take that law to go through, but I feel like we're just kind of not being protected right now until that happens. I don't know if it's as simple as you, Mayor, calling the sheriff and talking to him about this. If we have any programs, I don't know if it has to be an ordinance. If it does, that doesn't make sense because the law's probably going to get passed soon. But we do need your help. I mean, we definitely need it. And when I say reputation, I'm not as -- I'm worried about the squatters for sure. But I'm also worried about the reputation that we're going to get because I think we're in like the top 20 most lenient laws for squatters. So I'm glad that law is going to be passed, hopefully. But we don't want that reputation out there. If that reputation gets out there, like the developers that you were just talking about how disappointed you are because we have changed everything, yet that reputation of us still being the same or being negative is still out there. What if that happens with squatters? What if people quit moving here or move out because we're not being protected? We got a real problem if that happens. So that's why I'm coming before you because we need you. We need you to be our advocate. So I don't know who I can talk to, but boy, I'm ready. Sign me up because we need to get this passed. So I appreciate your time. The other thing is, I applaud the new section 10-215 where you guys are going -- I'm out of time? MAYOR DICKEY: I do have a question. What was the bill number? KENNAMER: 10-215 where people have high weeds. We're going to find them. I love that. My only thing is, please take a drive down Palisades, because if we're making residents take care of everything. The Palisades medians are horrible. They need to be TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 40 of 55 maintained. They're not making the rotation on a regular basis. There's weeds and overgrowth and blah, blah, blah, all that stuff -- MAYOR DICKEY: Thank you. KENNAMER: So help. MAYOR DICKEY: Did you want a question? FRIEDEL: No. MAYOR DICKEY: Thank you. KENNAMER: Thank you everyone. MENDENHALL: And then the last two speakers. First is Lori Troller, and then on deck is Crystal Cavanaugh. TROLLER: Good evening, Mayor, Council. I need to correct a few things, and I have three topics tonight, so. This is my cell phone. This is cellular service. This is broadband. If you stand in a field filled with broadband service, this still isn't going to work. The ordinance we're talking about is a service for this. So anybody waving their phone, it's an incorrect statement. Sorry. Second, councilmembers having difficulty finding articles stating that wired services are not safe, I share your experience. For the councilmember that cannot find articles that cite cancer patients and thousands of studies done over the last 20-plus years, you've not read the email sent to you over two years ago. It is incorrect to infer that there are no such articles, and the correct statement is, is that you've not read these articles. So that puts into question the ability to present a well-rounded, informed opinion worth discussing on the matter. Please inform yourselves. Third, and finally, to clarify the premise for the update of the ordinance is one of protecting property values, preserving our natural beauty esthetic, how many times was that said tonight, and upholding public safety -- also mentioned multiple times tonight -- and trying to keep the prettiest place in town. Thanks. CAVANAUGH: Good evening, council. April 2nd Councilmember Kalivianakis spoke for six minutes to push back on ethics complaints filed against her for using personal email to receive documents from Sandor to keep them out of the public domain. She TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 41 of 55 dismissed this as an astroturf campaign that was calling for people to file complaints early and often to make her look bad. Or could it be that they filed them because they saw questionable behavior and an overwhelming lack of transparency? Conflicting statements were made that night. She said, I did not reach out to Sandor, yet she also said she did this for her constituents, most of whom are Reclaim Our Town. And she didn't care that Sandor wanted to keep it out of the public domain. She just wanted the documents. She said constituents from Reclaim Our Town allege Sandor may have lied or claimed the agreement did not exist. As the chair of that PAC, we did not allege this, nor did we ask her to obtain anything for us. It was her own statements at the January 17th meeting that triggered a February FOIA search for this parking agreement that she referenced. She said she respected the chain of leadership to obtain these documents, that she did not reach out, but that she had the chain reach out to Sandor. She wrongly implied the town attorney and town manager obtained the documents or were involved in giving permission to receive them through personal email. Documents that were never reported or turned over to the town, or to any of the other councilmembers. The statements seemed to be manipulated to confuse the truth. The FOIA public records search turned up nothing about a parking agreement. A follow- up email was sent to the town clerk about the developer correspondence with Brenda, only then was this January 16th personal email with documents disclosed. The FOIA information was received from the town on March 18th. Coincidentally, this happened one day before the Skillicorn sanctions on March 19th. Those sanctions seem a bit unfair now, don't they? Since there was indeed outside communication and a document exchange that occurred but were not revealed to the public, the town, or the council. January 17th might have been an important time to clearly reveal that she had received documents through personal email when Skillicorn asked the question. The appearance of deception could have been easily avoided, especially since she'd already stated to John Wesley that night, I have a copy of the parking agreement that was signed by Target, and I can substantially identify that as an authentic document. There was no mention of how this was obtained, no verification if it even existed, the town TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 42 of 55 was not aware of it, and no one on this council had viewed a single page of it before the vote. We know that personal email can be used, however, in this case it was used for the specific purpose of keeping documents out of the public domain only one day before the Target rezone vote took place. That's why the complaints were filed. KALIVIANAKIS: Yeah. Just like Lori Troller accused us of not reading the information that she sent us. I don't think Crystal's been reading the Fountain Hills Times because this has been addressed. It's been answered. We have currently an ethics investigation over me, and I will just wait for the results because I'm very confident that I did nothing wrong. The developer sent me an email and said, I want to keep these out of the public domain, which I had no obligation to respect. Even though ROT didn't request those documents, many of the people that belong to ROT and the ROT friends. They -- actually they did, Crystal. Because I have their names. And so -- anyway, all I'm saying is, is that I did my homework, which anybody on this council could have done to get the parking agreement that everybody said didn't exist, and it did. The agreement was sent to me because I requested it and I didn't request it myself, actually. Amanda Jacobs did. And so everything was done correctly, properly. The attorney will take a look at it. If they say I violated the ethics code, I will make a public apology. If not, well, I don't expect that apology to be coming. So thank you. MAYOR DICKEY: Thank you. Our next item is our consent agenda. Can I get a motion, please? GRZYBOWSKI: Move to approve. TOTH: Second. MAYOR DICKEY: Roll call, please? MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 43 of 55 SKILLICORN: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our first item is approval of recommendations of appointment of members to the town's boards, commissions, and committees. The recommendations that have been forwarded to me, that I will bring up to you for vote, are for the strategic planning advisory commission to appoint Paul Smith for the May 1st, 2024 to 4/30/2027. And then the following reappointments of Rick Watts and Peter Gray to P&Z, which are both full terms to 4/30/2027. And community services, also reappointments, Carey Reddick and Stephen Barnes for full terms, also for the 4/30/2027. We thank the subcommittees appointing and we thank the applicants and congratulate those who were named. Can I please get a motion? MCMAHON: Move to approve the council subcommittees' recommendations for the appointment of members to the town's, boards, commissions, and committees as presented. KALIVIANAKIS: I second. MAYOR DICKEY: Thank you. Roll call, please? MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Councilmember Skillicorn? SKILLICORN: Aye. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 44 of 55 MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our next item is a consideration of approving a Fountain Hills diversity, equity, and inclusion policy. I'll let Aaron start, and then I will take it from there. ARNSON: Sure. Mayor, council, I'll keep my introduction brief. Tonight, as the mayor stated, for the council's consideration and for possible action, is approval of a diversity, equity, and inclusion policy that was introduced at the request of Councilman Skillicorn and with the support of Councilwoman Toth and Councilman Friedel. This is a council-driven policy item. We've provided some staff information for the council's direction and to advise you in considering whether to approve or not this policy. And we are available to answer questions as we're able to answer them. MAYOR DICKEY: Thank you very much. So as always, we will start with our comments. We've got comments cards here. Linda, you can kind of summarize those for us and then we'll take public comments. MENDENHALL: Yes. In your packet you received comments. You have 48 against and 2 for. And then we do have public comment. And you want to go ahead and move forward with the comments? Okay. We have four speaking on this item as well. First is Pam Cap and on deck is Faryl Palles. CAP: Good evening council. My name is Pam Cap, eight-year resident. I'd like to ask the town clerk, Linda Mendenhall, if it's possible to amend tonight's agenda to reflect the true meaning of Councilmember Skillicorn's policy. This is not a DEI policy; this is an anti-DEO policy. Anti-diversity, anti-equity, anti-inclusion policy. The agenda should reflect Skillicorn's true intent. This plagiarized policy is a far right, ultra conservative TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 45 of 55 talking point. It has no business here in Fountain Hills. Our community already is in compliance with state and federal laws. So to see this pop up on the agenda was surprising. It was very clear Skillicorn was trying to pull a fast one. Why is he bringing this up when there is no need for such a policy, especially since our road problem still hasn't been addressed like he promised, he can't even be bothered to attend meetings that discuss our budget and road improvement plans. He spends more time at the Capitol on national issues than actually issues that impact Fountain Hills. Fountain Hills is the epitome of the American dream. For my family, it was paradise. That's until Councilmember Skillicorn was elected and unleashed upon Fountain Hills. For us, it's no longer sitting back and enjoying our home, our community. Now it's about keeping an eye on what tricks and what chaos Skillicorn will try to start. This policy is a perfect example. This discrimination policy not only violates our Constitution, but it goes against the vision of Fountain Hills, which states you will champion the diversity and experiences our residents bring to our community and rely on this depth of experience to innovatively address our challenges. Councilmember Skillicorn implies DEI is about providing special dispensation for marginalized groups, giving them special privileges white straight men don't get. That is a lie. DEI is about leveling the playing field, providing the same opportunities for everyone, and that is what this policy is against. Councilmember Skillicorn has made his hatred for towards the LGBTQ community perfectly clear. But now under this policy, all minority groups will be impacted. Proclamations like tonight for the Women's Club will no longer be allowed. So no more Black History Month, no more Irish Heritage Month. It will be unlawful to celebrate our ethnic and racial heritage. It will also be unlawful for our elected officials to say racism is bad. I ask Councilmember Skillicorn, what is wrong with saying racism is bad? When is it ever good? This policy goes against every good thing about Fountain Hills. Please reject it. MENDENHALL: Faryl Palles, are you here? UNIDENTIFIED SPEAKER: No, she's not here tonight. MENDENHALL: Okay. So we'll move on. Clayton Corey. And then on deck is Austin TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 46 of 55 VanDerHeyden. COREY: Good evening, council. My name is Clayton, resident of Fountain Hills. I've spent years promoting diversity inclusion through the diversity council with my employer. And I want to express my concerns regarding the proposed policy that undermines our town's commitment to diversity, equity, and inclusion. I believe the policy risks setting us back, widening disparities, and limiting our community's potential. By reducing the tools that we have today to address systemic inequalities, we risk compromising our future and the cohesion that makes Fountain Hills strong. Now an effective DEI policy should actively include all community members, people of color, LGBTQ+, those with disabilities, neurodiverse people, women, veterans, religious minorities, all age groups, and socio and economic backgrounds. Now, as we heard a minute ago, and I agree, inclusion enhances creativity, decision-making, and overall community well-being. When staff can bring their authentic selves to work, that's when the magic happens. And I truly believe that this is not just the right thing to do morally, it's strategically an advantage. A good DEI policy can attract businesses and residents, reinforcing our economic stability. So I urge you to see the broader benefits of a robust, a true DEI policy. Let's not shut the doors on our own people. Instead, let's be a community that thrives and embraces everyone. Thank you. VANDERHEYDEN: Austin VanDerHeyden, Goldwater Institute. Mayor and council, unelected bureaucrats use diversity, equity, and inclusion requirements to control power behind the scenes and enforce a dangerous and divisive ideology on city councils, employees, and residents. This can come in the form of diversity departments that monitor employee speech, political litmus tests that govern whether a candidate will be hired or an employee promoted, or procurement processes that award contracts on the basis of politics and race, all funded by taxpayer dollars. Unfortunately, Arizona cities are not immune from such discriminatory practices. For example, maybe you've heard of the town of Gilbert. They created the Office of Digital Government, a communications department that controlled all government communications online, mandated diversity trainings for employees, and even tracked what government TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 47 of 55 employees say on social media, pushing politics on citizens and silencing individuals who do not conform to the department's political agenda. Again, all of this occurred unbeknownst to taxpayers. If this current council does not intend to implement DEI policies or create a department like in Gilbert, that's great, then this ordinance will have absolutely no negative impact on how the town operates. This is about making sure that future councils, or future employees of the town, cannot bring these policies into Fountain Hills. Ten years ago, this would have been unimaginable in Gilbert, what's happening now. But the new hires there are mandated to take an unconscious bias training, and their town employees openly discuss how, quote, DEI needs to be shoved down other employees throats. This ordinance would prevent this type of activity and behavior from ever coming into Fountain Hills. It also makes it clear that discrimination based on skin color is not something that this town believes in. Unfortunately, there's many cities across Arizona that openly embrace these racist and dangerous ideologies and policies, and Fountain Hills has an opportunity to set the tone and reject discrimination based on race or political ideology. Passing this ordinance today makes sure that Fountain Hills is free from discrimination, not just now but for the foreseeable future as well. The reality is, is that these DEI policies are being pushed at every level of government, and it's only a matter of time before it makes its way to Fountain Hills. This ordinance would make sure that it never has the chance to see the light of day. Fountain Hills is a town known for respecting everyone, for being inclusive to all, and I think it's important that you, as a council, set the standard for the people you represent. Thank you. MENDENHALL: Mayor, that's it for public comment. MAYOR DICKEY: Councilmember Toth? TOTH: Thank you. I have to say, I'm very puzzled by some of the feedback we've heard. This doesn't outlaw saying racism is bad or doesn't say we have to only hire a certain type of person. This is talking about a merit-based employment policy and actually specifically says not to discriminate based off of race, ethnicity, gender, et cetera. I won't dive too far into it, but I just think that maybe we had a severe misunderstanding TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 48 of 55 for what this is about. I will add, however, it looks as though the state legislature is currently working on something that would affect this policy should we pass it. Because of that, I would rather not have to bring it back and change it. So I'd be open to possibly tabling this for now and bringing it back once we know the fate of the state legislature bill. I trust our state legislature to do their job. But that's because I believe in meritocracy. I believe we live in a wonderful town that doesn't discriminate against people, and I don't think that's anyone's intention. Or something that's happened before as a Goldwater Institute, and I want to thank you for coming tonight, pointed out this is simply to protect for the sake of the future. We currently don't have anything in the books. It's best to have something in the books. And this is, again, ensuring a level playing field and that the best candidate for the job gets the job. Whether you're whatever you may be, I don't want to list examples. But my point being this, I think there was a very big misunderstanding here. MAYOR DICKEY: Vice Mayor? KALIVIANAKIS: Thank you, Ms. Mayor. Yeah, I would like to. I don't believe a motion to table this at this point would be appropriate because there's no urgency to the issue. So what I'd like to do instead is do just a motion to continue. Because what Hannah said is true. This is being addressed in the State House, and I think we should wait for guidance in the State House before we address this as a council. And so I'd hope to get a second to my motion to continue. TOTH: I'll second that. MAYOR DICKEY: Thank you, Hannah. MAYOR DICKEY: A motion to continue to an indefinite time is not -- can be debated, but just the motion to continue, not the item. So if anybody has anything they'd like to say about the motion to continue. That's all you can do right now. So Councilman Skillicorn was on there first. He's on the bottom. Yeah. SKILLICORN: Thank you, Madam Mayor. If we're not going to debate the item. I do want to point out something that is a little inaccurate. The state legislature is not going to be moving on anything like this this year. Effectively, we're in a deadlock with the TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 49 of 55 current governor vetoing anything of substance. So I'm going to vote no to a motion to continue. I think it's inappropriate. I think we should get a roll call where we want to be on this bill or rather, this this ordinance here. I think it's important. I think some of the things that we've heard -- KALIVIANAKIS: Point of order. SKILLICORN: -- Comments are inaccurate. MAYOR DICKEY: He's addressing whether we continue it or not. KALIVIANAKIS: Okay. MAYOR DICKEY: And I'll -- SKILLICORN: And I'll conclude my comments on that. Just you know, I think -- MAYOR DICKEY: Just on -- SKILLICORN: -- depends on how the motion goes to continue. If it fails, I'll make a motion to pass. MAYOR DICKEY: Councilwoman? MCMAHON: Aaron, motion to table, what's the effect of that? ARNSON: Well, Mayor and Councilwoman, I think we have a motion to continue, which is slightly different under the rules. But the effect of the motion to continue is to simply that; consider the item at some point in the future. And it sounds like pending legislative action on this matter. MCMAHON: And what's a motion to table? ARNSON: Technically, a motion to table is temporarily setting something aside for something of greater urgency to come before the public body for consideration. So I know we use them interchangeably, but our rules do distinguish between. MCMAHON: Okay. Thank you. ARNSON: Yeah. MAYOR DICKEY: There's a motion to continue to an indefinite date or nonspecific date. And there is a second. And if there's no further discussion on that item, then can we have a roll call, please? MENDENHALL: Councilmember Skillicorn? TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 50 of 55 SKILLICORN: No. MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? MCMAHON: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Aye. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our next item is relating to lighting. Rachael or David? GOODWIN: Yes. I think we're going to have our town engineer, David Janover, give us our presentation tonight. JANOVER: Yes. Good evening, Mayor, and council. Good to be here. So our procurement section of our town code allows for the town to enter into agreements with vendors who have been awarded contracts with other governmental agencies for materials and services, as long as that contract contains cooperative use language. So the Region 14 Education Service Center, in cooperation with the National Cooperative Purchasing Alliance, competitively solicited bids for electrical equipment, bulbs, and other related services and materials, and awarded that contract to Voss Electric. Now, Voss Electric has agreed to extend this competitive pricing to the Town of Fountain Hills. So by approving the cooperative purchasing agreement this evening with Voss Electric, this will allow the town to purchase materials that are needed for capital project F4043 the community center interior lighting upgrade. Now, the community center's existing interior lighting is original to the building. It's showing its age with cracked and discolored lenses, out-of-date fixtures which need repair frequently, and in fact, any TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 51 of 55 future failure of the control system that's in there would be difficult -- very difficult to repair because the equipment is essentially obsolete. So with that, this capital project is going to upgrade the lighting control system control panels in the building. And that work is going to be completed by some specialty contractors. However, we'll also be upgrading the old fluorescent lighting in the ballrooms to LED and in fact, upgrading really throughout the entire facility, everything to LED fixtures and bulbs, and that includes the lobby egress lighting and exit lighting. So staff is going to be able to control the brightness of the ballroom and the lobby lights, as they will now be dimmable. So that's gonna be kind of cool. The LED bulb upgrade is going to be installed by our in-house staff, our facility staff. So that's going to save us money on the installation. LED lights, of course, as everyone knows, they're very energy efficient, roughly 50 percent less costly to operate than our current fluorescent bulbs. And they last about eight times longer, so there's less maintenance that is going to be involved and required for the LED bulbs. So with that, staff is excited to kick this project off. We're presently respectfully requesting council to approve the cooperative purchasing agreement before you tonight with Voss Electric. And that will allow, again, staff to purchase the necessary materials at a competitive pricing. If there are any questions, I'll be more than happy to do my best to address them. And I also have our facility manager, Steve Bartlett, here to answer any technical questions about the project. Thanks. MAYOR DICKEY: Do we have any speaker cards on this? MENDENHALL: Mayor, we don't have anyone who wishes to speak on it, but we do have someone who submitted a written comment and that they're for this item and it's in your packet. MAYOR DICKEY: Councilwoman? MCMAHON: I was just going to make a motion to approve. TOTH: Second. MAYOR DICKEY: There you go. Is there any further discussion? Councilman? SKILLICORN: Thank you, Madam Mayor. I would kind of -- Engineer, I'm kind of curious TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 52 of 55 of what is the pertinent need to replace these? I mean, I go into community center, I think the lights look just fine. Is it going to enhance the -- are we're going to have more people come there? Are we going to be able to rent it out to more clients? I mean, what -- I mean, what is the the rush to spend over $100,000 on this? JANOVER: Mayor, Councilman Skillicorn, great question. And I could probably have our Town Manager Goodwin, who is very, very much in tune with the needs and of the community center address that. But at this time, the ballasts and the fixtures are so old that they require frequent maintenance. And if something does happen with our lighting control system, it's essentially obsolete. So we're just kind of right now playing Russian roulette until something happens. And we'd rather be more proactive and take care of that. And in fact, it's not really being proactive. It really is a need. This is a need, not a want. We have so many groups that are using the facility and so many citizens that are there, and they they really do deserve to have a really good lighting system. SKILLICORN: Madam Mayor, may I follow up? So my question really is, is, again, what is the, you know, the actual need? Is the likelihood that these light, all the lights are going to fail in a few? I mean, just because it's obsolete doesn't mean it may not work for a year or two years or three years or five years. You know, what is the likelihood that we'll have some catastrophic thing where it's more than just replacing a light bulb? JANOVER: Mayor, Councilmember, it's hard to say how much longer we have with that system. Again, it's obsolete. We cannot find the control panels that we currently have, they're no longer available at this time. So -- MAYOR DICKEY: Manager Goodwin, would you like to step in a little bit? GOODWIN: That'd be great. You did, you explained it very well, so thank you. Dave. I think what is being overlooked is the idea that it's the control panel. So it's not just a light bulb or two or a panel. If that goes down, everything goes down. So it's not so much will we get more business? It's we will have to cancel business. We will have to have to take extraordinary measures to get someone in there to get it replaced and handled. So best practice tells us do it now and when we have already exceeded the TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 53 of 55 lifespan. Just like we wouldn't wait for the air conditioner to go out in July to go, oh yeah, that thing's on its last legs, I guess, we'll see what happens. We want to be proactive so that our services and our programs and whatnot are maintained. So it's just, it's beyond its life expectancy at this point. Does that help answer your question? SKILLICORN: Madam Mayor, well, I mean, so really it comes down to a control panel. I mean, the panels themselves don't go bad. I mean, is there a specific component we're worried about that is near the end of its lifespan; it's about to fail. As my thoughts on control panels, I mean, like, we've got contractors, we've got other things in there. I mean, yeah, they have a lifespan. That's definitely true. But I just -- I was kind of questioning, that's a pretty big price tag for a system that's working, its operational. Unless we're having to constantly find replacement parts or something like that. And frankly, I find it hard to believe that most of these parts are that hard to find. I mean, you can open up a Westco catalogue and probably find them. MAYOR DICKEY: Councilwoman? GRZYBOWSKI: Did you want to follow-up on that? MAYOR DICKEY: Yeah. Councilwoman? GRZYBOWSKI: One of the things that I foresee is a savings for electricity. Once you switch these things, the savings can be significant. So I just wanted to point that out because it hasn't been brought up yet. Thank you. MAYOR DICKEY: We have a motion and a second. Is there any further discussion? Roll call, please? MENDENHALL: Councilmember Grzybowski? GRZYBOWSKI: Aye. MENDENHALL: Councilmember McMahon? MCMAHON: Aye. MENDENHALL: Councilmember Toth? TOTH: Aye. MENDENHALL: Councilmember Friedel? FRIEDEL: Aye. TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 54 of 55 MENDENHALL: Councilmember Skillicorn? SKILLICORN: No. MENDENHALL: Vice Mayor Kalivianakis? KALIVIANAKIS: Let there be light. Yes. MENDENHALL: Mayor Dickey? MAYOR DICKEY: Aye. Thank you. Our next item is our legislative agenda bulletin. They are only meeting once a week now, Wednesdays. So last week, on Wednesday, they were supposed to Cal the 2720, which is the ADU bill that everybody is a little worried about. But they didn't do it. So I'm assuming it's tomorrow, but I'm not sure. It's always good though when you see something get postponed from cal. We did send a letter to senators before last Wednesday -- to all the senators on the floor, because that's what it was. And that's the one where you can put a lot of extra AD -- like I say, ADU, now I'm forgetting what they are, but they're like little buildings on your property. But there aren't any limits that we would probably agree with, as far as lots and how many. And so there is another one, a good one, that passed, believe it or not. Like I'm trying to find it, but it was -- it was one -- it was kind of similar where we're trying to work with those folks. And it actually came to a compromise and it was signed. I don't know why I can't find it right now. FRIEDEL: Would that be 2297. MAYOR DICKEY: 2297, yep, I wrote the word good next to it. And then the finance committee met. They were expecting a -- this is all relative -- a $2.2 billion shortfall, but now it's projected to be 1.8 billion. So it's 400 million less for now anyway. But you know how that goes. I wanted to ask -- well, we would need to check into the bill that the speaker asked about, because I don't know what that one is, and we can see if that's passed or I don't think it did from what she said. So we'll check that out. And then the last thing would be if, for me anyway, if you have anything that you want the League to look at -- a proposal, like we did last year if there's something. Like, we did short-term rentals and such last year and the year before and the year before, if there's anything TOWN OF FOUNTAIN HILLS APRIL 16, 2024 TOWN COUNCIL MEETING MINUTES Page 55 of 55 like that, I think those meetings are starting pretty quick. And we've got several members on policy committees that can help advocate for our stuff. So if you have anything send it ASAP. Have to probably send it to Rachael. But yeah, that'd be great. Are there any other bills or anything else that you wanted to discuss? So they're good? Okay. So our other item again, is to -- any other discussion, direction to town manager from speakers or such. So I think that bill would be one of them. Is there anything else that anybody mentioned? I don't think so. To follow up on. And then any future agenda items? Vice Mayor? KALIVIANAKIS: Yeah. And actually, this does dovetail with one of the speakers tonight. But if we could get some kind of an enhanced squatting rule? Some would have to look into with law enforcement, with our attorneys, but I see this happening all over the country that people are squatting in homes, and they can't get them out, and they destroy the homes. And if there's anything that we can do. I don't know if an ordinance would be enough to keep squatters from this. I don't know how big the issue is, but if our staff could research that, and if there's a possibility that we can toughen up squatting rules in this town, I think that would be very sound. GOODWIN: Sure. I pulled up quickly the bill that was mentioned and just through quick read, it looks like if this were to pass, that would be exactly what you're talking about. But we can certainly do additional measures to make sure that we have the strongest language in place that we can do too. So we'll certainly do that. KALIVIANAKIS: Thank you. GOODWIN: Thank you. MAYOR DICKEY: Okay. Great. Any other items or questions about anything? Thank you. We are adjourned. Having no further business, Mayor Ginny Dickey adjourned the Regular Meeting of the Fountain Hills Town Council held on April 16, 2024, at 7:41 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 16th day of April 2024. I further certify that the meeting was duly called and that a quorum was present. DATED this 4th Day of June 2024. _____________________________ Linda G. Mendenhall, Town Clerk ITEM 8. B. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Court Prepared by: Joanna Elliott, Court Administrator Staff Contact Information: Joanna Elliott, Court Administrator Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Approval of Resolution 2024-24 for an Intergovernmental Agreement with the Maricopa County Justice Court to provide video appearance services for the Fountain Hills Municipal Court. Staff Summary (background) Since 2016, the Maricopa County Justice Court has been facilitating video appearance court for the Fountain Hills Municipal Court. This service allows defendants held in custody in downtown Phoenix to appear remotely for their first appearance in front of the judge, using Microsoft Teams. Once the defendant has been seen by the judge, our staff emails the necessary documents to be signed by the defendant. The staff at the jail obtains the defendant's signature and emails it back to our staff, providing a secure way for both the defendant to be seen without being transported by MCSO and the exchange of documents between court staff and the defendant by Maricopa County staff. Costs for services are not to exceed $3,000 annually. Related Ordinance, Policy or Guiding Principle A.R.S. § 11-952  Risk Analysis These services create a vital link for prompt and efficient judiciary services. Without video services, the process would be slowed significantly, and services from MCSO and other associated agencies would be needed for transport, monitoring, etc.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) The Judge and Court Administrator recommend adopting this resolution to continue business with the video appearance court.    SUGGESTED MOTION MOVE to adopt Resolution 2024-24, as presented. Fiscal Impact Fiscal Impact:3000.00 Budget Reference: Funding Source:Court Enhancement Fund If Multiple Funds utilized, list here: Budgeted: if No, attach Budget Adjustment Form: Attachments Resolution 2024-24  IGA vac  COST CHART  Form Review Inbox Reviewed By Date Court Administrator (Originator)Linda Mendenhall 04/30/2024 03:42 PM Town Attorney Aaron D. Arnson 05/01/2024 05:53 AM Town Manager Rachael Goodwin 05/28/2024 07:25 AM Form Started By: Joanna Elliott Started On: 04/24/2024 09:46 AM Final Approval Date: 05/28/2024  RESOLUTION NO. 2024-24 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, MARICOPA COUNTY, ARIZONA, APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH MARICOPA COUNTY (AND THE MARICOPA COUNTY SHERRIF’S OFFICE), BY AND THROUGH THE MARICOPA COUNTY JUSTICE COURT (“JUSTICE COURTS” OR “MCJC”). WHEREAS, Maricopa County Justice Court (MCJC) Administration is the administrative department within Maricopa County currently reporting to, and providing administrative support to, all of the justice courts located throughout Maricopa County; and WHEREAS, Maricopa County provides funding and other resources, so that MCJC Administration can staff and operate a Video Appearance Center (VAC) located inside the Intake, Transfer, and Release Jail (also called the “Watkins Jail”) at 3333 Watkins St, Phoenix, AZ 85009; and WHEREAS, this IGA formalizes and updates the existing arrangements that have been in place since 2016 regarding utilization of Justice Court personnel and the Maricopa County Justice Court Video Appearance Center; and WHEREAS, the Town of Fountain Hills Municipal Court uses said services in the course of operations. BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. That the Town, through its Mayor and Council, hereby approves the Intergovernmental Agreement (the "Agreement"), in substantially the form attached hereto as Exhibit A. SECTION 2. Pursuant to the terms of the Agreement, the Town hereby authorizes the expenditure of $3,000 per year, and a cumulative total of not more than $3,000 and XX/100 ($3,000). SECTION 3. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Agreement and to take all steps necessary to carry out the purpose and intent of this Resolution. [Signatures on following page] PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Maricopa County, Arizona, this ____day of ___, 2024. 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 INTERGOVERNMENTAL AGREEMENT BETWEEN MARICOPA COUNTY THROUGH THE MARICOPA COUNTY JUSTICE COURTS [AND MARICOPA COUNTY SHERIFF’S OFFICE] AND THE TOWN OF FOUNTAIN HILLS REGARDING OPERATION AND SHARED USE OF THE MARICOPA COUNTY JUSTICE COURT VIDEO APPEARANCE CENTER C-##-##-###-X-00 This INTERGOVERNMENTAL AGREEMENT (IGA) is entered into by and between MARICOPA COUNTY, a political subdivision of the State of Arizona, on behalf of the MARICOPA COUNTY JUSTICE COURTS (“Justice Courts”) and the Town of Fountain Hills, an Arizona municipal corporation, (“entity”) collectively referred to as the “Parties.” Under A.R.S. § 11-952, which authorizes public agencies to enter into Intergovernmental Agreements, the Parties enter into this IGA regarding operation and shared use of the Maricopa County Justice Court Video Appearance center. 1. INTRODUCTION Arizona law, ARS 11-951, et. seq. authorizes the various political subdivisions of the State to enter into agreements for the purpose of providing for the joint exercise of their respective governmental powers for the public benefit. Maricopa County Justice Court (MCJC) Administration is the administrative department within Maricopa County currently reporting to, and providing administrative support to, all of the justice courts located throughout Maricopa County. Maricopa County provides funding and other resources, so that MCJC Administration can staff and operate a Video Appearance Center (VAC) located inside the Intake, Transfer, and Release Jail (also called the Watkins Jail) – 3333 Watkins St, Phoenix AZ 85009. It Is the Intent and desire of the parties to continue to provide for the common administration and operation of the VAC to the greatest extent possible under the laws of the State of Arizona. This IGA formalizes and updates the existing arrangements that have been in place since 2016 regarding utilization of Justice Court personnel. Therefore, in consideration of the mutual promises and obligations set forth in this IGA, the parties enter into this agreement as detailed below. 2. TERM The initial term of this agreement shall be for 1 year with three (3) annual automatic renewals unless sooner terminated by either party pursuant to the provisions of this agreement. This agreement shall be automatically renewed and extended for subsequent additional one-year terms, unless previously terminated by either party. In recognition of and deference to the budgeting needs and obligations of the parties, any party wishing to terminate the provisions of this agreement shall provide a written notice by certified mail to the other not later than the last business day of January of the calendar year in which such termination shall take effect. No such termination shall take effect until the first day of July following the provision of such notice. 3. RESPONSIBILITIES OF THE TOWN OF FOUNTAIN HILLS In consideration of the services provided by Maricopa County, each fiscal year the Town of Fountain Hills will reimburse MCJC Administration for total salaries and employee related expenses for the MCJC VAC court staff proportional to the total IAHs for the year between the Justice court and the municipal court as detailed in exhibit A. Payment shall be made no later than the last day of each July for the previous fiscal year. The Parties agree: 1. There are no amounts due Maricopa County for previous use of the Video Appearance Center. 2. Each Party (as "indemnitor") agrees to indemnify, defend, and hold harmless the other Party (as "indemnitee") from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney's fees) (hereinafter collectively referred to as "claims") arising out of the negligent performance of this IGA, but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees, or volunteers. 3. This Agreement is not intended to constitute, create, give rise to, or otherwise recognize a joint venture agreement, partnership or other formal business association or organization of any kind, and the right and obligations of the Parties shall be only those expressly set forth in this Agreement. Separate Identities of the two Individual courts are to be retained. This agreement is intended to eliminate or mitigate the application of court personnel and facilities and to provide for the use of the MCJC VAC for the coordination of all Initial Arraignment Hearings (IAH) that will be conducted at the MCJC VAC. In all instances where the MCJC VAC is used by the municipality, however, the municipality is responsible for paying the expense of the judicial staff assigned to the MCJC VAC. 4. Parties acknowledge that under this IGA no employee or participant of the Town of Fountain Hills is to be considered a County employee, and that no rights of County merit, County retirement, or County personnel rules shall accrue to such individual. The Town of Fountain Hills shall have total responsibility for all salaries, wages, bonuses, retirement, withholdings, workman's compensation, occupational disease compensation, unemployment compensation, other employee benefits, and all taxes and premiums appurtenant thereto concerning such individuals and shall save and hold MCSO harmless with respect thereto. 5. Each Party to this Agreement warrants compliance with the Immigration and Nationality Act (INA using E-verify) and all other federal immigration laws and regulations related to the immigration status of its employees and A.R.S. §23-214(A). Each Party shall obtain statements from its subcontractors certifying compliance and shall furnish the statements to the other Party upon request. These warranties shall remain in effect through the term of this Agreement. Each Party and its subcontractors shall also maintain Employment Eligibility Verification forms (I-9) as required by the Immigration Reform and Control Act of 1986, as amended from time to time, for all employees performing work under this Agreement and verify employee compliance using the E-verify system and shall keep a record of the verification for the duration of the employee’s employment or at least three years, whichever is longer. I-9 forms are available for download at USCIS.GOV. Each Party retains the legal right to inspect contractor and subcontractor employee documents performing work under this Agreement to verify compliance with this Agreement. Each Party and its subcontractors shall be given reasonable notice of the other Party’s intent to inspect and shall make the documents available at the time and date specified. Should either Party find that the other Party or any of its subcontractors are not in compliance; such noncompliance may be considered a material breach of this Agreement and may pursue any and all remedies allowed by law. Nothing set out herein shall make any subcontractor an agent or employee of either Party. 6. Each party shall comply with all applicable laws, ordinances, executive orders, rules, regulations, standards, and codes of the federal, state, and local government whether or not specifically referenced herein. The Parties agree that there will be no discrimination as to race, sex, religion, color, age, creed, or national origin in regard to obligations, work, and services performed under the terms of any contract ensuing from this engagement. The Parties will comply with the Executive Order No. 11246, entitled “Equal Employment Opportunity” and as amended by Executive Order No. 11375, as supplemented by the Department of Labor Regulations (41 CFR, Part 60). 7. In accordance with A.R.S. § 35-214, all books, accounts, reports, files, electronic data, and other records relating to this Agreement shall be retained and subject at all reasonable times to inspection and audit by the State of Arizona for five (5) years after completion of this Agreement. Upon request, [The Town of Fountain Hills] shall produce original of any and all such records and shall be subject at all times to Inspection and audit by either party, the Superior Court Presiding Judge for Maricopa County, and the Arizona Supreme Court. 8. Any litigation arising from the agreement or the performance thereof will be decided in the federal courts in Phoenix or in state courts of Maricopa County unless otherwise agreed to between the Parties. The laws of the State of Arizona shall govern the construction and interpretation of this IGA. This Agreement is subject to the provisions of A.R.S. § 12-1518 relating to the use of arbitration. This IGA may be amended only by the mutual written consent of authorized representatives for all Parties and requires Maricopa County Board and [The Town of Fountain Hills] Council approval. 11. Notice is given that pursuant to A.R.S. § 38-511 the Parties may cancel any contract without penalty or further obligation within three years after execution of the contract, if any person significantly involved in initiating, negotiating, securing, drafting or creating the contract on behalf of the Parties is at any time while the contract or any extension of the contract is in effect, an employee or agent of any other party to the contract in any capacity or consultant to any other Party of the contract with respect to the subject matter of the contract. Additionally, pursuant to A.R.S § 38-511 the Parties may recoup any fee or commission paid or due to any person significantly involved in initiating, negotiating, securing, drafting or creating the contract on behalf of the Parties from either Party to the contract arising as the result of the Contract. 12. This IGA is effective when signed by the Parties. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute the same instrument. Faxed, copied, electronic and scanned signatures are acceptable as original signatures. 13. This document is the complete and exclusive statement of understanding between the Parties, and it supersedes all proposals, oral or written, and other documents or communications between the Parties relative to the subject matter herein covered, unless such documents or communications are specifically included by reference. 14. If any term, covenant, condition or provision of this IGA is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the provisions hereof shall remain in full force and effect and shall in no way be affected, impaired or invalidated. 15. Any provision of this IGA which is determined to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof, and remaining provisions shall remain in full force and effect. 16. Waiver of any breach of any term, conditions or covenant herein contained shall not be deemed to be a waiver of any subsequent breach of any term, covenant or condition herein. 17. This Agreement will automatically renew for up to two, one-year terms following the Initial Term, unless either Party provides notice to terminate, per Section 10, above. 10. This agreement constitutes the entire agreement of the parties relating to the subject matter detailed herein. No amendment or modification of the terms of this agreement shall be of any force and effect unless approved by the Maricopa County Board of Supervisors, the Town of Fountain Hills, and the Presiding Justice of the Peace for Maricopa County. The parties agree that should any part of this agreement be held invalid or void the remainder of the agreement shall remain in full force and effect and shall be binding upon the parties. 12. NOTICES All notices, requests for payment, or other correspondence between the parties regarding this agreement shall be mailed or delivered to the respective parties at the following addresses: Originals to: Maricopa County Justice Courts 222 N. Central Ave. Suite 210 Phoenix AZ 85392 With copies to: Maricopa County Board of Supervisors 10th Floor 301 W. Jefferson Phoenix, AZ 85003 Maricopa County Department of Finance 301 W. Jefferson, Suite 960 Phoenix, AZ 85003 The parties have executed this agreement on the date written below, REQUIRED SIGNATURE BLOCKS AND SIGNATURES SECTION IGA approved by the Maricopa County Board of Supervisors BY: ______________________________ Date:__________________ Chairman, Board of Supervisors ATTEST: ______________________________ Date:___________________ Clerk of the Board APPROVED AS TO FORM: ______________________________ Davina Bressler, Maricopa County Attorney’s Office IGA approved by the Town of Fountain Hills TOWN OF FOUNTAIN HILLS, ARIZONA, A municipal corporation _____________________________ __________________ Judge Robert Melton, Presiding Magistrate Date BY: _____________________________ __________________ Ginny Dickey, Mayor Date ATTEST: ______________________________ ___________________ Town Clerk APPROVED AS TO FORM: ______________________________ Town Attorney SAMPLE LETTER FOR CHARGES Date Attn: Municipality Representative RE: lntergovernmental Agreement between Maricopa County and ??? Regarding the Administration of the Maricopa County Justice Courts Video Appearance Center (MCJC VAC) Dear Attached, per the terms of our agreement signed ???, is a schedule of the charges for court staff for Fiscal Year ??? (July 1, ???? through June 30, ????), and the reimbursement rate and amount due the Maricopa County Justice Courts by ???? l have included the total amount of IAHs filed during Fiscal Year ??? for your information. This information shows the ratio of ??? IAHs (6.03%) to all other IAHs (93.97%) for Fiscal Year ????, and the calculation of the reimbursement due to the Maricopa County Justice Courts by ????. Please remit the Total Staff Salary and Benefits Due of $$. You may send a check to my attention, payable as follows: Maricopa County Justice Courts 222 N. Central Avenue, Suite 210 Phoenix, AZ 85004 Sincerely, ?????? MARICOPA COUNTY JUSTICE COURTS Sample IGA / VAC Reimbursement Costs for Municipal Court Staff Expenses ______________________________________________________________________________ Personnel Services (Based on 2088 hours - all four positions are 3.5 FTEs) Name Position Hourly Total Ct Manager 34.17 $71,347 Clerk 25.11 $52,430 Clerk 24.81 $51,803 .5 Clerk 20.81 $21,726 $197,306 Total Filings – Fiscal Year % Total Fountain Hills 39 0.91% MCJC 3923 91.8% Other Municipalities 311 7.3% Total Filings 4273 100.0% Total Staff Salary and Benefits Reimbursement Due ($ 197,306 X 0.91%) $1,795 *Note: Sample was based off FY23 fillings ITEM 8. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Paul Soldinger, Chief Financial Officer Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-19 approving the designation of Chief Fiscal Officer of the Town of Fountain Hills for FY24. Staff Summary (background) The Arizona Auditor General requires designation of a Chief Fiscal Officer (CFO) by the Governing Board of a political subdivision. The CFO is authorized to certify the Annual Expenditure Limitation Report (AELR) required by Arizona statute and file it with the Auditor General. The Auditor General’s designation form requires a copy of the Governing Board’s Resolution to be included with the filing. The Town Council previously approved Resolution 2023-23 on June 6, 2023, to designate the CFO for fiscal year 2024. However, Resolution 2024-19 is required to designate a new CFO for AELR submission purposes. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis If not submitted to the Auditor General with the supporting Resolution, then the Town will not be in compliance with State statute. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2024-19. SUGGESTED MOTION MOVE to adopt Resolution 2024-19.  Attachments RES2024-19  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/22/2024 08:10 AM Finance Director David Pock 05/28/2024 07:34 AM Town Attorney Aaron D. Arnson 05/28/2024 07:39 AM Town Manager Rachael Goodwin 05/28/2024 07:49 AM Form Started By: Paul Soldinger Started On: 05/21/2024 03:40 PM Final Approval Date: 05/28/2024  RESOLUTION NO. 2024-19 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, DESIGNATING THE CHIEF FISCAL OFFICER FOR OFFICIALLY SUBMITTING THE FISCAL YEAR 2023-24 EXPENDITURE LIMITATION REPORT TO THE ARIZONA AUDITOR GENERAL RECITALS: WHEREAS, A.R.S. §41-1279.07(E) requires each county, city, town, and community college district to annually provide to the Auditor General by July 31 the name of the Chief Fiscal Officer the governing body designated to officially submit the current year’s annual expenditure limitation report (“AELR”) on the governing body’s behalf; and WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) desires to designate the Town’s Chief Financial Officer, Paul Soldinger, as the Town’s Chief Fiscal Officer. WHEREAS, Entities must submit an updated form and documentation for any changes in the individuals designated to file the AELR. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. Paul Soldinger, Chief Financial Officer, is hereby designated as the Town’s Chief Fiscal Officer for purposes of submitting the fiscal year 2023-24 AELR to the Arizona Auditor General’s Office on the governing body’s behalf. 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 4th day of June, 2024. 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. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Consent Submitting Department: Administration Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Paul Soldinger, Chief Financial Officer Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Resolution 2024-20 approving the designation of Chief Fiscal Officer of the Town of Fountain Hills for FY25. Staff Summary (background) The Arizona Auditor General requires designation of a Chief Fiscal Officer (CFO) by the Governing Board of a political subdivision. The CFO is authorized to certify the Annual Expenditure Limitation Report (AELR) required by Arizona statute and file it with the Auditor General. The Auditor General’s designation form requires a copy of the Governing Board’s Resolution to be included with the filing. Related Ordinance, Policy or Guiding Principle N/A Risk Analysis If not submitted to the Auditor General with the supporting Resolution, then the Town will not be in compliance with State statute. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends adoption of Resolution 2024-20. SUGGESTED MOTION MOVE to adopt Resolution 2024-20.  Attachments RES2024-20  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/22/2024 08:20 AM Finance Director David Pock 05/28/2024 07:34 AM Town Attorney Aaron D. Arnson 05/28/2024 07:39 AM Town Manager Rachael Goodwin 05/28/2024 07:49 AM Form Started By: Paul Soldinger Started On: 05/21/2024 03:54 PM Final Approval Date: 05/28/2024  RESOLUTION NO. 2024-20 A RESOLUTION OF THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS, ARIZONA, DESIGNATING THE CHIEF FISCAL OFFICER FOR OFFICIALLY SUBMITTING THE FISCAL YEAR 2024-25 EXPENDITURE LIMITATION REPORT TO THE ARIZONA AUDITOR GENERAL RECITALS: WHEREAS, A.R.S. §41-1279.07(E) requires each county, city, town, and community college district to annually provide to the Auditor General by July 31 the name of the Chief Fiscal Officer the governing body designated to officially submit the current year’s annual expenditure limitation report (“AELR”) on the governing body’s behalf; and WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”) desires to designate the Town’s Chief Financial Officer, Paul Soldinger, as the Town’s Chief Fiscal Officer. WHEREAS, Entities must submit an updated form and documentation for any changes in the individuals designated to file the AELR. ENACTMENTS: NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND TOWN COUNCIL OF FOUNTAIN HILLS as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. Paul Soldinger, Chief Financial Officer, is hereby designated as the Town’s Chief Fiscal Officer for purposes of submitting the fiscal year 2024-25 AELR to the Arizona Auditor General’s Office on the governing body’s behalf. 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 4th day of June, 2024. FOR THE TOWN OF FOUNTAIN HILLS: ATTESTED TO: ___________________________________ __________________________________ Ginny Dickey, Mayor Linda Mendenhall, Town Clerk REVIEWED BY: APPROVED AS TO FORM: ____________________________________ __________________________________ Rachael Goodwin, Town Manager Aaron D. Arnson, Town Attorney ITEM 9. A. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda Submitting Department: Administration Prepared by: Paul Soldinger, Chief Financial Officer Staff Contact Information: Paul Soldinger, Chief Financial Officer Request to Town Council Regular Meeting (Agenda Language):  PUBLIC HEARING regarding Resolution 2024-17, approving the final budget for the Town of Fountain Hills for the fiscal year beginning July 1, 2024, and ending June 30, 2025.    RECESS REGULAR MEETING OPEN SPECIAL MEETING CONSIDERATION, AND POSSIBLE ACTION: RESOLUTION 2024-17 - ADOPTION OF FINAL BUDGET; RESOLUTION 2024-18 - BUDGET IMPLEMENTATION POLICY Town Council will consider a request to: (a) Adopt Resolution 2024-17, approving the Final Budget for the Town of Fountain Hills for the fiscal year beginning July 1, 2024, and ending June 30, 2025; (b) Adopt Resolution 2024-18, approving and establishing the FY25 Budget Implementation Policy and approving the Town's organizational charts, pay plans, schedule of authorized positions, updated employee job descriptions, and comprehensive fee schedule for fiscal year 2025. Staff Summary (background) 1) FY25 FINAL BUDGET  The Proposed Budget for fiscal year 2024-25 was presented to the Town Council and the public during the Budget Workshop on April 9, 2024. Following the Budget Workshop, the Town Council approved the Tentative Budget on May 7, 2024, establishing the maximum expenditure amount for all funds at $45.2M. Resolution 2024-17 adopts the adjusted Tentative Budget as the Final Budget for the fiscal year beginning July 1, 2024 and ending June 30, 2025. 2) Budget Implementation Policy Resolution 2024-18 establishes certain budget policies and procedures governing the determination of budget expenditures for the various departments and programs, supplementing budget adoption Resolution 2024-17. This resolution, which includes the organizational charts, pay plans, schedule of authorized positions, updated employee job descriptions, and comprehensive fee schedule for fiscal year 2025, provides for consistent and uniform administration of the adopted Town budget for FY 2024-25.   Related Ordinance, Policy or Guiding Principle 1) FY25 Final Budget: A.R.S. § 42-17105 2) Budget Implementation Policy: Town Code Section 3-1-1 & Council-Adopted Financial Policies Risk Analysis 1) FY25 Final Budget: If not adopted, the Town will not be in compliance with state statute. 2) Budget Implementation Policy: If not adopted, consistency in budget administration, organizational structure, pay plans, job descriptions, and user fees could be diminished. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends that Town Council: (a) adopt Resolution 2024-17 approving the final budget for FY25; (b) adopt Resolution 2024-18 approving the Budget Implementation Policy for FY25. SUGGESTED MOTION MOVE to adopt Resolution 2024-17 approving the final budget for fiscal year 2025; adopt Resolution 2024-18 approving the Budget Implementation Policy, Organizational Charts, Pay Plans, Schedule of Authorized Positions, Updated Employee Job Descriptions, and Comprehensive Fee Schedule for fiscal year 2025 and Reconvene into the Regular Meeting. Attachments RES2024-17  RES2024-17 Exhibit A  RES2024-18  RES2024-18 Exhibit A  RES2024-18 Exhibit B  RES2024-18 Exhibit C  Presentation  Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/22/2024 08:21 AM Finance Director David Pock 05/28/2024 07:40 AM Town Attorney Aaron D. Arnson 05/28/2024 07:44 AM Town Manager Rachael Goodwin 05/28/2024 07:49 AM Form Started By: Paul Soldinger Started On: 05/21/2024 04:00 PM Final Approval Date: 05/28/2024  1 RESOLUTION 2024-17 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING THE FINAL BUDGET FOR THE TOWN OF FOUNTAIN HILLS FOR THE FISCAL YEAR BEGINNING JULY 1, 2024 AND ENDING JUNE 30, 2025 RECITALS: WHEREAS, in accordance with the provisions of Title 42, Chapter 17, Arizona Revised Statutes (the “Applicable Law”), the Mayor and Council of the Town of Fountain Hills (the “Town Council”) did, on May 7, 2024, prepare (i) a full and complete statement of the Town’s financial affairs for the preceding fiscal year, (ii) an estimate of the different amounts that will be required to meet the Town’s public expense for the current fiscal year, including all of the items prescribed by ARIZ. REV. STAT. § 42-17102 and (iii) a summary schedule of estimated expenditures and revenues, which was prepared according to forms supplied by the Auditor General and entered in the Town Council’s minutes; and WHEREAS, in accordance with the Applicable Law, and following due public notice, the Town Council met on May 7, 2024, at which meeting any taxpayer was provided the opportunity to appear and be heard in favor of or against any proposed expenditure or tax levy; and WHEREAS, publication has been duly made as required by law, of said estimates together with a notice that the Town Council would meet on June 4 , 2024, at the Fountain Hills Town Council Chambers, for the purpose of hearing taxpayers and with respect to said estimate or any proposed expenditure or tax levy. ENACTMENTS: NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The statements and schedules attached hereto as Exhibit A and incorporated herein by reference, are hereby adopted as the budget of the Town of Fountain Hills, Arizona, for the fiscal year beginning July 1, 2024 and ending June 30, 2025. 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. 2 PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 4 , 2024. 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 Official Budget Forms Town of Fountain Hills Fiscal year 2025 3/22 Arizona Auditor General Official Town Budget Forms Town of Fountain Hills Table of Contents Fiscal year 2025 Schedule A—Summary Schedule of estimated revenues and expenditures/expenses Schedule B—Tax levy and tax rate information Schedule G—Full-time employees and personnel compensation Schedule C—Revenues other than property taxes Schedule D—Other financing sources/(uses) and interfund transfers Schedule E—Expenditures/expenses by fund Schedule F—Expenditures/expenses by department (as applicable) 3/22 Arizona Auditor General Official Town Budget Forms Fiscal year General Fund Special Revenue Fund Debt Service Fund Capital Projects Fund Permanent Fund Enterprise Funds Available Internal Service Funds Total all funds 2024 Adopted/adjusted budgeted expenditures/expenses* E 1 25,585,805 9,643,912 19,760 6,918,531 0 0 889,700 43,057,708 2024 Actual expenditures/expenses** E 2 23,087,912 6,735,443 13 1,577,313 0 0 275,783 31,676,464 2025 Beginning fund balance/(deficit) or net position/(deficit) at July 1*** 3 15,744,610 10,116,596 178,022 8,846,144 0 0 7,831,744 42,717,116 2025 Primary property tax levy B 4 00 00 00 0 2025 Secondary property tax levy B 5 00 00 00 0 2025 Estimated revenues other than property taxes C 6 25,824,816 6,419,651 1,000 3,949,906 0 0 2,000 36,197,373 2025 Other financing sources D 7 0 0 00000 0 2025 Other financing (uses) D 8 0 0 00000 0 2025 Interfund transfers in D 9 0 2,350,000 0 950,000 0 0 2,000,000 5,300,000 2025 Interfund Transfers (out) D 10 4,000,000 350,000 0 950,000 0 0 0 5,300,000 2025 Line 11: Reduction for fund balance reserved for future budget year expenditures Maintained for future debt retirement 0 Maintained for future capital projects 4,000,000 4,000,000 Maintained for future financial stability 4,466,782 4,466,782 0 0 2025 Total financial resources available 12 33,102,644 18,536,247 179,022 12,796,050 0 0 5,833,744 70,447,707 2025 Budgeted expenditures/expenses E 13 25,824,816 9,613,657 20,360 9,092,800 0 0 600,000 45,151,633 Expenditure limitation comparison 2024 2025 1 Budgeted expenditures/expenses 43,057,708$ 45,151,633$ 2 Add/subtract: estimated net reconciling items (117,966) (119,359) 3 Budgeted expenditures/expenses adjusted for reconciling items 42,939,742 45,032,274 4 Less: estimated exclusions 8,606,788 9,449,491 5 Amount subject to the expenditure limitation 34,332,954$ 35,582,783$ 6 EEC expenditure limitation 34,364,380$ 35,588,003$ * ** *** Town of Fountain Hills Summary Schedule of estimated revenues and expenditures/expenses Fiscal year 2025 Includes actual amounts as of the date the proposed budget was prepared, adjusted for estimated activity for the remainder of the fiscal year. Amounts on this line represent beginning fund balance/(deficit) or net position/(deficit) amounts except for nonspendable amounts (e.g., prepaids and inventories) or amounts legally or contractually required to be maintained intact (e.g., principal of a permanent fund). See the Instructions tab, cell C17 for more information about the amounts that should and should not be included on this line. S c h Funds Includes expenditure/expense adjustments approved in the current year from Schedule E. The city/town does not levy property taxes and does not have special assessment districts for which property taxes are levied. Therefore, Schedule B has been omitted. 11 3/22 Arizona Auditor General Schedule A Official Town Budget Forms 2024 2025 1. $$ 2. $ 3. Property tax levy amounts A. Primary property taxes $ $ B. Secondary property taxes C.Total property tax levy amounts $$ 4. Property taxes collected* A. Primary property taxes (1) Current year's levy $ (2) Prior years’ levies (3) Total primary property taxes $ B. Secondary property taxes (1) Current year's levy $ (2) Prior years’ levies 26 (3) Total secondary property taxes $ 26 C. Total property taxes collected $26 5. Property tax rates A. City/Town tax rate (1) Primary property tax rate (2) Secondary property tax rate (3) Total city/town tax rate B. Special assessment district tax rates Secondary property tax rates—As of the date the proposed budget was prepared, the two (2) special assessment districts for which secondary property taxes are levied. For information pertaining to these special assessment districts and their tax rates, please contact the city/town. * city/town was operating Includes actual property taxes collected as of the date the proposed budget was prepared, plus estimated property tax collections for the remainder of the fiscal year. Amount received from primary property taxation in the current year in excess of the sum of that year's maximum allowable primary property tax levy. A.R.S. §42-17102(A)(18) Town of Fountain Hills Tax levy and tax rate information Fiscal year 2025 Maximum allowable primary property tax levy. A.R.S. §42-17051(A) Property tax judgment Property tax judgment Property tax judgment Property tax judgment 3/22 Arizona Auditor General Schedule B Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2024 2024 2025 General Fund Local taxes Local Sales Tax $ 13,154,799 $ 17,442,410 $ 14,858,589 Franchise Tax 390,000 229,208 390,000 Licenses and permits Business License Fees 117,785 104,482 117,785 Residential Rental License 50,000 32,533 50,000 Liquor License Fees 500 2,967 500 Building Permit Fees 372,703 618,934 400,000 Sign Permits 3,350 5,127 3,350 Landscape Permit Fees 3,780 8,577 3,780 Subdivision Fees 36,000 98,347 36,000 Special Event Permits 8,500 16,440 8,500 Engineering Fees 5,550 13,080 5,550 Third Party Revenues Planning & Zoning Fees 20,060 19,988 20,060 Plan Review Fees 96,750 50,815 56,750 Intergovernmental State Sales Tax 3,585,690 3,719,633 3,628,998 Fire Insurance Premium Tax 48,516 48,516 48,516 Vehicle License Tax 366,076 340,262 Shared Income Tax 6,387,448 7,703,451 5,108,090 Charges for services Parks & Rec User Fees 244,215 292,968 255,265 Encroachment Fees 35,000 647,888 50,000 Variances 2,600 307 2,600 Inspection Fees 17,000 53,154 29,000 Leases & Rents 277,278 439,553 289,278 Fines and forfeits Court Fines 200,000 251,870 200,000 Interest on investments Interest on Investments 20,000 690,867 100,000 In-lieu property taxes Contributions Voluntary contributions 71,400 35,563 71,400 Miscellaneous Miscellaneous 70,805 107,948 90,805 Total General Fund $ 25,585,805 $ 32,974,888 $ 25,824,816 * Town of Fountain Hills Revenues other than property taxes Fiscal Year 2025 Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. Source of revenues 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2024 2024 2025 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2025 Source of revenues Special revenue funds Highway User Revenue Fund Highway User Tax $ 1,849,404 1,795,212 1,823,078 Vehicle License Tax 854,176 883,741 1,215,914 Local Sales Tax 1,064,618 1,465,594 1,212,573 In-Lieu Fees 100,000 100,000 Recycle Proceeds 1,000 966 1,000 Interest 10,000 474,385 10,000 Miscellaneous 30,000 30,000 $ 3,909,198 $ 4,619,898 $ 4,392,565 Downtown Strategy Fund Sales-Excise Tax $ 106,462 146,559 121,257 Interest 600 32,750 600 $ 107,062 $ 179,310 $ 121,857 Economic Development Fund Sales-Excise Tax $ 425,847 586,237 485,029 Miscellaneous Interest 240 35,675 240 $ 426,087 $ 621,912 $ 485,269 Tourism Fund Grants $ 65,000 107,920 84,000 Interest 180 7,612 180 Miscellaneous $ 65,180 $ 115,532 $ 84,180 Special Revenue - Grants Intergovernmental-State $ 1,190,000 35,778 1,190,000 Intergovernmental-Federal $ $ 1,190,000 $ 35,778 $ 1,190,000 Public Art In-Lieu Fees $ 100,000 5,000 100,000 Interest 240 3,114 240 $ 100,240 $ 8,114 $ 100,240 Court Enhancement Fund Court Enhancement/JCEF Revenue $ 33,000 30,907 33,000 Interest 300 115 300 $ 33,300 $ 31,022 $ 33,300 Environmental Fund Environmental Fee $ Interest 2,400 30,497 2,400 $ 2,400 $ 30,497 $ 2,400 Cottonwoods Maintenance District Assessments $ 9,768 10,026 9,768 Interest Income $ 72 892 72 $ 9,840 $ 10,918 $ 9,840 Total special revenue funds $ 5,843,307 $ 5,652,981 $ 6,419,651 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2024 2024 2025 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2025 Source of revenues Debt service funds General Obligation Debt Service Interest Income 600 8,441 600 $ 600 $ 8,441 $ 600 Eagle Mountain CFD Assessments Interest Income 100 1,048 100 $ 100 $ 1,048 $ 100 Municipal Property Corp Interest Income 300 633 300 $ 300 $ 633 $ 300 Total debt service funds $ 1,000 $ 10,122 $ 1,000 Capital projects funds Capital Projects Fund Sales Tax-Local 685,240 1,610,309 904,856 Grants 3,768,079 496,463 2,652,500 Interest 10,000 373,136 10,000 $ 4,463,319 $ 2,479,908 $ 3,567,356 Fire Development Fee Fund Development Fees 12,780 10,489 12,780 Interest Income 1,000 22,907 1,000 $ 13,780 $ 33,396 $ 13,780 Streets Development Fee Fund Development Fees 200,740 151,138 200,740 Interest Income 1,000 31,680 1,000 $ 201,740 $ 182,818 $ 201,740 Parks & Recreation Development Fee Fund Development Fees 166,030 119,087 166,030 Interest Income 1,000 65,360 1,000 $ 167,030 $ 184,448 $ 167,030 Total capital projects funds $ 4,845,869 $ 2,880,570 $ 3,949,906 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2024 2024 2025 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2025 Source of revenues Permanent funds N/A $$$ $$$ Total permanent funds $$$ Enterprise funds N/A $$$ $$$ Total enterprise funds $$$ * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Estimated revenues Actual revenues* Estimated revenues 2024 2024 2025 Town of Fountain Hills Revenues other than property taxes Fiscal Year 2025 Source of revenues Internal service funds Facilities Reserve Fund Miscellaneous Interest Income 1,000 254,647 1,000 $ 1,000 $ 254,647 $ 1,000 Technology Replacement Fund Interest Income $$$ Vehicle Replacement Fund Miscellaneous Interest Income 1,000 113,437 1,000 $ 1,000 $ 113,437 $ 1,000 Total internal service funds $ 2,000 $ 368,084 $ 2,000 Total all funds $ 36,277,981 $ 41,886,645 $ 36,197,373 * Includes actual revenues recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated revenues for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule C Official City/Town Budget Forms Fund Sources (Uses)In (Out) General Fund General Fund $$$$4,000,000 Total General Fund $$$$4,000,000 Special revenue funds Streets Fund $ $ $ 2,000,000 $ Downtown Strategy Fund Economic Dev Fund 350,000 Tourism Fund 350,000 Environmental Fund Total special revenue funds $ $ $ 2,350,000 $ 350,000 Debt service funds N/A $$$$ Total debt service funds $$$$ Capital projects funds Capital Projects Fund $ $ $ 950,000 $ Parks & Rec Development Fee Fund 950,000 Total capital projects funds $ $ $ 950,000 $ 950,000 Permanent funds N/A $$$$ Total permanent funds $$$$ Enterprise funds N/A $$$$ Total enterprise funds $$$$ Internal service funds Facilities Reserve Fund from Gen Fund $ $ $ 2,000,000 $ Technology Replacement Fund Vehicle Replacement Fund Total Internal Service Funds $ $ $ 2,000,000 $ Total all funds $ $ $ 5,300,000 $ 5,300,000 2025 2025 Town of Fountain Hills Other financing sources/(uses) and interfund transfers Fiscal year 2025 Other financing Interfund transfers 3/22 Arizona Auditor General Schedule D Official City/Town Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses Fund/Department 2024 2024 2024 2025 General Fund Mayor & Town Council $ 65,494 $ $ 70,096 $ 73,040 Administration 2,948,360 3,117,437 3,270,412 General Government 3,238,088 740,009 2,532,053 Municipal Court 495,409 543,113 526,374 Public Works 1,642,802 1,601,091 1,702,310 Development Services 1,318,663 1,425,189 1,578,897 Community Services 3,898,569 3,645,014 4,202,955 Fire & Emergency Medical 5,589,825 5,557,369 5,694,859 Law Enforcement 6,388,595 6,388,595 6,243,916 Total General Fund $ 25,585,805 $ $ 23,087,912 $ 25,824,816 Special revenue funds Streets Fund $ 7,048,280 $ $ 5,337,230 $ 7,087,540 Downtown Strategy Fund 85,200 107,850 90,200 Economic Development Fund 229,630 245,052 315,293 Tourism Fund 354,029 374,259 417,378 Special Revenue Fund 1,190,000 210,662 1,190,000 Public Art Fund 41,761 35,989 41,761 Court Enhancement Fund 54,600 52,500 Environmental Fund 627,024 418,264 404,804 Cottonwoods Maint District 13,388 6,138 14,181 Total special revenue funds $ 9,643,912 $ $ 6,735,443 $ 9,613,657 Debt service funds General Obligation Bonds $ 350 $ $ $ 350 Eagle Mountain CFD 18,900 19,500 Municipal Property Corp 510 13 510 Total debt service funds $ 19,760 $ $ 13 $ 20,360 Capital projects funds Capital Projects $ 6,918,531 $ $ 1,577,313 $ 9,092,800 Fire/Emergency Dev Fee Streets Dev Fee Park/Rec Dev Fee Total capital projects funds $ 6,918,531 $ $ 1,577,313 $ 9,092,800 Permanent funds N/A $ $ $ $ Total permanent funds $$$$ Enterprise funds N/A $ $ $ $ Total enterprise funds $$$$ Internal service funds Facilities Reserve Fund $ 550,000 $ $ $ 550,000 Technology Replacement Fund 50,000 35,724 50,000 Vehicle Replacement Fund 289,700 240,059 Total internal service funds $ 889,700 $ $ 275,783 $ 600,000 Total all funds $ 43,057,708 $ $ 31,676,464 $ 45,151,633 * Expenditures/expenses by fund Fiscal year 2025 Town of Fountain Hills Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. 3/22 Arizona Auditor General Schedule E Official City/Town Budget Forms Full-time equivalent (FTE) Employee salaries and hourly costs Retirement costs Healthcare costs Other benefit costs Total estimated personnel compensation 2025 2025 2025 2025 2025 2025 98.01 $ 8,639,213 $ 893,770 $ 1,068,895 $ 533,988 $ 11,135,866 Streets Fund 6.05 $ 521,557 $ 57,514 $ 69,515 $ 51,888 $ 700,474 Economic Development Fund 1.00 149,274 16,506 7,896 5,247 178,923 Tourism Fund 1.00 80,379 8,936 14,997 3,290 107,602 Total special revenue funds 8.05 $ 751,210 $ 82,956 $ 92,408 $ 60,425 $ 986,999 $$$$$ Total debt service funds $$$$$ $$$$$ Total capital projects funds $$$$$ $$$$$ Total permanent funds $$$$$ $$$$$ Total enterprise funds $$$$$ $$$$$ Total internal service fund $$$$$ Total all funds 106.06 $ 9,390,423 $ 976,726 $ 1,161,303 $ 594,413 $ 12,122,865 Fund Town of Fountain HillsFull-time employees and personnel compensationFiscal year 2025 General Fund Internal service funds Special revenue funds Debt service funds Capital projects funds Permanent funds Enterprise funds 3/22 Arizona Auditor General Schedule G Official City/Towns Budget Forms Adopted budgeted expenditures/ expenses Expenditure/ expense adjustments approved Actual expenditures/ expenses* Budgeted expenditures/ expenses 2024 2024 2024 2025 Mayor & Council General Fund $ 65,494 $ $ 70,096 $ 73,040 Department total $ 65,494 $ $ 70,096 $ 73,040 Administration General Fund $ 2,948,360 $ $ 3,117,437 $ 3,270,412 Downtown Strategy Fund 85,200 50,000 107,850 90,200 Economic Development Fund 229,630 245,052 315,293 Tourism Fund 354,029 28,792 374,259 417,378 Special Revenue Fund 1,190,000 (28,792)210,662 1,190,000 General Obligation Debt 350 350 Eagle Mountain CFD 18,900 19,500 Municipal Property Corp 510 13 510 Cottonwoods Maint District 13,388 6,138 14,181 Capital Projects 324,600 (50,000)675 677,800 Department total $ 5,164,967 $ $ 4,062,086 $ 5,995,624 General Government General Fund $ 3,238,088 $(2,497,500)$ 740,009 $ 2,532,053 Technology Replacement 50,000 35,724 50,000 Vehicle Replacement 205,700 124,296 Department total $ 3,493,788 $(2,497,500)$ 900,029 $ 2,582,053 Municipal Court General Fund $ 495,409 $ $ 543,113 $ 526,374 Court Enhancement Fund 54,600 52,500 Department total $ 550,009 $ $ 543,113 $ 578,874 Public Works General Fund $ 1,642,802 $ 50,000 $ 1,601,091 $ 1,702,310 Streets Fund 7,048,280 5,337,230 7,087,540 Environmental Fund 627,024 418,264 404,804 Capital Projects 5,308,231 1,747,500 1,352,102 6,885,000 Facilities Replacement Fund 550,000 593,922 550,000 Vehicle Replacement 84,000 115,763 Department total $ 15,260,337 $ 1,797,500 $ 9,418,371 $ 16,629,654 Development Services General Fund $ 1,318,663 $ $ 1,425,189 $ 1,578,897 Department total $ 1,318,663 $ $ 1,425,189 $ 1,578,897 Community Services General Fund $ 3,898,569 $ $ 3,645,014 $ 4,202,955 Public Art Fund 41,761 35,989 41,761 Capital Projects 1,285,700 700,000 224,536 1,530,000 Department total $ 5,226,030 $ 700,000 $ 3,905,539 $ 5,774,716 Fire & Emergency Medical General Fund $ 5,589,825 $ $ 5,557,369 $ 5,694,859 Department total $ 5,589,825 $ $ 5,557,369 $ 5,694,859 Law Enforcement General Fund $ 6,388,595 $ $ 6,388,595 $ 6,243,916 Department total $ 6,388,595 $ $ 6,388,595 $ 6,243,916 * Expenditures/expenses by department Fiscal year 2025 Town of Fountain Hills Includes actual expenditures/expenses recognized on the modified accrual or accrual basis as of the date the proposed budget was prepared, plus estimated expenditures/expenses for the remainder of the fiscal year. Department/Fund 3/22 Arizona Auditor General Schedule F Official City/Town Budget Forms RESOLUTION 2024-18 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, ADOPTING AND ESTABLISHING THE 2024-25 BUDGET IMPLEMENTATION POLICY AND APPROVING THE TOWN ORGANIZATION CHARTS, THE 2024-25 PAY PLANS, THE SCHEDULE OF AUTHORIZED POSITIONS, THE EMPLOYEE JOB DESCRIPTIONS, AND THE 2024-25 COMPREHENSIVE FEE SCHEDULE RECITALS: WHEREAS, the Mayor and Council of the Town of Fountain Hills (the “Town Council”), pursuant to ARIZ. REV. STAT. § 9-240 (B)(2), is vested with the power to determine the budgets of all Town departments; and WHEREAS, the Town Council, in order to provide for consistent and uniform administration of the Town’s monies and to maximize savings of funds by monitoring expenditures, has determined it necessary to adopt a budget implementation policy for the FY 2024-25 Town Budget (the “2024- 25 Budget Policy”) governing the expenditures within the FY 2024-25 Town of Fountain Hills budget; and WHEREAS, pursuant to Subsection 3-1-1(H)(3) of the Town Code, the Town Council must approve the organization charts and job descriptions for employees of the Town. ENACTMENTS: NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF FOUNTAIN HILLS, as follows: SECTION 1. The recitals above are hereby incorporated as if fully set forth herein. SECTION 2. The Town Council hereby adopts the 2024-25 Budget Implementation Policy in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 3. The Town Council hereby approves and authorizes (i) the Town of Fountain Hills Organization Charts, (ii) the 2024-25 Pay Plans, (iii) the Schedule of Authorized Positions and (iv) the Employee Job Descriptions, all in substantially the form and substance attached hereto as Exhibit B and incorporated herein by reference. SECTION 4. The Town Council hereby approves the 2024-25 Comprehensive Fee Schedule, effective July 1, 2024, in the form attached hereto as Exhibit C and incorporated herein by reference. SECTION 5. The Mayor, the Town Manager, the Town Clerk, and the Town Attorney are hereby authorized and directed to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 4, 2024. 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 2024-18 PAGE 3 EXHIBIT A TO RESOLUTION 2024-18 [2024-25 Budget Implementation Policy] See following pages.   1 TOWN OF FOUNTAIN HILLS 2024-25 BUDGET IMPLEMENTATION POLICY   1. Definitions. The following definitions shall apply for purposes of this policy.   A. “Budget Unit” is a Town department as designated on the Town’s organization chart, including the Town Municipal Court.   B. “Capital Expenditures” are those capital expenditures exceeding $50,000 that require the approval of the Town Manager and Town Council.   C. “Contingency” appropriation used for unforeseen, emergency, or critical needs when current budget appropriation is inadequate and revenues are adequate to support.   D. “Fund(s)” is a fiscal and accounting mechanism with a self-balancing set of accounts recording cash and financial resources. E. “Financial Resources” are cash or equivalents held by the Town in bank or investment accounts.   2. Transfer of Funds.   A. Transfers within a Fund. After adoption of the fiscal budget by the Town Council, any Budget Unit has the authority to reprogram financial resources within its department’s line items. These departments of the budget will be controlled by bottom line total only. Transfers between General Fund departments are allowed with the approval of the Department Director, Chief Financial Officer, and Town Manager. Transfers of Contingency from the General Government Department in excess of the Town Manager’s purchasing authority must also be approved by Town Council according to Section 10. A report of each transfer will be approved by the Department Director and submitted to the Finance Division through the financial accounting system for processing.   B. Transfers between Funds. After adoption of the fiscal budget by the Town Council, any budgetary transfer between Funds will require approval from the Town Council according to the standards set forth in ARS §42- 17106. Prior to any transfer, the Department must provide sufficient documentation to the Town Manager and the Town Council that funding exists.   C. Reprogramming of Wages. No financial resources may be reprogrammed to or from the “wages” section of the Budget Unit’s adopted budget without consultation with, and approval by, the Town Manager. The requesting Department Director must submit a memorandum and any necessary supporting documentation to the Town Manager, and the Town Manager   2 will notify the Finance Division of approved transfers of financial resources to or from the “wages” section of the budget. D. Reprogramming of Capital Financial Resources. No financial resources may be reprogrammed to or from the “capital expenditures” section of the Budget Unit’s adopted budget without consultation with, and approval by, the Town Manager and the Town Council. The requesting Department Director must submit a memorandum and any necessary supporting documentation to the Town Manager. If approved by the Town Council, the Town Manager will notify the Finance Division of the reprogrammed financial resources.   E. Carryover Appropriations. The Finance Division may approve appropriation transfers for carried over operating/capital items (i.e., IT infrastructure, equipment, vehicles and facility improvements) if the Town Council previously appropriated the operating/capital item in a prior fiscal year. All carryover appropriation transfers must be submitted to the Town Council for approval, and all carryover appropriation transfers shall be reflected in the appropriate budget reports.   3. Expenditure Restrictions.   A. Budget Hold for Prior Exceedance. Any General Fund Budget Unit that exceeded its budget in the prior fiscal year may be subject to immediate budget hold status in the current fiscal year. However, if a Budget Unit exceeded its budget in the prior fiscal year due to a one-time emergency purchase, and proof of such an emergency (in a form acceptable to the Town Manager) can be shown, the budget hold status will be removed.   B. Remedies for Budget Exceedance. Once a Budget Unit has exceeded its expenditure limitation, the Finance Division shall notify the Budget Unit, in writing, that the appropriate expenditure limit has been exceeded. The Budget Unit must then consult and reach an agreement with the Finance Division and the Town Manager regarding the remedies available to either restore spending to a level approved in the budget for the balance of the fiscal year or to request additional financial resources as set forth in Subsection 3(C) below.     C. Requests for Additional Financial Resources. When additional financial resources are requested, the Finance Division and Town Manager must concur before the Budget Unit may expend the additional financial resources. If the expenditure of additional financial resources requires a budget transfer between Funds, the recommendation shall be forwarded to the Town Council for approval. Any Budget Unit that has exceeded its limitations shall submit an expenditure reduction program to the Town Manager through the Finance Division as part of any request for additional expenditures. The expenditure reduction program shall include, but not be   3 limited to, consideration of reductions in force of budgeted and authorized positions, termination of all travel expenditures, suspension or termination of contracts and such other expenditure reductions as the Budget Unit deems appropriate.   4. Fund Balance. All budget considerations, including expenditure of appropriated financial resources, shall adhere to the Town of Fountain Hills Financial Policies, Amended and Restated May 5, 2020, or the most recent version of later-adopted editions of such financial policies.   5. Fiscal Priorities. The 2024-25 budget is intended to implement the Town Council’s top fiscal priorities.   6. Positions.   A. General Provisions.   (1) Section 3-1-1 of the Town Code states that the Town Manager shall be the administrative officer of the Town government and may appoint and, when necessary, suspend or remove all employees of the Town, except those officers appointed by the Town Council. All appointments and removals shall be based upon merit and upon the qualifications and disqualifications of such employee without regard to any political belief or affiliation; prior to any creation, combination, consolidation or deletion of any positions of employment, written job descriptions or amendments thereto shall have been approved by the Town Council.   (2) All requests for new positions or reclassification of existing positions, regardless of the funding source, must be approved by the Town Council. Reclassification of existing positions (filled and vacant) should include justification of why budget savings, including savings from deleted positions, should be used to create new positions and how the position will align/impact Town strategic priorities and departmental goals. Departments must submit their requests to Administrative Services, and Administrative Services will review job description and salary information prior to forwarding information to the Town Manager. The Town Manager will review and make a recommendation to the Town Council to either approve or deny the request.   (3) Intergovernmental agreements, grants, etc. that require/authorize additional positions must be approved by the Town Council. The position and the budgetary impact must be fully disclosed to Administrative Services and the Finance Division, which shall be responsible for analyzing the input and presenting such analysis to the Town Council in conjunction with any request for approval as   4 part of an intergovernmental agreement, grant, or other agreement.   (4) All authorized positions must be fully funded by the General Fund, a Special Revenue Fund, or a grant. If a position becomes unfunded or under-funded by its original funding source, it must be fully funded immediately from other sources or eliminated. An under- funded position is a position for which a department/funding source has only 1% to 99% of the funding required to support it on an annualized basis. If eliminating unfunded or under-funded positions results in a Reduction in Force, the Administrative Services Director shall prepare a layoff plan for approval by the Town Manager.   B. Fiscal Year 2024-25 Authorized Positions. The following lists position revisions:   Salary and Job Description Reclassifications: • Street Maintenance Technician I to Street Maintenance Technician II • Groundskeeper II to Park Operations Lead Added Positions: • .5 full-time equivalent (FTE) Recreation Assistant at an hourly salary range of $19.19 - $27.24 • 1.0 FTE Senior Building Inspector at an hourly salary range of $35.79 - $51.18   The Schedule of Authorized Positions, Pay Plan, organization charts and updated job descriptions are attached as Exhibit B to the Town Council Resolution that adopts this Policy (Resolution 2024-18). 7. Hiring Freeze. There is no hiring freeze in effect for FY 2024-25, and positions that become vacant may be filled if the Town Manager determines that it is in the best interests of the Town to do so.     8. Salary Adjustment. Salary Adjustments will be effective beginning with the first full pay period after July 1, 2024, as follows:   A. Individual Salaries. All Town of Fountain Hills employees, except those with individual employment contracts, shall receive a 4.5% increase beginning with the first full pay period after July 1, 2024. In the case of individual employment contracts, the terms of the contract will be administered.   B. Pay Ranges. The pay ranges for all Fountain Hills exempt & non-exempt employees are increased by 4.5% effective with the first full pay period after July 1, 2024.   C. Reconciliation to New Pay Ranges. After the adjustments made in   5 accordance with Subsection 8(A) and (B) above, any employees with salaries not meeting the range minimum shall be increased to the lowest pay in their newly adjusted pay ranges, except for those employees with individual employment contracts. In the case of employees with individual employment contracts, the terms of the contract will be administered.   9. Comprehensive Fee Schedule. The Comprehensive Fee Schedule is included as a part of Exhibit C to the Town Council Resolution that adopts this Policy (Resolution 2024-18) and authorizes the fees for fiscal year 2024-25. In addition, the Community Services Department charges fees for classes and recreational activities that are not listed in the Fee Schedule. Those fees are established by the Community Services Director and are based on instructor cost, class size, program materials needed, and other related costs. The range for these fees is no cost up to $550.   10. Contingency Appropriation. The purpose of a Contingency appropriation is to maintain a reserve of expenditure authority from which specific amounts can be transferred after adoption of the annual budget to cover unforeseen, emergency, or critical items if there are sufficient revenues to do so. Contingency appropriations will be established within the General Government Department for general purposes or in other Funds reserved for specific issues. All requests for the use of General Government Contingency must be submitted to the Town Manager for review. If the Contingency expenditure exceeds the Town Manager’s purchasing authority, the Town Council must approve the transfer from Contingency appropriations.   11. Budget Adoption. This budget is being adopted by the Town Council at the Fund level. Each Fund is a fiscal and accounting mechanism with a self- balancing set of accounts to record the receipt, use, and/or transfer of financial resources. The department level budget detail that is contained within the financial system is designed and used wholly as a management tool for the individual departments.   12. Vehicles/Equipment and Capital Projects. The Town Council appropriates financial resources to purchase vehicles/equipment and to complete capital projects as part of the fiscal year 2024-25 budget. Town Council approvals of budgeted capital projects are recorded as either “Green Light” or “Yellow Light” projects during the budget process. All Council-approved projects categorized as “Green Light” projects during final budget adoption will be fully authorized by Council to move forward to completion in accordance with Section 3-3-7 of Town Code, including vendor contracts and project costs. Town staff will only seek subsequent Council approval for substantial modifications to project scope or cost. Further, Council approval of “Yellow Light” projects include approval of budget authority for each project and requires Town staff to obtain Council approval for vendor contracts, as applicable, and project costs in accordance with Section 3-3-7 of Town Code. Additional financial resources requested during the fiscal year for these items are subject to the conditions below.     6 A. Requests between $10,001 and $50,000. Vehicle/equipment requests and capital expenditure requests (8000 series Object Codes) must be approved by the Chief Financial Officer and the Town Manager. Approval is required when using existing financial resources or requesting additional financial resources. Requests shall be made in writing to the Chief Financial Officer and the Town Manager. The Town Manager shall either approve, deny or refer the item to Town Council.   B. Capital Project Requests over $50,000. All additional requests for vehicles/equipment and capital expenditure requests that exceed $50,000, regardless of the funding source, must be submitted to the Finance Division and Town Manager for review. If the Town Manager recommends the request, it will be submitted to the Town Council for approval. RESOLUTION 2024-18 PAGE 4 EXHIBIT B TO RESOLUTION 2024-18 [Organization Charts, 2024-25 Pay Plans, Schedule of Authorized Positions, and Employee Job Descriptions] See following pages Citizens of Fountain HillsCitizens of Fountain Hills Presiding Judge Town of Fountain Hills Organization Fire / EMS AdministrationAdministration Law  Enforcement Town Manager Town AttorneyTown Prosecutor Appointed by Council Contracted Mayor and Town CouncilMayor and Town Council Development  Services Recreation Community  Services Community Center Code  Enforcement Building Safety Senior  Services Parks Volunteer  Program GIS Planning Engineering Streets Facilities Public Works Inspection Finance Finance  Town ClerkTown Clerk Administrative  Services Administrative  Services Economic  Development /  Tourism Economic  Development /  Tourism Community  Relations Community  Relations FY 2024 *Presiding Judge (.63) Senior Court ClerkCourt Operations  Coordinator MUNICIPAL COURT Court  Administrator ‐ *Part time  ‐ Appointed by Council Full Time Part Time Court Clerk (.50) Court Clerk (.50) Town Manager Executive Assistant to Town  Manager & Town Council ADMINISTRATION DEPARTMENT Town Clerk Deputy Town  Manager /  Administrative  Services Director Economic  Development   Director Management Analyst  (Economic Development  Specialist) Chief Technology  Administrator Financial Services Technician Accountant Customer Service Rep II Chief Financial  Officer Financial Services Technician IT Support  Specialist  Community Relations  Director Part time Full Time Procurement  Administrator Benefits and Payroll  Specialist (.50) Senior Accountant Human Resources  Analyst Director PUBLIC WORKS DEPARTMENT Street  Maintenance  Technician Senior Facilities  Maintenance  Technician Custodian  (.50)  Streets  Superintendent Facilities Supervisor Street  Maintenance  Technician II Senior  Maintenance  Technician Part Time Full Time Executive Assistant (.5) (shared with Development Services) Full Time  Shared Civil Engineering Inspector Street  Maintenance  Technician Town Engineer Assistant Town  Engineer Facilities  Maintenance  Technician Building Permit  Technician Director DEVELOPMENT SERVICES DEPARTMENT Executive Assistant (.5) (shared with Public Works) Senior Code  Enforcement  Officer  Code  Enforcement  Officer  Senior Planner Chief Building  Official/Plans  Examiner Building Permit  Technician Full Time Full Time  Shared Part time GIS Technician  CAD Operator  Senior Building  Inspector Code  Enforcement  Officer (.50)  Senior Building  Inspector Community Services Director Executive Assistant Parks  Superintendent Recreation   Manager COMMUNITY SERVICES DEPARTMENT  Parks Supervisor Part time Full Time Recreation  Program Coordinator Senior  Recreation  Program  Coordinator Customer Service Rep II (.53) Customer Service Rep II  (.60) Community Center  Manager Community  Center Program  Coordinator Community Center Community Center  Assistant (.45) Community Center Community Center  Assistant (.75) Community Center Community Center  Assistant (.58) Community Center  Operations   Coordinator Lead Operations  Support Worker Operations Sup Worker  (.18) Operations Sup Worker  (.19) Lead Operations  Support Worker (.64) Volunteer  Supervisor  Park Attendant (.49) Park Attendant (.49) Recreation Assistant (.50) Lead Park Attendant Park Attendant (.49) Park Attendant (.49) Customer Service Rep II (.50) Community Center Community Center Assistant(.50) Recreation Assistant (.55) Park Operations  Lead Groundskeeper II  Park Operations  Lead Park Operations  Lead Park Operations  Lead Fire Chief Captains Station Two (3) Captains Station One (3) FIRE DEPARTMENT Assistant Fire Chief/ Fire Marshal Firefighters Station One (9) Firefighters Station One (9) Training Captain Full Time Engineers Station One (3) Engineers Station Two (3) Administrative  Assistant LAW ENFORCEMENT Division Commander (1 Captain) Night Watch Commander (1 Lieutenant) Patrol Sergeants (5) Patrol Deputies (19) Deputy Commander (1 Lieutenant) Relief SergeantAdministrative Assistant School Resource Officer Administrative Sergeant Position Title Minimum Maximum Deputy Town Manager/Community Services Director 146,015$ 208,801$ Deputy Town Manager/Administrative Services Director 146,015 208,801 Chief Financial Officer 146,015 208,801 Public Works Director 136,466 195,146 Development Services Director 136,466 195,146 Town Clerk 127,538 182,379 Community Services Director 127,538 182,379 Economic Development Director 127,538 182,379 Chief Technology Administrator 121,336 173,510 Town Engineer 119,600 171,028 Community Relations Director 119,600 171,028 Assistant Town Engineer 101,666 145,382 Court Administrator 99,878 142,826 Chief Building Official/Plans Examiner 88,353 126,345 Recreation Manager 87,279 124,809 Parks Superintendent 87,279 124,809 Community Center Manager 87,279 124,809 Senior Accountant 87,279 124,809 Procurement Administrator 87,279 124,809 Streets Superintendent 86,499 123,694 Senior Planner 86,145 123,187 Human Resources Analyst 76,285 109,088 Facilities Supervisor 75,358 107,762 Senior Recreation Program Coordinator 75,358 107,762 Volunteer Supervisor 75,358 107,762 Parks Supervisor 75,358 107,762 Executive Assistant to Town Manager/Council 72,471 103,634 Management Analyst 72,286 103,369 Accountant 66,895 95,660 Court Operations Coordinator 66,895 95,660 Community Center Program Coordinator 66,895 95,660 Operations Coordinator - Community Center 66,895 95,660 Recreation Program Coordinator 66,895 95,660 Senior Code Enforcement Officer 66,895 95,660 Position Title Minimum Maximum Senior Building Inspector $ 35.79 $ 51.18 Information Technology Support Specialist 34.99 50.04 GIS Technician/CAD Operator 34.15 48.83 Civil Engineer Inspector 31.32 44.79 Benefits and Payroll Specialist 29.39 42.03 Executive Assistant 27.83 39.80 Code Enforcement Officer 27.83 39.80 Senior Maintenance Technician 27.15 38.82 Senior Facilities Maintenance Technician 27.15 38.82 Park Operations Lead 27.15 38.82 Street Maintenance Technician II 25.11 35.91 Facilities Maintenance Technician 25.11 35.91 Building Permit Technician 24.45 34.96 Senior Court Clerk 23.83 34.08 Street Maintenance Technician 23.83 34.08 Administrative Assistant 23.83 34.08 Court Clerk 22.77 32.56 Financial Services Technician 22.77 32.56 Groundskeeper II 22.77 32.56 Customer Service Representative II 22.05 31.53 Community Center Assistant 21.56 30.83 Lead Park Attendant 21.56 30.83 Lead Operations Support Worker 21.56 30.83 Customer Service Representative I 19.65 28.10 Recreation Assistant 19.19 27.44 Operations Support Worker 19.19 27.44 Park Attendant 19.19 27.44 Custodian 17.73 25.35 FY 24‐25 PAY PLAN  ‐ Non‐Public Safety Positions          (July 2024)           Exempt Positions Non-Exempt Positions FY 24‐25 FIRE DEPARTMENT PAY PLAN     (July 2024) Salaried / Exempt Positions Position Title Minimum Maximum Fire Chief 146,015$ 208,801$ Fire Assistant Chief / Fire Marshal 127,538 182,379 Hourly / Non-Exempt Positions Position Title Minimum Maximum Annualized Minimum Annualized Maximum Work Schedule Designated FLSA Work Period Average Hours Scheduled Per Year Average Overtime Hours Scheduled Per Year Average Scheduled Straight Time Hours Scheduled Per Year Fire Training Captain 47.09 67.34 97,947 140,064 Five 8 hour days / week 7 days = 40 hours 2,080 0 2,080 Fire Battalion Chief 40.11 57.36 121,674 173,993 48 hours worked / 96 hours off 14 days = 106 hours 2,912 243 2,669 Fire Captain 32.29 46.17 97,952 140,071 48 hours worked / 96 hours off 14 days = 106 hours 2,912 243 2,669 Fire Lieutenant 30.76 43.99 93,310 133,434 48 hours worked / 96 hours off 14 days = 106 hours 2,912 243 2,669 Fire Engineer 29.24 41.81 88,700 126,840 48 hours worked / 96 hours off 14 days = 106 hours 2,912 243 2,669 Firefighter 20.73 29.64 62,884 89,925 48 hours worked / 96 hours off 14 days = 106 hours 2,912 243 2,669 Note: Firefighters, Engineers, Lieutenants, and Captains with Paramedic Certifications receive $1.85 / hr added to their base hourly rate of pay. Schedule of Authorized Positions FY 21-22 FY 22-23 FY 23-24 FY 24-25 Authorized Authorized Authorized Proposed Position Title FTE FTE FTE FTE Municipal Court Presiding Judge 0.63 0.63 0.63 0.63 Court Administrator 1.00 1.00 1.00 1.00 Senior Court Clerk 1.00 - 1.00 1.00 Court Operations Coordinator 1.00 1.00 1.00 1.00 Court Clerk - 2.00 1.00 1.00 Authorized FTE 3.63 4.63 4.63 4.63 Administration Town Manager 1.00 1.00 1.00 1.00 Deputy Town Manager/Administrative Services Dir.1.00 1.00 1.00 1.00 Executive Asst to Town Mgr/Council 1.00 1.00 1.00 1.00 Town Clerk 1.00 1.00 1.00 1.00 Economic Development and Tourism Specialist 1.00 - - - Management Analyst - 1.00 1.00 1.00 Economic Development Director 1.00 1.00 1.00 1.00 Community Relations Manager 1.00 - - - Community Relations Director - 1.00 1.00 1.00 Chief Technology Administrator 1.00 1.00 1.00 1.00 Information Technology Support Specialist 0.50 0.74 1.00 1.00 Finance Director 1.00 - - - Chief Financial Officer - 1.00 1.00 1.00 Senior Accountant 1.00 1.00 1.00 1.00 Accountant 1.00 1.00 1.00 1.00 Financial Services Technician 2.00 2.00 2.00 2.00 Procurement Administrator 1.00 1.00 1.00 1.00 Human Resources Analyst - - 1.00 1.00 Benefits and Payroll Specialist - 0.50 0.50 0.50 Accounting Clerk 0.50 - - - Customer Service Representative II 1.00 1.00 1.00 1.00 Authorized FTE 16.00 16.24 17.50 17.50 Public Works Public Works Director 1.00 1.00 1.00 1.00 Civil Engineering Inspector 1.00 1.00 1.00 1.00 Executive Assistant 0.50 0.50 0.50 0.50 Town Engineer 1.00 1.00 1.00 1.00 Assistant Town Engineer 1.00 1.00 1.00 1.00 Facilities Supervisor 1.00 1.00 1.00 1.00 Senior Facilities Maintenance Tech 1.00 1.00 1.00 1.00 Facilities Maintenance Tech - 1.00 1.00 1.00 Custodian 0.50 0.50 0.50 0.50 Streets Superintendent 1.00 1.00 1.00 1.00 Senior Maintenance Technician 1.00 1.00 1.00 1.00 Street Maintenance Technician II - - - 1.00 Street Maintenance Technician 3.00 3.00 3.00 2.00 Authorized FTE 12.00 13.00 13.00 13.00 Development Services Development Services Director 1.00 1.00 1.00 1.00 Executive Assistant 0.50 0.50 0.50 0.50 Senior Planner 1.00 1.00 1.00 1.00 GIS Technician/CAD Operator 1.00 1.00 1.00 1.00 Senior Code Enforcement Officer 1.00 1.00 1.00 1.00 Code Enforcement Officer 1.00 1.50 1.50 1.50 Chief Building Official/Plans Examiner 1.00 1.00 1.00 1.00 Senior Building Inspector 1.00 1.00 1.00 2.00 Building Permit Technician 1.50 2.00 2.00 2.00 Authorized FTE 9.00 10.00 10.00 11.00 Community Services Community Services Director 1.00 - - 1.00 Deputy Town Manager/Community Services Dir. 1.00 1.00 - Recreation Manager 1.00 1.00 1.00 1.00 Recreation Program Coordinator 2.00 1.00 1.00 1.00 Recreation Assistant - - 0.50 1.05 Senior Recreation Program Coordinator - 1.00 1.00 1.00 Executive Assistant 1.00 1.00 1.00 1.00 Parks Supervisor - - 1.00 1.00 Parks Superintendent 1.00 1.00 1.00 1.00 Park Operations Lead 4.00 4.00 3.00 4.00 Lead Park Attendant 1.00 1.00 1.00 1.00 Park Attendant 1.96 1.96 1.96 1.96 Groundskeeper II 2.00 2.00 2.00 1.00 Customer Service Representative II 1.63 1.63 1.63 1.63 Community Center Manager 1.00 1.00 1.00 1.00 Operations Coordinator - Community Center 1.00 1.00 1.00 1.00 Operations Support Worker 0.37 0.37 0.37 0.37 Lead Operations Support Worker 1.28 1.28 1.64 1.64 Senior Services Supervisor 1.00 - - - Community Center Program Coordinator - 1.00 1.00 1.00 Senior Services Activities Coordinator 1.78 - - - Community Center Assistant - 2.28 2.28 2.28 Volunteer Supervisor 1.00 1.00 Volunteer Coordinator 1.00 1.00 - - Authorized FTE 24.02 24.52 25.38 25.93 Fire Department Fire Chief - - 1.00 1.00 Assistant Fire Chief / Fire Marshal - - 1.00 1.00 Fire Captain - - 6.00 6.00 Fire Captain - Training - - 1.00 1.00 Fire Battalion Chief - - - - Fire Lieutenant - - - - Fire Engineer - - 6.00 6.00 Firefighter - - 18.00 18.00 Administrative Assistant - - 1.00 1.00 Authorized FTE - - 34.00 34.00 Total Authorized FTE 64.65 68.39 104.51 106.06 Created 6/4/2024 Adopted 6/4/2024 FOUNTAIN HILLS, ARIZONA Job Description 1 Job Title: Street Maintenance Technician II Department: Public Works Immediate Supervisor: Streets Superintendent FLSA Status: Non-Exempt BRIEF DESCRIPTION OF THE JOB: Under general supervision, performs a variety of semi-skilled and manual labor, repairing and maintaining public streets and rights-of-way. Identifies, locates, and marks the location of Town-owned subsurface utilities in order to minimize accidental damage or disruption of service due to construction excavation activities. ESSENTIAL FUNCTIONS: This information is intended to be descriptive of the key responsibilities of the position. The following examples do not identify all duties performed by any single incumbent. Physical Strength Code ESSENTIAL FUNCTIONS 1 H Performs a variety of maintenance tasks associated with the repair of streets and works with a variety of construction materials including asphalt, hot tar, striping material, gravel, and concrete. Trims trees and vegetation. 2 M Operates a variety of light to medium power tools and equipment, such as a jackhammer, chainsaw, tamping machine, air compressor, pickup truck, trailer, aerial lift, tractors, dump truck, street sweeper, and other equipment utilized in the maintenance and repair of the streets. 3 M Performs technical work locating and marking underground Town-owned utilities using maps, blueprints, GIS systems, and electronic equipment. The position coordinates activities with Arizona 811 and performs a variety of technical activities in support of the department crews, contractors, citizens, excavators, and utility companies. 4 H Work often requires prolonged heavy physical exertion that may be performed under adverse weather conditions, and may entail working in close proximity to heavy traffic. 5 M Performs operator maintenance as needed on vehicles and equipment 6 L Maintains daily work records which may include computerized record keeping 7 M Performs related duties as needed Created 6/4/2024 Adopted 6/4/2024 FOUNTAIN HILLS, ARIZONA Job Description 2 JOB REQUIREMENTS: JOB REQUIREMENTS Formal Education / Knowledge Work requires knowledge necessary to understand basic operational, technical, or office processes. Level of knowledge equivalent to four years of high school or equivalency. Experience Equivalent to one year full-time street construction, maintenance work, or other construction work involving the operation of light or heavy motorized equipment. Two years of full-time experience in underground or utility construction-related work involving some responsibility for reading and interpreting project plans, blueprints, electronic quarter section and plat maps, or related materials; OR two years using electronic locating devices. Certifications and Other Requirements Possession of a valid driver's license for a minimum of two years with a good driving record. Commercial Driver's License with Air Brake Endorsement required, or ability to obtain within six months of employment. Average computer skills required. The Town currently designates this job as a “safety-sensitive position.” Accordingly, the Town requires satisfactory completion of a drug and alcohol screening as a condition of employment. ** Equivalent combinations of experience and training that meet the minimum qualifications may be substituted. Reading Work requires the ability to read work orders, street signs, directions, maps, written correspondence, policies, and safety information. Math Work requires the ability to perform general math calculations such as addition, subtraction, multiplication and division. Writing Work requires the ability to write daily work reports and general correspondence. Managerial None Budget Responsibility None Supervisory / Organizational Control None Complexity Work requires analysis and judgment in accomplishing diversified duties. Interpersonal / Human Relations Skills The incumbents in this position contact others within the organization. These contacts may involve similar work units or departments within the Town, which may be involved in decision-making or providing approval or decision-making authority for purchases or projects. In addition, these incumbents work with individuals outside the Town who may belong to professional or peer organizations. Working with various state and federal agencies may also be required of the employee. Vendors and suppliers may also be called upon for information on purchases, supplies or products. Meetings and discussions may be conducted with customers and general public. Created 6/4/2024 Adopted 6/4/2024 FOUNTAIN HILLS, ARIZONA Job Description 3 OVERALL PHYSICAL STRENGTH DEMANDS: Sedentary Light Medium Heavy Very Heavy S=sedentary L=Light M=Medium H=Heavy VH=Very Heavy Exerting up to 10 lbs. Exerting up to 20 lbs. Exerting 20-50 lbs. Exerting 50-100 lbs. Exerting over 100 lbs. occasionally or occasionally, 10lbs. occasionally, 10-25 lbs. occasionally, 25-50 lbs. occasionally, 50-100 lbs. negligible weights frequently, or negligible frequently, or up to 10- frequently, or up to 10- frequently, or up to 20- frequently, sitting most amounts constantly OR 20 lbs. constantly. 20 lbs. constantly. 50 lbs. constantly. of the time requires walking or standing to a significant degree. PHYSICAL DEMANDS: C = Continuously 2/3 or more of the time F = Frequently From 1/3 to 2/3 of the time O = Occasionally Up to 1/3 of the time R = Rarely Less than 1 hour per week N = Never Never occurs This is a description of the way this job is currently performed; it does not address the potential for accommodation. PHYSICAL DEMANDS FREQUENCY CODE DESCRIPTION Standing C At job site Sitting O Driving and computer work Walking F Around job site Lifting F Tools and equipment Carrying F Tools and equipment Pushing/Pulling F Equipment, brush Reaching F Controls on equipment, sign installation, and brush control Handling F Tools and equipment Fine Dexterity O Small hand tools, computers, calculators, telephones, and writing Kneeling O Curb number painting Crouching O Storm drain maintenance Crawling R Storm drain maintenance Bending O Thermoplastic installation and cracksealing Twisting O Cracksealing Climbing O Brush control and sign installation Balancing O On equipment and on ladders Vision C Driving, observing work activities Hearing C Communicating with personnel Talking C Communicating with personnel Foot Controls F Driving and operating equipment Created 6/4/2024 Adopted 6/4/2024 FOUNTAIN HILLS, ARIZONA Job Description 4 MACHINES, TOOLS, EQUIPMENT, AND WORK AIDS: Tractor, dump truck, paint striper, concrete cutter, tamper, jackhammer, aerial-lift, chainsaw, computer, fax machine and calculator. Consults a variety of utility maps, as-built prints, construction plans, and GIS system and other computer mapping systems. ENVIRONMENTAL FACTORS: D = Daily W = Several Times Per Week M = Several Times Per Month S = Seasonally N = Never (1) (2) PROTECTIVE EQUIPMENT REQUIRED: Hard hat, gloves, safety shoes, safety glasses, hearing protection, reflective safety vest NON-PHYSICAL DEMANDS: C = Continuously 2/3 or more of the time F = Frequently From 1/3 to 2/3 of the time O = Occasionally Up to 1/3 of the time R = Rarely Less than 1 hour per week N = Never Never occurs NON-PHYSICAL DEMANDS Time Pressures O Emergency Situations O Frequent Change of Tasks F Irregular Work Schedule/Overtime O Performing Multiple Tasks Simultaneously F Working Closely with Others as Part of a Team C Tedious or Exacting Work O Noisy/Distracting Environment F Other (see 3 below) HEALTH AND SAFETY ENVIRONMENTAL FACTORS Mechanical Hazards D Extreme Temperatures S Chemical Hazards M Noise and Vibration D Electrical Hazards M Wetness/Humidity S Fire Hazards M Respiratory Hazards M Explosives M Physical Hazards D Communicable Diseases N Physical Danger or Abuse D Other (see 1 Below) PRIMARY WORK LOCATION Office Environment Warehouse Shop Vehicle Outdoors X Recreation Center Other (see 2 Below) RESOLUTION 2024-18 PAGE 5 EXHIBIT C TO RESOLUTION 2024-18 [2024-25 Comprehensive Fee Schedule] See following pages. Description Adopted Fee Units Campaign Fees: Pro/Con Argument Fee $100.00 per request Campaign Finance ‐ Late Filing Fee $10.00 per business day Parks Fees Park Rental Fees ‐ Resident/Non‐Profit: Standard Ramada ‐ 2 hour minimum $15.00 per hour Saguaro Ramada ‐ 2 hour minimum $30.00 per hour Meeting Rooms 2 hour minimum $15.00 per hour Athletic Fields ‐ 2 hour minimum $20.00 per hour Sports Courts ‐ 1 hour reservation $10.00 per hour Half Day Open Park space, including Amphitheater, Avenue of the  Fountains Plaza, Great Lawn, Centennial Circle and other lawns $800.00 flat fee Full Day Open Park space, including Amphitheater, Avenue of the  Fountains Plaza, Great Lawn, Centennial Circle and other lawns $1,500.00 flat fee Park Rental Fees ‐ Non‐Resident/Commercial: Small Ramada ‐ 2 hour minimum $22.50 per hour Saguaro Ramada ‐ 2 hour minimum $40.00 per hour Meeting Rooms 2 hour minimum $20.00 per hour Athletic Fields ‐ 2 hour minimum $30.00 per hour Sports Courts ‐ 1 hour reservation $15.00 per hour Half Day Open Park space, including Amphitheater, Avenue of the  Fountains Plaza, Great Lawn, Centennial Circle and other lawns $1,350.00 flat fee Full Day Open Park space, including Amphitheater, Avenue of the  Fountains Plaza, Great Lawn, Centennial Circle and other lawns $2,350.00 flat fee Park Rental Fee Extras: Power Distribution Box Rental Fee & Deposit $25.00 plus $200 deposit per box per day Quick Coupler $25.00 plus $200 deposit per box per day Athletic Field Lights (2 hour minimum) $15.00 per hour per field Athletic Field Prep – Baseball/Softball $30.00 per field Athletic Field Prep – Soccer/Football $500.00 per field Batting Cage Rental ‐ 1 hour $10.00 per hour Pitching Mound Rental $30.00 per use Ball Field Fencing Rental $25.00 per use Alcohol Permit with Park Reservation (NON‐REFUNDABLE) $20.00 per permit Fountain Operation $300.00 per half hour Staff ‐ 2 hour minimum $40.00 per hour per staff  member TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Clerk Community Services Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Community Center Fees Community Center Rentals ‐ Resident/Non‐Profit: Weekday Rates: Monday  thru Thursday Classrooms ‐ Minimum 2 hours $25.00 per hour Ballroom ‐ Per Ballroom; Minimum 4 hours $50.00 per hour Lobby ‐ Minimum 4 hours $50.00 per hour Weekend Rates: Friday & Saturday (no rentals on Sunday) Ballroom ‐ Per Ballroom; Minimum 4 hours $75.00 per hour Lobby ‐ Minimum 4 hours $75.00 per hour Ballroom Damage Deposit $50.00 per Ballroom Community Center Rentals ‐ Non‐Resident/Commercial: Weekday Rates: Monday  thru Thursday Classrooms ‐ Minimum 2 hours $50.00 per hour Ballroom ‐ Per Ballroom; Minimum 4 hours $100.00 per hour Lobby ‐ Minimum 4 hours $100.00 per hour Weekend Rates: Friday & Saturday (no rentals on Sunday) Ballroom ‐ Per Ballroom; Minimum 4 hours $150.00 per hour Lobby ‐ Minimum 4 hours $150.00 per hour Ballroom Damage Deposit $50.00 per Ballroom Community Center Extra Service Fees: Video Projector $55.00 plus $300.00 deposit per rental Flat Screen TV $55.00 plus $500.00 deposit per rental Small Screen $55.00 plus $250.00 deposit per rental Large Screen (8' x 10') $55.00 plus $600.00 deposit per rental Ping Pong Table $55.00 plus $500.00 deposit per rental Sound Reinforcement Wireless Microphones $25.00 per rental Speaker Table (Includes Mixing Board) $25.00 per rental Conference Phone $55.00 plus $100.00 deposit per rental Portable Sound System (Includes Mixing Board and/or Portable  Speaker) $85.00 plus $500.00 deposit per rental Electricity (per booth)n/a Portable White Board $5.00 per rental Walker Display Board $5.00 per rental Items for Sale $5.00 per rental Miscellaneous n/a Dance Floor ‐ per 4' x 4' parquet square (16' x 16') $225.00 per rental Dance Floor ‐ per 4' x 4' parquet square (20' x 20') $280.00 per rental Dance Floor ‐ per 4' x 4' parquet square (24' x 24') $325.00 per rental Staging 6' x 8" section (1 piece) $25.00 per rental Coffee Service $25.00 per request Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Portable Bar $50.00 plus $250.00 deposit per request Labor Charges $55.00 per hour per staff MCSO Charges ‐ Minimum 4 hours Actual Cost pre‐paid/no refunds Piano Tuning Actual Cost pre‐paid/no refunds Drop‐In Fee for Presentations/Classes $5.00 per presentation/class Senior Services Annual Membership Fees: Resident $30.00 per year Non ‐ Resident $45.00 per year Special Event Fees Special Events Permits: Special Event Permits ‐ Food/Event Vendors Application Fee $500.00 based on event size Special Event Permits ‐ Business Application Fee ‐ Business (If submitted at least 60 days prior to the  event date) $300.00 per application Application Fee ‐ If submitted 59 days or less prior to the event date $550.00 per application Permit Fee $50.00 per application Special Event Permits ‐ Non‐Profit Application Fee ‐ Charitable Organization (If submitted at least 60  days prior to the event date) $150.00 per application Application Fee ‐ If submitted 59 days or less prior to the event date $275.00 per application Permit Fee $50.00 per application Special Event Permits ‐ Extra Fees Special Event Liquor Application Fee $25.00 per application Special Event Permits ‐ Park Fee (Open Park space: amphitheater,  AOTF Plaza, Great Lawn, Other) Non‐Profit: Small Event $400.00/$750.00 half day/full day Medium Event $2,500.00 full day Large Event $3,500.00 full day Business/Commercial: Small Event $750.00/$1,400.00 half day/full day Medium Event $2,500.00 full day Large Event $3,500.00 full day Special Event Permits ‐ Deposit Fees Events with less than 1,000 attendance $500.00 per event Events with 1,000 ‐ 1,999 attendance $1,000.00 per event Events with 2,000 ‐ 5,000 attendance $2,500.00 per event Events with over 5,000 attendance $5,000.00 per event Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Special Event Permit Fees ‐ Road Closure Admin Fees Events with less than 1,000 attendance $500.00 per event Events with 1,000 ‐ 1,999 attendance $750.00 per event Events with 2,000 ‐ 5,000 attendance $1,000.00 per event Events with over 5,000 attendance $1,500.00 per event Special Event Permit Fees ‐ Vendor Compliance Fine First time penalty $250.00 per incident Recurring penalty $750.00 per incident Film permit application $85.00 per incident Non‐Sufficient Funds (checks returned to Court) $50.00 per check Public Defender Actual costs for appointed attorney Jail Reimbursement Actual costs billed by County for jail time  served Jury Costs (assessed if jury trial canceled within five days of trial) Actual administrative costs Civil Traffic Default $50.00 per incident Warrant $65.00 per warrant issued Diversion Program Rescheduling $22.00 per incdent Court Clerk $28.00 per request (ARS 22‐281) Court User $10.00 per charge Public Records Search $28.00 per name (ARS 22‐281) Certified Copies $28.00 per copy (ARS 22‐281) Planning Fees Administrative Use Permit/Temporary Sign Permit $50.00 per request Appeal of a Decision by the Zoning Administrator $1,530.00 per appeal Comprehensive Sign Plans and amendments $280.00 per request Commercial/Industrial/Multi‐Family Site Plan Review $680.00 for first 5,000 square feet of  property, then $130.00 for every  thousand square feet thereafter Continuance at Applicant Request $140.00 per request Cut & Fill Waiver $350.00 per request Development Agreements $3,975.00  for up to 5 acres, plus $795.00  per acre thereafter Development Agreements ‐ Amendment $1,900.00 for up to 5 acres plus $380.00  per acre thereafter Final Plats $1,690.00 for up to 10 lots plus $169 per  lot thereafter General Plan Amendments ‐ Minor $2,500.00 for the first 5 acres plus  $500.00 per acre thereafter General Plan Amendments ‐ Major $3,760.00 for the first 40 acres plus  $94.00 per acre thereafter Hillside Protection Easement (HPE) $170.00 Plus recording fees Development Services Court Fees Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Golf Ball Fence, Administrative Review $280.00 per review Landscape Plan Review $50.00 per review Public Notice in Newspaper (for all actions requiring newspaper  notifications) $260.00 (1) Notification fee (for all actions requiring mailed notifications) $175.00 (2) Ordinances (Text Amendments) $1,975.00 per ordinance Planned Area Developments (PAD) $3,620.00 for the first 5 acres plus  $725.00 per acre thereafter Planned Area Developments (PAD) ‐ Amendment $1,850.00 for the first 5 acres plus  $370.00 per acre thereafter Plat Abandonments $1,150.00 plus County Fees (3) Preliminary Plats $2,045.00 for the first 10 lots, plus  $205.00 per lot thereafter Recording Fees (subject to change without notice) $150.00 per request Replats (lot joins, lot divisions, lot line adjustments) $575.00  Rezones (Map) $3,623.00 up to 10 acres plus $360.00 per  acre thereafter Saguaro Cactus Permit $110.00 per permit Special Use Permits and amendments $2,000.00  Temporary Use Permits $230.00 plus notification Temporary Visitor Permit (RV Parking): $50.00 per permit Tract Housing $325.00 plus $100.00 per façade Variances $1,190.00 for the first variance plus  $300.00 for each additional variance Zoning Verification Letter $280.00 per verification Community Residence Registration $350.00 per registration Community Residence Annual Renewal $250.00 per renewal (1) Plus actual newspaper posting costs (2) Plus $5 per mailing label (3) Minimum $150 recording fee Building Fees Building Permit/Plan Check Single Family Residential: Single Family Homes & Additions (Includes Permit and Plan Review) Livable Area with A/C $0.73 square feet Covered Area: Garage and/or Patio (non A/C) $0.55 square feet Single Family Remodel $0.24 square feet Single Family Remodel non A/C $0.15 square feet Specialized Permits (Includes Permit and Plan Review) Solar Photovoltaic $150.00 per request Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Fence Walls $200.00 for first 100 feet plus $2.00 per  linear foot thereafter Retaining Walls $300.00 for 100 linear feet plus $3.20 per  linear foot thereafter Pools & Spas Attached $320.00 up to 450 square feet plus $0.72  per square foot above 450 Stand Alone Spas $140.00 per request Landscape Deposit $2,500.00 refundable deposit. Deposit  required for Certificate of Occupancy  (C of O) if landscaping is not installed;  refundable upon landscaping approval by  Town within six (6) months. Miscellaneous Plan Review or Inspection (1 hour minimum) $115.00 per hour One Discipline Permit $140.00 per permit Addendum $115.00 per adendum Demolition (minor)$60.00 per request Third‐Party or Expedited Plan Review & Inspections Actual costs for third party Plan Review Add On (After 3rd Review) 50% of Bldg Permit/Plan Review Fee Reinspection Fee $170.00 per inspection Permit Extensions ‐ Residential new construction only (If Town has all  records and within current Code cycle) 460.00 per extension Permit Extensions ‐ Residential remodel only (If Town has all records  and within current Code cycle) $120.00 per extension Penalty for failure to obtain a building permit 100% of Bldg Permit/Plan Review Fee per incident    Refund for cancelled  Building permit (must be done in writing) 35% of building permit fee paid ‐ request  must be made within 180 days of original  payment per request Building Permit/Plan Check Commercial: Commercial/Tenant Building Permit & Additions (Includes Permit and  Plan Review) Area with A/C $0.80 per square foot Covered Area (non A/C)$0.65 per square foot Commercial Remodel (Existing) Area with A/C $585.00 for 3,000 square feet plus $0.20  per square foot thereafter Covered Area (non ‐ A/C) $275.00 for 3,000 square feet plus $0.09  per square foot thereafter Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Apartments/Condominiums  Livable Area with A/C $1.10 per square foot Covered Area (non ‐ A/C)$0.75 per square foot Landscape Plan Review $50.00 per request Miscellaneous Permits (Plan Review Fee is Separate) $13.00 per permit Minimum Permit (one discipline) $140.00 per permit Sign Permit, less than 32 square feet (New/Modified) $85.00 per permit Sign Permit, 32 or greater square feet (New/modified) $105.00 per permit Miscellaneous Plan Review or Inspection ( 1 hour minimum) $115.00 per hour Revisions to Approved Plans $170.00 per hour Plumbing ‐ Water heater replacement/solar (minor) $140.00 per request Mechanical ‐ HVAC replacement (minor) $140.00 per request Electrical ‐ panel repair (minor) $150.00 per request Demolition (minor)$60.00 per request Third‐Party or Expedited Plan Review & Inspections Actual costs for third party Plan Review Add On (After 3rd Review) 50% of Bldg Permit/Plan Review Fee per review Reinspection Fee $170.00 per inspection Permit Extensions ‐ Commercial new construction only (If Town has all records and within current Code cycle) $460.00 per extension Permit Extensions ‐ Commercial remodel only (If Town has all records  and within current Code cycle) $120.00 per extension Penalty for failure to obtain a building permit 50% of Bldg Permit/Plan Review Fee per incident Refund for cancelled Commercial Building permit (must be done in writing) 35% of building permit fee paid ‐ request  must be made within 180 days of original  payment per request Appeal of Decision by Building Official/Fire Marshall $1,000.00  All fees include up to 3 reviews  by staff. Any additional reviews will be  subject to an additional fee equal to 25%  of the original fee.  Development Fees (Adopted by Resolution 2020‐03) Single Family Residential $3,973.00 per dwelling Multi ‐ Family Residential $2,537.00 per dwelling Commercial $3.82 per square foot Office $2.45 per square foot Institutional $2.86 per square foot Industrial $1.29 per square foot (Above fees are split between Parks & Recreation, Fire, and Streets development fees. See Resolution for allocations.) Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Development Services ‐ Miscellaneous Maps: 8 1/2" x 11"$3.00 per map 11" x 17" Street/Index Map "Typical" $5.00 per map 11" x 17" Aerial Site Plan $18.00 per map 24" x 36" Custom Map $20.00 per map 36" x 36" Bldg/Plat/Zoning Map $25.00 per map 60" x 60" Street/Bldg/Develop/Plat/Plot $35.00 per map Map Book $100.00 per map book Other: Easement or Right‐of‐Way Abandonment $730.00 per request Hillside Protection Reconfiguration and/or Replacement of Hillside  Protection Easement $350.00 per request Revocation Administrative Fee $60.00 per request Engineering Plan Review Fee / Final Plat Improvement $1,610.00 per request New/Address Change $50.00  Third‐Party or Expedited Plan Review & Inspections Actual costs for third party Inspections not associated with an active Building Permit $60.00 per inspection Off‐Hours Inspections (Nights & Weekends) $85.00 per inspection Fire Fees Residential Automatic Sprinkler System Plan Review/Inspection $340.00 for up to 4,400 square feet then  $0.08 per square foot Commercial Automatic Sprinkler System Plan Review/Inspection $340.00 for the first 3,000 square feet  then $0.11 per square foot Commercial Auto Sprinkler System Modification Plan Review/Inspection $195.00 per request Commercial Hood System Plan Review/Inspection $290.00 per request Commercial Fire Alarm System Plan Review/Inspection $385.00 per request Commercial Fire Alarm System Modification Plan Review/Inspection $385.00 per request Residential LPG Installation Review/Inspection $170.00 per request Annual Adult Residential Group Care Inspection $130.00 per request Annual Commercial Fire Inspection Fee $0.00 per request Tent Permit Fee (any tent over 200 square feet & any canopy over 400 square feet) $65.00 per request Reinspection Fee (beyond one re‐check) $150.00 per request Inter‐Agency Educational Charges Actual Cost pre‐paid Fire Dept Personnel ‐ 4 hour minimum $52.00 per hour Abatement Fees: Inspection fee $340.00 per hour Reinspection fee $340.00 per inspection Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Services: Notarization $2.00 per request Affix Town Seal $5.00 per request Returned Check Fee $50.00 per check Convenience Fee ‐ credit card payment $4.00 per transaction Art Commission $35.00 per transaction Copies  Photocopies 8 1/2 x 11 $0.65 per page Photocopies 8 1/2 x 14 $0.70 per page Photocopies 11 x 17 $0.75 per page Reports: License Report (Non ‐ Commercial Use) $30.00 CD or hard copy License Report (Commercial Use) $30.00 CD or hard copy Business License Fees: New Business License $50.00 per application and first  year fee ‐ non‐refundable Annual renewal fee for business within the Town limits $35.00 per renewal Annual renewal fee for business without a fixed place of business  within the Town limits $50.00 per renewal Late fee for renewal of business license fee 25% of renewal fee per renewal Penalty for operating a business without a license $150.00 per incident Peddlers, solicitors and mobile merchants $250.00 calendar quarter or  fraction thereof ‐ non‐ refundable Peddler investigation fee (per person) $55.00 per person Promoters of entertainments, circuses, bazaars, etc., who receive a  percentage of receipts or other consideration for their services. Each  such promoter shall also obtain liability insurance of a minimum of $1  million naming the Town as insured. $150.00 per week Handbill Distributor $50.00 per day Amusement Company, such as ferris wheel, merry ‐ go ‐ round, etc.,  not part of a circus. Tent Show. Wrestling Exhibition. Road Show,  Carnival or Circus. $150.00 per day Practice of palmistry, phrenology, astrology, fortune telling, mind  reading, clairvoyancy, magic or any healing practices not licensed by  the State of Arizona, or any similar calling without a fixed place of  business $50.00 per day Duplicate Business License $15.00 per request Verification of License Letter $15.00 per request Finance Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 False Alarm Service Charges: First and Second $0.00 each Third $100.00 each Fourth $150.00 each Fifth and Sixth $175.00 each Seventh or more $275.00 each Wireless Communications:Per State Statute Wireless Tower Lease $4.75 per square foot Lease Agreement Application Fee, each location $285.00 per location ‐ non‐ refundable Amendments to Cell Tower Lease Agreements $285.00 per location ‐ non‐ refundable Small Cell Wireless Facilities: (all fees are non‐refundable) ROW Use Fee $50.00 year x number of small  wireless facilities (SWF) Authority utility pole attachment $50.00 year per utility pole  attachment Small Wireless Facilities (SWF) collocation $100.00 per SWF up to five Small Wireless Facilities (SWF) collocation $50.00 for SWF over five Batched applications for up to 25 SWF's $100.00 per SWF up to five  Batched applications for up to 25 SWF's $50.00 per SWF 6 ‐ 20 sites Applications for new, replacement or modified utility poles NOT  subject to zoning review $750.00 per application Applications for new, replacement or modified utility poles and  collocation of wireless facilities subject to zoning review $1,000.00 per application Alcohol License Application: Person Transfer Fee $200.00 per request Location Transfer Fee $200.00 per request Probate/Will Assignment/Divorce Decree $200.00 per request Extension of Premise $200.00 per request Sampling Permit $200.00 per request Acquisition of Control/Restructure/Agent Change $200.00 per request Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Initial/Interim Application Fee 01 ‐ In State Producer $600.00 per request 02 ‐ Out of State Producer $600.00 per request 03 ‐ Domestic Microbrewery $600.00 per request 04 ‐ In State Wholesaler $600.00 per request 05 ‐ Government $600.00 per request 06 ‐ Bar, All Spirituous Liquors $600.00 per request 07 ‐ Beer & Wine Bar $600.00 per request 08 ‐ Conveyance $600.00 per request 09 ‐ Liquor Store $600.00 per request 10 ‐ Beer & Wine Store $600.00 per request 11 ‐ Hotel/Motel $600.00 per request 12 ‐ Restaurant $600.00 per request 13 ‐ Domestic Farm Winery $600.00 per request 14 ‐ Private Club $600.00 per request Alcohol Permit Renewal $200.00 per year Environmental Fees: per residential solid waste account $0.00 per month per multifamily solid waste account (with a range for number of units $0.00 per month commercial solid waste accounts (license fee and/or cost per  commercial account) $0.00 per month Late fee for paying the environmental fee $0.00  Short‐Term/Vactation Rentals Annual Registration Fee $250.00 per year Excavations/In‐Lieu Fees: Base fee (per excavation)$250.00 Base fee Trench cut fees: Newly paved or overlayed 0 ‐ 1 yrs. $55.00 per linear foot Newly paved or overlayed 1 ‐ 2 yrs. $45.00 per linear foot Newly paved or overlayed 2 ‐ 3 yrs. $35.00 per linear foot Newly paved or overlayed 3 ‐ 4 yrs. $25.00 per linear foot Newly paved or overlayed 4 ‐ 5 yrs. $15.00 per linear foot Newly paved or overlayed 5 ‐ 6 yrs. $10.00 per linear foot Slurry or chip sealed 0 ‐ 2 years $4.00 per linear foot Pavement replacement greater than 300 feet in length $2.50 per square yard Utility Pit fees: Newly paved or overlayed 0 ‐ 1 yrs. $5.50 per square foot Newly paved or overlayed 1 ‐ 2 yrs. $4.50 per square foot Newly paved or overlayed 2 ‐ 3 yrs. $3.50 per square foot Newly paved or overlayed 3 ‐ 4 yrs. $2.50 per square foot Newly paved or overlayed 4 ‐ 5 yrs. $1.50 per square foot Newly paved or overlayed 5 ‐ 6 yrs. $1.00 per square foot Slurry or chip sealed 0 ‐ 2 years $5.00 per square foot Public Works Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 Adjustment (MH, valve, monument, etc.) $500.00 each Striping $3.00 per linear foot Lane Markers $175.00 each Stop Bars $3.00 per square foot Crosswalks $3.00 per square foot RPMs $7.00 each Seal‐Coat $3.00 per square yard Encroachment/Engineering Permits: Base Permit Fee $200.00  2"/6" Paving A.C.$2.25 per square foot Permanent Barricading $220.00 each Guard Rail/Hand Rail $1.50 per linear foot Survey Monuments $145.00 each Concrete Aprons $145.00 each Scuppers $145.00 each Review for Adjustments MH, etc. $145.00 each 4" Paving ‐ PC Concrete $1.45 per square foot Decorative Sidewalk or Paving $2.70 per linear foot Sidewalk & Bike path $2.70 per linear foot Curb & Gutter $1.70 per linear foot Valley Gutter $1.45 per linear foot Sign (regulator, street etc.)$145.00 each Pavement Cuts $1.45 per linear foot Driveway/Driveway Modifications $145.00 each Utility, Water Line, Sewer Line Trench ‐ Paved $2.00 per linear foot Utility, Water Line, Sewer Line Trench ‐ Unpaved $1.45 per linear foot Storm Drain Pipe $1.70 per linear foot Catch Basins, Headwells $145.00 each Cutoff Walls $1.45 per linear foot Slope Protection $1.45 per square yard Rip Rap $1.45 per square yard Retaining Wall $1.45 per linear foot Cut/Fill (Materials Moved)$2.00 per cubic yard Box Culverts 5% of engineer estimate Miscellaneous 5% of engineer estimate Landscaping 5% of engineer estimate Irrigation 5% of engineer estimate Lighting 5% of engineer estimate Grading 5% of engineer estimate Utility Splice/Repair Pits Up to 25 square feet (outside pvmt) $140.00 flat fee Other 5% of engineer estimate Description Adopted Fee Units TOWN OF FOUNTAIN HILLS COMPREHENSIVE FEE SCHEDULE FISCAL YEAR 2024‐2025 In Lieu Payments n/a n/a Traffic Control Plan Review $170.00 per request Engineering Plan Review Fee $575.00 per sheet (includes three  reviews) $190 per sheet for each  subsequent review per sheet Failure to obtain an Encroachment Permit $230.00 per incident Failure to obtain a Final Inspection $170.00 per incident Reinspection Fee $150.00 per incident Investigation Fee for Work Done Without Permit $400.00 or the permit fee, whichever is  greater, but not to exceed $2,500.00 for  every day or a portion of a day from the  time unpermitted work began until a  permit is obtained. per incident Land Disturbance Fee $10.00 per square foot plus revegetation per square foot Oversize/Overweight Vehicle Permit $250.00 per permit Haul Route Permit (greater than or equal to 500 cubic yards) $160.00 per permit Failure to barricade or improper barricading $1,00.00 to $5,000.00 per incident Permit Extension $50.00 per request Penalty for work w/o permit 50% of Permit Fee per incident Minimum Plan Review $115.00 per hour Traffic Study ‐ Cost to recover staff time and materials $150.00 base fee plus $50.00 per  additional location request per request Public Works ‐ Miscellaneous Adopt a Street: Fee, per sign $60.00 per request Honorary Street Naming: Application Fee and Sign $300.00 per application Electric Vehicle Charging Charging Station Fee ‐ 2 hour maximum $2.00 per hour FY25 Final Budget Paul Soldinger, Chief Financial Officer June 4, 2024 FY25 Final Budget Public FY25 Budget Meetings •February 14th –Budget Open House & Public Outreach •February 27th –Council Retreat * •March 26th –Capital Projects Work Session •April 9th –Budget Work Session (Proposed Budget) •May 7th –Tentative Budget adoption •June 4th –Final Budget adoption * Click links for presentation and recorded meetings Final Budget for Adoption •Tentative Budget was adopted on May 7, 2024 •Set maximum FY25 budget at $45,151,633 •Council moved 1 project to Capital Projects contingency •$1.8M in General Fund contingency •$5.0M in Streets Fund for Pavement Maintenance ($7.1M total in Streets Fund) •General Fund budgeted expenditures (excluding contingency) •$23.1M for FY23-24 •$24.0M for FY24-25 •4% increase Final Projected Revenues by Fund $25.8 million $25.8 million $25.8 million $25.8 million General Fund Streets Fund Cap Projects Fund Other Funds $25.8 Million $4.4 Million $3.6 Million $2.4 Million Total Projected Revenues = $36.2M Final Budgeted Expenditures by Fund $25.8 million $25.8 million $25.8 million $25.8 million General Fund Streets Fund Cap Projects Fund Other Funds $25.8 Million $7.1 Million $9.1 Million $3.2 Million Total Budgeted Expenditures = $45.2M Fiscal Year 2025 Changes from Prior Year Projected Revenues $ 36,277,981 $ 36,197,373 $ (80,608)-0.2% Budgeted Expenditures $ 43,057,708 $ 45,151,633 $ 2,093,925 4.9% ELR Exclusions $ 8,606,788 $ 9,449,491 $ 842,703 9.8% Expenditure Limitation $ 34,364,380 $ 35,588,003 $ 1,223,623 3.6% Budgeted Amounts FY2024 FY2025 Difference % Difference Budget Comparisons Municipality Primary Property Tax Secondary Property Tax FY23-24 Budgeted Expenditures Population (2023 Census) Expenditures Per Capita Tempe Yes Yes $ 1,348,627,595 189,834 $ 7,104 Scottsdale Yes Yes $ 2,533,270,561 244,394 $ 10,366 Queen Creek Yes $ 867,120,999 76,570 $ 11,325 Paradise Valley $ 56,349,762 12,502 $ 4,507 Mesa Yes $ 2,560,000,000 511,648 $ 5,003 Gilbert Yes $ 2,049,501,300 275,411 $ 7,442 Fountain Hills $ 43,057,708 23,611 $ 1,824 Chandler Yes Yes $ 1,656,274,385 280,167 $ 5,912 Cave Creek $ 56,555,961 5,152 $ 10,977 Carefree $ 14,801,859 3,642 $ 4,064 Apache Junction $ 119,300,148 41,153 $ 2,899 East Valley Municipality Comparisons for FY 2023-24 FY25 Capital Projects Capital Projects In Final Budget •All Capital Projects included in Tentative Budget other than 1 modification by Council. •13 Green Light Projects totaling $5.2M •6 Yellow Light Projects totaling $4.3M* FY25 Capital Projects *Includes $1M planned budget transfer Council Questions? ITEM 9. C. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Aaron D. Arnson, Town Attorney Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Waiving attorney-client privilege for limited purpose of releasing draft wireless facilities ordinance.  Staff Summary (Background) In June 2023, the Town Council directed the Town Attorney's Office to retain attorney Andrew Campanelli to draft a wireless facilities ordinance for consideration and adoption. Mr. Campanelli provided a draft ordinance in July 2023. Both the Town Attorneys' office and Development Services Director John Wesley reviewed the draft ordinance and presented a number of questions, comments, and suggested revisions in August 2023. In October and November 2023, the Council received legal advice from Town Attorney Aaron Arnson and Mr. Campanelli, in executive session, regarding the ordinance's potential risks and legal effects. Upon consideration of this legal advice, the Council directed Town Attorney Arnson to terminate the agreement with Mr. Campanelli and to work with staff to utilize those portions of the draft wireless ordinance, as appropriate, to form a staff-led ordinance for Council consideration and adoption. Some members of the Planning and Zoning Commission and at least two members of the public have requested a copy of the draft ordinance. (It is unclear whether the request includes just the text of the ordinance itself, or also includes a copy of staff's questions, comments, and suggested revisions.) Because the draft ordinance and associated staff analysis was prepared in the course of legal representation, the document is confidential and attorney-client privileged. Moreover, because the attorney-client privilege belongs to the client, only the Council can waive privilege, if the Council desires to do so.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis The Town Attorney's office has advised the Council in a privileged setting about the potential benefits and drawbacks of waiving the attorney-client privilege and releasing the document. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) For the reasons previously stated in a privileged setting, staff recommends maintaining the attorney-client privilege in this instance. This is, however, a Council-directed policy decision, and the Council may choose to waive the privilege if it so desires. SUGGESTED MOTION If the Council wishes to waive attorney-client privilege, staff suggests one of the following two motions:  MOVE to waive attorney-client privilege with respect to releasing only the text of the draft wireless facilities ordinance; or 1. MOVE to waive attorney-client privilege with respect to releasing both the text of the draft wireless facilities ordinance and staff's questions, comments, and suggested revisions to the draft ordinance.   2. If the Council does not wish to waive attorney-client privilege, no motion is required. Form Review Inbox Reviewed By Date Town Attorney Aaron D. Arnson 05/24/2024 02:47 PM Town Manager Linda Mendenhall 05/24/2024 05:53 PM Town Attorney Aaron D. Arnson 05/27/2024 03:52 PM Town Manager Rachael Goodwin 05/28/2024 07:28 AM Form Started By: John Wesley Started On: 05/22/2024 12:02 PM Final Approval Date: 05/28/2024  ITEM 9. D. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Development Services Prepared by: John Wesley, Development Services Director Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION:  Expanding the review of Zoning Ordinance Chapter 17, Wireless Telecommunications Towers and Antenna, to include review of Town Code Article 16-2, Small Wireless Facilities, and authorizing the Planning and Zoning Commission to provide a recommendation to the Town Council regarding modifications to these ordinances. Staff Summary (Background)    Based on some citizen concerns, the Council has directed staff to work with the Planning and Zoning Commission (the “Commission”) to update Chapter 17 of the Zoning Ordinance. This chapter provides the rules and regulations for wireless telecommunication towers and antennas.  As the Commission has reviewed this ordinance and received input from citizens, they have found that many of their concerns center on the allowance for small cell wireless facilities in the public right-of-way.  The regulations for small cell wireless facilities are codified in Article 16-2 of the Town Code, rather than in the Zoning Ordinance. Section 2A-5 of the Town Code establishes the Planning and Zoning Commission. Subsection 4 lists the duties of the Commission and includes: E. Make recommendations to the Council on all matters concerning or relating to the creation of  Zoning Ordinances, the boundaries thereof, the appropriate regulations to be enforced therein, and amendments of the Town of Fountain Hills Zoning Ordinance. The duties of this Commission do not include reviewing or making recommendations to other portions of the Town Code. Because the Commission has no jurisdiction to review and recommend amendments to this portion of the Town Code, the Commission is seeking Council approval to also consider small cell wireless facilities in the right-of-way as part of their review and recommendations. Essentially, the Commission’s request is to expand the scope of the Commission’s review to include both wireless telecommunication towers and antennae and small cell wireless facilities in the right-of-way. Although this is a policy question for Council consideration, there are several considerations that may factor into the Council's decision on the Commission’s request. Consideration 1. Local jurisdictions have very limited control over the placement and development of small cell wireless facilities located in the public right-of-way.  Staff have provided, as an attachment to this report, a summary of state statutes regarding small cell wireless facilities found in A.R.S. Title 9. State statutes allow very limited local control over small wireless facilities, and in fact, A.R.S. Title 9. State statutes allow very limited local control over small wireless facilities, and in fact, are more restrictive in several respects than their federal counterparts. Specifically, A.R.S. 9-592(J) provides that facilities that meet the State’s requirements and height parameters are “not subject to zoning review.” Likewise, A.R.S. 9-592(K) provides that a local government “shall approve” an application for small cell wireless facilities in the right of way except under limited circumstances. An expansion of the Commission’s scope of review to include small wireless facilities would open review over a subset of wireless facilities over which local governments have very limited authority in the first place. Staff are concerned that expanding the scope of review would tend to confuse the issues and lead to proposed amendments that contradict state law.  Consideration 2. Placement Chapter 16 of the Town Code appears to have been intentional. Although most cities and towns appear to have included regulations for small cell wireless facilities in their zoning ordinance, along with the regulations for all other wireless telecommunications facilities, the Town of Fountain Hills placed its regulations in Chapter 16, Streets and Sidewalks, of the Town Code. This may have been done for at least two reasons. First, these facilities are located in the public right-of-way and should be considered and addressed along with other facilities included in the development and maintenance of the right-of-way. Compared to most other communities, the Town has very few existing streetlights, power poles, or traffic signals to which a small cell facility could be attached or co-located. Therefore, if small cell facilities are going to be developed, they are mostly going to be on new structures along with the associated underground equipment, all of which will be along the street within the right-of-way. Consistency with other development standards is an important consideration for these regulations. Second, the Town’s restrictions are appropriately insulated from Commission review and approval. Section 16-2-3 of the Town Code establishes the parameters and process for consideration of a small cell wireless facility in the right-of-way.  The process for approval of such a facility includes entering into a lease agreement with the Town, agreeing to follow the Wireless Facilities Standard Terms and Conditions, the Town’s Design Standards and Guidelines, receiving an encroachment permit, and approval of a building permit.  The bulk of the Town's requirements related to this type of development are contained in the terms and conditions document and the design guidelines.  Any proposed changes to the requirements for these facilities will likely mean making changes to the terms and conditions, not ordinance language. Such changes are the prerogative of the Council acting through Town staff, and not within the purview of the Commission.  Consideration 3. Expanding the scope of the Commission’s review will almost certainly prolong the project. This project has been ongoing since at least January 2023, when the Council retained its first consultant. Staff received Council direction in November 2023 to draft proposed amendments to Chapter 17 of the Zoning Ordinance; seek Commission recommendations; and bring the amendments and recommendations to the Council for consideration. Staff have executed the Council’s clear direction. Staff have drafted proposed amendments. Those proposed amendments were first introduced to the Commission at the Commission’s April 2024 meeting, and the Commission held a public hearing on the proposed amendments at its May 2024 meeting. The Commission continued the hearing and consideration of the proposed amendments to its July 2024 meeting. The proposed amendments are expected to come to the Council for consideration and adoption likely in September 2024. Should the scope of the project be expanded to include Town Code Chapter 16-2, including accompanying terms and conditions and agreements, the Commission’s review will almost certainly be prolonged. Staff anticipate that the proposed amendments would not come before the Council until mid to late 2025.  Consideration 4. The proposed expanded scope would not address newly identified concerns about broadband services. It should be noted that there seems to be an ongoing concern about small cell facilities used for broadband service. There is no distinction in state statutes that permit regulation of a small cell facility based on intended use—i.e., small wireless facilities are treated the same, whether they are intended for voice or data service. Further, staff have not found any distinctions in other codes that regulate data differently than voice services on wireless communication antenna. Related Ordinance, Policy or Guiding Principle Zoning Ordinance Chapter 17 Town Code Article 16-2 Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) The decision where to place the regulations for small cell wireless facilities in the right-of-way is a policy decision for the Council, as is the decision whether the Commission should review and make recommendations for any modifications. Options staff have identified are:  Leave things as they are and direct the Commission to confine their review strictly to Chapter 17 of the Zoning Ordinance, consistent with the Council's previous direction. 1. Leave things as they are but direct the Commission to provide suggestions for modifications to Article 16-2 and/or the Wireless Facilities Standards Terms and Conditions and the Town's Design Standards and Guidelines. 2. Leave things as they are but direct the Commission to review and provide recommendations to both Chapter 17 of the Zoning Ordinance and Article 16-2 of the Town Code along with the associated documents. 3. Direct the staff and Commission to include small cell wireless in the right-of-way as part of the update to Chapter 17 of the Zoning Ordinance and eliminate Article 16-2 from the Town Code. 4. Staff recommends Option 1 to ensure timely completion of this longstanding project and to allow staff to allocate time and attention to other matters. In the alternative, the Council may consider Option 2, which would allow the Commission to informally make recommendations related to Chapter 16-2 of Town Code but would not delay the project. Options 3 and 4 are not staff recommended. SUGGESTED MOTION MOVE to approve Option 1 or Option 2 Attachments Summary of Statutes  Form Review Inbox Reviewed By Date Development Services Director (Originator)John Wesley 05/22/2024 03:24 PM Finance Director Linda Mendenhall 05/22/2024 03:35 PM Development Services Director (Originator)John Wesley 05/24/2024 10:14 AM Finance Director Linda Mendenhall 05/24/2024 05:50 PM Town Attorney Aaron D. Arnson 05/29/2024 01:04 PM Town Manager Rachael Goodwin 05/29/2024 02:19 PM Form Started By: John Wesley Started On: 05/22/2024 12:29 PM Final Approval Date: 05/29/2024  Summary of Statutes re: Small Cell Wireless Facilities Small cell wireless facilities are defined in ARS 9-591 as: 19. "Small wireless facility" means a wireless facility that meets both of the following qualifications: (a) All antennas are located inside an enclosure of not more than six cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of the antenna's exposed elements could fit within an imaginary enclosure of not more than six cubic feet in volume. (b) All other wireless equipment associated with the facility is cumulatively not more than twenty-eight cubic feet in volume, or fifty cubic feet in volume if the equipment was ground mounted before August 9, 2017. The following types of associated ancillary equipment are not included in the calculation of equipment volume pursuant to this subdivision: (i) An electric meter. (ii) Concealment elements. (iii) A telecommunications demarcation box. (iv) Grounding equipment. (v) A power transfer switch. (vi) A cutoff switch. (vii) Vertical cable runs for the connection of power and other services. ARS 9-592 includes the following: I. Subject to subsection K, paragraph 2, subdivision (c) of this section, a new, replacement or modified utility pole that is associated with the collocation of small wireless facilities and that is installed in the right-of-way is not subject to zoning review and approval under section 9-594 if the utility pole does not exceed the greater of either: 1. Ten feet in height above the tallest existing utility pole, other than a utility pole supporting only wireless facilities, that is in place on August 9, 2017, that is located within five hundred feet of the new, replacement or modified utility pole and that is in the same right-of-way within the jurisdictional boundary of the authority, but not more than fifty feet above ground level. 2. Forty feet above ground level. J. New small wireless facilities collocated on a utility pole or wireless support structure in the right-of-way are not subject to zoning review and approval if they do not extend more than ten feet above the utility pole or wireless support structure and do not exceed fifty feet above ground level. K. An authority may require an application under this section for the installation of new, replacement or modified utility poles associated with the collocation of small wireless facilities. An authority shall approve an application unless the authority finds that the utility pole fails to comply with any of the following: 1. Applicable codes. 2. Local code provisions or regulations that concern any of the following: (a) Public safety. (b) Objective design standards and reasonable stealth and concealment requirements. (c) Undergrounding requirements that prohibit the installation of new or the modification of existing utility poles or monopoles in a right-of-way without prior approval, if such requirements include a waiver, zoning or another process that addresses requests to install such new utility poles or monopoles or modify such existing utility poles or monopoles and do not prohibit the replacement of utility poles or monopoles. 3. Requirements that are imposed by a contract between an authority and a private property owner and that concern design standards applicable to utility poles in the right-of-way. In ARS 9-593 it states the following: C. Subject to this section and section 9-592, subsection J, a small wireless facility is classified as a permitted use and is not subject to zoning review or approval if the small wireless facility is collocated in a right-of-way in any zone. ARS 9-594 D and E state: D. An authority may not: 1. Require an applicant to submit information about the applicant's business decisions regarding the need for the monopole, utility pole or wireless facilities. 2. Require an applicant to submit information about, or evaluate an applicant's business decisions regarding, the applicant's service, customer demand for service or quality of service. 3. Institute, either expressly or de facto, a moratorium on filing, receiving or processing applications or issuing decisions for modifications or installations that are not a permitted use. E. An authority, in addition to other rights the authority has under federal, state or local law, may: 1. Adopt reasonable requirements regarding the appearance and concealment of facilities, including those relating to materials used for arranging, screening or landscaping. 2. Adopt setback or fall zone requirements that are substantially similar to setback or fall zone requirements that are imposed on other types of commercial structures of a similar height. ITEM 9. E. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  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 2024-30, approving one of the Intergovernmental Agreement renewals presented to Council with the Regional Public Transit Authority - Valley Metro, relating to transit services in Fountain Hills. Staff Summary (Background) The Town and the Regional Public Transportation Authority (RPTA), also known as Valley Metro, have established annual Intergovernmental Agreements (IGAs) for many years to provide transit services. Each fiscal year, an updated IGA is presented to the Town Council for consideration. This year, in light of an anticipated budget deficit, low bus ridership, and additional changes related to Proposition 479, staff is proposing alternative options for discussion and potential action by the Town Council.   Currently, the Town offers two transportation services - the 515 Express bus and RideChoice. These services are made possible through an IGA with the RPTA and are financially supported solely by two different regionally allocated public transportation funding sources. No General Fund monies have been budgeted or spent on public transit. It is assumed that the Town’s intent is to continue allocating $0 from the General Fund for public transit services. However, expenses associated with these two public transit services exceed the amount offset by regionally allocated public transportation funding. This means that the public transportation budget is in a structural deficit. Changes are necessary to avoid needing to supplement these services with General Fund monies.   Additionally, we have recently learned that the enabling language for Proposition 479 will prohibit the use of one of the two regional transit funding sources for the RideChoice program. (Please see the “What is Prop 479” attachment from the Maricopa Association of Governments’ website). Therefore, staff will provide some alternatives for Council discussion. Unfortunately, the proposed alternatives do not solve the structural budget problem. Nevertheless, two of the suggestions offer the opportunity to secure funding for reduced transit programs for several more years.   Please see the full staff report for additional details.   Related Ordinance, Policy or Guiding Principle Transit Services Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Approve one of the three options presented. SUGGESTED MOTION MOVE to approve Resolution 2024-30  Fiscal Impact Fiscal Impact:$0 General Fund Budget Reference:Fund 400 Funding Source:Regional Public Transportation Funds If Multiple Funds utilized, list here:Prop 400 PTF, and Arizona Lottery Transit Funds Budgeted: if No, attach Budget Adjustment Form:Yes Attachments Full Staff Report with Details_Transit  Presentation Transit  Prop 479 Info Sheet from MAG website  Low Cost Transportation FH  No Change Status Quo - Cash Flow  Simple Change Cease Bus_Cash Flow  Replace Bus with Expanded RideChoice Option_Cash Flow  Transit Options Timing and Budget  IGA No Change Version  IGA Simple Change delete 515 Bus  IGA_Replace Bus with Expanded RideChoice  Original 2014 Agreement_Res  Resolution_No Change  Resolution Simple Change No Bus  Resolution Replace Bus Expanded RideChoice  Form Review Inbox Reviewed By Date Town Attorney Linda Mendenhall 05/23/2024 04:58 PM Deputy Town Manager/Admin. Services David Trimble 05/23/2024 06:49 PM Finance Director Linda Mendenhall 05/23/2024 09:07 PM Deputy Town Manager/Admin. Services David Trimble 05/24/2024 10:37 AM Finance Director David Pock 05/28/2024 07:44 AM Town Attorney Aaron D. Arnson 05/28/2024 07:48 AM Town Manager Rachael Goodwin 05/28/2024 06:12 PM Form Started By: David Trimble Started On: 05/22/2024 11:24 AM Final Approval Date: 05/28/2024  The Town and the Regional Public Transportation Authority (RPTA), also known as Valley Metro, have established annual Intergovernmental Agreements (IGAs) for many years to provide transit services. Each fiscal year, an updated IGA is presented to the Town Council for consideration. This year, in light of an anticipated budget deficit, low bus ridership, and additional changes related to Proposition 479, staff is proposing alternative options for discussion and potential action by the Town Council. Currently, the Town offers two transportation services - the 515 Express bus and RideChoice. These services are made possible through an IGA with the RPTA and are financially supported solely by two different regionally allocated public transportation funding sources. No General Fund monies have been budgeted or spent on public transit. It is assumed that the Town’s intent is to continue allocating $0 from the General Fund for public transit services. However, expenses associated with these two public transit services exceed the amount offset by regionally allocated public transportation funding. This means that the public transportation budget is in a structural deficit. Changes are necessary to avoid needing to supplement these services with General Fund monies. Additionally, we have recently learned that the enabling language for Proposition 479 will prohibit the use of one of the two regional transit funding sources for the RideChoice program. (Please see “What is Prop 479” included below from the Maricopa Association of Governments’ website.) Therefore, staff will provide some alternatives for Council discussion. Unfortunately, the proposed alternatives do not solve the structural budget problem. Nevertheless, two of the suggestions offer the opportunity to secure funding for reduced transit programs for several more years. Current Transit Services Overview One of the two current transit services offered through the IGA with RPTA is the 515 Express Bus route. This service operates twice in the morning and twice in the afternoon, traveling between the bus stop at the library near Town Hall and the Gilbert Road & McDowell Rd/Route 202 park-and-ride. The 515 Express bus service has experienced very low ridership, averaging only 1 or 2 riders per week. Notably, the ridership reports for February and March 2024 indicated zero riders. The other current transit service is the RideChoice program, an on-demand, discounted transportation service that includes Uber, taxicabs, and wheelchair-accessible vehicles if needed. Currently, this service is available only to residents with disabilities and/or those aged 65 and older. Ridership for the RideChoice program has been steady and gradually increasing over the years. It is projected that the RideChoice program will provide over 1,500 rides to Fountain Hills residents this fiscal year. Current Funding Sources and Budget Shortfall Both transit programs are currently funded by two regional sources designated exclusively for public transportation. The Town receives funding through the countywide 0.5% sales tax fund, known as the Public Transportation Fund (PTF) established by Proposition 400. We just recently learned that PTF monies will not be allowed to be used for the RideChoice program after January 1, 2026. The impact of this will be to limit how long the Town can operate the program in its current form. The second source of funding is the Arizona Lottery Fund (ALF), with a portion allocated to each RPTA member city based on population. The 515 Express bus service and the RideChoice programs can operate despite the structural budget deficit and without using Town General Fund monies because the Town currently has a balance of Arizona Lottery Fund (ALF) monies available for operations. However, this balance is steadily decreasing and is projected to be fully exhausted between July 2026 and June 2027 (fiscal year 2027). Therefore, staff is proposing several alternatives for the Council to consider, including three versions of a proposed IGA with RPTA, each representing a different option. Three Transit Alternatives No Change – Status Quo As mentioned, the existing cash balance of ALF monies is not projected to run out for two more fiscal years, so one alternative is to make no changes this fiscal year and wait to revisit this topic at a later date. This would keep both the 515 bus service and the current RideChoice programs in place and unchanged. In the next fiscal year, the Town would spend down approximately $48,000 of the ALF balance and have approximately $124,000 remaining. This would be enough to maintain these services through FY 2026, but would require a change for FY 2027. Please see the table entitled, “No Change – Status Quo for FY 2025”. Delete 515 Express - RideChoice Status Quo A cost-cutting alternative would be to discontinue the 515 Express bus service and continue with the RideChoice program in its current form. While this option would not solve the structural deficit problem, it would help mitigate it. The RideChoice program would likely be funded through FY 2030 with ALF funds only, since PTF will not be available for RideChoice after 1/1/2026. Given that it is currently June, the 515 bus route cannot be terminated until at least April 2025, in compliance with the mandated period for public notification. Please see the table entitled, “Simple Change: Delete 515 Express - RideChoice Status Quo for FY 2025” Replace Bus with Expanded RideChoice - "Dial A Ride Bus Service" A third option involves discontinuing the 515 bus route, retaining the existing RideChoice program, and launching an enhanced version of RideChoice, tentatively referred to as the "Dial A Ride Bus Service". This approach would offer residents an alternative method to access regional bus and light rail networks, compensating for the discontinuation of the 515 bus service. The cost to the Town would be based on ridership instead of a fixed cost as is the case with bus services. The Dial A Ride Bus Service would be available to everyone, irrespective of age or disability. However, it would have designated time limits and designated pick-up and drop-off locations similar to the former 515 bus service. Since this alternative would be a new concept, it would take several years of experience to gather ridership and expenditure trends. The advantage of this model is that it avoids the substantial fixed expenses associated with the current 515 bus service when ridership is low, thus offering a more economically viable option. However, this option would also not solve the structural budget deficit and would likely exhaust the balance of ALF funds in FY 2029, which is two more years than the status quo/no change option. There is another risk with option: should the demand for the new Dial A Ride Bus Service surge, the program's costs might surpass the public transit funds allocated to the Town. Such a scenario could necessitate making a change earlier than anticipated. Given that it is currently June, the 515 bus route cannot be terminated until at least April 2025, in compliance with the mandated period for public notification. Please see the table entitled, “Replace Bus with Expanded RideChoice - "Dial A Ride Bus Service" for FY 2025”. Alternative Transportation Concepts Over the course of the last several years, Town staff has informally evaluated additional transportation concepts. Staff received presentations from May Mobility and eCab. May Mobility is a point-to-point local circulator that uses mini-vans and operates free for Sun City residents through a partnership with AARP. eCab is an upscale golf-cart style local circulator. Staff found that while both programs are appealing, each would require General Fund expenditures of more than $650,000 per year. Staff also reached out to other Cities/Towns in the Valley to gain insight on their programs. For example, staff reached out to Tolleson, Surprise, and Chandler. Each of these Cities will likely be incurring General Fund expenditures for their programs in the range of $400,000 to $900,000 per year. Tolleson provides a discounted Uber/Lyft program to their residents. The discount depends on the destination. Tolleson budgeted $450,000 for this program and while some is funded with their ALF allocation, the vast majority is budgeted in their General Fund. Surprise’s “WeRide” program is a fleet of minivans similar to the May Mobility approach. It consists of a fleet of 3 vans for this on-demand discounted point to point local circulator. Surprise anticipates spending about $900,000 per year and are planning to use their ALF monies to pay for a small portion of it, but the majority of the $900,000 will be paid from their General Fund. Chandler’s “Flex” program is another discounted on-demand point to point local circulator that is run by a third- party provider. Their start up costs were eased by a grant associated with Governor Ducey’s school choice voucher efforts. This grant program has ended, and Chandler is estimating the yearly cost to be around $750,000 and will likely be funding the cost of the program through their General Fund for the majority, and a small portion with their ALF allocation. Staff briefly evaluated the requirements for managing a local circulator internally and identified multiple aspects that could lead to higher expenses and complexities than initially anticipated. Securing insurance for this service is a significant challenge. The Town depends on the Arizona Risk Retention Pool (AMRRP), which includes over 70 municipalities in Arizona, for its insurance needs. However, the AMRRP is unable to extend coverage to transit services and has been unsuccessful in locating an insurer willing to take on this risk. Consequently, the Town is unable to assume the financial responsibility of self-insuring this type of program. Additional considerations emerged during the informal analysis. These include establishing a reliable rider dispatch and customer service system, ensuring a sufficient number of drivers including backups for sick and vacation leave, addressing vehicle maintenance costs, and acquiring multiple vehicles, including a backup for mechanical issues. Overall, while operating a local circulator in- house may seem like a simple solution at first glance, staff realized that it would be more challenging and expensive than anticipated. Free Transportation Services Aside from the transportation services related to the IGA, there are two other options available to qualified Town residents. The American Cancer Societies’ Road to Recovery program provides free rides to and from treatment for cancer patients. Residents should provide at least 24 hours’ notice to program representatives who can be reached at 800-227-2345. Additionally, the Town’s Community Services department operates the Give-A-Lift program, through a network of volunteer drivers who supply their own vehicles. This program provides free transportation for medical appointments for pre-qualified residents. The program is coordinated through the Volunteer Supervisor at the Community Center (480-816-5108). Staff recommends requesting Give-A-Lift rides at least 4 days in advance and cannot always guarantee rides depending on volunteer availability. Transit Service Program Details Proposed “Dial A Ride Bus Service” (RideChoice Expansion) x The yearly cost of the “Dial A Ride Bus Service” program will be dependent on ridership and has low fixed costs. x Would fill the gap as a replacement for the 515 Express Bus service for residents connecting to regional bus/light rail services. x Pick up and drop off would be similar to the 515 Express Bus service, originating at the bus stop by the library, however the rider could choose to connect to either the current Gilbert Rd. park and ride or the 90th & Shea Mustang Transit Center. x Ridership will be an educated guess for the first several years and is estimated to be about 800 rides for the first year. x Same rider cost as the RideChoice “Mileage Option” program: Riders pay $3 each way. (400-mile limit per month) x The yearly total cost is estimated to be about $36,225 and the Town can use ALF monies toward the program, however PTF cannot be used after 1/1/2026 for RideChoice. x If ridership increases well beyond expectations, the Town may need to consider other funding options or service changes sooner than anticipated. 515 Express Bus Service x Began October of 2021 as a pilot program, based on RPTA’s recommendation. x Town costs are not dependent on ridership, as most costs are fixed. x Replaced the #514 Scottsdale Express to allow riders quicker options to connect with the existing network of bus and light rail options throughout the region. x 515 Express leaves at 6:19 & 7:04 AM from Fountain Hills. x 515 Express arrives in Fountain Hills at 5:06 & 6:20 PM. x The yearly cost is approximately $130,000 (currently paid with regional public transportation allocations, and ALF monies – no general fund monies). This cost is fixed and does not vary with ridership. x Initial cost estimates were higher due to three trips per day expected; however, with only two trips per day, the cost was lower. x Ridership has been lower than expected. RPTA’s analysis showed as many as 36 daily riders, however only one rider has typically utilized the service. February and March of 2024 had zero riders. RideChoice x Yearly cost of the RideChoice program is dependent on ridership, and has low fixed costs. x Ridership has increased recently as residents understand the more affordable, monthly “Mileage Option” that has been in place since the beginning of 2020. x RideChoice “Mileage Option”: Riders pay $3 each way. (50-mile limit per ride; 400-mile limit per month) x Estimates are for approximately 1,500 total rides for the fiscal year, as compared with the previous 5-year average of approximately 850 rides per year. x The yearly total cost is estimated to be about $75,000 and the Town can use ALF monies toward the program, however PTF cannot be used after 1/1/2026 for RideChoice. Regional Funding Source Details Public Transportation Funds (PTF) Overview x Allocated based on population and regional considerations. x Town allocation has been approximately $82k per year but can vary depending on the services provided and other regional factors. x Cannot be used for RideChoice expenses after 1/1/2026 due to Prop 479 enabling language. x Does not require a yearly application / financial reporting other than listing in the IGA. x Utilized as an offset to charges incurred, so checks are generally not distributed. x Must be allocated toward public transportation projects that meet Americans with Disabilities Act (ADA) requirements. Arizona Lottery Fund (ALF - formerly LTAF II) Overview x Town allocation has averaged approximately $60k per year, based on regional allocation according to population. This amount has been fairly consistent and does not vary with services offered. x Must submit a yearly application and financial report. x Use or Lose (must pay back if not used in three years - no new monies will be distributed if all previous monies have not been spent). x Must be spent on public transportation. x Not required to be spent on ADA accessible projects. Background of Regional Public Transportation Authority RPTA (commonly referred to as Valley Metro) is the regional transit agency for Maricopa County. Created in 1985 with the passage of Proposition 300, RPTA is a political subdivision of Arizona overseen by a 19-member board of elected officials. Membership is open to all municipalities in Maricopa County and to the County government. The current Valley Metro RPTA Board is comprised of members from Avondale, Buckeye, Chandler, El Mirage, Fountain Hills, Gilbert, Glendale, Goodyear, Maricopa County, Mesa, Peoria, Phoenix, Queen Creek, Scottsdale, Surprise, Tempe, Tolleson, Wickenburg, and Youngtown. With the passage of Proposition 400 in November 2004, RPTA is the recipient of the transit portion of the twenty-year countywide 0.5% sales tax fund commencing in 2006 and running through 2025. The Fountain Hills Town Council voted for the Town to become a member of RPTA in December of 2017. Since then, the Town has had a seat on the RPTA Board of Directors. There is no fee to be a member municipality in RPTA. No Change - Status Quo for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25 FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 515 Bus Service Expense (2 Round Trips)(132,394)(122,476)(128,600)(128,600)(128,600)(128,600) 515 Bus Service PTF Allocation (Income)65,039 60,167 64,300 64,300 64,300 64,300 515 Bus Service Net Remaining to be paid by Town (67,355)(62,309)(64,300)(64,300)(64,300)(64,300) RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069)(63,253)(73,414)(80,755)(88,831)(97,714) RideChoice PTF Allocation (Income)17,115 17,628 9,123 0 0 0 RideChoice Net Remaining to be paid by Town (52,954)(45,625)(64,291)(80,755)(88,831)(97,714) Arizona Lottery Fund (ALF) Anticipated Yearly Income 60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463)(185,729)(202,014)(209,355)(217,431)(226,314) Total Anticipated Income 142,409 138,020 133,423 124,300 124,300 124,300 Difference (Expenses More than income)(60,054)(47,709)(68,591)(85,055)(93,131)(102,014) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]##172,133 124,424 55,833 (29,222)(122,353)(224,367) Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, and only available for 1/2 of FY 2025-26. Simple Change: Delete 515 Express - RideChoice Status Quo for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25A FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 515 Bus Service Expense (2 Round Trips)(132,394)(100,028)0 0 0 0 515 Bus Service PTF Allocation + Fares, etc. (Income)65,039 60,167 0 0 0 0 515 Bus Service Net Remaining to be paid by Town (67,355)(39,861)0 0 0 0 RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069)(63,253)(73,414)(80,755)(88,831)(97,714) RideChoice PTF Allocation (Income)C 17,115 17,628 36,707 0 0 0 RideChoice Net Remaining to be paid by Town (52,954)(45,625)(36,707)(80,755)(88,831)(97,714) Arizona Lottery Fund (ALF) (Anticipated Yearly Income)60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463)(163,281)(73,414)(80,755)(88,831)(97,714) Total Anticipated Income 142,409 138,020 96,707 60,000 60,000 60,000 Difference (Expenses More than income)(60,054)(25,261)23,293 (20,755)(28,831)(37,714) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]##172,133 146,872 170,165 149,410 120,579 82,865 Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: The earliest the 515 could be discontinued would be April of 2025 so FY 2024-25 includes these residual amounts. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. A) FY 2024-25 includes both residual 515 bus service amounts (10 months) and two months of "Dial a Ride" bus expenses. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, i.e. only available for 1/2 of FY 2025-26. C) The FY 2025-26 RideChoice PTF allocation would have covered the entire cost of the program, totaling $73,414, due to the funds not being used for the 515 Express. However, due to the Proposition 479 rule discontinuing PTF for RideChoice after January 1, 2026, only half of the year's allocation, amounting to $36,707, will be available. Replace Bus with Expanded Ride Choice - "Dial A Ride Bus Service" for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25A FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 Dial A Ride Bus Service (Expanded RideChoice - no ADA or Age requirement) same morning and afternoon times to and from FH Library instead of 515 Bus Service Expense. (132,394)(106,863)(18,113)(36,225)(36,225)(36,225) Dial A Ride Bus Service PTF Allocation instead of 515 Bus Service PTF Allocation (Income + Fares).65,039 60,167 36,225 0 0 0 Dial A Ride Bus Service instead of 515 Bus Service Net Remaining to be paid by Town.A (67,355)(46,696)18,112 (36,225)(36,225)(36,225) RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069)(63,235)(73,414)(80,755)(88,831)(97,714) RideChoice PTF Allocation (Income)17,115 17,628 23,160 0 0 0 RideChoice Net Remaining to be paid by Town (52,954)(45,607)(50,254)(80,755)(88,831)(97,714) Arizona Lottery Fund (ALF) (Anticipated Yearly Income)60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463)(170,098)(91,527)(116,980)(125,056)(133,939) Total Anticipated Income 142,409 138,020 119,385 60,000 60,000 60,000 Difference (Expenses More than income)(60,054)(32,078)27,858 (56,980)(65,056)(73,939) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]#172,133 140,055 167,913 110,933 45,877 (28,062) Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: The earliest the 515 could be discontinued would be April of 2025 so FY 2024-25 includes these residual amounts. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. A) FY 2024-25 includes both residual 515 bus service amounts (10 months) and two months of "Dial a Ride" bus expenses. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, i.e. only available for 1/2 of FY 2025-26. Transit Option Dates and Budget Impact Option End of Fiscal Year Fully Funded with Operating (ALF) Balance (Balance Depleted Date) Structural Budget Deficit After Operating Balance (ALF) is Fully Depleted* Change in Service Deadline for Valley Metro Notification Status Quo - No Change 6/30/2026 $100,000A 6/30/2025 Simple Change - (Delete 515 Bus & Keep RideChoice in its current form)6/30/2030 $42,000B 6/30/2029 Replace Bus with Expanded RideChoice ("Dial-A-Ride Bus Service")6/30/2028 $75,000C 6/30/2027 * Note: Structural Budget Deficit amount would be required from the General Fund to pay for the service or a reduction in service would be required. A) $100,000 is a rough estimate. Budget deficit projected for FY 2028 = approx. $93k; and $102K in FY 2029 B) $42,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $37k C) $75,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $74K Transit Services Intergovernmental Agreement with Valley Metro Dave Trimble, Deputy Town Manager / Administrative Services Director June 4, 2024 Overview Overview •Each fiscal year Town & Valley Metro enter into an IGA •Most years routine •No General Fund monies currently spent on transit •This year, the anticipated budget deficit is another year closer, and ridership has remained low for the 515 Express Bus service •We are bringing options to Council this year before it becomes a potential impact to the General Fund 1 Overview – Current Services and Budget •Two current transit services •515 Express Bus (Two pickups and drop offs) •RideChoice (Age 65+ and/or those with disabilities eligible) •Two funding sources 1)PTF (Public Transportation Funds / “Prop 400”) •PTF cannot be used for RideChoice after 1/1/2026 2)ALF (Arizona Lottery Funds) •Expenses are projected to be approximately $48,000 more in FY 2025 than PTF & ALF funding. •The town has accumulated a reserve of ALF funds for operations, which is projected to be depleted in FY 2027.2 Alternatives Alternatives •Status Quo = No Change •Simple Change = Discontinue 515 Bus & keep RideChoice in its current form •Expanded RideChoice = Discontinue 515 Bus & offer “Dial A Ride Bus Service” (Expanded RideChoice) instead Three Alternatives: 3 Status Quo – No Changes •515 Express Bus & RideChoice would stay in their current form •Budget estimates indicate changes would need to be effective by FY 2027 •Valley Metro would need to be notified by the end of next fiscal year (6/30/2025) to allow time to implement service changes by the start of FY 2027 4 Simple Change – Discontinue 515 •515 Express Bus would be discontinued & RideChoice would stay in the current form (Age 65+ and/or those with disabilities eligible) •Would not solve the structural funding deficit but would allow the program to be funded without General Fund monies through FY 2030. 5 Expanded RideChoice “Dial A Ride Bus Service” •515 Express Bus would be discontinued •Current RideChoice would continue (only age 65+ &/or people with disabilities eligible) •A new RideChoice expansion called “Dial A Ride Bus Service” would be offered. It would only go to and from the library and the park and ride at Gilbert Rd. / 202 or 90th & Shea. Any resident regardless of age/disability would be eligible. 6 •Would not solve the structural funding deficit but would allow the program to be funded without General Fund monies through FY 2028. Timing & Budget Impact 7 Transit Option Dates and Budget Impact Option End of Fiscal Year Fully Funded with Operating (ALF) Balance (Balance Depleted Date) Structural Budget Deficit After Operating Balance (ALF) is Fully Depleted* Change in Service Deadline for Valley Metro Notification Status Quo - No Change 6/30/2026 $100,000A 6/30/2025 Simple Change - (Delete 515 Bus & Keep RideChoice in its current form)6/30/2030 $42,000B 6/30/2029 Replace Bus with Expanded RideChoice ("Dial-A-Ride Bus Service")6/30/2028 $75,000C 6/30/2027 * Note: Structural Budget Deficit amount would be required from the General Fund to pay for the service or a reduction in service would be required. A) $100,000 is a rough estimate. Budget deficit projected for FY 2028 = approx. $93k; and $102K in FY 2029 B) $42,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $37k C) $75,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $74K Questions? Low-Cost* Transportation Options in Fountain Hills (2024) Service Provider Purpose Type of Transportation Wheelchair Accessible Schedule Qualifications Rider/User Cost Contact 515 Express Bus Service Valley Metro1 General Transportation Fixed: Travel between fixed points along a fixed route, operating on a fixed schedule.Yes Currently the 515 Bus has two trips out to the Park and Ride on Gilbert Rd. & the 202 Freeway & two trips in. Outbound trips are 6:19 AM & 7:04 AM. Inbound arrivals are 5:06 PM & 6:20 PM. None 1 Day = $6.50; 1 Way 1 Ride = $3.25; Monthly = $104 ValleyMetro.org RideChoice Valley Metro2 General Transportation Door to Door: Unrestricted travel between two points within a defined zone. Rides must be within a 50 mile radius of the starting point.Yes Similar to Uber / Lyft; however if riders need a wheelchair accessible vehicle, it is recommended to schedule at least a few days in advance. Riders must pre-qualify through communication with Valley Metro. Users must either be disabled or be age 65 or above. $3 each way, $6 total per round trip4 ValleyMetro.orgAmerican Cancer Society Road to Recovery Program American Cancer Society Transportation to and from treatment for people who have cancer. Door to Door: Unrestricted travel between two points within a defined zone.No Riders are encouraged to schedule as far in advance possible and no later than 25 hours in advance of their scheduled cancer treatment ride. Riders must pre-qualify through the American Cancer Society.Free American Cancer Society 800-227- 2345 Give A Lift Town of Fountain Hills3 Transportation for medical appointments Door to Door: Unrestricted travel between two points within a defined zone. Generally rides are either local or up to approximately 10 miles.No Riders are encouraged to schedule as far in advance possible. Staff will highly recommends scheduling at least four days in advance. Riders must pre-qualify through the Town's volunteer division staff.Free Fountain Hills Volunteer Division 480-816-5108 *For Fountain Hills residents that use these services, the cost per ride is either subsidized or provided by volunteers. Give A Lift and American Cancer Society Road to Recovery rides are free for residents that qualify.1 Valley Metro provides general coordination through an Inter Governmental Agreement with the Town of Fountain Hills. Town pays for any costs above regionally available funding. Costs do not vary with ridership. So far, regional funding has covered all of the 515 bus service costs. Busses are operated by third-party contractors of Valley Metro. 2 Valley Metro provides general coordination for the RideChoice Program through an Inter Governmental Agreement with the Town of Fountain Hills. Town pays for any costs above regionally available funding. Costs vary depending on ridership. So far, regionally available funding has covered all of these costs. Rides are supplied by third-party contractors including Uber, Lyft, and others. 3 The Town of Fountain Hills Volunteer division coordinates the Give A Lift program and rides are supplied by volunteers using their own vehicles . 4 RideChoice rider pricing based on the "Mileage Option" is $3 each way, with restrictions. There is a 50 mile limit each way, and each month the total mileage cannot exceed 400 miles. Under the traditional RideChoice pricing model, riders are charged $3 for the first 8 miles of their trip and then an additional $2 per additional mile, and total trips are limited to 20 per month. For Fountain Hills residents, based on distance from services, most will save money by using the "Mileage Option" versus the traditional pricing model. RideChoice representatives direct riders toward the most advantageaous pricing model. No Change - Status Quo for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25 FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 515 Bus Service Expense (2 Round Trips)(132,394) (122,476) (128,600) (128,600) (128,600) (128,600) 515 Bus Service PTF Allocation (Income)65,039 60,167 64,300 64,300 64,300 64,300 515 Bus Service Net Remaining to be paid by Town (67,355) (62,309) (64,300) (64,300) (64,300) (64,300) RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069) (63,253) (73,414) (80,755) (88,831) (97,714) RideChoice PTF Allocation (Income)17,115 17,628 9,123 0 0 0 RideChoice Net Remaining to be paid by Town (52,954) (45,625) (64,291) (80,755) (88,831) (97,714) Arizona Lottery Fund (ALF) Anticipated Yearly Income 60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463) (185,729) (202,014) (209,355) (217,431) (226,314) Total Anticipated Income 142,409 138,020 133,423 124,300 124,300 124,300 Difference (Expenses More than income)(60,054) (47,709) (68,591) (85,055) (93,131) (102,014) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]##172,133 124,424 55,833 (29,222) (122,353) (224,367) Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, and only available for 1/2 of FY 2025-26. Simple Change: Delete 515 Express - RideChoice Status Quo for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25A FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 515 Bus Service Expense (2 Round Trips)(132,394) (100,028)0 0 0 0 515 Bus Service PTF Allocation + Fares, etc. (Income)65,039 60,167 0 0 0 0 515 Bus Service Net Remaining to be paid by Town (67,355) (39,861)0 0 0 0 RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069) (63,253) (73,414) (80,755) (88,831) (97,714)RideChoice PTF Allocation (Income)C 17,115 17,628 36,707 0 0 0 RideChoice Net Remaining to be paid by Town (52,954) (45,625) (36,707) (80,755) (88,831) (97,714) Arizona Lottery Fund (ALF) (Anticipated Yearly Income)60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463) (163,281) (73,414) (80,755) (88,831) (97,714) Total Anticipated Income 142,409 138,020 96,707 60,000 60,000 60,000 Difference (Expenses More than income)(60,054) (25,261)23,293 (20,755) (28,831) (37,714) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]##172,133 146,872 170,165 149,410 120,579 82,865 Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: The earliest the 515 could be discontinued would be April of 2025 so FY 2024-25 includes these residual amounts. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. A) FY 2024-25 includes both residual 515 bus service amounts (10 months) and two months of "Dial a Ride" bus expenses. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, i.e. only available for 1/2 of FY 2025-26. C) The FY 2025-26 RideChoice PTF allocation would have covered the entire cost of the program, totaling $73,414, due to the funds not being used for the 515 Express. However, due to the Proposition 479 rule discontinuing PTF for RideChoice after January 1, 2026, only half of the year's allocation, amounting to $36,707, will be available. Replace Bus with Expanded Ride Choice - "Dial A Ride Bus Service" for FY 2025 Transit Cash Flow FY 2023-24 FY 2024-25A FY 2025-26B FY 2026-27 FY 2027-28 FY 2028-29 Dial A Ride Bus Service (Expanded RideChoice - no ADA or Age requirement) same morning and afternoon times to and from FH Library instead of 515 Bus Service Expense. (132,394) (106,863)(18,113) (36,225) (36,225) (36,225) Dial A Ride Bus Service PTF Allocation instead of 515 Bus Service PTF Allocation (Income + Fares).65,039 60,167 36,225 0 0 0 Dial A Ride Bus Service instead of 515 Bus Service Net Remaining to be paid by Town.A (67,355) (46,696)18,112 (36,225) (36,225) (36,225) RideChoice Expense (1,500-1,650 Rides per year, net of fares)(70,069) (63,235) (73,414) (80,755) (88,831) (97,714) RideChoice PTF Allocation (Income)17,115 17,628 23,160 0 0 0 RideChoice Net Remaining to be paid by Town (52,954) (45,607) (50,254) (80,755) (88,831) (97,714) Arizona Lottery Fund (ALF) (Anticipated Yearly Income)60,255 60,225 60,000 60,000 60,000 60,000 Total Expenses (202,463) (170,098) (91,527) (116,980) (125,056) (133,939) Total Anticipated Income 142,409 138,020 119,385 60,000 60,000 60,000 Difference (Expenses More than income)(60,054)(32,078)27,858 (56,980)(65,056)(73,939) Cash on Hand Balance [Arizona Lottery Fund (ALF) Balance]##172,133 140,055 167,913 110,933 45,877 (28,062) Note: All amounts except FY 2023-24 are estimates and can vary depending on demand for services and funding availability. Note: The earliest the 515 could be discontinued would be April of 2025 so FY 2024-25 includes these residual amounts. Note: Fiscal Years 26-2029 assume $0 PTF after 1/1/2026 for RideChoice and RideChoice expenses increase 10% per year. A) FY 2024-25 includes both residual 515 bus service amounts (10 months) and two months of "Dial a Ride" bus expenses. B) For FY2025-26 PTF will be unavailable for RideChoice after 1/1/2026, i.e. only available for 1/2 of FY 2025-26. Option End of Fiscal Year Fully Funded with Operating (ALF) Balance (Balance Depleted Date) Structural Budget Deficit After Operating Balance (ALF) is Fully Depleted* Change in Service Deadline for Valley Metro Notification Status Quo - No Change 6/30/2026 $100,000 A 6/30/2025 Simple Change - (Delete 515 Bus & Keep RideChoice in its current form)6/30/2030 $42,000 B 6/30/2029 Replace Bus with Expanded RideChoice ("Dial-A-Ride Bus Service")6/30/2028 $75,000 C 6/30/2027 Transit Option Dates and Budget Impact * Note: Structural Budget Deficit amount would be required from the General Fund to pay for the service or a reduction in service would be required. A) $100,000 is a rough estimate. Budget deficit projected for FY 2028 = approx. $93k; and $102K in FY 2029 B) $42,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $37k C) $75,000 is a rough estimate. Budget deficit for FY 2029 is projected to be about $74K FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 1 TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 2 IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 3 SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 4 SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $62,309.00 for the provision of fixed route bus services. This payment will be broken into quarterly installments of $15,577.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 5 SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of ridechoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 6 SCHEDULE “E” – AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 1 TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 2 IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 3 SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 4 SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through April 19, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $39,861.00 for the provision of fixed route bus services. This payment will be broken into three quarterly installments of $13,287, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 5 SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of ridechoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 6 SCHEDULE “E” – AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 1 TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 2 IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 3 SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 4 SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through April 19, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $39,861.00 for the provision of fixed route bus services. This payment will be broken into three quarterly installments of $13,287, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 5 SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of ridechoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 6 SCHEDULE “D” – RIDE CHOICE CONT. TOWN FUNDED GENERAL PUBLIC DIAL-A-RIDE SERVICE FY2024 – 2025 For the period from April 21, 2025 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $6,835 for the provision of Special RideChoice services from the Fountain Hills Library to either the Mustang Transit Center is Scottsdale, or the Gilbert Road and McDowell P&R on a reservation based system. AM trips will be offered from the library at 6:30 am and 7:00 am, and PM trips will be offered at 5:10 pm and 6:20 pm, all reservation based. This payment will be part of the 4th quarter installment which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. Individuals needing to use the service will register with the RideChoice program and will be enrolled in the 400-mile program. Fare will be $3.00 per trip, and once the 400 mile is reached in any calendar month, the service will not be available until the next calendar month. Total trips to be provided is calculated at 800 annually and approximately 150 for FY2024 - 2025. FOUNTAIN HILLS TRANSIT SERVICES IGA FY 2024-25 7 SCHEDULE “E”– AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 RESOLUTION NO.2014-32 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS,ARIZONA,APPROVING AN INTERGOVERNMENTAL AGREEMENT WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1.The Intergovernmental Agreement with the Regional Public Transportation Authority relating to transit services (the "Agreement")is hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 2.The Mayor,the Town Manager,the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Agreement and to take all steps necessary to cany out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona,June 19,2014. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: cmda M.Kavanagh,Mayor Bevelyn J.Benaer,Tpwn Clerk REVIEWED BY:APPROVED AS TO FORM: Kenneth W.Buchanan,Town Manager Andrew J.McGuire,Town Attorney 2180707.1 2180707.1 EXHIBIT A TO RESOLUTIONNO.2014-32 [Agreement] See following pages. TRANSIT SERVICES AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS ("Member") AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY Contract #124-75-2015 THIS TRANSIT SERVICES AGREEMENT ("Agreement") is made and entered into this 1st day of July,2014 by and between the Town of Fountain Hills,a Arizona municipal corporation (hereinafter referred to as "Member")and the Regional Public Transportation Authority,a political subdivision of the state of Arizona (hereinafter referred to as "RPTA"). Member and RPTA are collectively referred to as the "Parties." RECITALS WHEREAS,Member has statutory authority to provide transit services and to enter into agreements with other entities within Maricopa County to provide transit services (A.R.S. Section 11-951,et seq.); and, WHEREAS,RPTA is a political subdivision of the state of Arizona,established for the purpose of planning and providing public transportation services (A.R.S. Section 48-5121; A.R.S.Section 48-5101,et seq.); and, WHEREAS, as a political subdivision of the state of Arizona RPTA "may contract and enter into stipulations of any nature to do all acts necessary and convenient for the full exercise of its powers granted under A.R.S. Section 48-5101, et seq., including entering into intergovernmental agreements with other governmental entities (A.R.S. Section 11-951,et seq.); and, WHEREAS,RPTA is willing to provide,and Member is willing to purchase or receive transportation services as detailed in this Agreement;and, 1 FOUNTAINHILLS TRANSIT SERVICES IGA 2014 14 WHEREAS,transit activities are one of those types of activities authorized pursuant to the aforementioned statutory and other authority, AGREEMENT NOW,THEREFORE,for and in consideration of the mutual covenants and considerations herein contained,it is agreed by the Parties as follows: SECTION 1.DEFINITIONS The following capitalized terms shall have the following meaning when used in this Agreement,unless a different meaning is clearly intended: "RPTA"means the Regional Public Transportation Authority,a political subdivision of the State ofArizona. "Member"means the Town of Fountain Hills,Arizona municipal corporation and a community within the service area ofthe Regional Public Transportation Authority (RPTA). "Effective Date"means the date on which rights granted hereunder become operative,as specified in Section 6 hereof. "Force Majeure"means any event which: (i)causes either party to be unable to perform under this agreement;and (ii) is outside the reasonable control ofthe party unable to perform and could not be avoided by such party through the exercise of due care.Force Majeure events include,without limitation:terrorists,earthquakes,fires, floods,tornadoes,wars,labor strikes or similar accidents,disputes or similar events. 2 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SECTION 2.SCOPE OF AGREEMENT Duringthe term ofthis agreementRPTAshallprovidethe following services: The Ride Choice Program (Schedule D):Ride Choice is a program which provides subsidized taxicab services to Fountain Hills residents who have qualifying disabilities and/or who are 65 years of age or more. Each qualifying resident will receive up to $100.00 of taxicab serviceper month.Theriderwillpay25%of the cost,andtheTownwillpay the remaining 75%. Americans with Disabilities Act (ADA)Public Transportation Funds (PTF)(Schedule E) TheRPTAshalltransferto the Member funds allocatedby the Boardof the RPTA,and specified in Schedule E, for the purposes of reimbursing Member for the cost to provide Paratransit servicesto ADAcertifiedindividuals.The Membershall submita PTF Reimbursement Request Form,Attachment A, certifying that the costs have been incurred and are eligible for reimbursement. SECTION 3.RPTA'S OBLIGATIONS: 3.1 With respect to the services provided hereunder,RPTA,shall: a.Provide Fixed Route Bus,Dial-a-Ride Paratransit Services or other transit services,administrative services,equipment,personnel and management services directly or through contractors,as provided in this Agreement. The RPTA shall ensure that the contractor(s)are duly qualified,licensed, trained,and have adequate equipment to perform services under this Agreement; b.Draft and secure approval for annual operating budgets; c.Intentionally deleted; d.Administer the RideChoice Program. e.Select,oversee and manage the RideChoice contractor and any subcontractors utilized for this program. 3 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 f. Create marketing materials, including brochures, applications and other documents intended to inform the public about the RideChoice program. g. Accept applications for RideChoice service and make determinations of eligibility based on guidelines agreed to by the parties. h.Forward information for eligible riders to the RideChoice contractor,who will be responsible for enrolling the rider in the program, for providing the fare card and for providing customer service and support to the rider as he/she uses the RideChoice program. i.Providing monthly reports and invoices to the Town. j. Managing the budget which the Town has established for the RideChoice program. 3.2 The RPTA and the Member may conduct service and financial audits,as required, ofany Services provided hereunder. 3.3 By February 21 of each year, the RPTA shall provide the Member with a detailed written budget estimate for the provision of transit Services,including the expected sources and amounts of funding for the next fiscal year.If the Member approves the budget estimate,RPTA shall prepare an amendment to this Agreement for Member approval ofthe budget estimate. SECTION 4.TOWN'S OBLIGATIONS: 4.1 With respect to the services provided hereunder,Member,shall: a.If Member desires services in addition to the Services originally approved in the schedules hereto,Member shall provide funding adequate to finance such services over and above funding provided by the RPTA and Member. b.Intentionally deleted; c. The Member may purchase and install bus stop signs and associated amenities; d. The Member shall provide advice to the RPTA and to any operator providing service required by this Agreement in the preparation and amendment of service plans; 4 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 e.Collaborate with Valley Metro on eligibility guidelines for the RideChoice program. f.Assist Valley metro with marketing and outreach as necessary. g.Establish and communicate the annual budget for the program. 4.2 Member does hereby agree to participate in the Valley Metro Program(s)defined in Section 2 ofthis agreement. 4.3 Transit Life Cycle Program:Intentionally deleted. SECTIONS.TERM OF AGREEMENT This Agreement shall be operative for an indefinite term to be amended on an annual basis as service needs and as Public Transportation Fund (PTF)reimbursements are agreed. The Parties do not intend that the term ofthis Agreement shall exceed any limitation imposed by law, including,without limitation,the laws of the State of Arizona,and agree to comply with any applicable requirements of such laws in connection with any renewal of the term of this Agreement. SECTION 6.EFFECTIVE DATE This Agreement shall take effect only after it has been approved by Member's Council, approved by the RPTA Board of Directors,executed by the duly authorized officials of each of the Parties,approved by the Parties'respective counsel. 5 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SECTION 7.GENERAL CONDITIONS A.Records and Audit All books,accounts,reports,files and other records relating to this Agreement under the custody or control of RPTA or its contractors shall be subject,at all reasonable times,to inspection and audit by Member and RPTA for five (5)years after completion of this Agreement.Such records shall be produced at RPTA offices as and when requested by Member. B.Covenant Against Contingent Fees Both Parties warrant that no person has been employed or retained to solicit or secure this Agreement upon an agreement or understanding for a commission, percentage,brokerage or contingent fee; and that no member of Congress,no member of the Member's Council or the RPTA Board of Directors,and no officer,agent, or employee of the Town or RPTA has any interest,financially or otherwise,in this Agreement. C.Alteration in Character ofWork Minor alterations in the character of work shall be authorized in writing by Member and acknowledged by RPTA by letter. D.Termination (and/or Changes in Service) Member and RPTA hereby agree to full performance of the covenants and obligations contained herein, except that each reserves the right, at its option and sole discretion, to terminate or abandon the service provided for in this Agreement,or any portion thereof. Termination of this Agreement may be at any time and for any reason, with or without cause, upon providing ninety (90) calendar days prior written notice to the other Party. Termination shall be effected by delivery of a Notice of Termination specifying the extent to which performance of work under the 6 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 Agreement is terminated, and the date upon which such termination becomes effective. Upon termination, RPTA shall calculate actual expenses incurred up to and including the date of termination and (if termination was at the election of Member) any penalty or costs whatsoever (including, but not limited to, any costs of such termination as a result of Section 49 U.S.C.1609 [formerly Section 13(c) ofthe Federal Transit Act of1964, as amended] together with any penalty or costs imposed by other funding sources and any related labor costs (the total ofwhich is hereinafter referred to as "termination costs").IfMember has paid RPTA sums in excess ofthe termination costs, RPTA shall refund the excess;ifMemberhas paid RPTA an amount less than the termination costs, then Member shall pay to RPTA an amount equal to the difference between the termination costs and the amount that Member already has paid under this Agreement. Upon termination of this Agreement, all property used in connection with this Agreement will be promptly returned to the Party holding title thereto,not considering any state or federal funding. Final payment shall be made within sixty (60)calendar days after the termination of service. SECTION 8.ADDITIONAL WORK This Section is intentionally left blank. SECTION 9.AGREEMENT NON-ASSIGNABLE RPTA may not assign or otherwise transfer any of its rights or obligations hereunder to a third Party without the express prior written consent of Member,which may be granted or withheld by Member in its sole and absolute discretion.Any assignment or transfer without such prior written consent shall be void. 7 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SECTION 10.INDEMNIFICATION Except for claims arising solely and exclusively from the negligent or willful acts or omissions of Member, its officers, officials, agents or employees (hereinafter referred to as "Indemnitee"), RPTA shall indemnify, defend, save and hold the Indemnitee harmless from and against any and all claims, actions,liabilities,damages,losses, expenses and costs (including court costs, attorneys' fees and costs of claim processing, primary loss investigation and litigation) (hereinafter referred to as "Claims") for bodily injury or personal injury (including death), loss or damage to tangible property: (1) arising under this Agreement, or (2) caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions ofRPTA or any of its owners, officers, directors, agents, contractor or employees, including employees from the Member assigned to work full time for RPTA. It is the specific intent of the Parties to this contract that the Indemnitee shall, in all instances except for loss or damage resulting from the sole and exclusive negligence of the Indemnitee, be indemnified against all liability, loss or damage ofany nature whatever for or on account ofany injuries to or the death of any person or damages to or the destruction ofproperty belonging to any person,arising out of or in any way connected with the performance of this Agreement. SECTION 11.INSURANCE RPTA will maintain in force the insurance program approved the by RPTA Board of Directors and included in RPTA's fiscal year budgets. SECTION 12.DEFAULT Either Party shall be deemed in default under this Agreement upon the failure of such Party to observe or perform any material covenant,condition or agreement on its part to be observed or performed hereunder,and the continuance ofsuch failure for a period ofthirty (30) days after written notice by the other Party, as required herein. Such notice shall specify the failure and request it be remedied, unless the Party giving notice agrees in writing to an extension of the time period prior to its expiration.However,if the failure stated in the notice 8 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 cannot be corrected within the applicable period,it will not give rise to a default hereunder if corrective action is instituted within the applicable period and diligently pursued until the failure is corrected.In the event of a default hereunder,the non-defaulting Party may have a breach of contract claim and remedy against the other in addition to any remedy provided or permitted by law;provided,however,that no remedy that would have the affect ofamending any provisions ofthis Agreement shall become effective without the formal amendment ofthis Agreement. SECTION 13.ISSUE RESOLUTION Any dispute arising out of the interpretation of any provision of this Agreement,any policy matter or the determination of an issue offact,which dispute is not resolved at stafflevel, shall be referred to RPTA's ChiefExecutive Officer and a representative designated by Member. If,after good faith negotiations aimed at reaching an amicable solution,a dispute cannot be resolved,the dispute shall be presented to the RPTA Board of Directors for resolution.If not resolved at this level, the dispute may be brought before a court of competent jurisdiction in Maricopa County,Arizona. SECTION 14.NOTICE Any notice,consent or other communication ("Notice")required or permitted under this Agreement shall be in writing and either delivered in person,deposited in the United States mail, postage paid,registered or certified mail,return receipt requested,or deposited with any commercial air courier or express service addresses as follows: Ifintended for RPTA: Regional Public Transportation Authority Attention:General Counsel 101 N.1st Avenue, Suite 1300 Phoenix,AZ 85003 9 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 Ifintended for Member: Town ofFountain Hills Attn:Kenneth W.Buchanan,Town Manager 16705 East Avenue ofthe Fountains Fountain Hills,Arizona 85268 with copy to: Gust Rosenfeld,PLC Attn:Andrew J.McGuire One East Washington Street,Suite 1600 Phoenix,Arizona 85004 Notice shall be deemed received at the time it is personally served or, on the second day after its deposit with any commercial air courier or express service,ifmailed,ten (10)days after the notice is deposited in the United States mail as provided.Any time period stated in a Notice shall be computed from the time the Notice is deemed received.Either Party may change its mailing address or the person designated to receive notice by notifying the other Party as provided in this Section. SECTION 15.AMENDMENT This Agreement may be modified or amended only by a written document executed by both RPTA and Member,approved as to form by the Member Attorney,and may be filed with the Member's Clerk. Such document shall expressly state that it is intended by the Parties to amend specifically identified terms and conditions ofthis Agreement. SECTION 16.INTEGRATION This Agreement,together will the exhibits, instruments and other documents required to be executed and delivered in connection hereto represents the entire agreement of the parties with respect to the subject matter hereof, and all agreements entered into prior hereto with respect to the subject matter hereof are revoked and superseded by this Agreement, and no representations,warranties,inducements or oral agreements have been made by any of the 10 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 parties except as expressly set forth herein, or in other contemporaneous written agreements. This Agreement may not be changed,modified or rescinded except in writing,signed by all parties hereto,and any attempt at oral modification of this Agreement shall be void and of no effect. SECTION 17.APPLICABLE LAW AND LITIGATION This Agreement shall be governed by,and construed in accordance with,the laws of the State ofArizona.Any and all litigation between the Parties arising from this Agreement shall be litigated solely in the appropriate state court located in Maricopa County,Arizona. SECTION 18.NON-WAIVER No covenant or condition ofthis Agreement may be waived by any Party,unless done so in writing.Forbearance or indulgence by any Party in any regard whatsoever shall not constitute a waiver ofthe covenants or conditions to be performed by the other. SECTION 19.SEVERABILITY Any provision ofthis Agreement that is prohibited or unenforceable under the laws ofthe State ofArizona shall be ineffective to the extent ofsuch prohibition or unenforceability without invalidating the remaining provisions hereof. SECTION 20.BENEFIT AND BINDING EFFECT The terms and provisions of this Agreement shall inure to the benefit of and are binding on RPTA and Member and their respective successors and permitted assigns. SECTION 21.SURVIVAL The indemnifications and limitations on liability provided in this Agreement shall have full force and effect notwithstanding any other provisions of this Agreement and shall survive any termination or expiration thereof. SECTION 22.FURTHER ASSURANCES The Parties hereto shall execute such other documents and take such other actions as may be reasonably necessary or proper to achieve the intent and purposes hereof. 11 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SECTION 23.CONFLICTS OF INTEREST All Parties hereto acknowledge that this Agreement is subject to cancellation pursuant to the provisions ofSection 38-511,Arizona Revised Statutes. SECTION 24.Intentionally deleted. SECTION 25.CONSTRUCTION AND INTERPRETATION OF AGREEMENT This Agreement,and each of its provisions,exhibits,terms and conditions,has been reached through negotiations between the Parties. Accordingly, each of the Parties expressly acknowledges and agrees that this Agreement shall not be deemed to have been authored, prepared or drafted by any particular Party, and that the rule of construction that resolves ambiguities against the drafting party shall not be employed in the interpretation of this Agreement. SECTION 26.THIRD-PARTY BENEFICIARIES This Agreement is intended to benefit the corporate and municipal interests ofRPTA and Member alone, and no other person shall claim any implied right,benefit or interest in such services.The Parties do not intend to create rights in or remedies to any third party as a beneficiary of this Agreement or of any duty,covenant,obligation or undertaking established under this Agreement. SECTION 27.POLICE POWER The Parties acknowledge the right vested in Member pursuant to general law to exercise its police power for the protection of the health,safety and welfare of its constituents and their properties.Nothing in this Agreement shall be construed as precluding Member from exercising such powers in connection with the subject matter hereof. 12 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SECTION 28. A.COMPLIANCE WITH THE IMMIGRATION REFORM AND CONTROL ACT of 1986 (IRCA)and with A.R.S.§23-211 - §23-214. RPTA understands and acknowledges the applicability of IRCA and of §23-211 through § 23-214, Arizona Revised Statutes (A.R.S.), to it. RPTA shall comply with IRCA and with A.R.S. §23-211 through §23-214 in performing under this Agreement.To ensure that RPTA and its subcontractors complying with the provisions ofthis Section,Member shall have the right to inspect the personnel and related records and papers of RPTA and of its subcontractors pertaining to individuals performing work under this Agreement. Further,Member is prohibited by A.R.S. § 41-4401 from awarding an Agreement to any contractor who fails, or whose subcontractors fail, to comply with A.R.S.§23-214(A).For this reason,RPTA shall ensure that both it and each of its subcontractors are in compliance with the requirements of A.R.S.§23-214(A).In addition,both RPTA and each of RPTA's subcontractors shall warrant their compliance with all federal immigration laws and regulations that relate to their employees and their compliance with A.R.S.§23-214(A). A breach of any of the provisions of this Section shall be deemed a material breach of this Agreement and is subject to penalties up to and including termination ofthe Agreement. SECTION 29.COMPLIANCE WITH THE E-VERIFY PROGRAM 29.1 Warrant of Compliance -Under the provisions of A.R.S.§41-4401,both Parties warrant to the other that each Party will comply with all Federal Immigration laws and regulations that relate to their employees and that each now complies with the E-Verify Program under A.R.S.§23-214(A). 29.2 Breach of Warranty - A breach of this warranty will be considered a material breach of this Agreement and may subject the breaching party to penalties up to and including termination ofthis Agreement. 29.3 Right to Inspect -Both Parties retain the legal right to inspect the papers of any 13 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 employee who works on this Contract or subcontract to ensure compliance with the warranty given above. 29.4 Random Verification -Either Party may conduct a random verification of the employment records ofthe other to ensure compliance with this warranty. 29.5 Federal Employment Verification Provisions - No Material Breach. A Party will not be considered in material breach ofthis Agreement if it establishes that it has complied with the employment verification provisions prescribed by 8 USCA §1324(a) and (b)of the Federal Immigration and Nationality Act and the E-Verify requirements prescribed by A.R.S. §23- 214(A). 29.6 Inclusion of Article in Other Contracts -The provisions of this Article must be included in any contract either Party enters into with any and all of its contractors or subcontractors who provide services under this Agreement. SECTION 30.CIVIL RIGHTS The parties agree that as a condition of this Agreement they will each comply with all applicable civil rights laws and regulations,in accordance with applicable Federal directives, except to the extent that the Federal government determines otherwise in writing.These include, but are not limited to,those provisions of Section 12 of that certain United States of America Department ofTransportation Federal Transit Administration Master Agreement,dated October 1, 2009, as may be amended from time to time,which provisions are hereby incorporated by reference. SECTION 31.SUBJECT TO APPROPRIATIONS The Town is obligated only to pay its obligations set forth in the Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town's then current fiscal year. The Town's obligations under this Agreement are current expenses subject to the "budget law" and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds 14 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 to pay its Agreement obligations,this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved ofany subsequent obligation under this Agreement.The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town's obligations set forth in this Agreement tn any-budget in any fiscal year other than the fiscal year in which the Agreement is executed and delivered.The Town shall be the sole judge and authority in determining the availability offunds for its obligations under this Agreement.The Town shall keep RPTA informed as to the availability of funds for this Agreement. The obligation ofthe Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. RPTA hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination ofthis Agreement pursuant to this section. SECTION 32.INCORPORATION OF EXHIBITS For each year during the term of this Agreement and in coordination with RPTA's adopted fiscal year budget process,Schedules hereto shall be revised and incorporated into this Agreement and made a part hereof as though fully set forth herein. Schedule "A"Intentionally left blank Schedule "B"Intentionally left blank Schedule "C"Intentionally left blank Schedule "D"Ride Choice Schedule "E"Americans with Disabilities Act (ADA)Public Transportation Fund (PTF) Schedule "F"Intentionally left blank Schedule "G"Intentionally left blank 15 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 IN WITNESS WHEREOF,the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) Stephen Gr Banta,ChiefExecutive Officer APPROVED AS TO FORM: ichael J./Ladino,General Counsel TOWN OF FOUNTAIN HILLS (MEMBER) Linda M.Kavanagh,Mayor, Bevelyn J.Bender,Town Clerk APPROVED AS TO FORM: By:. Andrew J.McGuire,Town Attorney 16 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SCHEDULE "A"INTENTIONALLY LEFT BLANK SCHEDULE "B"INTENTIONALLY LEFT BLANK SCHEDULE "C"INTENTIONALLY LEFT BLANK 17 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SCHEDULE "D"-RIDE CHOICE The Town of Fountain Hills agrees to participate and financially support the RideChoice Transportation Services program for Fiscal Year 2014-2015.The Town of Fountain Hills shall fund this project in the amount of$28,930.00 for the period July 1, 2014 to June 30, 2015. The Town of Fountain Hills will pay the RPTA for the project in twelve (12) monthly installments of $2,410.83.Payment of invoices shall become due within thirty (30)calendar days after the receipt ofan invoice from RPTA. Regional Public Transportation Authority RideChoice Program Town ofFountain Hills Fiscal Year 2014 -2015 Funding: PTF ADA Funds $36,400 Coupon Revenue 13,440 City Contributions 28,930 Total Funding $78,770 Expenditures: Payments to Taxi Cab Companies $57,670 Dialysis Voucher Program 0 Program Cost $57,670 Agency Staff,Overhead,Program Mgmt.16,100 One Time Setup Fee 5,000 Total Expenditures $78,770 18 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SCHEDULE "D"-RIDE CHOICE Cont. RIDECHOICE PROGRAM RideChoice is the name of the program that includes the RideChoice Medical Trip Card and the RideChoice Fare Card. RPTA shall provide the services required to administer, market and manage the Ride Choice program. The participating City will pay for costs of these Alternative Transportation Services Programs. RIDECHOICE MEDICAL TRIP CARD -Intentional deleted. RIDECHOICE FARE CARD The RideChoice Fare Card program is available to seniors and individuals with disabilities who reside in the cities of Mesa,Chandler and Tempe and the Town of Fountain Hills. Any value up to a maximum of $100 per month may be purchased/added to a customer's card. How it Works •Individuals must complete a RideChoice application which is intended to gather information needed to verify the individual's eligibility for RideChoice. •Upon receipt of a completed application,Valley Metro staffwill review the application and make a determination ofeligibility. •Once an individual is deemed eligible,Valley Metro will forward the individual's name, address and other required information to the RideChoice contractor.The RideChoice contractor will create an electronic account for the new RideChoice customer. • An eligible RideChoice customer will receive a letter indicating eligibility and a RideChoice Fare Card. Once notified ofhis/her eligibility,the RideChoice customer will be able to pay up to $25 per month to his/her account. Payments may be made via the Internet or by mail. 19 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 • Upon receipt ofa payment, the RideChoice contractor will add four times the value of the customer's payment to the customer's RideChoice account. This value will be available to the rider via his/her RideChoice Fare Card.Riders can make payments in any increment up to a total of $25 per month, and riders can carry unused RideChoice account values forward from one month to the next.At no time can a rider's RideChoice account accumulate more than $300. •Once the RideChoice Customer's account is established and funds are deposited,the customer can use any of approximately eight taxicab and transportation providers enrolled as RideChoice providers.These companies are under subcontracts to our RideChoice contractor.When taking a trip on RideChoice,the customer calls the company ofchoice,indicates that he/she is a RideChoice customer,and schedules his/her trip in the same manner that any other taxicab customer does so. • At the time of the trip, the customer swipes his/her RideChoice card upon entering the vehicle and upon exiting the vehicle.This creates a record of the beginning and ending points ofthe trip,along with the date and the identity ofthe rider.Upon the conclusion of the trip, the value of the trip is automatically deducted from the rider's RideChoice account. •Approximately three weeks after the end of each month,the RideChoice contractor provides Valley Metro with an electronic file, showing all RideChoice trips taken. Data includes the date, time,pick-up and drop-off locations, the rider's name, the mileage and the cost of the trip.Valley Metro uses this information to allocate RideChoice costs among the participating cities. Valley Metro provides each participating city with a detailed report showing its share of the RideChoice service. • Because funds may be limited, Valley metro can cap enrollment and/or adjust the subsidy for a given city or town. Valley Metro and the Town will establish a cap based on available funding. This cap may be adjusted by Valley Metro at the direction of Fountain Hills, based on available funds or changes in the amount of service to be provided to each eligible participant.Initially,this cap is set at 40 participants.Once the cap is reached, no new participants will be enrolled.Instead,qualified residents will be placed on a waiting list.Ifand when participants drop offthe service and/or in 20 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 the event that Fountain Hills raises the cap,Valley Metro will enroll qualified residents on a first come, first served basis until the cap is again reached.This procedure may be amended by the mutual consent ofthe parties. 21 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SCHEDULE "E"-AMERICANS WITH DISABILITIES ACT (ACT)-PUBLIC TRANSPORTATION FUNDS (PTF)AVAILABILITY For the period July 1,2014 to June 30, 2015 the maximum amount of Public Transportation Funds (PTF)available for the Town of Fountain Hills's is $36,400.00.The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount.A final reconciliation at fiscal year-end will be performed and adjustments,ifnecessary,will be made using actual ADA eligible costs. Any remaining ADA PTF funds not credited up to the maximum may be requested by Town for other ADA certified rider eligible expenses,and certified by the Town's chief financial officer or designee.RPTA will reimburse Town within thirty (30)business days based upon availability of funds.Town may request that reimbursements be made electronically.Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount:$36,400.00 22 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 SCHEDULE "F"INTENTIONALLY LEFT BLANK SCHEDULE "G"INTENTIONALLY LEFT BLANK 23 FOUNTAINHILLS TRANSIT SERVICES IGA 2014 14 0># ATTACHMENT "A"-PTF EXPENSE REIMBURSMENT REQUEST Regional Public Transportation Authority PTF Expenditure Reimbursement Request 1he information provided will be used bythe Regional Public Transportation Authority(RPTA)lo monitor designated lead agency cash flowto ensure compliance withARS48-5103. Nofurthermonies may be paid out underthis programunless this report is completedand filed as required. RECIPIENT ORGANIZATION NAME AND ADDRESS TOTAL ELIGIBLE COSTS TOTAL PREVIOUS PAYMENTS CURRENT PAYMENT REQUESTED REMAINING FUNDING PROJECTAGREEMENT NUMBER REPORTING PERIOD (Datos) FROM: REQUEST NO. TO: TOTAL PTF SHARE $S -- $S "~ s $ -- s s -- REQUIRED SIGNATURE This document must be signed by the recipient's Chief Financial Officer or their designated representative. CERTIFICATION i certifythe financial expenditures submitted for reimbursement withthis report, including supporting documentation, are eligible and allowable expenditures consistent with the project goals and requirements,have not been previously requested,and that payment is due.I also certify that all matching requirements have been met and sufficient documentation exists in our files and are available upon request or in the eventof an audit. SIGNATURE OF AUTHORIZEDCERTIFYING OFFICIAL DATE REQUEST SUBMITTED TYPED OR PRINTED NAME ANDTITLE TELEPHONE Instructions 1.Keep a copy of everything submitted. 2. Allproject records,including financial records,must be maintained for 3 years beyond project completion. For RPTAuse only Date request received: Approved for funds availability Life cycle compliance review (signature/date) "icr Date of funds transfer 24 FOUNTAIN HILLS TRANSIT SERVICES IGA 2014 15 RESOLUTION 2024-30 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AMENDMENTS TO THE INTERGOVERNMENTAL AGREEEMENTS WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Amendments to the Intergovernmental Agreements with the Regional Public Transportation Authority relating to transit services (the “Amendments”) are hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Amendments and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 04, 2024. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: __________________________________ ________________________________ MAYOR TOWN CLERK REVIEWED BY: APPROVED AS TO FORM: __________________________________ ________________________________ Town Manager Town Attorney RESOLUTION 2024-30 TOWN OF FOUNTAIN HILLS, ARIZONA INTERGOVERNMENTAL AGREEMENT WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES (EXHIBIT A) TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $62,309.00 for the provision of fixed route bus services. This payment will be broken into quarterly installments of $15,577.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of RideChoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “E” – AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 RESOLUTION 2024-30 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AMENDMENTS TO THE INTERGOVERNMENTAL AGREEEMENTS WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Amendments to the Intergovernmental Agreements with the Regional Public Transportation Authority relating to transit services (the “Amendments”) are hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Amendments and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 04, 2024. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: __________________________________ ________________________________ MAYOR TOWN CLERK REVIEWED BY: APPROVED AS TO FORM: __________________________________ ________________________________ Town Manager Town Attorney RESOLUTION 2024-30 TOWN OF FOUNTAIN HILLS, ARIZONA INTERGOVERNMENTAL AGREEMENT WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES (EXHIBIT A) TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through April 19, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $39,861.00 for the provision of fixed route bus services. This payment will be broken into three quarterly installments of $13,287, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of RideChoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “E” – AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 RESOLUTION 2024-30 A RESOLUTION OF THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS, ARIZONA, APPROVING AMENDMENTS TO THE INTERGOVERNMENTAL AGREEEMENTS WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES. BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF FOUNTAIN HILLS as follows: SECTION 1. The Amendments to the Intergovernmental Agreements with the Regional Public Transportation Authority relating to transit services (the “Amendments”) are hereby approved in substantially the form and substance attached hereto as Exhibit A and incorporated herein by reference. SECTION 2. The Mayor, the Town Manager, the Town Clerk and the Town Attorney are hereby authorized and directed to cause the execution of the Amendments and to take all steps necessary to carry out the purpose and intent of this Resolution. PASSED AND ADOPTED by the Mayor and Council of the Town of Fountain Hills, Arizona, June 04, 2024. FOR THE TOWN OF FOUNTAIN HILLS:ATTESTED TO: __________________________________ ________________________________ MAYOR TOWN CLERK REVIEWED BY: APPROVED AS TO FORM: __________________________________ ________________________________ Town Manager Town Attorney RESOLUTION 2024-30 TOWN OF FOUNTAIN HILLS, ARIZONA INTERGOVERNMENTAL AGREEMENT WITH THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY RELATING TO TRANSIT SERVICES (EXHIBIT A) TRANSIT SERVICES AMENDMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND THE REGIONAL PUBLIC TRANSPORTATION AUTHORITY CONTRACT # 124-75-2025-08-00 THIS AMENDMENT dated this 1st day of July 2024, amends the following items of the Transit Services Agreement Contract # 124-75-2024 entered into between the Town of Fountain Hills and the Regional Public Transportation Authority, dated the 1st day of July 2014 as amended July 1, 2015, July 1, 2017, July 1, 2018, July 1, 2019, July 1, 2021, July 1, 2022, and July 1, 2023. The following Schedules replace those Schedules of the agreement entered into July 1, 2023. The attached Schedule A replaces and supersedes Schedule A entered into July 1, 2023. The attached Schedule B replaces and supersedes Schedule B entered into July 1, 2023. The attached Schedule D replaces and supersedes Schedule D entered into July 1, 2023. The attached Schedule E replaces and supersedes Schedule E entered into July 1, 2023. All other terms of the Parties Transit Services Agreement dated July 1, 2014, remain unchanged and in full force and effect. IN WITNESS WHEREOF, the Parties have each executed this Agreement as of the date first set forth above. REGIONAL PUBLIC TRANSPORTATION AUTHORITY (RPTA) By: _______________________________________ Jessica Mefford-Miller, Chief Executive Officer APPROVED AS TO FORM: By: ________________________________________________ Michael Wawro, Chief Legal Officer TOWN OF FOUNTAIN HILLS (MEMBER) By: __________________________________________ Rachael Goodwin, Town Manager By: Linda Mendenhall, Town Clerk APPROVED AS TO FORM: By: __________________________________________ Aaron D. Arnson, Town Attorney SCHEDULE “A”- REGIONALLY FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 Regionally Funded Fixed Route Bus Service $60,167.00 (including express) The above line represents the value of transit service paid for by Proposition 400 funds to the benefit of the Town of Fountain Hills. The calculation to derive this figure is daily revenue miles of service x number of service days x cost per revenue mile of service. SCHEDULE “B” – TOWN FUNDED FIXED ROUTE BUS SERVICE FY2024 - 2025 For the period from July 1, 2024 through April 19, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $39,861.00 for the provision of fixed route bus services. This payment will be broken into three quarterly installments of $13,287, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “D” – RIDE CHOICE FY 2024-25 For the period from July 1, 2024 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $45,625.00 for the provision of RideChoice services. This payment will be broken into quarterly installments of $11,406.25, which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. SCHEDULE “D” – RIDE CHOICE CONT. TOWN FUNDED GENERAL PUBLIC DIAL-A-RIDE SERVICE FY2024 – 2025 For the period from April 21, 2025 through June 30, 2025, the Town of Fountain Hills will pay the Regional Public Transportation Authority a total of $6,835 for the provision of Special RideChoice services from the Fountain Hills Library to either the Mustang Transit Center is Scottsdale, or the Gilbert Road and McDowell P&R on a reservation based system. AM trips will be offered from the library at 6:30 am and 7:00 am, and PM trips will be offered at 5:10 pm and 6:20 pm, all reservation based. This payment will be part of the 4th quarter installment which shall be due and payable within thirty (30) calendar days of the receipt of an invoice from RPTA. IGA billings will be processed for the full fiscal year based on the above referenced installments. A final invoice will occur once the final recon has been completed after our year end close. This final invoice and payment/refund may be adjusted based on the extent to which the actual cost of service is higher or lower than the budget amount for service. Individuals needing to use the service will register with the RideChoice program and will be enrolled in the 400-mile program. Fare will be $3.00 per trip, and once the 400 mile is reached in any calendar month, the service will not be available until the next calendar month. Total trips to be provided is calculated at 800 annually and approximately 150 for FY2024 - 2025. SCHEDULE “E”– AMERICANS WITH DISABILITIES ACT (ADA) – PUBLIC TRANSPORTATION FUNDS (PTF) AVAILABILITY FY 2024-25 For the period July 1, 2024, to June 30, 2025, the maximum amount of Public Transportation Funds (PTF) available for the Town of Fountain Hills is $77,795.00. The PTF will pay actual costs for ADA trips and other requests for Paratransit service made by ADA certified Riders up to the maximum amount. A final reconciliation at fiscal year-end will be performed and adjustments, if necessary, will be made using actual ADA eligible costs. Any remaining ADA PTF funds not used up to the maximum reimbursements may be requested by Town for other ADA certified rider eligible expenses, and certified by the Town’s chief financial officer or designee. RPTA will reimburse Town within thirty (30) business days based upon availability of funds. Town may request that reimbursements be made electronically. Wire transfers must be pre-arranged through the RPTA Finance Department. Maximum amount FY 2024-25 $77,795.00 ITEM 9. F. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 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 AND POSSIBLE ACTION: Approval of Cooperative Purchasing Agreement 2024-067 with Empire Caterpillar.  Staff Summary (Background) Urbanization, development, and changing weather patterns affect the quantity of stormwater and sediment flows. It is important for the Town to manage changing conditions as well as maintain and monitor existing drainage infrastructure. Proper management of the stormwater drainage system ensures that impacts to motorists and Town residents are minimized, and the stormwater runoff is responsibly conveyed.   Maintaining an adequate stormwater collection and conveyance system is a combined and cooperative effort between Public Works, Engineering, and the Street Department that requires the use of specialized heavy equipment.   Currently, the Town has a small dump truck, backhoe, power broom and gannon tractor for storm sediment removal and maintenance of washes, streets, and drainage structures.   When cleaning confined small spaces (under bridges, larger drainage pipes, etc.), the equipment utilized is smaller in nature. For the past several years, the Town has utilized contracts or rented specialized equipment for these purposes.   Growing demand for these specialized services has created long waiting periods and often delayed the removal of sediment by several months, causing a backlog of maintenance projects.   Having spent three years researching and discussing this issue with the Town Manager, similar communities, rental companies, and contractors, the Public Works Department is requesting approval to purchase a skid steer loader and associated auxiliary attachments.   A skid-steer is an important piece of equipment for the Public Works Department and is used for such tasks as wash maintenance, sediment removal, brush removal, street repairs, parks maintenance, as well as many one-off jobs known to come up. Many of these are off-road and require a smaller piece of equipment that can maneuver in tight spaces and on different surfaces.   There are several accompanying attachments/components that staff are requesting approval to purchase with the skid steer loader. Items such as a pickup sweeper, brush bucket that will  provide important versatility needed in the field.   Skid-steer loaders are on the Arizona State Purchasing Contract and staff have looked at the options available. In the end, working with Empire in Mesa makes the most sense and is very convenient for service and parts. The Public Works Department staff has chosen the Caterpillar 262D3 Cab XPS Compact Track Loader as the proper unit to purchase for the needs of the Department. The state contract price for the skid steer and auxiliary attachments is $100,005.65 There is adequate funding in the Environmental Fund to purchase the Caterpillar 262D3 Cab XPS Compact Track Loader. During the February Budget Workshop Council gave direction to expend the remaining money from the Environmental Fund and sunset the budgetary line item as this fund no longer has a dedicated revenue source. Using the Environmental Fund for this purchase is consistent with the intended purpose of this fund. Related Ordinance, Policy or Guiding Principle Public Works Mission Statement Risk Analysis Not approving the purchase will delay maintenance and sediment removal from streets after storms.  Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends approval of the Caterpillar 262D3 Cab XPS Compact Track Loader as presented SUGGESTED MOTION MOVE to approve the purchase of a Caterpillar 262D3 Cab XPS Compact Track Loader and accompanying  attachments/components from Empire Caterpillar for the amount of $100,005.65  Fiscal Impact Fiscal Impact:$100,005.65 Budget Reference:N/A Funding Source:Environmental Fund If Multiple Funds utilized, list here:N/A Budgeted: if No, attach Budget Adjustment Form:N/A Attachments Cooperative Purchasing Agreement  Qoute  Underlying Agreement  Form Review Inbox Reviewed By Date Public Works Director (Originator)Justin Weldy 05/23/2024 04:06 PM Finance Director David Pock 05/28/2024 08:38 AM Town Attorney Linda Mendenhall 05/28/2024 11:21 AM Public Works Director (Originator)Justin Weldy 05/28/2024 12:03 PM Town Attorney Aaron D. Arnson 05/29/2024 12:49 PM Town Manager Rachael Goodwin 05/29/2024 02:19 PM Form Started By: Justin Weldy Started On: 05/22/2024 03:45 PM Final Approval Date: 05/29/2024  1 Contract No. 2024-067 COOPERATIVE PURCHASING AGREEMENT BETWEEN THE TOWN OF FOUNTAIN HILLS AND EMPIRE SOUTHWEST, LLC DBA EMPIRE MACHINERY THIS COOPERATIVE PURCHASING AGREEMENT (this “Agreement”) is entered into upon execution, between the Town of Fountain Hills, an Arizona municipal corporation (the “Town”), and Empire Southwest, LLC, a Delaware limited liability company (the “Contractor”), dba Empire Machinery. RECITALS A.After a competitive procurement process (Solicitation), the State of Arizona, by and through the Arizona Department of Transportation (“State” or “ADOT”) entered into Contract No. CTR052847, dated December 4, 2020, as amended (collectively, the “State Contract”) for the Contractor to provide statewide heavy equipment including accessories. A copy of the State Contract is incorporated herein by reference, to the extent not inconsistent with this Agreement. B.The Town is permitted, pursuant to Section 3-3-27 of the Town Code, to make purchases under the State Contract, at its discretion and with the agreement of the awarded Contractor, and the State Contract permits its cooperative use by other public entities, including the Town. C.The Town and the Contractor desire to enter into this Agreement for the purpose of (i) acknowledging their cooperative contractual relationship under the State Contract and this Agreement, (ii) establishing the terms and conditions by which the Contractor may provide statewide heavy equipment including accessories (the “Materials and Services”), and (iii) setting the maximum aggregate amount to be expended pursuant to this Agreement related to the Materials and Services. AGREEMENT NOW, THEREFORE, in consideration of the foregoing introduction and recitals, which are incorporated herein by reference, the following mutual covenants and conditions, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Town and the Contractor hereby agree as follows: 1.Term of Agreement. This Agreement shall be effective as of the date of execution and attested to by the Town Clerk pursuant to Section 3-3-31 of the Town Code, and shall remain in full force and effect until December 3, 2024 (the “Initial Term”), unless terminated as otherwise provided in this Agreement or the State Contract. After the expiration of the Initial Term, this Agreement may be renewed for up to four successive one-year terms (the “Renewal Term”) if: (i) it is deemed in the best interests of the Town, subject to availability and 2 appropriation of funds for renewal in each subsequent year, (ii) the term of the State Contract has not expired or has been extended, (iii) at least 30 days prior to the end of the then-current term of this Agreement, the Contractor requests, in writing, to extend this Agreement for an additional one-year term and (iv) the Town approves the additional one-year term in writing (including any 3 price adjustments approved as part of the State Contract), as evidenced by the Town Manager’s signature thereon, which approval may be withheld by the Town for any reason. The Contractor’s failure to seek a renewal of this Agreement shall cause this Agreement to terminate at the end of the then-current term of this Agreement; provided, however, that the Town may, at its discretion and with the agreement of the Contractor, elect to waive this requirement and renew this Agreement. The Initial Term and any Renewal Term(s) are collectively referred to herein as the “Term.” Upon renewal, the terms and conditions of this Agreement shall remain in full force and effect. 2.Scope of Work. Contractor shall provide to the Town the Services under the terms and conditions of the State Contract (attached hereto as EXHIBIT A and incorporated by this reference) and according to the specifications set forth in the Contractor’s Proposal attached hereto as Exhibit B and incorporated herein by reference. 2.1 Inspection; Acceptance. All Materials and Services are subject to final inspection and acceptance by the Town. Materials failing to conform to the requirements of this Agreement and/or the State Contract will be held at Contractor’s risk and may be returned to the Contractor. If so returned, all costs are the responsibility of the Contractor. Upon discovery of non -conforming Materials or Services, the Town may elect to do any or all of the following by written notice to the Contractor: (i) waive the non-conformance; (ii) stop the work immediately; or (iii) bring Materials or Services into compliance and withhold the cost of same from any payments due to the Contractor. 2.2 Cancellation. The Town reserves the right to cancel any work order within a reasonable time after issuance. Should a work order be canceled, the Town agrees to reimburse the Contractor, but only for actual and documentable costs incurred by the Contractor due to and after issuance of the work order. The Town will not reimburse the Contractor for any costs incurred after receipt of the Town notice of cancellation, or for lost profits, shipment of product prior to issuance of a work order or for anything not expressly permitted pursuant to this Agreement. 3.Compensation. The Town shall pay Contractor an amount not to exceed $100,005.65 (including all renewals) for the Materials and Services at the rates set forth in the State Contract and as more particularly set forth in Exhibit B. 4.Payments. The Town shall pay the Contractor monthly (and the Contractor shall invoice monthly), based upon acceptance and delivery of Materials and/or Services performed and completed to date, and upon submission and approval of invoices. Each invoice shall (i) contain a reference to this Agreement and the State Contract and (ii) document and itemize all work completed to date. The invoice statement shall include a record of materials delivered, time expended, and work performed in sufficient detail to justify payment. Additionally, invoices submitted without referencing this Agreement and the State Contract will be subject to rejection and may be returned. All invoices and statements shall be emailed to accountspayable@fountainhillsaz.gov. 5.Records and Audit Rights. To ensure that the Contractor and its subcontractors are complying with the warranty under Section 6 below, Contractor’s and its subcontractors’ 4 books, 5 records, correspondence, accounting procedures and practices, and any other supporting evidence relating to this Agreement, including the papers of any Contractor and its subcontractors’ employees who perform any work or services pursuant to this Agreement (all of the foregoing hereinafter referred to as “Records”), shall be open to inspection and subject to audit and/or reproduction during normal working hours by the Town, to the extent necessary to adequately permit evaluation of the Contractor’s and its subcontractors’ compliance with the Arizona employer sanctions laws referenced in Section 6 below. To the extent necessary for the Town to audit Records as set forth in this Section, Contractor and its subcontractors hereby waive any rights to keep such Records confidential. For the purpose of evaluating or verifying such actual or claimed costs or units expended, the Town shall have access to said Records, even if located at its subcontractors’ facilities, from the effective date of this Agreement for the duration of the work and until three years after the date of final payment by the Town to Contractor pursuant to this Agreement. Contractor and its subcontractors shall provide the Town with adequate and appropriate workspace so that the Town can conduct audits in compliance with the provisions of this Section. The Town shall give Contractor or its subcontractors reasonable advance notice of intended audits. Contractor shall require its subcontractors to comply with the provisions of this Section by insertion of the requirements hereof in any subcontract pursuant to this Agreement. 6.E-verify Requirements. To the extent applicable under ARIZ. REV. STAT. § 41- 4401, the Contractor and its subcontractors warrant compliance with all federal immigration laws and regulations that relate to their employees and their compliance with the E-verify requirements under ARIZ. REV. STAT. § 23-214(A). Contractor’s or its subcontractors’ failure to comply with such warranty shall be deemed a material breach of this Agreement and may result in the termination of this Agreement by the Town. 7.Israel. Contractor certifies that it is not currently engaged in and agrees for the duration of this Agreement that it will not engage in a “boycott,” as that term is defined in ARIZ. REV. STAT. § 35-393, of Israel. 8.China. Pursuant to and in compliance with A.R.S. § 35-394, Vendor hereby agrees and certifies that it does not currently, and agrees for the duration of this Agreement that Vendor will not, use: (1) the forced labor of ethnic Uyghurs in the People’s Republic of China; (2) any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or (3) any contractors, subcontractors or suppliers that use the forced labor or any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China. Vendor also hereby agrees to indemnify and hold harmless the Town, its officials, employees, and agents from any claims or causes of action relating to the Town’s action based upon reliance upon this representation, including the payment of all costs and attorney fees incurred by the Town in defending such as action. 9.Conflict of Interest. This Agreement may be canceled by the Town pursuant to ARIZ. REV. STAT. § 38-511. 10.Applicable Law; Venue. This Agreement shall be governed by the laws of the State of Arizona and a suit pertaining to this Agreement may be brought only in courts in Maricopa County, Arizona. 11.Agreement Subject to Appropriation. The Town is obligated only to pay its 6 obligations set forth in this Agreement as may lawfully be made from funds appropriated and budgeted for that purpose during the Town’s then current fiscal year. The Town’s obligations under this Agreement are current expenses subject to the “budget law” and the unfettered legislative discretion of the Town concerning budgeted purposes and appropriation of funds. Should the Town elect not to appropriate and budget funds to pay its Agreement obligations, this Agreement shall be deemed terminated at the end of the then-current fiscal year term for which such funds were appropriated and budgeted for such purpose and the Town shall be relieved of any subsequent obligation under this Agreement. The parties agree that the Town has no obligation or duty of good faith to budget or appropriate the payment of the Town’s obligations set forth in this Agreement in any budget in any fiscal year other than the fiscal year in which this Agreement is executed and delivered. The Town shall be the sole judge and authority in determining the availability of funds for its obligations under this Agreement. The Town shall keep Contractor informed as to the availability of funds for this Agreement. The obligation of the Town to make any payment pursuant to this Agreement is not a general obligation or indebtedness of the Town. Contractor hereby waives any and all rights to bring any claim against the Town from or relating in any way to the Town's termination of this Agreement pursuant to this section. 12. Conflicting Terms. In the event of any inconsistency, conflict or ambiguity among the terms of this Agreement, the State Contract, the Proposal, and invoices, the documents shall govern in the order listed herein. Notwithstanding the foregoing, and in conformity with Section 2 above, unauthorized exceptions, conditions, limitations or provisions in conflict with the terms of this Agreement or the State Contract (collectively, the “Unauthorized Conditions”), other than the Town’s project-specific requirements, are expressly declared void and shall be of no force and effect. Acceptance by the Town of any work order or invoice containing any such Unauthorized Conditions or failure to demand full compliance with the terms and conditions set forth in this Agreement or under the State Contract shall not alter such terms and conditions or relieve Contractor from, nor be construed or deemed a waiver of, its requirements and obligations in the performance of this Agreement. 13. Rights and Privileges. To the extent provided under the State Contract, the Town shall be afforded all of the rights and privileges afforded to State and shall be the “State” (as defined in the State Contract) for the purposes of the portions of the State Contract that are incorporated herein by reference. 14.Indemnification; Insurance. In addition to and in no way limiting the provisions set forth in Section 12 above, the Town shall be afforded all of the insurance coverage and indemnifications afforded to the State to the extent provided under the State Contract, and such insurance coverage and indemnifications shall inure and apply with equal effect to the Town under this Agreement including, but not limited to, the Contractor’s obligation to provide the indemnification and insurance. In any event, the Contractor shall indemnify, defend and hold harmless the Town and each council member, officer, employee or agent thereof (the Town and any such person being herein called an “Indemnified Party”), for, from and against any and all losses, claims, damages, liabilities, costs and expenses (including, but not limited to, reasonable attorneys’ fees, court costs and the costs of appellate proceedings) to which any such Indemnified Party may become subject, under any theory of liability whatsoever (“Claims”), insofar as such Claims (or actions in respect thereof) relate to, arise out of, or are caused by or based upon the negligent acts, intentional misconduct, errors, mistakes or omissions, in 7 connection with the work or services of the Contractor, its officers, employees, agents, or any tier of subcontractor in the performance of this Agreement. 15.Laws and Regulations. Consultant shall keep fully informed and shall at all times during the performance of its duties under this Agreement ensure that it and any person for whom the Consultant is responsible abides by, and remains in compliance with, all rules, regulations, ordinances, statutes or laws affecting the Services, including, but not limited to, the following: (A) existing and future Town and County ordinances and regulations; (B) existing and future State and Federal laws; and (C) existing and future Occupational Safety and Health Administration standards. 16.Notices and Requests. Any notice or other communication required or permitted t0 be given under this Agreement shall be in writing and shall be deemed to have been duly given if (i) delivered to the party at the address set forth below, (ii) deposited in the U.S. Mail, registered or certified, return receipt requested, to the address set forth below or (iii) given to a recognized and reputable overnight delivery service, to the address set forth below: If to the Town: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Rachael Goodwin, Town Manager With Copy to: Town of Fountain Hills 16705 E. Avenue of the Fountains Fountain Hills, Arizona 85268 Attn: Aaron D. Arnson, Town Attorney or at such other address, and to the attention of such other person or officer, as any party may designate in writing by notice duly given pursuant to this subsection. Notices shall be deemed received: (i) when delivered to the party, (ii) three business days after being placed in the U.S. Mail, properly addressed, with sufficient postage or (iii) the following business day after being given to a recognized overnight delivery service, with the person giving the notice paying all required charges and instructing the delivery service to deliver on the following business day. If a copy of a notice is also given to a party’s counsel or other recipient, the provisions above governing the date on which a notice is deemed to have been received by a party shall mean and refer to the date on which the party, and not its counsel or other recipient to which a copy of the notice may be sent, is deemed to have received the notice. [SIGNATURES APPEAR ON FOLLOWING PAGES] If to Contractor:Empire Southwest, LLC dba Empire Machinery 1725 S. Country Club Dr. Mesa, Az. 85210 Attn: Doug Calvet 8 9 1 3/14/2024 Town of Fountain Hills Jeff Pierce 480-749-5285 Re: CAT 262D3 Dear Jeff, on behalf of Empire Machinery and Caterpillar Inc., we are pleased to quote the following. 2024 New Caterpillar 262D3 Cab XPS Compact Track Loader Standard Equipment POWERTRAIN -Hydraulic oil temperature Cat C3.3B diesel engine -Park brake engages -Gross horsepower per SAE J1349 -Engine emission system 74.3 hp (55.4 kW) @ 2400 RPM Gauges: fuel level and hour meter -Electric fuel priming pump Storage compartment with netting -Glow plugs starting aid Ergonomic contoured armrest -Liquid cooled, direct injection Control interlock system, when operator Air cleaner, dual element, radial seal leaves seat or armrest raised: S-O-S sampling valve, hydraulic oil -Hydraulic system disables Filter, cartridge type, hydraulic -Hydrostatic transmission disables Filters, canister type, fuel -Parking brake engages and water separator ROPS cab, open, tilt up Radiator / hydraulic oil Anti-theft security system w/6-button cooler (side-by-side) keypad Spring applied, hydraulically released, FOPS, level I parking brakes Top and rear windows Hydrostatic transmission Floormat Four wheel chain drive Interior rear view mirror USB charging port HYDRAULICS Horn ISO or H pattern controls: Hand (dial) throttle, electronic Electro/hydraulic implement control Electro/hydraulic hydrostatic FRAMES transmission control Lift linkage, vertical path Chassis, one piece welded ELECTRICAL Machine tie down points (6) 12 volt electrical system Belly pan cleanout 80 ampere alternator Support, lift arm Ignition key start/stop/aux switch Rear bumper, welded Lights: -LED work lights (2 front, 2 rear) OTHER STANDARD EQUIPMENT -Gauge backlighting Engine enclosure - lockable -Two rear tail lights Extended life antifreeze (-37C, -34F) -Dome light Work tool coupler Backup alarm Hydraulic oil level sight gauge Electrical outlet, beacon Radiator coolant level sight gauge Radiator expansion bottle OPERATOR ENVIRONMENT Cat ToughGuard TM hose Operator warning system indicators: Heavy duty flat faced quick disconnects -Air filter restriction with integrated pressure release -Alternator output Split D-ring to route work tool hoses -Armrest raised/operator out of seat along side of left lift arm -Engine coolant temperature Variable speed hydraulic cooling fan -Engine oil pressure Per SAE J818-2007 and EN 474-3:2006 and -Glow plug activation ISO 14397-1:2007 -Hydraulic filter restriction Configured as Follows Ref # Description Price 5124262 262D3-CL $66,030 5889091 CAB PACKAGE, ULTRA $21,370 CAB ULTRA INCLUDES: $0 5124319 HYDRAULICS, PERFORMANCE, (H3) $0 5124115 CONTROL, ISO, PROP, WT $0 5124178 POWERTRAIN, TWO SPEED $0 4961671 LIGHTS, LED $0 5124195 ROPS, ENCLOSED WITH A/C (C3) $0 4169265 DISPLAY, ADVANCED, LCD, CAMERA $0 4866957 FAN, COOLING, DEMAND $0 5123404 QUICK COUPLER, HYDRAULIC $0 5369738 SEAT,AIR SUSPENSION,CLOTH,HEAT $0 3456180 STANDARD RADIO(12V),BLUETOOTH $0 5684704 FILM,TWO SPEED W/HIGH FLOW XPS $0 END OF PKG INCLUDES $0 5565899 RIDE CONTROL $1,390 5685602 BATTERY,HD,DISCONNECT, 850 CCA $168 3566082 REAR LIGHTS $0 5398061 DOOR, CAB, POLYCARBONATE $284 5426995 SEAT BELT, 3" $189 5667115 PRODUCT LINK, CELLULAR PL243 $0 1858666 TIRES, 12/16.5 CAT 10PR $1,000 5631163 CERTIFICATION ARR, P65 $0 4223445 FILM, RIDE CONTROL, ANSI $0 5123741 INSTRUCTIONS, ANSI, USA $0 4218926 SERIALIZED TECHNICAL MEDIA KIT $0 0P2266 SHIPPING/STORAGE PROTECTION $274 4359238 FILM, SELF LEVEL, ANSI $0 3455148 COUNTERWEIGHT,MACHINE,EXTERNAL $1,365 0P0226 PACKING, ROLL ON - ROLL OFF $109 0P9003 LANE 3 ORDER $0 2795369 BUCKET-GP, 68", BOCE (ADD) $1,826 PARTS 48” CARRIAGE AND FORKS $1200 PARTS BP118C PICKUP BROOM 90” OVERALL 72” WORKING WIDTH $11,278 PARTS CAT 84” INDUSTRIAL RAKE W (2) GRAPPLE ARMS $6,625 Pricing Summary Caterpillar List Price: $113,108.00 State Contract CTR052847 Discount 21%: ($23,752.68) Contract Price: $89,355.32 Dealership prep: $1,406.00 Factory Freight: 1,580.00 Subtotal: $92,341.32 Sales Tax 8.03%: $7,664.33 Total with Tax: $100,005.65 Training: On-site operating and safety training provided by CAT certified product specialist to ensure machine is run properly to reduce operating costs, reduce unnecessary machine wear, and tear, and maximize productivity. Availability: Unit reserved for Town of Fountain Hills arriving June 2024. If you have any questions regarding this information, please let me know. Thank you for allowing Empire Machinery to assist with your Caterpillar equipment needs. Doug Calvet Account Manager 602-622-4917 Doug.Calvet@empire-cat.com ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Contract Amendment Summary CONTRACTOR: Empire Southwest LLC CTR052847 AMENDMENT NO.: Five (5) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 Procurement Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows: 1. Amendment Five (5) to mutually change line number 29 of the contract items to “Minimum catalog discount for ALLIED-NON CAT CONSTRUCTION PRODUCTS 2% - 24% See Catalog pricing sheet in the Contractors Proposal attachment” per the Scope of Work, section 3.1 of Contract Documents. 2. Amendment Five (5) to mutually add the updated pricing sheet named “CTR052847 Catalog Pricing per amendment Five (5)” to the attachments of the contract. 3. All other terms, conditions and provisions of this contract remain unchanged. ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Contract Amendment Summary CONTRACTOR: Empire Southwest LLC CTR052847 AMENDMENT NO.: Four (4) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 Procurement Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows: 1. Amendment Four (4) to mutually extend this contract from December 4, 2023 through December 3, 2024 unless terminated, canceled or extended as otherwise provided in the contract. 2. The executed SPO205 Forced Labor of Ethnic Uyghurs Ban form is hereby included with this amendment. 3. All other terms, conditions and provisions of this contract remain unchanged. Procurement Annual Forced Labor of Ethnic Uyghurs Ban Certification   for Off‐Contract Purchases  SPO Form 205A –  Annual Forced Labor of Ethnic Uyghurs Ban Certification  |  Revision No. 1  |  Revised 11‐22      Pursuant to A.R.S. § 35‐394, written certification is required to show that the company entering into a contract with a public  entity does not use the forced labor, or any goods or services produced by the forced labor, of ethnic Uyghurs in the People's  Republic of China.    The purpose of this certification is to cover instances in which state agencies have multiple off‐contract purchases from the  same supplier over the course of a single fiscal year. Instead of asking suppliers to sign a certification each time there is an off‐ contract purchase, this form may be signed once, but cover the whole fiscal year. To comply with this law, a copy of the  current year’s certification must be included with the documentation for each off‐contract purchase with the Purchase Order  Terms and Conditions. To remain compliant with the law, this form must be completed by the supplier prior to each fiscal  year.    Please note that if any of the following apply to the Contractor, then the Offeror shall select the “Exempt Contractor”  option below:   Contractor is a sole proprietorship;   Contractor has fewer than ten (10) employees; OR   Contractor is a non‐profit organization.    In compliance with A.R.S. §§ 35‐394 et seq., all offerors must select one of the following:      ☒  The Company submitting this Offer does not use, and agrees not to use during the term of the contract, any of the  following:   Forced labor of ethnic Uyghurs in the People’s Republic of China;   Any goods or services produced by the forced labor of ethnic Uyghurs in the People’s Republic of China; or    Any Contractors, Subcontractors, or suppliers that use the forced labor or any goods or services produced by  the forced labor of ethnic Uyghurs in the People’s Republic of China.  ☐ The Company submitting this Offer does participate in use of Forced Uyghurs Labor in the People’s  Republic of China as described in A.R.S. § 35‐394.  ☐  Exempt Contractor    Indicate which of the following statements applies to this Contractor (may be more than one):    ☐ Contractor is a sole proprietorship;  ☐ Contractor has fewer than ten (10) employees; and/or   ☐ Contractor is a non‐profit organization.    Certification is valid until the end of the current fiscal year (June 30) after the date of signature.      Empire Southwest, LLC      Company Name    Signature of Person Authorized to Sign  1725 S. Country Club Dr.  John Helms, Vice President | CFO  Address    Printed Name and Title  Mesa                                         AZ                            85210    City  State  Zip    Contact Email Address  7/10/2023  480‐633‐4000  Date    Contact Phone Number    DocuSign Envelope ID: F12AFCAF-038C-4D40-8565-EDC4B3FD52E7 ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Contract Amendment Summary CONTRACTOR: Empire Southwest LLC CTR052847 AMENDMENT NO.: Three (3) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 Procurement Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows: 1. Amendment Three (3) to mutually extend this contract from December 4, 2022 through December 3, 2023 unless terminated, canceled or extended as otherwise provided in the contract. 2. All other terms, conditions and provisions of this contract remain unchanged. ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Contract Amendment Summary CONTRACTOR: Empire Southwest LLC AMENDMENT NO.: Two (2) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 Procurement Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows: 1. Amendment One (1) to mutually amend this contract from December 4, 2021 to December 3, 2022 unless terminated, cancelled or extended as otherwise provided in the contract. 2. All other terms, conditions and provisions of this contract remain unchanged. ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Contract Amendment Summary CONTRACTOR Empire Southwest –CTR052847 AMENDMENT NO.: 1 DESCRIPTION: Heavy Equipment including Accessories Rev. 04/2020 Procurement Pursuant to the Uniform Terms and Conditions, Section 5, Contract Changes, the above referenced contract is amended. Summary of changes is as follows: 1. Amendment Two (2) to mutually add line 36, Freight Charge line item. 2. Amendment Two (2) to mutually add line 37, Additional Tax line item 3. All other terms, conditions and provisions of this contract remain unchanged.               Procurement ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Solicitation Amendment Summary SOLICITATION NO.: BPM002936 AMENDMENT NO.: One (1) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 Pursuant to the Uniform Instructions to Offerors, Item B.6, Solicitation Amendments, the above referenced solicitation shall be amended as follows: 1. Section 3.1., Scope of Work is hereby modified to read: “EQUIPMENT AND PRODUCT REQUIREMENTS A complete and comprehensive line of Heavy Equipment to support the various needs of the Eligible Agency is requested. Equipment types include, but are not limited to the following: Offerors are permitted to add future models onto the contract provided they are included under the above listed Categories.” 2. Section 5.2, Scope of Work is hereby added to read: “Pursuant to the Arizona Procurement Code, A.R.S. §41-2554, Specific equipment is to be evaluated on the basis of life cycle cost. The equipment specified for this includes track type tractor (dozer), motor grader, excavator, landfill compactor, wheel tractor scraper, off-highway truck, wheel loader and track loader. This life cycle cost involves these components - buyback price, guaranteed maintenance cost and initial purchase price. The term for the guaranteed maintenance cost and the buyback price is operation for 6,000 hours or 7 years, whichever occurs first. The buyback price is sometimes referred to as the residual value or repurchase price. The components of life cycle cost are used for scenario pricing. This is not used for any other item in the solicitation. After contract award, the cost for these components of life cycle cost will be requested for each quote for a piece of equipment. Maintenance costs are recorded for all pieces of equipment in Maintenance Operations. For any repair that is estimated to be over $500, the vendor is contacted for repair decision. Vendor has the option to perform the repairs. Each year, the total maintenance costs are reviewed to determine if any exceeded the guaranteed amount. After review, a settlement and reconciliation meeting will be scheduled with the Contractor(s) for processing claims of reimbursement of costs in excess of the guarantee.” Telehandler Motor Graders Trailer/Flatbed Air Compressor Paver/Tracked/Wheeled Trailer/ Drop Neck Dozers / Tracked/ Wheeled Rollers/Drum/Vibrate Trailer/ Utility Excavators / Tracked/ Wheeled Rollers/Wheeled/Pneumatic Trencher Personnel Lifts Road Widener Water Tank Trailer Trailer/Crack Sealer Trailer/Bottom Dump Light Towers Loaders / Backhoe Skid Steer Loaders Trailer/ Equipment Hauling Loaders / Wheeled / Track Trailer/Tilt Procurement ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson Street, MD 100P Phoenix, AZ 85007 602.712.7211 Solicitation Amendment Summary SOLICITATION NO.: BPM002936 AMENDMENT NO.: One (1) DESCRIPTION: Statewide Heavy Equipment including Accessories Rev. 04/2020 3. Revised in Catalog Pricing attachment with the following information is hereby added: “Contractor shall indicate any extended warranty options below: Extended Warranty Options Extended Warranty Term of Warranty Price 4. All other terms, conditions and provisions of this solicitation remain unchanged. Rev. 04/2020 Procurement STATE OF ARIZONA ARIZONA DEPARTMENT OF TRANSPORTATION 1739 W. Jackson St., Ste. A Phoenix, AZ 85007 REQUEST FOR PROPOSAL SOLICITATION NUMBER: BPM002936 DESCRIPTION: Statewide Heavy Equipment Including Accessories QUESTIONS: Inquiries regarding the solicitation are to be submitted online through the State’s e-Procurement system, Arizona Procurement Portal (APP) (https://app.az.gov/) using the Discussion Forum tab. OFFERORS ARE STRONGLY ENCOURAGED TO READ THE ENTIRE SOLICITATION. Pamela Veal Procurement Officer Phone: 602-712-7564 Email: PVeal@azdot.gov This solicitation is issued in accordance with A.R.S. §41-2534 and A.A.C. R2-7-C301 et seq., Competitive Sealed Proposals. “An Equal Opportunity Agency” The Arizona Department of Transportation, in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252.42 U.S.C. §§ 2000d-4) and the Americans with Disabilities Act (ADA), hereby notifies all bidders that it will affirmatively ensure that any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, national origin in consideration for an award. Persons that require a reasonable accommodation based on language or disability should contact ADOT’s Procurement Office by phone (602) 712-2089. Requests should be made as early as possible to ensure the State has an opportunity to address the accommodation. Las personas que requieran asistencia (dentro de lo razonable) ya sea por el idioma o discapacidad deben ponerse en contacto con ADOT (602) 712-2089. TABLE OF CONTENTS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 2 of 23 Procurement SECTION PAGE Notice 1 Table of Contents 2 Specifications 3 Special Terms and Conditions 10 EXHIBITS 1 - Title VI/Non-Discrimination Assurances Appendix A 21 2 - Title VI/Non-Discrimination Assurances Appendix E 22 3 - Usage Report 23 SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 3 of 23 Procurement 1. Statement of Need 1.1. Pursuant to the Arizona Procurement Code, A.R.S. §41-2501 et seq., the State of Arizona Department of Transportation (Department), has a statewide requirement for the purchase of various types of Heavy Equipment including Accessories. 2. Introduction and Background 2.1. The State of Arizona intends to establish statewide term contract for purchasing a wide range of various types of Heavy Equipment that includes accessories. Additionally, the Department requires the Contractor to provide a diverse and extensive supply of equipment for purchase to be used at various statewide agencies and locations. 2.2. The State has identified seven (7) categories of equipment listed below. The Contractor shall provide the goods/services described in all of the following categories: 1. Dozers 2. Excavators 3. Loaders 4. Graders 5. Rollers 6. Trailers 7. Miscellaneous 3. General Requirements 3.1. EQUIPMENT AND PRODUCT REQUIREMENTS A complete and comprehensive line of Heavy Equipment to support the various needs of the Eligible Agency is requested. Equipment types include, but are not limited to the following: Offerors are permitted to add future models onto the contract provided they are included under the above listed Categories. Telehandler Motor Graders Trailer/Flatbed Air Compressor Paver/Tracked/Wheeled Trailer/ Drop Neck Dozers / Tracked/ Wheeled Rollers/Drum/Vibrate Trailer/ Utility Excavators / Tracked/ Wheeled Rollers/Wheeled/Pneumatic Trencher Personnel Lifts Road Widener Water Tank Trailer Trailer/Crack Sealer Trailer/Bottom Dump Light Towers Loaders / Backhoe Skid Steer Loaders Trailer/ Equipment Hauling Loaders / Wheeled / Track Trailer/Tilt SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 4 of 23 Procurement 4. Specific Requirements 4.1. Equipment shall be delivered as a complete unit, certified and ready for immediate job site operation within the State of Arizona. The equipment supplied shall be a standard model of a manufacturer experienced in the production of heavy equipment. 4.2. The equipment specified within the scope of work shall be equipped with those items normally supplied in the stream of commerce. Each unit shall include all specified accessories, parts, equipment and options that are listed in the manufacturer’s specifications as standard equipment for the specific model, unless otherwise required by the Eligible Agency. All parts, equipment and accessories shall conform in strength, quality of material, design and workmanship to recognized industry standards. Each component of the complete unit shall be adequate for and compatible with all structural and performance demands placed upon it as a part of the complete unit. 4.3. This equipment will be used statewide at elevations from near sea level to 10,000 feet and in ambient temperatures ranging from -30 to 120 degrees F. The equipment shall remain operational under these conditions without special adjustments or alterations. 4.4. All equipment shall conform to all applicable Occupational Health Administration (OSHA), Mine Safety and Health Administration (MSHA), Federal Motor Carrier Safety Administration (FMCSA), Federal Motor Vehicle Safety Standards (FMVSS) and Environmental Protection Agency (EPA) regulations in effect at the time of delivery. 4.5. When equipment is purchased in quantities greater than one, each unit shall be identical in all aspects of design and manufacturer. The total number of units purchased over the life of the contract is dependent upon budget resources for each fiscal year, available funds and unforeseen changes within the Eligible Agency. 4.6. In order to meet the expectations of the Eligible Agency, the Contractor(s) shall have a long standing presence in the heavy equipment industry and shall be able to provide a full range of products, equipment, accessories and training services. 4.7. WARRANTY SERVICE REQUIREMENTS: All equipment provided shall include a standard manufacturer’s warranty. In addition, the Contractor shall offer pricing for extended warranty options that may be purchased to provide warranty coverage after standard manufacturer’s warranties expire. At a minimum, extended warranties shall extend warranty coverage to additional five (5) years / 10,000 hours of operation including parts, labor and transportation 4.7.1. For service calls during the Contractor’s business hours, the Contractor shall acknowledge the service call within 60 minutes and initialize work within twenty-four (24) hours. 4.7.2. The Contractor shall provide status updates related to repair progress, as requested. 4.7.3. If warranty service requires transport, the Contractor shall be responsible for all costs, including fuel and labor, of transporting equipment between the equipment’s location and the Contractor’s service center. The method of transportation must be mutually SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 5 of 23 Procurement agreed to by the Contractor and the Eligible Agency prior to transport. Transport of the vehicle shall not be delayed more than one (1) working day from date of notification. 4.8. TRAINING REQUIREMENTS: Training sessions must meet the scope of work requirements. Only qualified, factory-trained personnel shall conduct training sessions. Personnel shall have a high level of knowledge and experience relating to the type and model of equipment purchased. 4.8.1. Minimum qualifications of training personnel: a. Persons conducting the operator’s training must have at least three (3) year of hands on experience of actually operating the equipment purchased. b. Persons conducting technician training must be a manufacturer certified technicians and must have at least three (3) year of hands on experience in actually performing preventative maintenance and repair of the equipment purchased. 4.8.2. Operator and technician training shall be completed within three months of the acceptance date of the vehicle or equipment by the Department or Eligible agency. 4.8.3. After initial technician training, the Contractor shall return three months prior to expiration of manufacturer warranty to conduct refresher training. This training shall be conducted at shop location or operating location based on the request of the Eligible Agency. 4.8.4. Upon completion of the Contractor-provided training, the Department or Eligible Agency shall evaluate whether or not the training was adequate for both the operators and technicians. The Eligible Agency Training Department reserves the right to determine whether the Contractor provided training that was acceptable and complete. If the training is inadequate, the Contractor shall be required to conduct additional training at no cost to the Eligible Agency, to satisfy the operational and technical training requirement. 4.8.5. The Department or Eligible Agency may record the training presentations provided by the Contractor. 4.8.6. Should the Contractor forfeit or be unable to perform any of the required training within the three month requirement, as outlined in sections 4.8.2. and 4.8.3. of the scope of work, the Contractor shall incur the cost of the Department or Eligible Agency obtaining the training requirements from an outside training institution and/or “other” vendor/supplier. If outside training is not available, the Contractor shall incur all costs in having said equipment down for repairs until such time the equipment is repaired and/or training completed. 4.8.7. Operator Training Requirements: The Contractor shall provide up to eight (8) hours of training at the Eligible Agency location, within the State, that will be receiving the equipment. Operator training shall coincide with each operator site location work hours. Operator training shall be scheduled within thirty (30) days from in-service date for a SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 6 of 23 Procurement mutually agreed upon three months of the acceptance date of the vehicle or equipment by the Department. This training shall contain the following information: 4.8.7.1. VEHICLE FAMILIARIZATION a. Description of system and components b. Maintenance services and lubrication c. Vehicle operation 4.8.7.2. ENGINE a. Operation b. Engine controls manual, electronic, and shut down 4.8.7.3. TRANSMISSION a. Description of systems and components b. Operation c. Maintenance services and lubrication d. Service requirements (proper methods and intervals) e. Controls (manual, electronic, if equipped) f. Integrated emergency warning system g. PTO (operation, maintenance services, inspections, and lubrication h. Split shaft PTO operation, if equipped 4.8.7.4. BRAKES AND AIR SUPPLY SYSTEM a. Description of systems and components b. Operation c. Maintenance services, inspection and lubrication of components d. Warning devices and troubleshooting e. Anti-lock system, if equipped 4.8.7.5. BODY AND COMPONENTS a. Lubrication and operator adjustments (if applicable) 4.8.7.6. HYDRAULIC SYSTEMS a. Description of systems and components b. Operational controls (manual, electronic and automatic sequencing) c. Maintenance services 4.8.7.7. Safety Device requirements for equipment operation and operator safety. 4.8.7.8. Learning Objectives- At the conclusion of each training session, the attending equipment operators will be able to: a. Describe the operating capabilities and any special or “new” features present on the equipment. b. Identify all control devices and in particular those which are new or unique to this equipment model. SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 7 of 23 Procurement c. Describe the proper techniques to use for transporting the equipment including loading and tie-down. d. Use the Operator’s Manual to identify: i. Special safety considerations including Cautions and Warnings applicable to the operation of the equipment. ii. Manufacturer’s recommended preventive maintenance service intervals and procedures including pre- and post-operational inspection and service requirements. e. Demonstrate on the equipment: i. The ability to identify inspection and service points. ii. Proper start-up and shutdown procedures. iii. Proper use of controls, in particular those that are new or unique to this equipment model. iv. The use of proper Safety equipment 4.8.8. Technical Service Training Requirements-The Contractor shall provide qualified, factory- trained personnel for training sessions of no less than eight (8) hours duration at each location(s) within the State that will be responsible for maintaining the equipment purchased under this contract. Training must be scheduled around the technician work shifts for each Eligible Agency maintenance shop. Technical service training must be completed within three months of the acceptance date of the purchased equipment by the Department. After the initial Contractor technician training, the Contractor shall return three months prior to expiration of warranty to conduct refresher technician training. All service training shall contain the following information: 4.8.8.1. TECHNICAL MANUALS a. Format b. Use c. Internet access instruction for service manuals, warranty and technical service bulletins information. 4.8.8.2. VEHICLE FAMILIARIZATION a. Description of systems and components b. Maintenance services and lubrication c. Vehicle operation d. Warranty specifications and requirements e. Basic Computer aided diagnostics 4.8.8.3. ENGINE a. Operation b. Maintenance services and lubrication c. Tune-up d. Engine controls (manual, electronic, if equipped, shut down, computer controls, if equipped, and troubleshooting) SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 8 of 23 Procurement e. Cooling system (integrated sub-system with pump for aux. cooling, coolant recovery system) f. Oil filtration system g. Ignition system (diagnosis repair and troubleshooting) h. Fuel system (diagnosis repair and troubleshooting) Electronic Fuel Injection (EFI)/Port Fuel Injection (PFI), if equipped i. Computer aided diagnostics, if equipped. 4.8.8.4. TRANSMISSION a. Description of systems and components b. Operation c. Maintenance services and lubrication d. Service requirements (proper methods and intervals) e. Controls (manual, electronic, if equipped) f. Integrated emergency warning system g. PTO (operation, maintenance services, repair and troubleshooting, and lubrication) h. Split shaft PTO operation, if equipped 4.8.8.5. BRAKES AND AIR SUPPLY SYSTEM a. Description of systems and components b. Operation c. Maintenance services, repair and lubrication of components d. Repair and component replacement (brakes and air systems) e. Warning devices and troubleshooting f. Anti-lock system if equipped 4.8.8.6. BODY AND COMPONENTS a. Lubrication and service requirements b. Adjustments (compartment doors, lids and covers) 4.8.8.7. HYDRAULIC SYSTEMS a. Description of systems and components b. Operational controls (manual, electronic and automatic sequencing) c. Robotics / Remote Controls d. Maintenance services, repair and lubrication e. Troubleshooting f. System diagnosis 4.8.8.8. COMPLETE ELECTRICAL COMPONENTS a. Troubleshooting and repair 4.8.8.9. CALIBRATION SYSTEMS (if applicable) a. Description of system and components b. Operation controls c. Complete calibration procedures SCOPE OF WORK Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 9 of 23 Procurement 4.8.8.10. Diagnostic program/scan tool operation and troubleshooting. 4.8.8.11. Learning Objectives- At the completion of these training sessions, the attending technicians will be able to: a. Describe the primary equipment systems design features, function & capabilities. b. Identify the primary equipment systems component location and function. c. Use Manufacturer’s reference literature and materials to identify: i. Manufacturer’s Preventive Maintenance service intervals & procedures. ii. Recommended system diagnostic procedures & repair processes iii. Representative component part numbers & nomenclature. d. Demonstrate on the equipment, the use of specified diagnostic procedures and appropriate tools/devices to diagnose the most likely primary equipment system failures and describe the procedures that would be required to repair these failures. 5. Contractor’s Responsibilities 5.1. Authorized Service and Repair Facilities 5.1.1. The Contractor shall have the ability to ensure acceptable performance under a statewide contract. This includes the ability to create and manage numerous individual accounts for order placement, billing and reporting purposes. 5.1.2. The Contractor shall be a dealer for manufacturer of equipment. Dealers shall have service locations in Maricopa County, Arizona. The Contractor shall be able to deliver to the Eligible Agency shown on purchase order and provide warranty repair at local a dealer. 6. Department’s Responsibilities 6.1. The Eligible Agencies will provide final acceptance and approval of any equipment and services delivered. SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 10 of 23 Procurement 1. CONTRACT TERM The term of any resultant contract shall commence on the effective day of award and shall continue for a period of twelve months (12) thereafter, unless terminated, cancelled or extended as otherwise provided herein. 2. CONTRACT EXTENSION By mutual written contract amendment, any resultant contract may be extended for supplemental periods of up to a maximum of forty-eight (48) months. 3. ELIGIBLE AGENCIES The Contract is a “statewide” contract for multiple purchases, projects, or assignments, and can be purchased against by some or all Eligible Agencies and any Co-Op Buyers that elect to participate. Even if only one Eligible Agency needs or elects to purchase against the Contract, it is to be construed as being a “statewide” contract hereunder. The Contract is an indefinite delivery, indefinite quantity (ID/IQ) type of contract; it is to be construed as a “delivery order” sub-type of ID/IQ contract to the extent the Work is Materials, and a “task order” sub- type to the extent the Work is Services. 4. NON-EXCLUSIVE CONTRACT This contract shall be for the sole convenience of the Department. The Eligible Agencies reserves the right to obtain like goods or services from another source when necessary. The Off-Contract Purchase Authorization and subsequent procurement shall be consistent with the Arizona Procurement Code. 5. ORDERING PROCESS The Contractor shall acknowledge each Order from Eligible Agencies within 1 (one) business day after receipt by either: (a) “Approving” the Order electronically in The State’s e-Procurement System, which will indicate Contractor’s unqualified acceptance of the Order as-issued; or, (b) “Rejecting” the Order electronically in The State’s e-Procurement System, with a concurrent explanation by email to relevant originator as to the reason for rejecting it. By way of reminder, the only grounds on which Contractor may reject or refuse an Order are those set out in subparagraph 3.14.3 (Orders are Obligatory). Unless and until Contractor has approved the Order in the State’s e-Procurement System, it will have no effect under the Contract and will not oblige either State or Contractor. If the relevant Eligible Agency explicitly instructs at the time that a verbal acceptance is sufficient because of urgency or other unusual circumstances and Contractor duly gives its verbal acceptance, then Contractor will be deemed to have accepted the Order immediately upon commencing performance, provided that, Contractor must follow-up its verbal acceptance by accepting the Purchase Order electronically In The State’s e- SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 11 of 23 Procurement Procurement System within three (3) business days. Contractor shall thereafter be barred from subsequently rejecting the Order in The State’s e-Procurement System and if it does so the rejection will be void. 6. SHIPPING TERMS Delivery shall be F.O.B. Destination to the location designated herein. Contractor shall retain title and control of all goods until they are delivered. All risk of transportation and related charges shall be the responsibility of the Contractor. All claims for visible or concealed damage shall be filed by the Contractor. The Department will notify the Contractor promptly of any damaged goods and shall assist the Contractor in arranging for inspection. 7. DELIVERY Deliveries shall be completed In accordance with the requirements of the contract. Delivery of the product does not constitute acceptance. 8. INSPECTION AND ACCEPTANCE Each item delivered shall be subject to a complete inspection by the Department within 10 days after delivery. Inspection criteria shall include, but not be limited to, conformity to the specifications, workmanship, quality and materials. If the delivered product is not accepted and returned for corrective action, an additional fifteen (15) calendar days shall be allowed for inspection of the corrected or replacement product. The Contractor shall be responsible for the transport of the material to and from the Department for the correction of items or workmanship not in compliance with the specifications. Product returned for corrective action may delay payment. Invoices will be processed for payment only after the product is accepted. 9. INVOICING and PAYMENT Separate invoices are required for each shipment of product or delivery of service and shall include at a minimum:  Department Location’s Name and Address  Vendor Name, Remit to Address and Contact Information  Contract Number  Purchase Order Number  Invoice Number and Date  Date the items were shipped to the Department  Contract Line Item Number SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 12 of 23 Procurement  Line Item Description or Item or Service  Quantity Purchased  Line Item Unit of Measure  Price per Unit and Total per Unit (Labor hours, rate)  Catalog or Other Discount (if applicable)  Net Unit Price and Total per Unit (if applicable)  Applicable taxes  Applicable Shipping/Freight Charges  Total Invoice Amount Due Invoices not sent to the proper address, late submittals or not containing the necessary and required information may delay payment. A Contractor whose payments are delayed due to improper invoicing shall make no claim against the Department or the State for late or finance charges. The Department will make every effort to process payment for the purchase of product within thirty (30) calendar days after the Department has conducted the necessary reviews, inspections and acceptance as described herein. The department acceptance date will be the valid date for starting the thirty (30) calendar day payment period. Payment due dates, including discount periods, will be computed from the date of acceptance or date of correct invoice (whichever is later) to the date the Department’s warrant is mailed. 10. ESTIMATED USAGE The Department anticipates considerable usage under this contract. The Department reserves the right to increase or decrease actual quantities ordered as circumstances may require. No guarantees are made concerning actual purchases under this contract. 11. PRICE REDUCTION A price reduction adjustment may be offered at any time during the term of a contract and shall become effective upon notice through a written contract amendment. 12. PRICE INCREASE The Department will review fully documented requests for price increases for any contract which will or has been in effect for twelve (12) months. The request shall be submitted no less than 60 days prior to the contract renewal date. The Contractor shall provide fully documented information which supports the price increase request. Fully documented means that the request shall present detailed information and calculations that make it clear how the claimed increase has an impact on the contract unit prices. All assumptions regarding cost factors that have an impact on the requested increase shall also be clearly identified and justified. The requested price increase must be based upon a cost increase that SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 13 of 23 Procurement was clearly unpredictable at the time of the offer and can be shown to directly affect the price of the item concerned. Any price increase adjustment request prior to the time of contract extension will be a factor in the extension review process. The Department will determine whether the requested price increase or an alternate option, is in the best interest of the State. 13. SAFETY STANDARDS Items supplied under this contract shall comply with all current applicable safety standards and regulations including the Occupational Safety and Health Standards of the State of Arizona Industrial Commission, the National Electric Code and the National Fire Protection Association Standards. 14. WARRANTY The Contractor warrants: 1. That all services performed hereunder shall conform to the requirements of this contract and shall be performed by qualified personnel in accordance with the highest professional standards. 2. That all items furnished hereunder shall conform to the requirements of this contract and shall be free from defects in design materials and workmanship. Any defects of design, workmanship or materials shall be fully corrected by the Contractor (including parts and labor) without cost to the Department. 3. The warranty period on workmanship and materials shall be based on a minimum of twelve (12) months from the time of acceptance by the Department. 15. CURRENT PRODUCTS All products supplied under this contract shall be in current and ongoing production; shall have been formally announced for general marketing purposes; shall be a model or type currently functioning in a user (paying customer) environment and capable of meeting or exceeding all specifications and requirements set forth in the contract. 16. PRODUCT DISCONTINUANCE In the event that a product or model is discontinued by the manufacturer, the Department at its sole discretion may allow the Contractor to provide a substitute for the discontinued item. The Contractor shall request authorization to substitute a new product or model and provide the following: 1. A formal announcement from the manufacturer that the product or model has been discontinued. 2. Documentation from the manufacturer that names the replacement product or model. 3. Documentation that provides clear and convincing evidence that the replacement meets or exceeds all specifications required by the original solicitation. SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 14 of 23 Procurement 4. Documentation that provides clear and convincing evidence that the replacement will be compatible with all the functions or uses of the discontinued product or model. 5. Documentation confirming that the price for the replacement is the same as or less than the discontinued product or model. 17. CONTRACT ADMINISTRATION The Contractor shall contact the assigned Procurement Officer for guidance or direction in matters of contract interpretation or questions regarding the terms, conditions or scope of the contract. 18. NOTICES All notices, requests, demands, consents, approvals, and other communications which may or are required to be served or given hereunder (for the purposes of this provisions collectively called “Notices”), shall be in writing and shall be sent by certified United States mail, return receipt requested, or by any other method that provides evidence of receipt, addressed to the party or parties to receive such notice as follows: a. If intended for the State, to: Arizona Department of Transportation, Procurement Group 1739 W. Jackson Street, MD 100P Phoenix, Arizona 85007-3276 b. If intended for the Contractor, to the address as identified in the Contractor’s electronic vendor profile. Or to such other address as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so mailed shall be deemed to have been given as of the date such notice is received as shown on the return receipt. Furthermore, such notice may be given by delivering personally such notice, if intended for the State, to the Arizona Department of Transportation, Procurement Officer and, if intended for the Contractor, to the person named on the Offer & Contract Award of this contract, or to such other person as either party may from time to time furnish in writing to the other by notice hereunder. Any notice so delivered shall be deemed to have been given as of the date such notice is personally delivered to the other party. 19. CANCELLATION FOR POSSESSION OF WEAPONS ON ADOT PROPERTY This contract may be cancelled if Contractor or any subcontractors or others in the employ or under the supervision of the Contractor or subcontractors is found to be in possession of weapons. Possession of weapons (firearms, explosive device, knife or blade of more than three inches, or any other instrument designed for lethal or disabling use) is prohibited on ADOT property. SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 15 of 23 Procurement Further, if the Contractor or any subcontractors or others in the employ or under the supervision of the Contractors or subcontractors are asked by an ADOT official to leave the ADOT property, they are advised that failure to comply with such a request shall result in cancellation of the contract and anyone who refuses, whether armed or not, is subject to prosecution under A.R.S. § 13-1502, "Criminal trespass in the third degree; classification." 20. INDEMNIFICATION CLAUSE To the fullest extent permitted by law, Contractor shall defend, indemnify, and hold harmless the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees (hereinafter referred to as “Indemnitee”) from and against any and all claims, actions, liabilities, damages, losses, or expenses (including court costs, attorneys’ fees, and costs of claim processing, investigation and litigation) (hereinafter referred to as “Claims”) for bodily injury or personal injury (including death), or loss or damage to tangible or intangible property caused, or alleged to be caused, in whole or in part, by the negligent or willful acts or omissions of Contractor or any of its owners, officers, directors, agents, employees or subcontractors. This indemnity includes any claim or amount arising out of, or recovered under, the Workers’ Compensation Law or arising out of the failure of such Contractor to conform to any federal, state, or local law, statute, ordinance, rule, regulation, or court decree. It is the specific intention of the parties that the Indemnitee shall, in all instances, except for Claims arising solely from the negligent or willful acts or omissions of the Indemnitee, be indemnified by Contractor from and against any and all claims. It is agreed that Contractor will be responsible for primary loss investigation, defense, and judgment costs where this indemnification is applicable. In consideration of the award of this contract, the Contractor agrees to waive all rights of subrogation against the State of Arizona, its officers, officials, agents, and employees for losses arising from the work performed by the Contractor for the State of Arizona. This indemnity shall not apply if the contractor or sub-contractor(s) is/are an agency, board, commission or university of the State of Arizona. 21. INSURANCE The Contractor shall furnish Certificate(s) of Insurance inclusive of the following requirements to the Department. Certificate(s) shall be received within ten (10) calendar days of notification of contract award by the Procurement Officer. 21.1. Contractor and subcontractors shall procure and maintain, until all of their obligations have been discharged, including any warranty periods under this Contract, insurance against claims for injury to persons or damage to property arising from, or in connection with, the performance of the work hereunder by the Contractor, its agents, representatives, employees or subcontractors. 21.2. The Insurance Requirements herein are minimum requirements for this Contract and in no way limit the indemnity covenants contained in this Contract. The State of Arizona in no way warrants that the minimum limits contained herein are sufficient to protect the Contractor from liabilities that arise out of the performance of the work under this Contract by the Contractor, its agents, representatives, employees or subcontractors, and the Contractor is free to purchase additional insurance. SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 16 of 23 Procurement 21.3. Minimum Scope and Limits of Insurance: Contractor shall provide coverage with limits of liability not less than those stated below. 21.3.1. Commercial General Liability (CGL) – Occurrence Form Policy shall include bodily injury, property damage, and broad form contractual liability coverage.  General Aggregate $2,000,000  Products – Completed Operations Aggregate $1,000,000  Personal and Advertising Injury $1,000,000  Damage to Rented Premises $50,000  Each Occurrence $1,000,000 a. The policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by or on behalf of the Contractor. b. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor. 21.3.2. Business Automobile Liability: Bodily Injury and Property Damage for any owned, hired, and/or non-owned automobiles used in the performance of this Contract.  Combined Single Limit (CSL) $1,000,000 a. Policy shall be endorsed, as required by this written agreement, to include the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees as additional insureds with respect to liability arising out of the activities performed by, or on behalf of, the Contractor involving automobiles owned, hired and/or non-owned by the Contractor. b. Policy shall contain a waiver of subrogation endorsement as required by this written agreement in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor. 21.3.3. Workers’ Compensation and Employers' Liability  Workers' Compensation Statutory  Employers' Liability o Each Accident $1,000,000 o Disease – Each Employee $1,000,000 SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 17 of 23 Procurement o Disease – Policy Limit $1,000,000 a. Policy shall contain a waiver of subrogation endorsement, as required by this written agreement, in favor of the State of Arizona, and its departments, agencies, boards, commissions, universities, officers, officials, agents, and employees for losses arising from work performed by or on behalf of the Contractor. b. This requirement shall not apply to each Contractor or subcontractor that is exempt under A.R.S. § 23-901, and when such Contractor or subcontractor executes the appropriate waiver form (Sole Proprietor or Independent Contractor). 21.4. Additional Insurance Requirements: The policies shall include, or be endorsed to include, as required by this written agreement, the following provisions: 21.4.1. The Contractor's policies, as applicable, shall stipulate that the insurance afforded the Contractor shall be primary and that any insurance carried by the Department, its agents, officials, employees or the State of Arizona shall be excess and not contributory insurance, as provided by A.R.S. § 41-621 (E). 21.4.2. Insurance provided by the Contractor shall not limit the Contractor’s liability assumed under the indemnification provisions of this Contract. 21.5. Notice of Cancellation Applicable to all insurance policies required within the Insurance Requirements of this Contract, Contractor’s insurance shall not be permitted to expire, be suspended, be canceled, or be materially changed for any reason without thirty (30) days prior written notice to the State of Arizona. Within two (2) business days of receipt, Contractor must provide notice to the State of Arizona if they receive notice of a policy that has been or will be suspended, canceled, materially changed for any reason, has expired, or will be expiring. Such notice shall be sent directly to the Department and shall be mailed, emailed, hand delivered or sent by facsimile transmission to (State Representative’s Name, Address & Fax Number). 21.6. Acceptability of Insurers Contractor’s insurance shall be placed with companies licensed in the State of Arizona or hold approved non-admitted status on the Arizona Department of Insurance List of Qualified Unauthorized Insurers. Insurers shall have an “A.M. Best” rating of not less than A- VII. The State of Arizona in no way warrants that the above-required minimum insurer rating is sufficient to protect the Contractor from potential insurer insolvency. 21.7. Verification of Coverage Contractor shall furnish the State of Arizona with certificates of insurance (valid ACORD form or equivalent approved by the State of Arizona) evidencing that Contractor has the insurance as required by this Contract. An authorized representative of the insurer shall sign the certificates. 21.7.1. All such certificates of insurance and policy endorsements must be received by the State before work commences. The State’s receipt of any certificates of insurance or policy SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 18 of 23 Procurement endorsements that do not comply with this written agreement shall not waive or otherwise affect the requirements of this agreement. 21.7.2. Each insurance policy required by this Contract must be in effect at, or prior to, commencement of work under this Contract. Failure to maintain the insurance policies as required by this Contract, or to provide evidence of renewal, is a material breach of contract. 21.7.3. All certificates required by this Contract shall be sent directly to the Department. The State of Arizona project/contract number and project description shall be noted on the certificate of insurance. The State of Arizona reserves the right to require complete copies of all insurance policies required by this Contract at any time. 21.8. Subcontractors Contractor’s certificate(s) shall include all subcontractors as insureds under its policies or Contractor shall be responsible for ensuring and/or verifying that all subcontractors have valid and collectable insurance as evidenced by the certificates of insurance and endorsements for each subcontractor. All coverages for subcontractors shall be subject to the minimum Insurance Requirements identified above. The Department reserves the right to require, at any time throughout the life of the Contract, proof from the Contractor that its subcontractors have the required coverage. 21.9. Approval and Modifications The Contracting Agency, in consultation with State Risk, reserves the right to review or make modifications to the insurance limits, required coverages, or endorsements throughout the life of this contract, as deemed necessary. Such action will not require a formal Contract amendment but may be made by administrative action. 21.10. Exceptions In the event the Contractor or subcontractor(s) is/are a public entity, then the Insurance Requirements shall not apply. Such public entity shall provide a certificate of self-insurance. If the Contractor or subcontractor(s) is/are a State of Arizona agency, board, commission, or university, none of the above shall apply. 22. USAGE REPORT The Contractor shall furnish the Department a quarterly report showing purchasing activity under this contract. This usage report shall be provided in a form substantially equivalent to Exhibit 3. Usage reports shall be submitted to the Procurement Officer no later than 30 days after the end of each quarter. Usage report quarters shall be defined as follows:  January through March – Report due April 30  April through June – Report due July 30  July through September – Report due October 30  October through December – Report due January 30 SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 19 of 23 Procurement Contractor shall submit to State a Quarterly Usage Report documenting all Contract sales to both Eligible Agencies and Co-Op Buyers, itemized separately. A Quarterly Usage Report shall still be submitted, even if there have been no sales to either Eligible Agencies and/or Co-Op Buyers. Contractor shall further itemize divisions, groups or areas within a given Eligible Agency if they place Orders independently of each other. Failure to submit the report is a material breach of contract, and will entitle State to its remedies under Article 8 and its right to terminate for default under Article 9. Contractor shall submit the report using the forms and following the instructions on the State Procurement Office website: https://spo.az.gov/contractor-resources/statewide-contracts-administrative-fee 23. CO-OP USAGE Contractor shall verify if an ordering entity is a bona fide Co-Op Buyer before selling Materials to or providing Services for them under the Contract. The current list of Co-Op Buyers is available on the State Procurement Office website: https://spo.az.gov/procurement-services/cooperative-procurement/state-purchasing-cooperative Contractor shall sell to Co-Op Buyers at the same price and on the same lead times and other terms and conditions under which it sells to Eligible Agencies, with the sole exception of any legitimately additional costs for extraordinary shipping or delivery requirements if the Co-Op Buyer is having Materials delivered or installed or Services performed at locations not contemplated in the contracted pricing (e.g. delivery to a location outside Arizona). Contractor shall pay State an administrative fee against all Contract sales to Co-Op Buyers, as provided for under A.R.S. § 41-2633. The fee rate is one (1%) percent. Failure to remit the administrative fees is a material breach of contract, and will entitle State to its remedies under Article 8 and its right to terminate for default under Article 9. Method of calculation, payment procedures, and other details are provided on the State Procurement Office website: https://spo.az.gov/contractor-resources/statewide-contracts-administrative-fee Contractor shall acknowledge each Order from Co-Op Buyers in conformance with each buyer’s instructions given at the time of ordering or in any supplemental participating agreement Contractor might have with them. Orders from Co-Op Buyers create no obligation on State’s part, since they are entirely between the Co-Op Buyer and Contractor. That notwithstanding, Contractor’s obligation under the Contract is to service Co-Op Buyers commercially as though they were with an Eligible Agency, and Contractor’s refusal to do so would be a material breach of the Contract. 24. LICENSES, PERMITS, CERTIFICATIONS Contractor, at their expense, shall maintain in current status without any violations, complaints, or suspensions during the term of this contract all Federal, State and Local licenses, permits and certifications required for the operation of a business conducted by the Contractor. 25. SERIAL NUMBERS SPECIAL TERMS AND CONDITIONS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 20 of 23 Procurement Equipment supplied under this contract must contain an original manufacturer’s serial number. Serial number may not be altered in any way. Throughout the contract term, the Department reserves the right to reject any altered equipment. 26. POST AWARD MEETING At the discretion of the Department, the Contractor, at their expense, shall attend and participate in post award meetings as scheduled by the Procurement Officer. EXHIBIT 1 Title VI/Non-Discrimination Assurances Appendix A Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 21 of 23 Procurement During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees as follows: 1. Compliance with Regulations: The contractor (hereinafter includes consultants) will comply with the Acts and the Regulations relative to Non-discrimination in Federally-assisted programs of the U.S. Department of Transportation, the Federal Highway Administration, as they may be amended from time to time, which are herein incorporated by reference and made a part of this contract. 2. Non-discrimination: The contractor, with regard to the work performance by it during the contract, will not discriminate on the grounds of race, color, or national origin in the selection and retention of subcontractors, including procurements of materials and leases of equipment. The contractor will not participate directly or indirectly in the discrimination prohibited by the Acts and the Regulations, including employment practices when the contract covers any activity, project, or program set forth in Appendix B of 49 CFR Part 21. 3. Solicitations for Subcontracts, Including Procurements of Materials and Equipment: In all solicitations, either by competitive bidding, or negotiation made by the contractor for work to be performed under a subcontract, including procurements of materials, or leases of equipment, each potential subcontractor or supplier will be notified by the contractor of the contractor's obligations under this contract and the Acts and Regulations relative to Non-discrimination on the grounds of race, color, or national origin. 4. Information and Reports: The contractor will provide all information and reports required by the Acts, the Regulations, and directives issued pursuant thereto and will permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Recipient or the Federal Highway Administration to be pertinent to ascertain compliance with such Acts, Regulations, and instructions. Where any information required of a contractor is in the exclusive possession of another who fails or refuses to furnish the information, the contractor will so certify to the Recipient or the Federal Highway Administration, as appropriate, and will set forth what efforts it has made to obtain the information. 5. Sanctions for Noncompliance: In the event of a contractor's noncompliance with the Non-discrimination provisions of this contract, the Recipient will impose such contract sanctions as it or the Federal Highway Administration ,may determine to be appropriate, including, but not limited to: a. withholding payments to the contractor under the contract until the contractor complies; and/or b. cancelling, terminating, or suspending a contract, in whole or in part. 6. Incorporation of Provisions: The contractor will include the provisions of paragraphs one through six in every subcontract, including procurements of materials and leases of equipment, unless exempt by the Acts, the Regulations and directives issued pursuant thereto. The contractor will take action with request to any subcontract or procurement as the Recipient or the Federal Highway Administration may direct as a means of enforcing such provisions including sanctions for noncompliance. Provided, that if the contractor becomes involved in, or is threatened with litigation by a subcontractor or supplier because of such direction, the contractor may request the Recipient to enter into any litigation to protect the interests of the Recipient. In addition, the contractor may request the United States to enter into the litigation to protect the interests of the United States. EXHIBIT 2 Title VI/Non-Discrimination Assurances Appendix E Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 22 of 23 Procurement During the performance of this contract, the contractor, for itself, its assignees, and successors in interest (hereinafter referred to as the "contractor") agrees to comply with the following non-discrimination statutes and authorities; including but not limited to: Pertinent Non-Discrimination Authorities: • Title VI of the Civil Rights Act of 1964 (42 U.S.C. § 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin): and 49 CFR Part 21. • The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. § 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects); • Federal-Aid Highway Act of 1973, (23 U.S.C. § 324 etseq.), (prohibits discrimination on the basis of sex); • Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. § 794 et seq.), as amended, (prohibits discrimination on the basis of disability); and 49 CFR Part 27; • The Age Discrimination Act of 1975, as amended, (42 U.S.C. § 6101 et seq.), (prohibits discrimination on the basis of age); • Airport and Airway Improvement Act of 1982, (49 USC § 471, Section 47123), as amended, (prohibits discrimination based on race, creed, color, national origin, or sex); • The Civil Rights Restoration Act of 1987, (PL 100-209), (Broadened the scope, coverage and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms "programs or activities" to include all of the programs or activities of the Federal-aid recipients, sub-recipients and contractors, whether such programs or activities are Federally funded or not); • Titles II and III of the Americans with Disabilities Act, which prohibit discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing entities (42 U.S.C. §§ 12131-12189) as implemented by Department of Transportation regulations at 49 C.F.R. parts 37 and 38; • The Federal Aviation Administration's Non-discrimination statute (49 U.S.C. § 47123) (prohibits discrimination on the basis of race, color, national origin, and sex); • Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low- Income Populations, which ensures discrimination against minority populations by discouraging programs, policies, and activities with disproportionately high and adverse human health or environmental effects on minority and low-income populations; • Executive Order 13166, Improving Access to Services for Persons with Limited English Proficiency, and resulting agency guidance, national origin discrimination includes discrimination because of limited English proficiency (LEP). To ensure compliance with Title VI, you must take reasonable steps to ensure that LEP persons have meaningful access to your programs (70 Fed. Reg. at 74087 to 74100); • Title IX of the Education Amendments of 1972, as amended, which prohibits you from discriminating because of sex in education programs or activities (20 U.S.C. 1687 et. seq). EXHIBIT 3 Quarterly Usage Report Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 23 of 23 Procurement • This exhibit outlines the content required for the quarterly usage report. Usage reports will be submitted to the appropriate Procurement Officer in accordance with the requirements specified in Special Terms and Conditions. The Department reserves the right to make additions, deletions and changes as deemed necessary. Reporting Period: Contract ID/Code: Contact Name: Alternate Contact Name: Contract Label/Description: Contact Phone Number: Alternate Contact Phone Number: Contractor: Contact Email: Alternate Contact Email: Contractor Address: Agency Customer Name Delivery Address PO Number or Identify as “P-Card” Order Date Contract Item Number Contract Item Description Part/Product Code Quantity Unit of Measure Contract Unit Price Contract Extended Price Invoice Number Uniform Terms and Conditions Page 1 of 10 Updated: July 1, 2013 UNIFORM TERMS AND CONDITIONS Version 9 1. Definition of Terms As used in this Solicitation and any resulting Contract, the terms listed below are defined as follows: 1.1. “Attachment” means any item the Solicitation requires the Offeror to submit as part of the Offer. 1.2. “Contract” means the combination of the Solicitation, including the Uniform and Special Instructions to Offerors, the Uniform and Special Terms and Conditions, and the Specifications and Statement or Scope of Work; the Offer and any Best and Final Offers; and any Solicitation Amendments or Contract Amendments. 1.3. "Contract Amendment" means a written document signed by the Procurement Officer that is issued for the purpose of making changes in the Contract. 1.4. “Contractor” means any person who has a Contract with the State. 1.5. “Days” means calendar days unless otherwise specified. 1.6. “Exhibit” means any item labeled as an Exhibit in the Solicitation or placed in the Exhibits section of the Solicitation. 1.7. “Gratuity” means a payment, loan, subscription, advance, deposit of money, services, or anything of more than nominal value, present or promised, unless consideration of substantially equal or greater value is received. 1.8. “Materials” means all property, including equipment, supplies, printing, insurance and leases of property but does not include land, a permanent interest in land or real property or leasing space. 1.9. “Procurement Officer” means the person, or his or her designee, duly authorized by the State to enter into and administer Contracts and make written determinations with respect to the Contract. 1.10. “Services” means the furnishing of labor, time or effort by a contractor or subcontractor which does not involve the delivery of a specific end product other than required reports and performance, but does not include employment agreements or collective bargaining agreements. 1.11. “Subcontract” means any Contract, express or implied, between the Contractor and another party or between a subcontractor and another party delegating or assigning, in whole or in part, the making or furnishing of any material or any service required for the performance of the Contract. 1.12. “State” means the State of Arizona and Department or Agency of the State that executes the Contract. 1.13. “State Fiscal Year” means the period beginning with July 1 and ending June 30. Uniform Terms and Conditions Page 2 of 10 Updated: July 1, 2013 2. Contract Interpretation 2.1. Arizona Law. The Arizona law applies to this Contract including, where applicable, the Uniform Commercial Code as adopted by the State of Arizona and the Arizona Procurement Code, Arizona Revised Statutes (A.R.S.) Title 41, Chapter 23, and its implementing rules, Arizona Administrative Code (A.A.C.) Title 2, Chapter 7. 2.2. Implied Contract Terms. Each provision of law and any terms required by law to be in this Contract are a part of this Contract as if fully stated in it. 2.3. Contract Order of Precedence. In the event of a conflict in the provisions of the Contract, as accepted by the State and as they may be amended, the following shall prevail in the order set forth below: 2.3.1. Special Terms and Conditions; 2.3.2. Uniform Terms and Conditions; 2.3.3. Statement or Scope of Work; 2.3.4. Specifications; 2.3.5. Attachments; 2.3.6. Exhibits; 2.3.7. Documents referenced or included in the Solicitation. 2.4. Relationship of Parties. The Contractor under this Contract is an independent Contractor. Neither party to this Contract shall be deemed to be the employee or agent of the other party to the Contract. 2.5. Severability. The provisions of this Contract are severable. Any term or condition deemed illegal or invalid shall not affect any other term or condition of the Contract. 2.6. No Parole Evidence. This Contract is intended by the parties as a final and complete expression of their agreement. No course of prior dealings between the parties and no usage of the trade shall supplement or explain any terms used in this document and no other understanding either oral or in writing shall be binding. 2.7. No Waiver. Either party’s failure to insist on strict performance of any term or condition of the Contract shall not be deemed a waiver of that term or condition even if the party accepting or acquiescing in the nonconforming performance knows of the nature of the performance and fails to object to it. 3. Contract Administration and Operation 3.1. Records. Under A.R.S. § 35-214 and § 35-215, the Contractor shall retain and shall contractually require each subcontractor to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract. All records shall be subject to inspection and audit by the State at reasonable times. Upon request, the Contractor shall produce a legible copy of any or all such records. Uniform Terms and Conditions Page 3 of 10 Updated: July 1, 2013 3.2. Non-Discrimination. The Contractor shall comply with State Executive Order No. 2009- 09 and all other applicable Federal and State laws, rules and regulations, including the Americans with Disabilities Act. 3.3. Audit. Pursuant to ARS § 35-214, at any time during the term of this Contract and five (5) years thereafter, the Contractor’s or any subcontractor’s books and records shall be subject to audit by the State and, where applicable, the Federal Government, to the extent that the books and records relate to the performance of the Contract or Subcontract. 3.4. Facilities Inspection and Materials Testing. The Contractor agrees to permit access to its facilities, subcontractor facilities and the Contractor’s processes or services, at reasonable times for inspection of the facilities or materials covered under this Contract. The State shall also have the right to test, at its own cost, the materials to be supplied under this Contract. Neither inspection of the Contractor’s facilities nor materials testing shall constitute final acceptance of the materials or services. If the State determines non-compliance of the materials, the Contractor shall be responsible for the payment of all costs incurred by the State for testing and inspection. 3.5. Notices. Notices to the Contractor required by this Contract shall be made by the State to the person indicated on the Offer and Acceptance form submitted by the Contractor unless otherwise stated in the Contract. Notices to the State required by the Contract shall be made by the Contractor to the Solicitation Contact Person indicated on the Solicitation cover sheet, unless otherwise stated in the Contract. An authorized Procurement Officer and an authorized Contractor representative may change their respective person to whom notice shall be given by written notice to the other and an amendment to the Contract shall not be necessary. 3.6. Advertising, Publishing and Promotion of Contract. The Contractor shall not use, advertise or promote information for commercial benefit concerning this Contract without the prior written approval of the Procurement Officer. 3.7. Property of the State. Any materials, including reports, computer programs and other deliverables, created under this Contract are the sole property of the State. The Contractor is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. The Contractor shall not use or release these materials without the prior written consent of the State. 3.8. Ownership of Intellectual Property. Any and all intellectual property, including but not limited to copyright, invention, trademark, trade name, service mark, and/or trade secrets created or conceived pursuant to or as a result of this contract and any related subcontract (“Intellectual Property”), shall be work made for hire and the State shall be considered the creator of such Intellectual Property. The agency, department, division, board or commission of the State of Arizona requesting the issuance of this contract shall own (for and on behalf of the State) the entire right, title and interest to the Intellectual Property throughout the world. Contractor shall notify the State, within thirty (30) days, of the creation of any Intellectual Property by it or its subcontractor(s). Contractor, on behalf of itself and any subcontractor(s), agrees to execute any and all document(s) necessary to assure ownership of the Intellectual Property vests in the State and shall take no affirmative actions that might have the effect of vesting all or part of the Intellectual Property in any entity other than the State. The Intellectual Property shall not be disclosed by contractor or its subcontractor(s) to any entity not the Uniform Terms and Conditions Page 4 of 10 Updated: July 1, 2013 State without the express written authorization of the agency, department, division, board or commission of the State of Arizona requesting the issuance of this contract. 3.9. Federal Immigration and Nationality Act. The contractor shall comply with all federal, state and local immigration laws and regulations relating to the immigration status of their employees during the term of the contract. Further, the contractor shall flow down this requirement to all subcontractors utilized during the term of the contract. The State shall retain the right to perform random audits of contractor and subcontractor records or to inspect papers of any employee thereof to ensure compliance. Should the State determine that the contractor and/or any subcontractors be found noncompliant, the State may pursue all remedies allowed by law, including, but not limited to; suspension of work, termination of the contract for default and suspension and/or debarment of the contractor. 3.10 E-Verify Requirements. In accordance with A.R.S. § 41-4401, Contractor warrants compliance with all Federal immigration laws and regulations relating to employees and warrants its compliance with Section A.R.S. § 23-214, Subsection A. 3.11 Offshore Performance of Work Prohibited. Any services that are described in the specifications or scope of work that directly serve the State of Arizona or its clients and involve access to secure or sensitive data or personal client data shall be performed within the defined territories of the United States. Unless specifically stated otherwise in the specifications, this paragraph does not apply to indirect or 'overhead' services, redundant back-up services or services that are incidental to the performance of the contract. This provision applies to work performed by subcontractors at all tiers. 4. Costs and Payments 4.1. Payments. Payments shall comply with the requirements of A.R.S. Titles 35 and 41, Net 30 days. Upon receipt and acceptance of goods or services, the Contractor shall submit a complete and accurate invoice for payment from the State within thirty (30) days. 4.2. Delivery. Unless stated otherwise in the Contract, all prices shall be F.O.B. Destination and shall include all freight delivery and unloading at the destination. 4.3. Applicable Taxes. 4.3.1. Payment of Taxes. The Contractor shall be responsible for paying all applicable taxes. 4.3.2. State and Local Transaction Privilege Taxes. The State of Arizona is subject to all applicable state and local transaction privilege taxes. Transaction privilege taxes apply to the sale and are the responsibility of the seller to remit. Failure to collect such taxes from the buyer does not relieve the seller from its obligation to remit taxes. 4.3.3. Tax Indemnification. Contractor and all subcontractors shall pay all Federal, state and local taxes applicable to its operation and any persons employed by the Contractor. Contractor shall, and require all subcontractors to hold the State harmless from any responsibility for taxes, damages and interest, if applicable, contributions required under Federal, and/or state and local laws and Uniform Terms and Conditions Page 5 of 10 Updated: July 1, 2013 regulations and any other costs including transaction privilege taxes, unemployment compensation insurance, Social Security and Worker’s Compensation. 4.3.4. IRS W9 Form. In order to receive payment the Contractor shall have a current I.R.S. W9 Form on file with the State of Arizona, unless not required by law. 4.4. Availability of Funds for the Next State fiscal year. Funds may not presently be available for performance under this Contract beyond the current state fiscal year. No legal liability on the part of the State for any payment may arise under this Contract beyond the current state fiscal year until funds are made available for performance of this Contract. 4.5. Availability of Funds for the current State fiscal year. Should the State Legislature enter back into session and reduce the appropriations or for any reason and these goods or services are not funded, the State may take any of the following actions: 4.5.1. Accept a decrease in price offered by the contractor; 4.5.2. Cancel the Contract; or 4.5.3. Cancel the contract and re-solicit the requirements. 5. Contract Changes 5.1. Amendments. This Contract is issued under the authority of the Procurement Officer who signed this Contract. The Contract may be modified only through a Contract Amendment within the scope of the Contract. Changes to the Contract, including the addition of work or materials, the revision of payment terms, or the substitution of work or materials, directed by a person who is not specifically authorized by the procurement officer in writing or made unilaterally by the Contractor are violations of the Contract and of applicable law. Such changes, including unauthorized written Contract Amendments shall be void and without effect, and the Contractor shall not be entitled to any claim under this Contract based on those changes. 5.2. Subcontracts. The Contractor shall not enter into any Subcontract under this Contract for the performance of this contract without the advance written approval of the Procurement Officer. The Contractor shall clearly list any proposed subcontractors and the subcontractor’s proposed responsibilities. The Subcontract shall incorporate by reference the terms and conditions of this Contract. 5.3. Assignment and Delegation. The Contractor shall not assign any right nor delegate any duty under this Contract without the prior written approval of the Procurement Officer. The State shall not unreasonably withhold approval. 6. Risk and Liability 6.1. Risk of Loss: The Contractor shall bear all loss of conforming material covered under this Contract until received by authorized personnel at the location designated in the purchase order or Contract. Mere receipt does not constitute final acceptance. The risk of loss for nonconforming materials shall remain with the Contractor regardless of receipt. Uniform Terms and Conditions Page 6 of 10 Updated: July 1, 2013 6.2. Indemnification 6.2.1. Contractor/Vendor Indemnification (Not Public Agency) The parties to this contract agree that the State of Arizona, its departments, agencies, boards and commissions shall be indemnified and held harmless by the contractor for the vicarious liability of the State as a result of entering into this contract. However, the parties further agree that the State of Arizona, its departments, agencies, boards and commissions shall be responsible for its own negligence. Each party to this contract is responsible for its own negligence. 6.2.2. Public Agency Language Only Each party (as 'indemnitor') agrees to indemnify, defend, and hold harmless the other party (as 'indemnitee') from and against any and all claims, losses, liability, costs, or expenses (including reasonable attorney's fees) (hereinafter collectively referred to as 'claims') arising out of bodily injury of any person (including death) or property damage but only to the extent that such claims which result in vicarious/derivative liability to the indemnitee, are caused by the act, omission, negligence, misconduct, or other fault of the indemnitor, its officers, officials, agents, employees, or volunteers." 6.3. Indemnification - Patent and Copyright. The Contractor shall indemnify and hold harmless the State against any liability, including costs and expenses, for infringement of any patent, trademark or copyright arising out of Contract performance or use by the State of materials furnished or work performed under this Contract. The State shall reasonably notify the Contractor of any claim for which it may be liable under this paragraph. If the contractor is insured pursuant to A.R.S. § 41-621 and § 35-154, this section shall not apply. 6.4. Force Majeure. 6.4.1 Except for payment of sums due, neither party shall be liable to the other nor deemed in default under this Contract if and to the extent that such party’s performance of this Contract is prevented by reason of force majeure. The term “force majeure” means an occurrence that is beyond the control of the party affected and occurs without its fault or negligence. Without limiting the foregoing, force majeure includes acts of God; acts of the public enemy; war; riots; strikes; mobilization; labor disputes; civil disorders; fire; flood; lockouts; injunctions-intervention-acts; or failures or refusals to act by government authority; and other similar occurrences beyond the control of the party declaring force majeure which such party is unable to prevent by exercising reasonable diligence. 6.4.2. Force Majeure shall not include the following occurrences: 6.4.2.1. Late delivery of equipment or materials caused by congestion at a manufacturer’s plant or elsewhere, or an oversold condition of the market; 6.4.2.2. Late performance by a subcontractor unless the delay arises out of a force majeure occurrence in accordance with this force majeure term and condition; or 6.4.2.3. Inability of either the Contractor or any subcontractor to acquire or Uniform Terms and Conditions Page 7 of 10 Updated: July 1, 2013 maintain any required insurance, bonds, licenses or permits. 6.4.3. If either party is delayed at any time in the progress of the work by force majeure, the delayed party shall notify the other party in writing of such delay, as soon as is practicable and no later than the following working day, of the commencement thereof and shall specify the causes of such delay in such notice. Such notice shall be delivered or mailed certified-return receipt and shall make a specific reference to this article, thereby invoking its provisions. The delayed party shall cause such delay to cease as soon as practicable and shall notify the other party in writing when it has done so. The time of completion shall be extended by Contract Amendment for a period of time equal to the time that results or effects of such delay prevent the delayed party from performing in accordance with this Contract. 6.4.4. Any delay or failure in performance by either party hereto shall not constitute default hereunder or give rise to any claim for damages or loss of anticipated profits if, and to the extent that such delay or failure is caused by force majeure. 6.5. Third Party Antitrust Violations. The Contractor assigns to the State any claim for overcharges resulting from antitrust violations to the extent that those violations concern materials or services supplied by third parties to the Contractor, toward fulfillment of this Contract. 7. Warranties 7.1. Liens. The Contractor warrants that the materials supplied under this Contract are free of liens and shall remain free of liens. 7.2. Quality. Unless otherwise modified elsewhere in these terms and conditions, the Contractor warrants that, for one year after acceptance by the State of the materials, they shall be: 7.2.1. Of a quality to pass without objection in the trade under the Contract description; 7.2.2. Fit for the intended purposes for which the materials are used; 7.2.3. Within the variations permitted by the Contract and are of even kind, quantity, and quality within each unit and among all units; 7.2.4. Adequately contained, packaged and marked as the Contract may require; and 7.2.5. Conform to the written promises or affirmations of fact made by the Contractor. 7.3. Fitness. The Contractor warrants that any material supplied to the State shall fully conform to all requirements of the Contract and all representations of the Contractor, and shall be fit for all purposes and uses required by the Contract. 7.4. Inspection/Testing. The warranties set forth in subparagraphs 7.1 through 7.3 of this paragraph are not affected by inspection or testing of or payment for the materials by the State. 7.5. Compliance With Applicable Laws. The materials and services supplied under this Uniform Terms and Conditions Page 8 of 10 Updated: July 1, 2013 Contract shall comply with all applicable Federal, state and local laws, and the Contractor shall maintain all applicable license and permit requirements. 7.6. Survival of Rights and Obligations after Contract Expiration or Termination. 7.6.1. Contractor's Representations and Warranties. All representations and warranties made by the Contractor under this Contract shall survive the expiration or termination hereof. In addition, the parties hereto acknowledge that pursuant to A.R.S. § 12-510, except as provided in A.R.S. § 12-529, the State is not subject to or barred by any limitations of actions prescribed in A.R.S., Title 12, Chapter 5. 7.6.2. Purchase Orders. The Contractor shall, in accordance with all terms and conditions of the Contract, fully perform and shall be obligated to comply with all purchase orders received by the Contractor prior to the expiration or termination hereof, unless otherwise directed in writing by the Procurement Officer, including, without limitation, all purchase orders received prior to but not fully performed and satisfied at the expiration or termination of this Contract. 8. State's Contractual Remedies 8.1. Right to Assurance. If the State in good faith has reason to believe that the Contractor does not intend to, or is unable to perform or continue performing under this Contract, the Procurement Officer may demand in writing that the Contractor give a written assurance of intent to perform. Failure by the Contractor to provide written assurance within the number of Days specified in the demand may, at the State’s option, be the basis for terminating the Contract under the Uniform Terms and Conditions or other rights and remedies available by law or provided by the contract. 8.2. Stop Work Order. 8.2.1. The State may, at any time, by written order to the Contractor, require the Contractor to stop all or any part, of the work called for by this Contract for period(s) of days indicated by the State after the order is delivered to the Contractor. The order shall be specifically identified as a stop work order issued under this clause. Upon receipt of the order, the Contractor shall immediately comply with its terms and take all reasonable steps to minimize the incurrence of costs allocable to the work covered by the order during the period of work stoppage. 8.2.2. If a stop work order issued under this clause is canceled or the period of the order or any extension expires, the Contractor shall resume work. The Procurement Officer shall make an equitable adjustment in the delivery schedule or Contract price, or both, and the Contract shall be amended in writing accordingly. 8.3. Non-exclusive Remedies. The rights and the remedies of the State under this Contract are not exclusive. 8.4. Nonconforming Tender. Materials or services supplied under this Contract shall fully comply with the Contract. The delivery of materials or services or a portion of the materials or services that do not fully comply constitutes a breach of contract. On Uniform Terms and Conditions Page 9 of 10 Updated: July 1, 2013 delivery of nonconforming materials or services, the State may terminate the Contract for default under applicable termination clauses in the Contract, exercise any of its rights and remedies under the Uniform Commercial Code, or pursue any other right or remedy available to it. 8.5. Right of Offset. The State shall be entitled to offset against any sums due the Contractor, any expenses or costs incurred by the State, or damages assessed by the State concerning the Contractor’s non-conforming performance or failure to perform the Contract, including expenses, costs and damages described in the Uniform Terms and Conditions. 9. Contract Termination 9.1. Cancellation for Conflict of Interest. Pursuant to A.R.S. § 38-511, the State may cancel this Contract within three (3) years after Contract execution without penalty or further obligation if any person significantly involved in initiating, negotiating, securing, drafting or creating the Contract on behalf of the State is or becomes at any time while the Contract or an extension of the Contract is in effect an employee of or a consultant to any other party to this Contract with respect to the subject matter of the Contract. The cancellation shall be effective when the Contractor receives written notice of the cancellation unless the notice specifies a later time. If the Contractor is a political subdivision of the State, it may also cancel this Contract as provided in A.R.S. § 38-511. 9.2. Gratuities. The State may, by written notice, terminate this Contract, in whole or in part, if the State determines that employment or a Gratuity was offered or made by the Contractor or a representative of the Contractor to any officer or employee of the State for the purpose of influencing the outcome of the procurement or securing the Contract, an amendment to the Contract, or favorable treatment concerning the Contract, including the making of any determination or decision about contract performance. The State, in addition to any other rights or remedies, shall be entitled to recover exemplary damages in the amount of three times the value of the Gratuity offered by the Contractor. 9.3. Suspension or Debarment. The State may, by written notice to the Contractor, immediately terminate this Contract if the State determines that the Contractor has been debarred, suspended or otherwise lawfully prohibited from participating in any public procurement activity, including but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body. Submittal of an offer or execution of a contract shall attest that the contractor is not currently suspended or debarred. If the contractor becomes suspended or debarred, the contractor shall immediately notify the State. 9.4. Termination for Convenience. The State reserves the right to terminate the Contract, in whole or in part at any time when in the best interest of the State, without penalty or recourse. Upon receipt of the written notice, the Contractor shall stop all work, as directed in the notice, notify all subcontractors of the effective date of the termination and minimize all further costs to the State. In the event of termination under this paragraph, all documents, data and reports prepared by the Contractor under the Contract shall become the property of and be delivered to the State upon demand. The Contractor shall be entitled to receive just and equitable compensation for work in progress, work completed and materials accepted before the effective date of the termination. The cost principles and procedures provided in A.A.C. R2-7-701 shall apply. Uniform Terms and Conditions Page 10 of 10 Updated: July 1, 2013 9.5. Termination for Default. 9.5.1. In addition to the rights reserved in the contract, the State may terminate the Contract in whole or in part due to the failure of the Contractor to comply with any term or condition of the Contract, to acquire and maintain all required insurance policies, bonds, licenses and permits, or to make satisfactory progress in performing the Contract. The Procurement Officer shall provide written notice of the termination and the reasons for it to the Contractor. 9.5.2. Upon termination under this paragraph, all goods, materials, documents, data and reports prepared by the Contractor under the Contract shall become the property of and be delivered to the State on demand. 9.5.3. The State may, upon termination of this Contract, procure, on terms and in the manner that it deems appropriate, materials or services to replace those under this Contract. The Contractor shall be liable to the State for any excess costs incurred by the State in procuring materials or services in substitution for those due from the Contractor. 9.6. Continuation of Performance Through Termination. The Contractor shall continue to perform, in accordance with the requirements of the Contract, up to the date of termination, as directed in the termination notice. 10. Contract Claims All contract claims or controversies under this Contract shall be resolved according to A.R.S. Title 41, Chapter 23, Article 9, and rules adopted thereunder. 11. Arbitration The parties to this Contract agree to resolve all disputes arising out of or relating to this contract through arbitration, after exhausting applicable administrative review, to the extent required by A.R.S. § 12-1518, except as may be required by other applicable statutes (Title 41). 12. Comments Welcome The State Procurement Office periodically reviews the Uniform Terms and Conditions and welcomes any comments you may have. Please submit your comments to: State Procurement Administrator, State Procurement Office, 100 North 15th Avenue, Suite 201, Phoenix, Arizona, 85007. SPECIAL INSTRUCTIONS TO OFFERORS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 1 of 3 Rev 04/2020 Procurement 1. Inquiries 1.1. All questions related to this solicitation must be submitted through the State’s e-Procurement System, Arizona Procurement Portal (APP) (https://app.az.gov/) using the Discussion Forum tab. All inquiries must be marked as Q&A and addressed to the Procurement Officer identified as the solicitation’s owner. Any other contact shall be directed to the Procurement Officer listed in APP. Questions should reference the applicable page and paragraph number. 1.2. Pre-Offer Conference 1.2.1. A Pre-Offer Conference will be held at the time and place indicated in the solicitation’s Process field as found within APP. Attendance is not mandatory but is highly recommended. 1.2.2. The purpose of the conference is to clarify the contents of the solicitation in order to prevent any misunderstanding of ADOT’s position. Any doubt as to the requirements of the solicitation or any apparent omission or discrepancy should be presented to ADOT at the conference. ADOT will then determine any appropriate action necessary. If required, a written amendment to the solicitation will be issued. Oral statements or instructions will not constitute an amendment to the solicitation. Only official solicitation amendments issued by the ADOT Procurement Office through APP shall constitute a change to the solicitation. 2. Evaluation Criteria 2.1. In accordance with the A.R.S. § 41-2534, awards shall be made to the responsible Offeror(s) whose proposal is determined in writing to be the most advantageous to the State based upon the evaluation criteria listed below. The evaluation factors are listed in their relative order of importance. 2.1.1. Method of Approach 2.1.2. Experience and Qualifications 2.1.3. Price 2.2. Exceptions to the Terms and Conditions, as stated in the Uniform Instructions Section C.3, may impact an Offeror’s susceptibility for award. 3. Submitting Offers in APP 3.1. APP Support: To assist in the submission of an offer, Offerors are encouraged to attend the courses offered by the State Procurement Office and utilize the Quick Reference Guides available. This information can be found at https://spo.az.gov/app/supplier/training. Additional assistance is available through the APP Help Desk. The Help Desk can be contacted via email at app@azdoa.gov or via telephone support at (602) 542- 7600. Offerors are encouraged to submit any requests for assistance in a timely manner in order to meet the bid due date and time identified in APP. SPECIAL INSTRUCTIONS TO OFFERORS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 2 of 3 Rev 04/2020 Procurement 3.2. Downloading and Uploading Attachments: APP will not save information entered directly on an Attachment. For all attachments found in the Questionnaire, offerors must download, save, complete and re-attach the modified Attachments to APP. 3.3. Solicitation Amendments: Solicitation amendments will be issued via APP as a new round. Offerors must acknowledge receipt of the amendment. If an offer was submitted prior to the issuance of the amendment, offeror must re-submit their offer in APP. Any offer submitted in a previous round, prior to the amendment being issued, shall not be accepted. 3.4. APP Questionnaire and Item Tab: All required information found in the Questionnaire and Item tabs must be completed before an offer can be submitted. 4. Evaluation Process 4.1. Clarifications: In accordance with A.A.C. R2-7-C313, upon receipt and opening of offers submitted in response to this solicitation, ADOT may request oral or written clarifications, including demonstrations or questions and answers, for the sole purpose of information gathering or eliminating minor informalities or correcting nonjudgmental mistakes in offers. Clarifications shall not otherwise afford the Offerors the opportunity to alter or make a material change in its proposal. 4.2. Responsibility, Responsiveness and Susceptibility: In accordance with A.R.S. 41-2534(G), and A.A.C. R2-7- C311, A.A.C. R2-7-C312 and R2-7-C316, the State shall consider at a minimum, the following criteria in determining Offerors' responsibility as well as the proposal’s responsiveness and susceptibility for Contract award. 4.2.1. Whether the Offeror has had a contract within the last five (5) years that was terminated for cause due to breach or similar failure to comply with the terms of the contract; 4.2.2. Whether the Offeror’s record of performance includes factual evidence of failure to satisfy the terms of the Offeror’s agreements with any party to a contract. Factual evidence may consist of documented vendor performance reports, customer complaints and/or negative references; 4.2.3. Whether the Offeror is legally qualified to contract with the State and the Offeror’s financial, business, personnel, or other resources, including subcontractors; 4.2.3.1. Legally qualified includes if the vendor or if key personnel have been debarred, suspended or otherwise lawfully prohibited from participating in any public procurement activity, including but not limited to, being disapproved as a subcontractor of any public procurement unit or other governmental body; 4.2.4. Whether the Offeror promptly supplied all requested information concerning its responsibility; 4.2.5. Whether the Offer was sufficient to permit evaluation by the State, in accordance with the evaluation criteria identified in the solicitation or other necessary offer components. Necessary offer components include: attachments, documents or forms to be submitted with the offer, an indication of the intent to be bound, reasonable or acceptable approach to perform the Scope of Work, acknowledged Solicitation Amendments, references to include experience verification, SPECIAL INSTRUCTIONS TO OFFERORS Solicitation No: BPM002936 Available online at https://app.az.gov/ Page 3 of 3 Rev 04/2020 Procurement adequacy of financial/business/personal or other resources to include a performance bond and stability including subcontractors and any other data specifically requested in the Solicitation; 4.2.6. Whether the Offer was in conformance with the requirements contained in the Scope of Work, Terms and Conditions, and Instructions for the Solicitation including its Amendments and all documents incorporated by reference; 4.2.7. Whether the Offer limits the rights of the State; 4.2.8. Whether the Offer includes or is subject to unreasonable conditions, to include conditions upon the State necessary for successful Contract performance. The State shall be the sole determiner as to the reasonableness of a condition; 4.2.9. Whether the Offer materially changes the contents set forth in the Solicitation, which includes the Scope of Work, Terms and Conditions, or Instructions; and, 4.2.10. Whether the Offeror provides misleading or inaccurate information. 4.3. Negotiations: In accordance with A.A.C. R2-7-C314, negotiations may be conducted with Offerors who submit offers determined to be reasonably susceptible of being selected for award. If negotiations are conducted, the Offeror(s) may revise their offer in writing during negotiations. Award may be made without negotiations, therefore, offers shall be submitted complete and on most favorable terms. 4.4. Offer Revisions and Best and Final Offers: In accordance with A.A.C. R2-7-C315, if negotiations are conducted, ADOT may request written revisions to an offer. If negotiations are conducted, ADOT shall request best and final offers (BAFO). Any request for revision or BAFO shall set forth the date, time and place for the submission. 4.5. Contract Award: In accordance with the A.R.S. §41-2534, Competitive Sealed Proposals, award(s) shall be made to the responsible offeror(s) whose offer is determined in writing to be most advantageous to the State based upon the evaluation factors listed above. 5. Definition of Key Words 5.1. Shall, Must: Indicates a mandatory requirement. 5.2. Should: Indicates something that is recommended but not mandatory. If the offeror fails to provide recommended information, the State may, at its sole option, ask the offeror to provide the information or evaluate the proposal without the information. 5.3. May: Indicates something that is not mandatory but permissible Uniform Instructions to Offerors Updated: September 2014 Page 1 of 6 UNIFORM INSTRUCTIONS TO OFFERORS A. Definition of Terms As used in these Instructions, the terms listed below are defined as follows: 1. “Attachment” means any item the Solicitation requires an Offeror to submit as part of the Offer. 2. “Best and Final Offer” means a revision to an Offer submitted after negotiations are completed that contains the Offeror’s most favorable terms for price, service, and products to be delivered. Sometimes referred to as a Final Proposal Revision. 3. “Contract” means the combination of the Solicitation, including the Uniform and Special Terms and Conditions, and the Specifications and Statement or Scope of Work; the Offer, any Clarifications, and any Best and Final Offers; and any Solicitation Amendments or Contract Amendments. 4. “Contract Amendment” means a written document signed by the Procurement Officer issued for the purpose of making changes in the Contract. 5. “Contractor” means any person who has a Contract with a state governmental unit. 6. “Day” means calendar days unless otherwise specified. 7. “eProcurement (Electronic Procurement)” means conducting all or some of the procurement function over the Internet. Point, click, buy and ship Internet technology is replacing paper-based procurement and supply management business processes. Elements of eProcurement also include Invitation for Bids, Request for Proposals, and Request for Quotations. 8. “Exhibit” means any document or object labeled as an Exhibit in the Solicitation or placed in the Exhibits section of the Solicitation. 9. “Offer” means a response to a solicitation. 10. “Offeror” means a person who responds to a Solicitation. 11. “Person” means any corporation, business, individual, union, committee, club, or other organization or group of individuals. 12. “Procurement Officer” means the person, or his or her designee, duly authorized by the State to enter into and administer Contracts and make written determinations with respect to the Contract. 13. “Solicitation” means an Invitation for Bids (“IFB”), a Request for Technical Offers, a Request for Proposals (“RFP”), a Request for Quotations (“RFQ”), or any other invitation or request issued by the purchasing agency to invite a person to submit an offer. 14. “Solicitation Amendment” means a change to the Solicitation issued by the Procurement Officer. 15. “Subcontract” means any Contract, express or implied, between the Contractor and another party or between a subcontractor and another party delegating or assigning, in whole or in part, the making or furnishing of any material or any service required for the performance of the Contract. Uniform Instructions to Offerors Updated: September 2014 Page 2 of 6 16. “State” means the State of Arizona and Department or Agency of the State that executes the Contract. B. Inquiries 1. Duty to Examine. It is the responsibility of each Offeror to examine the entire Solicitation, seek clarification in writing (inquiries), and examine its Offer for accuracy before submitting an Offer. Lack of care in preparing an Offer shall not be grounds for modifying or withdrawing the Offer after the Offer due date and time. 2. Solicitation Contact Person. Any inquiry related to a Solicitation, including any requests for or inquiries regarding standards referenced in the Solicitation shall be directed solely to the Procurement Officer. 3. Submission of Inquiries. All inquiries related to the Solicitation are required to be submitted in the State’s eProcurement system. All responses to inquiries will be answered in the State’s eProcurement system. Any inquiry related to the Solicitation should reference the appropriate solicitation page and paragraph number. Offerors are prohibited from contacting any State employee other than the Procurement Officer concerning the procurement while the solicitation and evaluation are in process. 4. Timeliness. Any inquiry or exception to the Solicitation shall be submitted as soon as possible and should be submitted at least seven days before the Offer due date and time for review and determination by the State. Failure to do so may result in the inquiry not being considered for a Solicitation Amendment. 5. No Right to Rely on Verbal or Electronic Mail Responses. An Offeror shall not rely on verbal or electronic mail responses to inquiries. A verbal or electronic mail reply to an inquiry does not constitute a modification of the solicitation. 6. Solicitation Amendments. The Solicitation shall only be modified by a Solicitation Amendment. 7. Pre-Offer Conference. If a pre-Offer conference has been scheduled under the Solicitation, the date, time and location shall appear in the State’s eProcurement system . Offerors should raise any questions about the Solicitation at that time. An Offeror may not rely on any verbal responses to questions at the conference. Material issues raised at the conference that result in changes to the Solicitation shall be answered solely through a Solicitation Amendment. 8. Persons With Disabilities. Persons with a disability may request a reasonable accommodation, such as a sign language interpreter, by contacting the Procurement Officer. Requests shall be made as early as possible to allow time to arrange the accommodation. C. Offer Preparation 1. Electronic Documents. The Solicitation is provided in an electronic format. Offerors are responsible for clearly identifying any and all changes or modifications to any Solicitation documents upon submission to the State’s eProcurement system. Any unidentified alteration or modification to any Solicitation, attachments, exhibits, forms, charts or illustrations contained herein shall be null and void. Offeror’s electronic files shall be submitted in a format acceptable to the State. Acceptable formats include .doc and .docx (Microsoft Word), .xls and .xlsx (Microsoft Excel), .ppt and .pptx (Microsoft PowerPoint) and .pdf (Adobe Acrobat). Offerors wishing to submit files in any other format shall submit an inquiry to the Procurement Officer. 2. Evidence of Intent to be Bound. The Offer and Acceptance form within the Solicitation shall be submitted with the Offer in the State’s eProcurement system and shall include a Uniform Instructions to Offerors Updated: September 2014 Page 3 of 6 signature by a person authorized to sign the Offer. The signature shall signify the Offeror’s intent to be bound by the Offer and the terms of the Solicitation and that the information provided is true, accurate and complete. Failure to submit verifiable evidence of an intent to be bound, such as a signature, shall result in rejection of the Offer. 3. Exceptions to Terms and Conditions. All exceptions included with the Offer shall be submitted in the State’s eProcurement system in a clearly identified separate section of the Offer in which the Offeror clearly identifies the specific paragraphs of the Solicitation where the exceptions occur. Any exceptions not included in such a section shall be without force and effect in any resulting Contract unless such exception is specifically accepted by the Procurement Officer in a written statement. The Offeror’s preprinted or standard terms will not be considered by the State as a part of any resulting Contract. 3.1. Invitation for Bids. An Offer that takes exception to a material requirement of any part of the Solicitation, including terms and conditions, shall be rejected. 3.2. Request for Proposals. All exceptions that are contained in the Offer may negatively impact an Offeror’s susceptibility for award. An Offer that takes exception to any material requirement of the solicitation may be rejected. 4. Subcontracts. Offeror shall clearly list any proposed subcontractors and the subcontractor’s proposed responsibilities in the Offer. 5. Cost of Offer Preparation. The State will not reimburse any Offeror the cost of responding to a Solicitation. 6. Federal Excise Tax. The State is exempt from certain Federal Excise Tax on manufactured goods. Exemption Certificates will be provided by the State. 7. Provision of Tax Identification Numbers. Offerors are required to provide their Arizona Transaction Privilege Tax Number and/or Federal Tax Identification number as part of the Offer. 7.1 Employee Identification. Offeror agrees to provide an employee identification number or social security number to the State for the purposes of reporting to appropriate taxing authorities, monies paid by the State under this Contract. If the federal identifier of the Offeror is a social security number, this number is being requested solely for tax reporting purposes and will be shared only with appropriate state and federal officials. This submission is mandatory under 26 U.S.C. § 6041A. 8. Identification of Taxes in Offer. The State is subject to all applicable state and local transaction privilege taxes. All applicable taxes shall be identified as a separate item offered in the Solicitation. When applicable, the tax rate and amount shall be identified on the price sheet. 9. Disclosure. If the person submitting this Offer has been debarred, suspended or otherwise lawfully precluded from participating in any public procurement activity, including being disapproved as a subcontractor with any federal, state or local government, or if any such preclusion from participation from any public procurement activity is currently pending, the Offeror shall fully explain the circumstances relating to the preclusion or proposed preclusion in the Offer. The Offeror shall set forth the name and address of the governmental unit, the effective date of the suspension or debarment, the duration of the suspension or debarment, and the relevant circumstances relating to the suspension or debarment. If suspension or debarment is currently pending, a detailed description of all relevant circumstances including the details enumerated above shall be provided. 10. Delivery. Unless stated otherwise in the Solicitation, all prices shall be F.O.B. Destination and shall include all freight, delivery and unloading at the destination(s). Uniform Instructions to Offerors Updated: September 2014 Page 4 of 6 11. Federal Immigration and Nationality Act. By signing of the Offer, the Offeror warrants that both it and all proposed subcontractors are in compliance with federal immigration laws and regulations (FINA) relating to the immigration status of their employees. The State may, at its sole discretion require evidence of compliance during the evaluation process. Should the State request evidence of compliance, the Offeror shall have five days from receipt of the request to supply adequate information. Failure to comply with this instruction or failure to supply requested information within the timeframe specified shall result in the Offer not being considered for contract award. 12. Offshore Performance of Work Prohibited. Any services that are described in the specifications or scope of work that directly serve the State or its clients and involve access to secure or sensitive data or personal client data shall be performed within the defined territories of the United States. Unless specifically stated otherwise in the specifications, this paragraph does not apply to indirect or 'overhead' services, redundant back-up services or services that are incidental to the performance of the contract. This provision applies to work performed by subcontractors at all tiers. Offerors shall declare all anticipated offshore services in the Offer. D. Submission of Offer 1. Offer Submission, Due Date and Time. Offerors responding to a Solicitation must submit the Offer electronically through the State’s eProcurement system. Offers shall be received before the due date and time stated in the solicitation. Offers submitted outside of the State’s eProcurement system or those that are received after the due date and time shall be rejected. 2. Offer and Acceptance. Offers shall include a signed Offer and Acceptance form. The Offer and Acceptance form shall be signed with a signature by the person authorized to sign the Offer, and shall be submitted in the State’s eProcurement system with the Offer no later than the Solicitation due date and time. Failure to return an Offer and Acceptance form may result in rejection of the Offer. 3. Solicitation Amendments. A Solicitation Amendment shall be acknowledged in the State’s eProcurement system no later than the Offer due date and time. Failure to acknowledge a Solicitation Amendment may result in rejection of the Offer. 4. Offer Amendment or Withdrawal. An Offer may not be amended or withdrawn after the Offer due date and time except as otherwise provided under applicable law. 5. Confidential Information. If an Offeror believes that any portion of an Offer, protest, or correspondence contains a trade secret or other proprietary information, the Offeror shall clearly designate the trade secret and other proprietary information, using the term “confidential.” An Offeror shall provide a statement detailing the reasons why the information should not be disclosed including the specific harm or prejudice that may arise upon disclosure. The Procurement Officer shall review all requests for confidentiality and provide a written determination. Until a written determination is made, a Procurement Officer shall not disclose information designated as confidential except to those individuals deemed to have a legitimate State interest. In the event the Procurement Officer denies the request for confidentiality, the Offeror may appeal the determination to the State Procurement Administrator within the time specified in the written determination. Contract terms and conditions, pricing, and information generally available to the public are not considered confidential information. 6. Public Record. All Offers submitted and opened are public records and must be retained by the State for six years. Offers shall be open and available to public inspection through the State’s eProcurement system after Contract award, except for such Offers deemed to be confidential by the State. 7. Non-collusion, Employment, and Services. By signing the Offer and Acceptance form or Uniform Instructions to Offerors Updated: September 2014 Page 5 of 6 other official contract form, the Offeror certifies that: 7.1. The Offeror did not engage in collusion or other anti-competitive practices in connection with the preparation or submission of its Offer; and 7.2. The Offeror does not discriminate against any employee or applicant for employment or person to whom it provides services because of race, color, religion, sex, national origin, or disability, and that it complies with an applicable federal, state and local laws and executive orders regarding employment. E. Evaluation 1. Unit Price Prevails. In the case of discrepancy between the unit price or rate and the extension of that unit price or rate, the unit price or rate shall govern. 2. Taxes. If the products and/or services specified require transaction privilege or use taxes, they shall be described and itemized separately on the Offer. Arizona transaction privilege and use taxes shall not be considered for evaluation. 3. Prompt Payment Discount. Prompt payment discounts of thirty (30) days or more set forth in an Offer shall be deducted from the Offer for the purpose of evaluating that price. 4. Late Offers. An Offer submitted after the exact Offer due date and time shall be rejected. 5. Disqualifications. An Offeror (including each of its principals) who is currently debarred, suspended or otherwise lawfully prohibited from any public procurement activity shall have its Offer rejected. 6. Offer Acceptance Period. An Offeror submitting an Offer under the Solicitation shall hold its Offer open for the number of days from the Offer due date that is stated in the Solicitation. If the Solicitation does not specifically state a number of days for Offer acceptance, the number of days shall be one hundred twenty (120). If a Best and Final Offer is requested pursuant to a Request for Proposals, an Offeror shall hold its Offer open for one hundred twenty (120) days from the Best and Final Offer due date. 7. Waiver and Rejection Rights. Notwithstanding any other provision of the Solicitation, the State reserves the right to: 7.1 Waive any minor informality; 7.2. Reject any and all Offers or portions thereof; or 7.3 Cancel the Solicitation. F. Award 1. Number of Types of Awards. The State reserves the right to make multiple awards or to award a Contract by individual line items or alternatives, by group of line items or alternatives, or to make an aggregate award, or regional awards, whichever is most advantageous to the State. 2. Contract Inception. An Offer does not constitute a Contract nor does it confer any rights on the Offeror to the award of a Contract. A Contract is not created until the Offer is accepted in writing by the Procurement Officer’s signature on the Offer and Acceptance form. A notice of award or of the intent to award shall not constitute acceptance of the Offer. 3. Effective Date. The effective date of the Contract shall be the date that the Procurement Officer signs the Offer and Acceptance form or other official contract form, unless another date is specifically stated in the Contract. Uniform Instructions to Offerors Updated: September 2014 Page 6 of 6 G. Protests A protest shall comply with and be resolved according to Arizona Revised Statutes Title 41, Chapter 23, Article 9 and rules adopted thereunder. Protests shall be in writing and be filed with both the Procurement Officer of the purchasing agency and with the State Procurement Administrator. A protest of the Solicitation shall be received by the Procurement Officer before the Offer due date. A protest of a proposed award or of an award shall be filed within ten (10) days after the Procurement Officer makes the procurement file available for public inspection. A protest shall include: 1. The name, address, email address and telephone number of the interested party; 2. The signature of the interested party or its representative; 3. Identification of the purchasing agency and the Solicitation or Contract number; 4. A detailed statement of the legal and factual grounds of the protest including copies of relevant documents; and 5. The form of relief requested. H. Comments Welcome The State Procurement Office periodically reviews the Uniform Instructions to Offerors and welcomes any comments you may have. Please submit your comments to: State Procurement Administrator, State Procurement Office, 100 North 15th Avenue, Suite 201, Phoenix, Arizona, 85007. Catalog Pricing https://app.az.gov Offerors shall provide a verifiable price index, to include but not limited to a discount from a verifiable price index, a reduced net pricing schedule, a hybrid or other supplier specific pricing model. The pricing model shall remain firm and will include all charges that may be incurred in fulfilling requirement(s) for the twelve-month period following contract award. Where applicable, pricing shall be determined by applying Offerors discounts to the prices listed on their manufacturer’s price lists, retail price sheets, catalogs or by utilizing the reduced net pricing schedule. Pricing and resulting relative discount shall be clearly delineated on each proposal. Contract pricing shall be based upon fixed discount(s) off published price list(s) or catalog(s) Number of equipment types / descriptions are not limited to spaces provided below. Please use additional lines if necessary to list all offered category equipment.  Discount Structure based off of Manufacturer’s List Prices. Discount for CATEGORY 1: Dozers Equipment Type/Description Equipment Accessories / Attachments Caterpillar D1 Dozer (Previous model D3K) 23% 23% Caterpillar D2 Dozer (Previous model D4K) 23% 23% Caterpillar D3 Dozer (Previous model D5K) 23% 23% Caterpillar D4 Dozer (Previous model D6K) 23% 23% Caterpillar D5 Dozer (Previous model D6N) 23% 23% Caterpillar D6 Dozer (Previous model D6T) 23% 23% Caterpillar D7 Dozer (New model) 19% 19% Caterpillar D8 Dozer (Previous model D8T) 19% 19% Caterpillar D9 Dozer (Previous model D9T) 10% 10% Caterpillar D10 Dozer (Previous model D10T) 10% 10% Discount for CATEGORY 2: Excavators Equipment Type/Description Equipment Accessories / Attachments Caterpillar 300.9 Mini Excavator 20% 20% Caterpillar 301.4 Mini Excavator 20% 20% Caterpillar 301.7 Mini Excavator 20% 20% Caterpillar 301.8 Mini Excavator 20% 20% Caterpillar 302 Mini Excavator 20% 20% Caterpillar 302.4 Mini Excavator 20% 20% Caterpillar 302.5 Mini Excavator 20% 20% Caterpillar 302.6 Mini Excavator 20% 20% Caterpillar 302.7 Mini Excavator 20% 20% Caterpillar 303 Mini Excavator 20% 20% Caterpillar 303.5 Mini Excavator 20% 20% Caterpillar 304 Mini Excavator 20% 20% Caterpillar 304.5 Mini Excavator 20% 20% Caterpillar 305 Mini Excavator 20% 20% Caterpillar 305.5 Mini Excavator 20% 20% Solicitation No: BPM002936 Available online at Page 1 of 13 Catalog Pricing https://app.az.gov Caterpillar 306 Excavator 20% 20% Caterpillar 307 Excavator 20% 20% Caterpillar 307.5 Excavator 20% 20% Caterpillar 308 Excavator 20% 20% Caterpillar 309 Excavator 20% 20% Caterpillar 310 Excavator 20% 20% Caterpillar 311 Excavator 18% 18% Caterpillar 313 Excavator 15% 15% Caterpillar 313GC Excavator 16% 16% Caterpillar 315 Excavator 19% 19% Caterpillar 316 Excavator 19% 19% Caterpillar 318 Excavator 16% 16% Caterpillar 320 Excavator 15% 15% Caterpillar 320 GC Excavator 16% 16% Caterpillar 323 Excavator 15% 15% Caterpillar 325 Excavator 15% 15% Caterpillar 326 Excavator 15% 15% Caterpillar 330 Excavator 15% 15% Caterpillar 330GC Excavator 16% 16% Caterpillar 335 Excavator 15% 15% Caterpillar 336 Excavator 15% 15% Caterpillar 336GC Excavator 16% 16% Caterpillar 340 Excavator 15% 15% Caterpillar 349 Excavator 10% 10% Caterpillar 352 Excavator 10% 10% Caterpillar 374 Excavator 10% 10% Caterpillar 390 Excavator 10% 10% Discount for CATEGORY 3: Loaders Equipment Type/Description Equipment Accessories / Attachments Caterpillar 903 Wheel Loader 23% 23% Caterpillar 906 Wheel Loader 23% 23% Caterpillar 907 Wheel Loader 23% 23% Caterpillar 908 Wheel Loader 23% 23% Caterpillar 910 Wheel Loader 23% 23% Caterpillar 914 Wheel Loader 23% 23% Caterpillar 918 Wheel Loader 24% 24% Caterpillar 920 Wheel Loader 24% 24% Caterpillar 926 Wheel Loader 24% 24% Caterpillar 930 Wheel Loader 24% 24% Caterpillar 938 Wheel Loader 24% 24% Caterpillar 950GC Wheel Loader 20% 20% Solicitation No: BPM002936 Available online at Page 2 of 13 Catalog Pricing Solicitation No: BPM002936 Available online at https://app.az.gov Page 3 of 13 Caterpillar 950M Wheel Loader 18% 18% Caterpillar 962 Wheel Loader 18% 18% Caterpillar 966 Wheel Loader 15% 15% Caterpillar 972 Wheel Loader 11% 11% Caterpillar 980 Wheel Loader 11% 11% Caterpillar 982 Wheel Loader 11% 11% Caterpillar 988 Wheel Loader 11% 11% Discount for CATEGORY 4: Graders Equipment Type/Description Equipment Accessories / Attachments Caterpillar 12 Motor Grader 30% 30% Caterpillar 120 Motor Grader 34% 34% Caterpillar 140 Motor Grader 30% 30% Caterpillar 140GC Motor Grader 30% 30% Caterpillar 150 Motor Grader 30% 30% Caterpillar 160 Motor Grader 30% 30% Caterpillar 14 Motor Grader 19% 19% Discount for CATEGORY 5: Rollers Equipment Type/Description Equipment Accessories / Attachments Caterpillar CB1.7 Roller 19% 19% Caterpillar CB1.8 Roller 19% 19% Caterpillar CB7 Roller 19% 19% Caterpillar CB8 Roller 19% 19% Caterpillar CB10 Roller 19% 19% Caterpillar CB13 Roller 19% 19% Caterpillar CB14 Roller 19% 19% Caterpillar CB15 Roller 19% 19% Caterpillar CB16 Roller 19% 19% Caterpillar CB22Roller 19% 19% Caterpillar CB24 Roller 19% 19% Caterpillar CB32 Roller 19% 19% Caterpillar CB34 Roller 19% 19% Caterpillar CB36 Roller 19% 19% Caterpillar CB44 Roller 19% 19% Caterpillar CB46 Roller 19% 19% Caterpillar CB54 Roller 19% 19% Caterpillar CB64 Roller 19% 19% Caterpillar CB66 Roller 19% 19% Caterpillar CB68 Roller 19% 19% Caterpillar CC24 Roller 19% 19% Catalog Pricing Solicitation No: BPM002936 Available online at https://app.az.gov Page 4 of 13 Caterpillar CC34 Roller 19% 19% Caterpillar CCS7 Roller 19% 19% Caterpillar CCS9 Roller 19% 19% Caterpillar CD8 Roller 19% 19% Caterpillar CD10 Roller 19% 19% Caterpillar CP34 Roller 19% 19% Caterpillar CP44 Roller 19% 19% Caterpillar CP54 Roller 19% 19% Caterpillar CP56 Roller 19% 19% Caterpillar CP68 Roller 19% 19% Caterpillar CP74 Roller 19% 19% Caterpillar CS34 Roller 19% 19% Caterpillar CS44 Roller 19% 19% Caterpillar CS54 Roller 19% 19% Caterpillar CS56 Roller 19% 19% Caterpillar CS64 Roller 19% 19% Caterpillar CS68 Roller 19% 19% Caterpillar CS74 Roller 19% 19% Caterpillar CS78 Roller 19% 19% Caterpillar CW16 Roller 19% 19% Caterpillar CW34 Roller 19% 19% Catalog Pricing https://app.az.gov Rev 12/2018 Discount for CATEGORY 6: Trailers Equipment Type/Description Equipment Accessories / Attachments Trail King TKT50 Tag – Tilt Trailer 7% 7% Trail King TKBD22-40 – Bottom Dump 7% 7% See Category 7 : Miscellaneous for other Trailer discounts % % Discount for CATEGORY 7: Miscellaneous Equipment Type/Description Equipment Accessories / Attachments ADDITIONAL CATERPILLAR MODELS PAVERS: AP255 18% 18% AP300 18% 18% AP355 18% 18% AP500 18% 18% AP555 18% 18% AP600 18% 18% AP655 18% 18% AP1000 18% 18% AP1055 18% 18% WHEELED EXCAVATORS: M314 26% 26% M315 26% 26% M316 26% 26% M317 26% 26% M318 26% 26% M320 26% 26% M322 26% 26% MATERIAL HANDLERS: MH3022 26% 26% MH3024 26% 26% MH3026 26% 26% COLD PLANERS: PM310 20% 20% PM312 20% 20% PM313 20% 20% PM620 20% 20% PM622 20% 20% PM820 20% 20% PM822 20% 20% PM825 20% 20% Solicitation No: BPM002936 Available online at Page 5 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 RECLAIMERS: RM300 20% 20% RM500 20% 20% TELEHANDLERS: TH255 23% 23% TH3510 24% 24% TH357 24% 24% TH408 24% 24% TH514 24% 24% TL642 24% 24% TL943 24% 24% TL1055 24% 24% TL1255 24% 24% SKID STEERS: 226 21% 21% 232 21% 21% 236 21% 21% 242 21% 21% 246 21% 21% 262 21% 21% 272 21% 21% MULTI-TERRAIN LOADERS: 257 21% 21% 277 21% 21% 287 21% 21% 298 21% 21% COMPACT TRACK LOADERS: 239 21% 21% 249 21% 21% 259 21% 21% 279 21% 21% 289 21% 21% 299 21% 21% FOREST MACHINES: 538 15% 15% 548 15% 15% 558 15% 15% 568 15% 15% LANDFILL COMPACTORS: 816 12% 12% 826 12% 12% 836 12% 12% Solicitation No: BPM002936 Available online at Page 6 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Solicitation No: BPM002936 Available online at Page 7 of 13 BACKHOE LOADER: 415 22% 22% 416 22% 22% 420 22% 22% 420XE 22% 22% 430 22% 22% 432 22% 22% 440 22% 22% 450 22% 22% WHEEL TRACTOR SCRAPERS: 621 18% 18% 623 18% 18% 627 18% 18% 631 18% 18% 637 18% 18% 657 18% 18% ARTICULATED TRUCKS: 725 17% 17% 730 17% 17% 735 17% 17% 740GC 17% 17% 745 17% 17% RIGID FRAME TRUCKS: 770 3% 3% 773 3% 3% WHEEL DOZERS and SOIL COMPACTORS: 814 15% 15% 815 13% 13% 824 15% 15% 825 13% 13% 834 15% 15% TRACK LOADERS: 953 19% 19% 963 22% 22% 973 23% 23% CATERPILLAR AFTRER MARKET WORK TOOLS: 15% 15% CATERPILLAR SAFETY SERVICES: 15% 15% CATERPILLAR TECHNOLOGY SERVICES AND SUBSCRIPTIONS: 0% 0% CATERPILLAR USED EQUIPMENT: (Discount off original list price) 20% 20% Catalog Pricing https://app.az.gov Rev 12/2018 CATERPILLAR POWER EQUIPMENT: LEGACY COMPACT DIESEL (D13-D175) 50% 50% D40 - D100 31% 31% D125 - D200 35% 35% OLYMPIAN GAS 26% 26% C9 - 200 kW 33% 33% C9 - 250 - 300 kW 37% 37% C15 - 350 - 500kW 37% 37% C15 - TIER 4i 20% 20% C18 - 550 - 600kW 33% 33% C27 - Tier 4i 17% 17% C27 - 750 kW 33% 33% C27 - 800 kW 33% 33% C32 - 1000 kW 37% 37% 3512C 33% 33% 3516C 33% 33% 3500B 32% 32% 3516C-HD 30% 30% 3516 TIER 4 19% 19% APS60,100,1000,20002 17% 17% XQ20,XQ30, XQ60, XQ200 45% 45% XQ350 - XQ800 23% 23% C175-16 26% 26% C175-16 Tier 4 19% 19% C175-20 24% 24% EPIC 10% 10% CAT ATS3 20% 20% CAT SWITCHGEAR 4 12% 12% UPS (BATTERY & FLYWHEEL) 20% 20% CG132-8,-12,-16 5 15% 15% CG170-12,-16,-20 5 15% 15% CG260-12,-16 5 15% 15% G3412 26% 26% G3508 17% 17% G3516 17% 17% G3520 17% 17% ALLIED PRODUCTS (Non Cat Products): CONSTRUCTION PRODUCTS American Compaction 7% 7% AMI Attachments 5% 5% Arrow Material Handling 5% 5% Balderson 5% 5% Solicitation No: BPM002936 Available online a Page 8 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Blue Diamond 5% 5% Bomag 5% 5% BR Attachments 5% 5% Broce 7% 7% Cascade 5% 5% Central Fabricating 5% 5% Crafco 3% 3% Diamond Attachments 5% 5% Digga 5% 5% Dymax 8% 8% Edge 5% 5% Enerpac 5% 5% Epiroc 9% 9% Erskine 5% 5% Etnyre / Bear Cat 5% 5% EZ-SPOT-UR 5% 5% Fecon 5% 5% Felco Industries 5% 5% Fods Track Out Mat Services 5% 5% Genie 20% 20% HKX 5% 5% Imer Group 5% 5% JLG 22% 22% Kress 5% 5% Lycox Industries / Walk N Roll 2% 2% Mega 8% 8% Metso 3% 3% Mobile Track Solutions 5% 5% Multiquip 24% 24% Paladin / JRB 8% 8% Pemberton 5% 5% Pierce Pacific 5% 5% PSM 5% 5% Jet-Vac 5% 5% Road Widener 5% 5% Rockland 8% 8% Rototilt 5% 5% Saf-T-Cab 5% 5% Skyjack 5% 5% Skytrack 5% 5% Star Industries 5% 5% SUI 5% 5% Solicitation No: BPM002936 Available online at Page 9 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Summit 5% 5% TY Cushion 3% 3% Tink 5% 5% Valew-1954 MFG 5% 5% Weiler 10% 10% Werk-Brau 5% 5% Woods 11% 11% ON-HIGHWAY Fleming 8.4% 8.4% Load King 3% 3% Maintainer 6% 6% Murray Trailers 2% 2% Rackley 2% 2% Thunder Creek 6% 6% Trail King 7% 7% UTB 8.4% 8.4% AGRICULTURE Challenger 13% 13% Claas 6% 6% Gearmore 13% 13% Grouser 5% 5% Fendt 6% 6% Lexion 6% 6% Massey Ferguson 13% 13% Mil-Stak Inc 3% 3% Nikkel Iron Works 7% 7% Reynolds 13% 13% Rogator 6% 6% Rome Plow 13% 13% 13% Schmeiser 5% 5% Stinger Inc. 1% 1% Sunflower 6% 6% T.G. Schmeiser 13% 13% Terragator 6% 6% Valmar 7% 7% Wilcox 13% 13% Willmar 6% 6% Woods 13% 13% POWER SYSTEMS ABB 5% 5% Active Power 2% 2% Allmand 18% 18% Solicitation No: BPM002936 Available online at Page 10 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Asco 10% 10% Atlas Copco 10% 10% Avtron 6% 6% Crestchic 5% 5% Multiquip 7% 7% Progressive Solar 10% 10% Stamford Newage 2% 2% Sullair 28% 28% Toshiba 5% 5% TECHNOLOGY Caterpillar 12% 12% Cerragon 5% 5% CrewSight 5% 5% DJI Enterprises 0% 0% GCEstimator Suite 5% 5% Level Best 10% 10% Modelogix 5% 5% ProjectSight 5% 5% Prolog 5% 5% Quantum 8% 8% RADWIN 5% 5% Rajant 0% 0% RealWorks 10% 10% Seco 12% 12% Sensemetrics 5% 5% SitePro 12% 12% Spectra Precision 12% 12% Trimble 12% 12% VICO Office 5% 5% Winest 5% 5% RENEWABLE ENERGY ABB 3% 3% BTC Power 3% 3% Fronius 4% 4% Satcon 3% 3% SMA America 4% 4% Sun Power 3% 3% Solicitation No: BPM002936 Available online at Page 11 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Unlisted and Future Caterpillar and Allied Products The following procedure will be available to add future Caterpillar and Allied products:  EMPIRE will provide a letter to ADOT stating that we have a new product(s) and that EMPIRE is a dealer for that product(s).  The product(s) will be added to the appropriate area of the catalog pricing page along with the stated discount percentage off the manufacturer’s list price.  A copy of the updated catalog pricing page will be sent to ADOT to be added to the contract. For emergency needs for machines or products that have to be delivered before a stated discount can be established, the following will be the discount structure for unlisted and/or future Caterpillar and Allied products. All unnamed suppliers without a stated discount will receive a minimum discount of 5% off the manufacturer’s list price. 5% 5% Contractor shall indicate any extended warranty options below: Extended Warranty Options Extended warranty is available on all new Caterpillar machines. The cost for extended warranty varies by product, type of coverage, application, and length of coverage for both time and estimated annual hours of usage. Caterpillar extended warranty coverage can range from 24 months up to 84 months and the hours of usage can range from as little as 500 hours up to as high as 10,000 hours. With over 360 different Caterpillar products covered in this RFP, and with over 65 different options for each of those machines with time and hour combinations, the matrix of extended warranty pricing would be too large to provide in this format. The CAT 120 Motor Grader alone has over 480 different extended warranty options available. For this RFP, we will provide a pricing example for extended warranty for six (6) machines based on the same time and hour requirements stated in the “Scenario Pricing” for the machine buybacks (7 year/ 6,000 hours). Additional extended warranty quotes can be provided upon request on a model by model term and hour specified basis. Extended Warranty Term of Warranty Price CATERPILLAR D5K DOZER Power Train 7years/6000hours $3,230.00 Power Train + Hydraulics +Tech 7years/6000hours $4,550.00 Premier 7years/6000hours $10,590.00 Solicitation No: BPM002936 Available online at Page 12 of 13 Catalog Pricing https://app.az.gov Rev 12/2018 Solicitation No: BPM002936 Available online at Page 13 of 13 CATERPILLAR M316 WHEELED EXCAVATOR 7 Years / 6,000 Hours Power Train 7years/6000hours $3,890.00 7 Years / 6,000 Hours Power Train + Hydraulics +Tech 7years/6000hours $8,950.00 7 Years / 6,000 Hours Premier 7years/6000hours $12,190.00 CATERPILLAR 450 BACKHOE LOADER 7 Years / 6,000 Hours Power Train 7years/6000hours $2,600.00 7 Years / 6,000 Hours Power Train + Hydraulics +Tech 7years/6000hours $9,490.00 7 Years / 6,000 Hours Premier 7years/6000hours $22,120.00 CATERPILLAR 926M WHEEL LOADER 7 Years / 6,000 Hours Power Train 7years/6000hours $2,500.00 7 Years / 6,000 Hours Power Train + Hydraulics +Tech 7years/6000hours $5,090.00 7 Years / 6,000 Hours Premier 7years/6000hours $11,320.00 CATERPILLAR 120 MOTOR GRADER 7 Years / 6,000 Hours Power Train 7years/6000hours $5,790.00 7 Years / 6,000 Hours Power Train + Hydraulics +Tech 7years/6000hours $11,810.00 7 Years / 6,000 Hours Premier 7years/6000hours $16,900.00 CATERPILLAR CB34 ROLLER 7 Years / 6,000 Hours Power Train 7years/6000hours $7,150.00 7 Years / 6,000 Hours Power Train + Hydraulics +Tech 7years/6000hours $7,910.00 7 Years / 6,000 Hours Premier 7years/6000hours $11,910.00 PRICE INCREASE PERCENTAGES Solicitation No: BPM002936 Available online at https://appstate.az.gov/ Page 1 of 1 Rev. 07/2016 The offeror should use the space below to identify the maximum price increase percentage that they may want to request at the time of renewal if ADOT exercises its option per the applicable provisions under any resultant contract(s). 1st Renewal Period ___________2________% Maximum Increase 2nd Renewal Period __________4________% Maximum Increase 3rd Renewal Period ___________6________% Maximum Increase 4th Renewal Period ___________8________% Maximum Increase The offeror is cautioned that each renewal period’s increase percentage shall be computed against the ORIGINAL contract price. If information is not provided in the space above, prices shall remain the same as the original contract term. Please see the following example for further clarification. Example: If the offeror anticipates requesting a 2% increase at each renewal period per Special Terms and Conditions, they should enter 2%, 4%, 6%, and 8% in the attachment. Each percentage increase is calculated using the original contract price. See example in table below. Renewal Period % Maximum Increase from Attachment Original Contract Price Maximum Increase Allowed Maximum Contract Price 1 2% $100.00 $2.00 $102.00 2 4% $100.00 $4.00 $104.00 3 6% $100.00 $6.00 $106.00 4 8% $100.00 $8.00 $108.00 Furthermore, the offeror is advised that the State of Arizona does not automatically grant any increase when renewing the contract. If an increase is requested, documentation of need must be provided at the time of renewal. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 1 Warranty and Warranty Services At a minimum, include the following information for the types of warranties available (by category or equipment): 1. Describe your warranty claims procedure For over 70 years, EMPIRE has built an outstanding reputation for fairness, regardless of the warranty terms, from the world’s leading manufacturer of construction equipment. The clients EMPIRE serves have every reason to feel secure in the value of their purchase. All claims will be administered at the local, store level by EMPIRE. EMPIRE will then file a claim with Caterpillar to be reimbursed for all warranted services rendered to the client. EMPIRE Service utilizes a highly structured, fact-based and scientific Root Cause Failure Analysis process that is followed by EMPIRE’s Service Department. The process ensures the client that EMPIRE and Caterpillar fully understand the root cause and what role each affected part played in the failure, in order to help prevent it in the future. The warranty process for Caterpillar machines is unique to the industry, allowing EMPIRE to decide, through its due diligence alone, if the failed part is covered under the scope of warranty. In the event of a warranty repair, EMPIRE is responsible to repair the machine. Once the repair is completed, the warranted parts and labor are charged to Caterpillar. Any non-warranty covered items (such as oil antifreeze; fluids that cannot be reused) will be the responsibility of the owner. In the event that Caterpillar concludes a different root cause and believes it was caused by misapplication or misuse and rejects reimbursement, and EMPIRE does not agree, EMPIRE will absorb the expense. 2. Describe your policy addressing warranty issues related to: a. Major Component Failures b. Engineering Deficiencies c. Describe your company’s standard response time to address warranty failure issues. Major Component Failures Caterpillar is proud to offer the most comprehensive warranty in the industry. All defects in materials and workmanship are fully covered under the warranty period. All claims will be investigated by EMPIRE and determined whether they fall under either a defect in material or workmanship or lack of routine and maintenance, miss application or misuse. Of course if there is a major component failure significantly earlier than its normal design life, EMPIRE will investigate to determine the cause of failure. Should the cause be determined to be design or manufacturing related, the client, EMPIRE and a Caterpillar representative will work together to find a solution that is agreeable to all parties. As America’s #1 dealer rebuild center, EMPIRE inventories new complete components, along with remanufactured components, for replacement when a machine is down and the client requires an emergency complete component replacement. Beyond EMPIRE’s extensive parts inventory, Caterpillar parts distribution warehouses across America and the globe also inventory an extensive selection of new components and remanufactured components. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 2 Excluding emergency complete component replacement, EMPIRE will bring to bear as many resources as possible to tear down and reassemble the down component, to return the machine to production as fast as humanly possible. This includes our staff working three shifts and/or weekends continuously or “around the clock” to achieve the turnaround, if warranted. Normal warranty coverage will only cover normal (non-overtime) shop labor rates, during normal service hours. Normal service hours are from 5:00 AM to 12:00 midnight, Monday-Friday and from 6:00 AM until 12:00 Noon on Saturdays. EMPIRE’s smaller branch stores may have different operating hours. All stores have after hours emergency access. The following link provides individual store hours information: https://www.empire-cat.com/locations Overtime rate is charged for all hours worked on holidays. No other competitor, that we are aware of, provides this expanse of normal service hours. When requested, EMPIRE will work overtime with the incremental overtime fee charged to ADOT. Normal warranty coverage only includes shop labor rates during normal business hours and thus could result in overtime charges to the client. Additionally, parts that are not normally stocked may include a client charge for additional freight or handling, depending on circumstances. Engineering Deficiencies EMPIRE and our clients benefit from a long relationship with Caterpillar Engineering for new machines and product improvement testing. Because of our unique Arizona/Imperial County, California territory, Caterpillar engineers prefer to test new machines and product improvements in EMPIRE’s territory because of the range and access to high ambient temperature, high altitude, sea level altitude, abrasive dust, hard caliche and granites soil and sand (dune) conditions. Our applications range from farming to forestry harvesting, to hard rock mining. This multi-decade experience has provided EMPIRE staff with a wealth of knowledge, experience, relationships and access to Caterpillar’s engineering staff around the world. It has provided our clients with purpose-built machines and components tested here to perform here. This experience helps our staff identify a deficiency, quickly begin to test our possible solution and offer it to Caterpillar; or fabricate, install and test Caterpillar’s solutions. Standard Response Time EMPIRE’s standard response times are based on the fact that our client purchases a new machine because unscheduled downtime creates critical disruption to their production. Most clients expect that we will handle every machine-down warranty event like an emergency. We are “built for it”. EMPIRE invests and maintains the staffing capacity to provide clients two shifts per day, plus single shift on weekends and on-call staff for holidays to respond to these events with the utmost urgency. Beyond this, a failure on EMPIRE’s part to deliver expected or promised service is always taken into account before any request for additional charges are presented to a client. We take pride in the fact that EMPIRE’s owners expect all employees to consider first how we may have contributed to increasing a client’s expense or downtime. We are empowered, State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 3 at all levels, to make ethical and fair adjustments before ever approaching a client about additional expense to warranty coverage. 3. Is there a dedicated customer support representative that the Department should contact? If yes, provide their name and complete contact information. The dedicated Product Support Representative for ADOT is: Mark Vander Giessen EMPIRE Product Support Representative Mark.VanderGiessen@empire-cat.com Office: (623) 707-1730 Mobile: (602) 639-0582 4. Provide information which details the types, and extents of available extended warranty coverage for heavy equipment. Additional extended protection plans are available for purchase. Three major types of protection are generally offered: Powertrain, Powertrain + Hydraulics and, Premier. Customization of Extended Protection Plans is also an option available through EMPIRE/Caterpillar. The costs for these extended plans vary by product, type of coverage, machine application and length of coverage. Extended warranty is not required when purchasing Caterpillar machines. Unless ADOT clearly states that they want extended warranty included with the price of a machine, it will be quoted as an option. Extended warranties can be purchased at the time of the machine sale or any time after within the 12 month standard warranty period. Extended warranty options may also be available for used machines that ADOT owns. The current age and hours of the machine will dictate if warranty is available as well as the cost. Caterpillar is proud to offer the most comprehensive warranty in the industry. Caterpillar machines come with standard warranties against defects in material and workmanship. Warranty inclusions and exclusions will vary by product and details can be provided at any point in the purchase process. The majority of new machines included under this solicitation will qualify for 12 months/unlimited hours. Some products, notably compact track loaders and mini excavators, qualify for 24 months/2000 hours. Standard warranty terms will be clearly quoted to ADOT on all quotes, for review before any purchase. Additional extended equipment protection plans can be customized to meet each client’s specific need. The following is an example of some of the options that would be available through EMPIRE/CAT. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 4 140M3 Motor Grader Warranty Months Hours Premier 24 to 84 5,000 to 7,500 Powertrain + Hydraulics 24 to 84 5,000 to 12,000 Powertrain 24 to 84 5,000 to 12,000 Please note that all manufacturers’ warranties, and or extended coverage plans, do not cover the same components and/or systems that Caterpillar’s protection plans cover. Repairs and/or replacement of components, not covered by other manufacturers, can present a significant cost to the overall ownership of a machine. The breadth of coverage provided through Caterpillar’s coverage plans re-emphasizes the confidence Caterpillar has in its products, as well as ensures the lowest total cost solution for our clients. EMPIRE/Caterpillar Warranty Offerings Caterpillar offers a wide range of warranties that can be custom built to best match the needs of our clients. There are two (2) basic Caterpillar warranties available: Standard and Extended. ▪ Caterpillar Standard Warranty – Nearly all new Caterpillar manufactured machines come with Caterpillar’s “Premier” warranty for a minimum of 12 months/unlimited hours, at no additional charge to the buyer. ▪ Caterpillar Extended Warranty – Begins at expiration of Standard Warranty. Caterpillar Insurance and Caterpillar dealers provide a vast array of optional warranties that can be customized by the length of time (from 2 - 7 years) and/or by the hours (from 2,000 - 10,000 hours). EMPIRE/Caterpillar Extended Warranty Offerings There are three (3) types of extended warranties available from Caterpillar: ▪ Powertrain Only – Covers the components that are used to either produce, transmit or control engine horsepower for propelling (moving) the machine; such as engine, transmission, final drives, axles and brakes. ▪ Powertrain and Hydraulics – Covers the items above plus hydraulic hoses, lines, pumps, valves, cylinders, hydraulic coolers and hydraulic filter mounts. ▪ Premier – Includes all of the above with the addition of starters, alternators, pulleys, AC condensers, air conditioning compressors, fuel lines, fuel tanks and associated parts, water piping, radiators, mufflers, electrical indicators, gauges, instruments, wiring harness, switches, joysticks, relays, circuit breakers, frames and chassis, and weldments. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 5 General Warranty Information Coverage – Inclusions and Exclusions Standard machine warranty and extended warranties between manufacturers and dealers are not equal. There is no industry standard of items to be included or excluded in the scope of either coverage. Warranty claim deductibles are also not captured in the scope of inclusion and exclusions. Warranty deductible fees can add up to a considerable cost after a machine is sold. Caterpillar extended warranties have a $0.00 deductible charge for warranty claims. Repairs and/or replacement of components excluded by competitive manufacturers can present a significant expense or savings to the overall ownership of a machine. The breadth of coverage provided through Caterpillar’s coverage plans re-emphasizes the confidence Caterpillar has in its products, as well as ensuring the lowest total cost solution for our clients. Warranted claims will be presented by the client to the supporting Caterpillar Dealer and will be administered at the local level. EMPIRE will then file a claim with Caterpillar to be reimbursed for all warranted services rendered to the client. Caterpillar machine warranties are the most comprehensive in the industry. They cover more parts, cover more expensive parts, and exclude fewer items. This results in lower expense exposure to the owners of Caterpillar equipment. In comparing major manufacturers’ stated warranty coverage listed in publicly available warranty documents, here is an example of parts (including their replacement labor) that are excluded by many manufacturers, but are included in Caterpillar Standard Warranty: ▪ Radiators ▪ Mufflers ▪ Starters ▪ Alternators ▪ AC Condenser/Compressor ▪ Fuel Lines ▪ Hydraulic Hoses and Lines ▪ Gauges ▪ Wiring Harnesses ▪ Frames and Structures Each of these individual items vary between different manufacturers, but they provide evidence that a buyer should consider the coverage of each to fully understand the true scope of the buyers exposure, and calculate that exposure into the total machine price from an operating cost perspective. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 6 Beyond the stated scope of inclusions and exclusions of warranty, EMPIRE utilizes a “Fair Value” policy. Fair value is simply the process and procedures that rely on ethical and reasonable decisions to participate in a repair expense beyond warranty coverage. Fair value rules are not described in any written form; they take place when EMPIRE and the buyer experience an event where both feel that the failed part did not meet expected life in a given application. Once misapplication, abuse or misuse conditions are excluded, fair value reimbursement comes in a variety of forms: From full reimbursement to a shared expense, based on remaining normal life of the failed part; between Caterpillar Inc., EMPIRE and the client. Additionally, Caterpillar warranties cover consequential damages. Damages that are a result of the first part failure, cascading to other parts. Most major and most minor manufacturers do not. Example: A turbo fails, injects a part from the turbo into the cylinder head, and then destroys the head and piston; piston fracture penetrates the engine block. The turbo is the root cause, but Caterpillar warranty covers the entire repair of consequential damages. View chart on next two pages to see the inclusions and exclusions of each of the three types of warranties Caterpillar offers: Intentionally left blank State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 7 • Represents Caterpillar warranty covered items in their respective category **Represents items typically excluded by most other manufacturer warranties, but are included under Caterpillar’s warranty coverage. Caterpillar Warranty Coverage INCLUSIONS & EXCLUSIONS Powertrain Powertrain+ Hydraulics Premier Engine & Accessories Engine – Internal Components • • • Valve Cover • • • Oil Cooler BHL • • • Radiator • Exhaust/Muffler • Manifolds • • • Fan Motor • • • Water Pump • • • Fuel Injection Pumps • • • Injectors • • • Lift/Transfer Pump • • • Senders/Solenoids/Sensors • • • Thermostat • • • Flywheel & Torque Converter • • • Oil Pan Group • • • Engine Oil Filter Mount ** • • • Turbocharger • • • Pulleys ** • • • Starter • Alternator • AC Compressor/Condenser • Electronic Control Modules • • • Governor/Speed Controls & Linkages ** • • • Fuel Lines ** • • • Fuel Tank & Associated Parts • Water Piping • Oil Hoses/Lines • State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 8 Caterpillar Warranty Coverage INCLUSIONS & EXCLUSIONS Powertrain Powertrain+ Hydraulics Premier Transmission/Hydrostatic/Driveline Transmissions • • • Final Drives/Planetary • • • Drive Shafts • • • Transfer Case • • • Wet brake assemblies • • • Hydrostatic Pumps & Drive Motors ** • • Linkage/Lines Connected to Hystat Pump ** • • Drive (pilot/eh) Control Valves ** • • • Senders/Sensors ** • • Axles Axles • • • Axle Seals ** • • • Lug Nuts & Bolts ** • • • Differentials Differentials • • • Hydraulic Systems Hydraulic Pumps & Motors • • Hydraulic Cylinders • • Hydraulic Valves & Controls • • Hydraulic Accumulators ** • • Hydraulic Oil Coolers ** • • Hoses and Lines ** • • Hydraulic Quick Couplers ** • • Hydraulic Oil Filter Mounts ** • • Electrical Gauges/Indicators/Instruments ** • Wiring harnesses ** • Switches ** • Frames & Linkages Chassis/Implement Frames ** • Weldment ** • State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 9 Allied Product Warranty Allied products are not included in the scope of CAT Warranty terms and conditions. All allied products will be sold with the manufacturer’s standard warranty. This warranty differs from manufacturer to manufacturer. If extended warranty is available and ADOT requests extended options from an allied manufacturer, EMPIRE will provide the price on a case-by-case basis. 5. Identify all authorized companies/distributors/dealers located statewide that will be involved in warranty repair services. Please complete the Repair Locations attachment and upload with your response. All Caterpillar product warranty service will be provided by EMPIRE at the most convenient EMPIRE facility, or in the field by EMPIRE employees. Exceptions would be when Allied products have components where warranty repairs are exclusive to other dealers. Example: ADOT’s Kodiak brand snow blowers, purchased from EMPIRE and mounted on Caterpillar 966K Loaders. The machines have a Mercedes engine and the manufacturer requires warranty work to be provided by the Mercedes dealer in Phoenix. The uploaded Repair Locations attachment lists the address of EMPIRE Arizona locations serving ADOT. The map below provides a visual of our geographical coverage with relation to ADOT. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 10 6. Provide detailed information explaining the warranty service capabilities of your authorized dealers Twenty-one of EMPIRE’s 27 stores are capable of machine warranty service and have trained technicians to support repairs. For large components, some EMPIRE remote branch stores may not have the heavy lifting infrastructure or highly specialized machining tools to complete every job. Those components may be shipped to the closest EMPIRE facility that can complete the work. All such transportation will be handled by EMPIRE internally. 7. Describe any parts the “service center” will have on-hand and those that must be ordered. EMPIRE’s current territory-wide parts fill rate for client orders is 98.5% within 24 hours, and 94.97% availability “off-the-shelf” from Mesa, our main store. EMPIRE operates its own parts logistics trucking network which assists in providing this 98.5% parts availability to any store in the state, within 24 hours. These statistics vary from week to week and are the results of a rolling 36 month average. EMPIRE Parts Department is ranked in Caterpillar’s “Top 5” for best performing and largest parts dealers in North America. EMPIRE has a new, used and remanufactured inventory with a net value of over $93 million dollars. We have 21 parts warehouses at our stores, including five locations in the Phoenix Metro area. All stores stock different line items based on the history of “hits” in their local area. Most of the common models that ADOT utilizes are also the common models in each of our store locations. Our lowest over- the-counter fill percentage, from any of our 21 stores, is 93.2% EMPIRE understands that waiting on a part usually means a tractor is down, which can be costly. EMPIRE’s highly experienced staff understands down time and the importance of ordering the right parts and filling a parts request as quickly as possible. 8. Will your company provide a loaner or rental equipment if the equipment is down for more than 24 hours? We do not provide loaner machines. We request you consider our proposal based on these terms only. For dealers representing any brand, contractual loaner guarantees have an incalculable financial risk. No dealer can guarantee 100% of the time that they will have a like-kind machine available and ready at any given moment. But, this deserves more explanation: Our highly valued relationship with ADOT demands we consider loaners in certain circumstances. However, that decision must remain solely at EMPIRE’s discretion and it will be one of several possible solutions for a down machine that creates a critical hardship. State of Arizona ADOT Procurement RFP Solicitation Number: BPM002936 October 20, 2020 11 At a minimum, EMPIRE will provide a subsidized rental machine that is either an exact match or based on ADOT’s input, adequately sized unit at a 50% discount from EMPIRE’s rental rate. ADOT will be responsible for the normal rental wear items associated with a rental for the duration of time the down machine is under warranty. Additionally, if a down machine is causing a hardship to ADOT from a habitual issue that EMPIRE has not yet solved, the probability is high that EMPIRE will provide a loaner at no cost to ADOT, other than the cost of wear items. But again, that decision must remain solely with EMPIRE. Field Service trucks with resident field technicians and parts drops provide a level of service unmatched in EMPIRE’s territory to reduce down time and increase productivity. EMPIRE only employs trained, experienced technicians to support Caterpillar’s full range of products. EMPIRE Technical Communicators (TC) provide additional support to field/shop technicians to aid in rapid product or application issue resolutions. EMPIRE TC’s have a direct line of communication with Caterpillar Inc., through the Dealer Solution Network, to expedite problem solving. EMPIRE currently employs over 2,200 employees, of which approximately 75% are dedicated to product support. With over 22 service locations, over 170 service bays and 200+ field service trucks, these highly skilled and trained Caterpillar trained technicians are in close proximity to provide unmatched service capabilities to meet your service requirements. As part of a commitment to servicing customers, EMPIRE invests nearly $3 million annually in technician, parts counter, and product support representative training. Over the last 70 years, our philosophy has been to provide our customers with a level of product support unequalled in our industry, through a financially healthy and viable company that is dedicated to the business of our clients. Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 1 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Southwest, LLC dba Empire Machinery (Headquarters) ADDRESS: 1725 S. Country Club Drive CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4000 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 2. ORGANIZATION: Empire Machinery (Mesa Main Shop & CRC Rebuild) ADDRESS: 256 W. Juanita Avenue CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4421 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 3. ORGANIZATION: Empire Machinery (Mesa Hydraulic Service) ADDRESS: 1835 S. MacDonald CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4700 FAX NUMBER: TYPE OF SERVICES PROVIDED: Hydraulic Service _ 4. ORGANIZATION: Empire Machinery (Mesa Precision Machining) ADDRESS: 41 W. Iron Ave. CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4425 FAX NUMBER: TYPE OF SERVICES PROVIDED: Machining Service Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 2 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery (Mesa Used Parts) ADDRESS: 34 W. Iron Ave. CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4598 FAX NUMBER: TYPE OF SERVICES PROVIDED: Used Parts Sales 2. ORGANIZATION: Empire Machinery (Mesa Transport) ADDRESS: 40 W. Iron Ave. CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4600 FAX NUMBER: TYPE OF SERVICES PROVIDED: Transport Services 3. ORGANIZATION: Empire Machinery (Mesa Training Institute) ADDRESS: 1855 S. MacDonald CITY/STATE/ZIP CODE: Mesa, AZ 85210 TELEPHONE NUMBER: 480-633-4363 FAX NUMBER: TYPE OF SERVICES PROVIDED: Operator & Technical Service Training 4. ORGANIZATION: Empire Machinery ADDRESS: 21230 N. Black Canyon Hwy. CITY/STATE/ZIP CODE: Phoenix, AZ 85027 (Deer Valley) TELEPHONE NUMBER: 623-760-1100 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 3 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery (Power Systems) ADDRESS: 801 N. 44th Ave. CITY/STATE/ZIP CODE: Phoenix, AZ 85009 TELEPHONE NUMBER: 602-333-5600 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals 2. ORGANIZATION: Empire Machinery (Truck & Trailer) ADDRESS: 840 N. 43rd Ave. CITY/STATE/ZIP CODE: Phoenix, AZ 85009 TELEPHONE NUMBER: 602-962-7961 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 3. ORGANIZATION: Empire Machinery (Rental) ADDRESS: 3215 S. Winchester Rd. CITY/STATE/ZIP CODE: Apache Junction, AZ 85119 TELEPHONE NUMBER: 480-308-9100 FAX NUMBER: TYPE OF SERVICES PROVIDED: Rentals & Rental Service 4. ORGANIZATION: Empire Machinery (Rental) ADDRESS: 25630 W. Durango St. CITY/STATE/ZIP CODE: Buckeye, AZ 85326 TELEPHONE NUMBER: 623-474-0840 FAX NUMBER: TYPE OF SERVICES PROVIDED: Rentals & Rental Service Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 4 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery (Ag Equipment) ADDRESS: 26403 MC 85 CITY/STATE/ZIP CODE: Buckeye, AZ 85326 TELEPHONE NUMBER: 623-925-3020 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 2. ORGANIZATION: Empire Machinery (Ag Equipment) ADDRESS: 8901 W. Highway 287 CITY/STATE/ZIP CODE: Casa Grande, AZ 85194 TELEPHONE NUMBER: 520-374-3500 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 3. ORGANIZATION: Empire Machinery ADDRESS: 3501 W. Houser Rd. CITY/STATE/ZIP CODE: Eloy, AZ 85131 TELEPHONE NUMBER: 520-582-2900 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 4. ORGANIZATION: Empire Machinery ADDRESS: 7600 S. Nogales Hwy. CITY/STATE/ZIP CODE: Tucson, AZ 85756 TELEPHONE NUMBER: 520-746-8200 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 5 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery (Power Systems/Truck & Trailer) ADDRESS: 3830 N. Highway Dr. CITY/STATE/ZIP CODE: Tucson, AZ 85705 TELEPHONE NUMBER: 520-407-3100 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals 2. ORGANIZATION: Empire Machinery ADDRESS: 190 W. Ash St. CITY/STATE/ZIP CODE: Globe, AZ 85501 TELEPHONE NUMBER: 928-402-6410 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 3. ORGANIZATION: Empire Machinery ADDRESS: 3060 Centerpointe East Dr. CITY/STATE/ZIP CODE: Prescott, AZ 86301 TELEPHONE NUMBER: 928-499-6001 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service & Sales 4. ORGANIZATION: Empire Machinery ADDRESS: 2574 W. US Highway 70 CITY/STATE/ZIP CODE: Thatcher, AZ 85552 TELEPHONE NUMBER: 928-387-8700 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 6 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery ADDRESS: 1501 E. Thornton St. CITY/STATE/ZIP CODE: Show Low, AZ 85901 TELEPHONE NUMBER: 928-532-2098 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals 2. ORGANIZATION: Empire Machinery ADDRESS: 3885 E. Gila Ridge Rd. CITY/STATE/ZIP CODE: Yuma, AZ 85365 TELEPHONE NUMBER: 928-317-7800 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals 3. ORGANIZATION: Empire Machinery ADDRESS: 3255 Rutherford St. CITY/STATE/ZIP CODE: Kingman, AZ 86409 TELEPHONE NUMBER: 928-757-1159 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals 4. ORGANIZATION: Empire Machinery ADDRESS: 4900 E. Empire Ave. CITY/STATE/ZIP CODE: Flagstaff, AZ 86004 TELEPHONE NUMBER: 928-526-2800 FAX NUMBER: TYPE OF SERVICES PROVIDED: Parts, Service, Sales & Rentals Authorized Service and Repair Locations Solicitation No: BPM002936 Available online at https://app.az.gov Page 7 of 1 Rev 12/2018 Please list the organization name, address, telephone number and type of service for local authorized service and repair facilities (Within 200 mile radius of Metro Phoenix) for the equipment supplied as a result of this contract. 1. ORGANIZATION: Empire Machinery (Used Parts) ADDRESS: 1605 N. Industrial Park Dr., Suite D CITY/STATE/ZIP CODE: Nogales, AZ 85621 TELEPHONE NUMBER: 520-287-6630 FAX NUMBER: TYPE OF SERVICES PROVIDED: Used Parts Sales 2. ORGANIZATION: ADDRESS: CITY/STATE/ZIP CODE: TELEPHONE NUMBER: FAX NUMBER: TYPE OF SERVICES PROVIDED: 3. ORGANIZATION: ADDRESS: CITY/STATE/ZIP CODE: TELEPHONE NUMBER: FAX NUMBER: TYPE OF SERVICES PROVIDED: 4. ORGANIZATION: ADDRESS: CITY/STATE/ZIP CODE: TELEPHONE NUMBER: FAX NUMBER: TYPE OF SERVICES PROVIDED: ITEM 9. G. TOWN OF FOUNTAIN HILLS STAFF REPORT    Meeting Date: 06/04/2024 Meeting Type: Town Council Regular Meeting Agenda Type: Regular Agenda                  Submitting Department: Administration Prepared by: Linda Mendenhall, Town Clerk Request to Town Council Regular Meeting (Agenda Language):  CONSIDERATION AND POSSIBLE ACTION: Relating to any item included in the League of Arizona Cities and Towns' weekly Legislative Bulletin(s), or relating to any action proposed or pending before the State Legislature.  Staff Summary (Background) This is a regularly recurring agenda item on the Town Council agenda during the legislative session. This agenda item aims to obtain consensus from the Mayor and Council on legislative bills and provide direction, if any, to staff to communicate the town's position on the bills. For every Council meeting, the Legislative Bulletin will be attached to the Town Council agenda, including legislative analysis of the bills and their impacts on municipalities. The Mayor and Council will have an opportunity to review the bills that are under consideration in the Arizona State Legislature and provide direction on supporting or opposing the bills. The Mayor and Council may also bring up other bills of interest to the Town of Fountain Hills for discussion that are not listed in the Legislative Bulletin.  Related Ordinance, Policy or Guiding Principle N/A Risk Analysis N/A Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) N/A SUGGESTED MOTION MOVE to provide staff direction on one or more bills being considered by the State Legislature. Attachments Legislative Bulletin - Issue 19  Legislative Bulletin - Issue 20  Form Review Form Started By: Linda Mendenhall Started On: 05/23/2024 04:27 PM Final Approval Date: 05/23/2024  Legislative Update: Welcome to Week 20 Welcome to the 20th week of the Arizona legislative session. 1,761 bills, resolutions, and memorials have been introduced. Political Environment HCR2060 border; benefits; fentanyl; illegal entry (Toma) was placed on the Senate Third Read Calendar last week but was ultimately held when it became apparent that the measure did not have the votes to pass. Senator Justine Wadsack (R-Tucson) was absent, and Senator Ken Bennett (R-Prescott) expressed concerns about the bill’s potential impact on individuals who have benefitted from the Deferred Action for Childhood Arrivals (DACA) program. The Senate returns this Wednesday and is expected to take up the measure again, but further changes to the bill may be recommended. The Senate Elections Committee also convened last week to consider a strike- everything amendment to HCR2056 S/E relating to elections (Montenegro). The amendment makes substantial changes to election administration. Both Secretary of State Adrian Fontes and representatives for county recorder offices expressed concern over how the proposed changes would be implemented. Committee members acknowledged additional work may be necessary, and the bill passed along party-lines. Meanwhile, the House held an Ethics Committee hearing last week to discuss complaints lodged against Rep. Analise Ortiz (D-Maryvale) and Rep. Oscar De Los Santos (D-Laveen). These complaints stem from an incident in April when the members loudly expressed their displeasure and shouted at other members on the House floor following the chamber’s successful motion to recess rather than consider HB2677 abortion ban; repeal (Stahl Hamilton). That measure has since passed and been signed by the Governor. The committee did not make a final decision about any official reprimand against the members, and the House is now adjourned until Tuesday, June 4th. Zoning Legislation HB2720 accessory dwelling units; requirements (Carbone) would require municipalities with a population of 75,000 or more to allow for the construction of accessory dwelling units (ADUs) or ‘casitas’ on any single-family residential lot and severely restricted the regulation of such ADUs. 13 of the 15 cities this legislation would impact already allow for ADUs, and the remaining two are planning to allow for them. The bill would preempt already established ordinances and those that are being developed in collaboration with residents and replace them with a preemptive one-size-fits-all policy that undermines efforts to ensure new ADUs add to the supply of housing and not investor stock of short-term rentals. Status: Transmitted to Governor Position: OPPOSE HB2721 municipal zoning; middle housing (Carbone) requires cities and towns with a population of 75,000 or more to allow for the construction of middle housing types (i.e. townhomes and multiplex developments) on all lots zoned for single-family residential use within a mile of the city or town’s central business district and in at least 20% of any new development of ten acres or more in size. While there are some additional limitations, the bill strikes a balance allowing for continued collaboration between communities and developers to offer more diverse housing options. Status: Transmitted to Governor Position: SUPPORT Other Bills HB2275: settlement agreements; report; approval (Marshall) requires cities and towns to send reports outlining the details of settlement agreements if they will cost $500,000 or more to the Governor, Attorney General, and legislative leadership. If the cost of the agreement is $1M or more, it would further require those reports to be sent to the Joint Legislative Budget Committee (JLBC) who may recommend amendments. If reports are not sent at least 90 days prior to entering a settlement agreement, it would be deemed legally unenforceable. The measure adds unnecessary layers of bureaucracy that will likely deter municipalities from entering settlements even when it is in the best interest of the community, leading to protracted legal disputes and court proceedings resulting in increased costs to taxpayers. Status: Transmitted to Governor Legislative StaffYou can contact our legislative division at (602) 258-5786 or email using the information below: Tom Savage, Legislative Director: tsavage@azleague.org Marshall Pimentel, Senior Legislative Associate: mpimentel@azleague.org Adam Babica, Legislative Associate: ababica@azleague.org Rachel Merritt, Legislative Intern: legisintern@azleague.org Position: OPPOSE HB2325 backyard fowl; regulation; prohibition (Payne) establishes minimum allowances for single-family homes on lots of one-half acre or less to keep up to six chickens in the backyard of the property. The bill outlines reasonable limitations including enclosure size, maintenance standards, and a 20-foot setback requirement. Status: Transmitted to Governor Position: NEUTRAL #Keepup withus on X. Keep up with the issues and events. CLICK HERE What the League is Tracking League of Arizona Cities and Towns 1820 W Washington Street Phoenix, AZ 85007 info@azleague.org No longer want to receive these emails? Unsubscribe. Stay informed about legislation that affects municipalities throughout the state. Track proposed bills and resolutions, stay updated on their progress, and actively engage in the democratic process. Here are some prioritymeasures the League is tracking: Legislative Bill Monitoring Legislative Update: Welcome to Week 21 Welcome to the 21st week of the Arizona legislative session. 1,761 bills, resolutions, and memorials have been introduced. Political Environment After the passage of a floor amendment to address concerns raised previously, HCR2060 border; benefits; fentanyl; illegal entry (Toma) passed on party- lines last week. The amendment satisfied Senator Ken Bennett (R-Prescott) as it made clear that the measure could not be enforced retroactively, and that probable cause needed to exist to make an arrest, ostensibly protecting beneficiaries of the Deferred Action for Childhood Arrivals (DACA) program. However, Democrats passionately stood against the ballot referral and activists in the gallery at one point caused a commotion as they shouted at supportive Senators. As the end of the fiscal year nears, news of budget negotiations has remained ominously quiet. The Joint Legislative Budget Committee (JLBC) revealed in their monthly report that April General Fund revenues are 1.6% above last year’s numbers but are $9M below their January forecast. Overall, JLBC projects a $1.7B shortfall over the next two fiscal years. The Senate now stands at recess, and the House will return on Tuesday, June 4th. Given the extended recess, the League Legislative Bulletin will be suspended until after the legislature returns. Governor's Actions HB2720 accessory dwelling units; requirements (Carbone) requires municipalities with a population of 75,000 or more to allow for the construction of accessory dwelling units (ADUs) or ‘casitas’ on any single-family residential lot and restricts the regulation of such ADUs. Status: SIGNED Position: OPPOSE Legislative Staff You can contact our legislative division at (602) 258-5786 or email using the information below: Tom Savage, Legislative Director: tsavage@azleague.org Marshall Pimentel, Senior Legislative Associate: mpimentel@azleague.org Adam Babica, Legislative Associate: ababica@azleague.org Rachel Merritt, Legislative Intern: legisintern@azleague.org HB2721 municipal zoning; middle housing (Carbone) requires cities and towns with a population of 75,000 or more to allow for the construction of middle housing types (i.e. townhomes and multiplex developments) on all lots zoned for single-family residential use within a mile of the city or town’s central business district and in at least 20% of any new development of ten acres or more in size. Status: SIGNED Position: SUPPORT HB2275: settlement agreements; report; approval (Marshall) would have imposed burdensome and unnecessary reporting requirements for settlement agreements costing $500,000 or more. The measure likely would have led to protracted legal disputes and court proceedings resulting in increased costs to taxpayers. Status: VETOED Position: OPPOSE HB2325 backyard fowl; regulation; prohibition (Payne) establishes minimum allowances for single-family homes on lots of one-half acre or less to keep up to six chickens in the backyard of the property and preempts local ordinances to the contrary. The bill further outlines limitations including enclosure size, maintenance standards, and a 20-foot setback requirement. Status: SIGNED Position: NEUTRAL League of Arizona Cities and Towns 1820 W Washington Street Phoenix, AZ 85007 info@azleague.org No longer want to receive these emails? Unsubscribe. #Keepup withus on X. Keep up with the issues and events. CLICK HERE What the League is Tracking Stay informed about legislation that affects municipalities throughout the state. Track proposed bills and resolutions, stay updated on their progress,and actively engage in the democratic process. Here are some priority measures the League is tracking: Legislative Bill Monitoring